Kenny Kim, MD, MS Tax, EA

Your rental threw off a $20,000 loss — and your tax bill didn't move a dollar. Here's why. 🏠

The IRS splits income into two buckets: non-passive (your W-2, 1099, interest) and passive (rental real estate). And passive losses generally can't cross over to offset your non-passive income — so they get suspended and carried forward, losing value to inflation every year. Check Form 8582; that's your locked-up loss pile.

There are only three ways to free them — and turning on real estate professional status in year five won't unlock years one through four.

Sitting on suspended losses and not sure how to free them? Book a free consult → linktr.ee/drtaxtor

One blank checkbox on Form 8995-A. 🩺
Physicians are an SSTB — so above the threshold, your QBI deduction phases out. If your preparer leaves that box unchecked, the software hands you a deduction you may not be entitled to.
Free deduction? No. It's a mismatch the IRS can flag.
Part I, line 1, box (b). Ten seconds before you sign.
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He paid himself $24K on ~$200K of profit. The court said $91K. 🧾
That's reasonable compensation — one of the most examined numbers on a physician S-corp return.
Too high costs a few points at the margin. Too low costs back taxes, penalties, and interest on everything.
Those risks are not equal.
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Physician Tax Course — coming! 🎓
I'm a physician turned Enrolled Agent. Master's in taxation, 1,000+ days of study — because a third of my first attending paycheck disappeared and nobody could explain why.
Inside: 1099 income, S-corp elections, rental portfolios, LLCs, side gigs.
Tell me what to build first → https://forms.gle/vztsv6Hd7EhykZuKA

His return said his basis was zero. It was actually $200,000. 😳
That one number would've taxed him twice on money he'd already paid tax on — about $50K.
Ten years of returns rebuilt, phantom gain erased.
Before you sell anything valuable, get your basis checked.
Want to work with me? Book a free consultation → linktr.ee/drtaxtor