qbteachmt
Level 15

"I guess I asked the wrong questions because I have been told I don't know what I'm doing."

No, it was pointed out this is a very basic scenario, and that what you asked flags your level of familiarity as, "Not Very."

And asking how to avoid paying tax on the profit is another "duh" moment.

Only you know if you asked the right or wrong question for what you want to know. Basic questions are answered by learning the profession, going to continuing ed classes for certifications, going to tax refresh classes every year because rules and regulations change, new bills get passed, congress changes their mind.

"He Just created an LLC took the money from his company and deposited it in the new company's account to buy rental property."

Yes, and that's been answered a bunch of times for you. Take them one thing at a time:

Taking money = distribution (or a loan to the shareholder from the S Corp with the note payable terms documented and an intend to repay this loan).

What he did with his own money now that it his, is whatever thing that activity turns out to be. It has nothing to do with the S Corp. A Corporation is its own entity, separate from the human(s).

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