The Challenge
Maya was filing as a sole proprietor with ad hoc bookkeeping and no payroll. Deductions were inconsistently captured for home office, vehicle, and mixed-use expenses like phone and internet. She pays about $2K per month in rent and runs her business from home but lacked a formal allocation policy. Estimated taxes of $40K+ were paid without a clear projection process, and retirement savings sat under $30K in an IRA. With recent state rule changes allowing realtors to use S-Corps, she wanted to confirm if the move made sense, how to implement it, and how to align it with her real estate investing goals.
The Gelt Strategic Approach
We focused on a few core levers that drive durable results without getting into procedural minutiae.
- Right-fit business structure
Selected and timed an entity approach that aligns income, risk, and future growth for Harbor & Hearth Realty Co., with clear guidance on owner compensation and compliance posture. - Clean, reliable financials
Implemented a simple operating rhythm for money in, money out, and documentation so deductions are captured consistently and records hold up under scrutiny. - Expense clarity
Standardized how work-related costs are identified, recorded, and supported. The goal is predictable capture of legitimate deductions without gray-area habits. - Forecasting and tax rhythm
Built a recurring review cycle that keeps taxes and cash flow in sync, reducing surprises and preventing chronic overpayment. - Advisor alignment
Curated a short list of planners who understand real estate operators, with an emphasis on flat fees, responsiveness, and practical deliverables. - Investment scalability
Created a simple framework for adding properties each year that keeps ownership, capital, and documentation organized as the portfolio grows.
Results & Implementation Roadmap
Immediate wins
- S-Corp election with payroll and an accountable plan positioned Maya for $30K in annual tax savings on a $400K income scenario.
- Clean chart of accounts and written expense policies to capture deductions that were previously missed or under-documented.
First 60 days
- Opened business banking, formalized payroll cadence, and automated bookkeeping feeds.
- Launched mileage tracking, home office worksheet, and meals documentation.
- Delivered the first quarterly tax projection and adjusted estimated payments accordingly.
90–120 days
- Shortlisted and interviewed two to three flat-fee advisors, then finalized ongoing planning support.
- Reviewed the prior-year return for retroactive opportunities and ensured carryforwards are tracked.
- Drafted investor-friendly templates for future partnerships and private lending.
12-month outlook
- Continued projection cycle to maintain savings and liquidity.
- Executed the next property acquisition using the playbook with clear entity and capital structure.
- Evaluated retirement and tax-advantaged contributions once S-Corp cash flow stabilized.
Conclusion
Maya moved from a reactive Schedule C setup to a simple S-Corp system with payroll, documentation, and quarterly projections. The result is cleaner books, stronger audit posture, and reliable annual savings of $30K. With a repeatable plan for new properties and a curated advisor bench, she can scale income without losing efficiency.
I finally understand my numbers and what to do each quarter. The structure is clear, my deductions are documented, and I can focus on closing deals.
— Maya, East Coast Realtor
Disclaimer: This case study is based on a real client engagement. Certain names, locations, and identifying details have been changed to protect client confidentiality. The challenges, strategies, and outcomes described reflect actual facts. Show more
This material is provided for informational and educational purposes only. It does not constitute, and should not be relied upon as, tax, legal, or accounting advice. Each individual’s circumstances are unique, and readers should consult their own qualified professional advisors before making any decisions.
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