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My wife is a realtor. She receives a 1099 and we pay taxes on that. I was talking to one of her fellow realtors and she told me that she had incorporated and now all her earnings come down to her as pass through (I assume as dividends?). I wonder if this is a good (and legitimate) strategy?

Pass through entities generally pass the income along to their owners as income, not as dividends. The advantage of a pass through entity is that the income is not taxed as at the corporate level, only on the individual level. Depending on the specifics, it can still be subject to self-employment (SS) taxes. However, with the TCJA passage, there is an additional tax break of up to 20% on pass-through income. You would need to talk to a tax advisor about your wife's specific circumstances to see if forming a pass-through entity for her would be useful.

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