06/26/2026
An S corp generally isn’t my first recommendation for holding real estate...
It’s because it can *really* limit your options with your property.
It can be tough to get the property out without a taxable event, plus you lose flexibility with ownership changes.
For rentals, an S corp isn’t usually the most tax-efficient option.
A lot of business owners use their S corp to save on self-employment taxes, but rental property income generally isn’t subject to SE tax.
Before you buy a new rental property, check with your tax accountant to figure out how to structure things the right way from the beginning.