How do you pair stock trading income with real estate investments to qualify as an LLC? S Corp. 70% income comes from trading, then rolled into rentals.

MARK KOHLERMain Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, LLC · Owner at Main Street Professionals, LLC

The hidden benefit of pairing stock trading with rentals

20 Feb 2026 · 1 min

Watch on YouTube

0:51

In this YouTube Q&A, speaker A asks how to combine stock trading income (about 70% of total earnings) with real estate investments using an LLC or S Corp. Mark Kohler explains that the key is to elect real‑estate‑professional status, which allows full deduction of rental‑related expenses and avoids self‑employment tax. He advises funneling trading profits into tax‑advantaged accounts like a Roth IRA or Health Savings Account, and emphasizes that an S Corp is unnecessary for this structure. Kohler stresses maximizing write‑offs, treating the LLC as the business vehicle, and taking profits freely once the real‑estate‑professional election is in place.

Questions this video answers

You can place the rental property in an LLC and also run your trading through that entity. The key is to elect real‑estate‑professional status, which lets you take all rental write‑offs and avoid self‑employment tax. You don’t need an S Corp; instead, funnel profits into Roth or HSA accounts and take the profit out as you wish.

Chapters

How do you pair stock trading income with real estate investments to qualify as an LLC? S Corp. 70% income comes from trading, then rolled into rentals.
So in this example, this person says I have rental property, we're going to put that in an LLC and then they do trading. Now I'm hoping you're funneling money into a Roth or your health savings account. So you at your llc, your business, this is your trick. I don't care about 70% of your income coming from trading. Care. I don't know all your facts, but what I would want to see you do is make the election as a real estate professional. See, as a real estate professional, I can take all of your write offs here. This is your business and you can take the profit out all you want. No self employment tax. You don't need an S corp, you don't have to have one. This is perfect. I have clients doing this all the time. You're a real estate professional. I want you to take all the write offs you can here. And as a real estate professional, there's no limits.