Your new client, Ricardo Salazaar ("Salazaar"), is a dentist. His filing status is Married Filing Jointly. His spouse does not work. He owns and operates a dentistry office through an S corporation, Dentistry Gold Inc. ("Dentistry Gold"). He is the sole owner of Dentistry Gold. Last year Salazaar purchased the land and building where he operates the dental practice. His attorney advised him for legal reasons to set up another S corporation to own the real property separate from the dental practice and not in his name and rent the building to Dentistry Gold. The new S corporation, that owns the land and building, is called Gold Land, Inc. ("Gold Land"). Since Dentistry Gold already had a lease agreement for the rental expense the previous tax advisor instructed Salazaar to have Dentistry Gold's business attorney to prepare a lease agreement between Dentistry Gold and Gold Land on the same terms and conditions. Dentistry Gold paid a salary to Salazaar of $140,000 for the 2023 tax year. The net rental income earned by Gold Land is $50,000 for the 2023 tax year. The net ordinary income earned by Dentistry Gold for the 2023 tax year after all expenses is $150,000. Dentistry