Is there an accountant in the house?

[The Sauce]

I have a side gig doing vacation rentals. I just bought my third property and decided it was time to set up a business entity. My accountant, who I like a lot, is rather clueless to the new tax code changes. I am currently set up as an LLC to take advantage of the passthrough income relief, but I am starting to wonder if S Corp might have been a better option, assuming I will be reinvesting most of the earnings into the business to acquire more units in the future. My marginal tax rate is maxed out from my primary income source. No planning to act on any advise I get here, but hoping to possibly validate my concern. Any advice is most welcome!

 

[s0me0nesmind1]

I hate income tax.... Indirect taxes (sales, excise, etc..) are so much more logical - which is what I work in so I can't help you too much here.

But anyhow, you aren't the only one asking questions like this, it's fairly easy to google this stuff - just make sure you phrase everything correctly. A good forum to ask these questions might also be bogleheads.

Best of luck. Also, don't pay your accountant too much - as knowledgeable as they might act like, I guarantee you they aren't. I recommend you study up and read your tax returns after they file them... It's seriously not hard to grasp when you're looking at the results.

EDIT: Also, let me stress this - Just because someone is an accountant does not mean they are knowledgeable on tax. Tax is a complex mess of laws, regulations, and different methods. Just a PSA. Your ability to have a CPA doesn't translate directly to tax.

 

[RLGL]

My accountant, who I like a lot, is rather clueless to the new tax code changes

Don't blame the accountant, everybody else is also trying to figure out the ramifications, including many state legislatures