"MichelleinAtlanta" <me[at]you.com> wrote:

- quote -

You may find that your client's participation in her rental
properties doesn't satisfy the material participation
requirement(s); this is *still* needed for the "unlimited
losses" on her rental properties to be available to her.

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My client is a self-employed real estate agent who has
always filed a Schedule C (net is always > $200,000). She
wants to incorporate as an S corp and pay herself salary,
etc. She also has started investing in rental properties. I
think she should continue to hold these individually, or as
a sole member LLC (which is allowed in GA). I believe the
real estate professional rule, allowing her unlimited losses
on rental property, would still apply, even with her main
real estate activity being in an S corp. Any words of wisdom
or caution I should be aware of are appreciated!

Michelle Botwinick
Atlanta, GA

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