John own two LLCs and one S corporation. Each of the LLCs holds rental real estate.

LLC 1 holds a six-story, multi-unit building. The minimum tenant stay there are 31 days. And there are mandatory housekeeping serviced provided on a bi-weekly basis.

LLC 2 holds a single-family home rented on an annual basis.

Both LLC's pay the S corporation a management fee.

John is the sole employee of the S corporation, from which he took a full-time salary for managing the two LLCs, where he materially participates. All his time spent running the three businesses.

- John takes a salary of $50,000 from the S corporation.

- The S corporation provides a 401 (k) plan for its employees. John contributes the maximum to the 401(k)

- Gross rental income is $360,000 for LLC 1 and $60,000 for LLC 2.

-Rental expenses (excluding depreciation and management fee) for LLC 1 are $90,000 and $25,000 for LLC 2.

- Depreciation expense for LLC 1 is $25,000 and for LLC $16,000.

-The management fee from LLC 1 is $138,000 and LLC 2 $43,000.

Link Projection #1

https://docs.google.com/spreadsheets/d/1bj9KsvleGYLj45CPfE9fs-22c1-Q-LZDJfCTS9RsPY0/edit?usp=sharing

Projection #1 Year 2018 projection. Used corrected 2017 numbers, adjusted for new law and new 401(k) limits.

Questions:

Using the numbers from projection #1, adjusted accordingly, do the following:

1. Projection #2 Same as #1, plus: rental activities assumed eligible for 20% flow-through deduction.
2. Projection #3 Same as #2, plus: LLC 1 is a trade or business on Schedule C.
3. Projection #4 Same as #3, plus: S corporation is eliminated, other expenses moved to Schedule C.Do SEP IRA contribution.