You mean to say your friend incorporated for tax purposes because owning three houses would've been resulted in being taxed at a higher rate? That should be evidence enough.

Unrelated but related: shell companies for the purposes of evading taxes should also not be an acceptable practice.

[–] Gregorech@lemmy.world 1 points 10 months ago

That and as a real estate agent in Southern California it helps with his tax burden when selling houses near 1M. If the commission goes to his corporate account pays himself a taxed salary it's less than the taxes for the full amount. The rental is more of a long term investment than a profit from rent.