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Barbara
Barbara, Tax Preparer
Category: Tax
Satisfied Customers: 929
Experience:  Tax Preparer for 16 years; 25+ years experience as a real estate/corporate paralegal.
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Hello,
I have 3 properties. Residence address WI, work in MN and bought fixer upper condo by work 2 years ago for convienience, purchased fixer upper in FL last fall by my daughter and her children of where I am trying to make plans to move to. Still employed in MN.

estimated amounts owed on them: WI-$51K to bank w/payments $356/mo; MN-$22K payments $277/mo family member, and association dues $252; FL-$10K loan on my 401K through my employer. Extra debt-7K previous loan from 401K for my daughter's home and about $40K loan for her home in my name of which she is listed as having interest in the property as well on the deed.

both my children and their families live in the southern states and I would like to be down there with them and their children.

I would like to sell my WI property, use the money to pay off the loan owed on it and payoff the $10K through my employer on the loan for the condo There are no jobs to speak of down there, the unemployment nations high and the highest home forelosure rate of all the states.

Florida does not have state income taxes. Wisconsin does have income taxes.

I am a full charge bookkeeper where I am at now.

For income down there in FL,
Babysitting:
1)I will be watching her children before and after school and her newborn baby that is scheduled for delivery mid April days a week and everyother week-end. (she is a nurse and so does not have a normal m-f schedule with 7a-7p shift). Will be seeking to find 2 more children to watch for before and after school during school year season.
2)start a small home business of doing payroll-with hopes of just have 2 or 3 small clients a fews days of the week.
3)keep the condo in MN and use as rental property-may do this while living out of the area because the heat, roof, clearing of snow, and such are taken care of by the condo association and the bylaws state we can rent them out as long as our rental agreement is in line with the bylaws of the association

Tax question
daycare/babysitting income:the home I purchased was a foreclosed home, it does need elbow grease and money so I may use it to watch children in it.
payroll business: have been looking into getting this going. the American Payroll Associaton has a membership, training, and CPP certification of which is not cheap. at least on my current budget of transitioning with the properties. I would like to start getting the items with this association now, because the national testing for certification is only done 2 times a year and only issued in certain places throughout the US when they do.
condo-will need a little more elbow grease and money to rent out

for all the expenses to get the incomes mentioned above, if they paid out before my business is registered with the state, can I still use them as deductions/expenses for them. Or do they have to wait and be dated after business is registered with state. If they have to be paid after business is registered, I would have to register all 3 with state of wisconsin because that is my place of residency, then disolve the business registered in WI, and register them in florida when I move. I will not be able to move to florida until my WI place sells, as it is where my funds to be able to move are tied up.

for the payroll business, I am looking into the LLC classification. Checking into this at the moment. It appears a LLC does their taxes separately during tax filing time similiar to a corporation, is this correct as well? the the rental cond unit and daycare goes on my individual taxes.

Does daycare and rental property need to registered and listed with the state of FL when I move down there?

Also, would I be able to deduct my moving expenses down there as well

thanks so much for reviewing and responding to my inquiry
I am sure I have talked in circles, but I am trying to look at my options and see how the cost of my plans may be used on my taxes for the business/income they are intended and used for. I am hoping I gave too much info, rather than not enough
Submitted: 1 year ago.
Category: Tax
Expert:  Barbara replied 1 year ago.

bkb1956 :

Thank you for allowing me to be of service to you regarding your tax questions. If you were to form an LLC and you are the sole member, you can utilize Schedule C of your personal 1040 to report income/expenses. In Florida, your daycare business would require obtaining a business license to do so, but rental property does not. If you are moving from Wisconsin to Florida because of employment/job, you will be able to deduct moving expenses. Please let me know if I have answered all of your concerns. If not, please come back to me for clarification. Thank you.

Customer:

yes, I know moving expenses can be deducted for employment/job; but I am currently employed and when going down there I will be self employed. can the moving expenses still be deducted?

Customer:

yes, but I am currently employed and when moving down there i will be self employed, so not moving to become employed by an employer for a job, can they still be deducted? or does that not matter?

Customer:

whoops, did not realize when hitting the enter key it would send reply, so reply sent twice before done with my response

bkb1956 :

I will forward the criteria for moving expenses in a moment.

bkb1956 :

I believe you can claim your moving expenses based on the following http://www.irs.gov/publications/p521/ar02.html#en_US_2012_publink1000203446

bkb1956 :

I have appointments with clients for the next several hours, but please post any further concerns you have, and I will answer them when I return if you are willing to wait. Thank you for your patience.

bkb1956 :

Who Can Deduct Moving Expenses



You can deduct your moving expenses if you meet all three of the following requirements.





  • Your move is closely related to the start of work.




  • You meet the distance test.




  • You meet the time test.





After you have read these rules, you may want to use Figure B to help you decide if you can deduct your moving expenses.


Retirees, survivors, and Armed Forces members. Different rules may apply if you are a member of the Armed Forces or a retiree or survivor moving to the United States. These rules are discussed later in this publication.

 







Move Related to Start of Work






Your move must be closely related, both in time and in place, to the start of work at your new job location.


Closely related in time. In most cases, you can consider moving expenses incurred within 1 year from the date you first reported to work at the new location as closely related in time to the start of work. It is not necessary that you arrange to work before moving to a new location, as long as you actually go to work in that location.

bkb1956 :

I will chat with you later. Thank you.

Customer:

I will review the link to the IRS you provided and let you know if I have any questions regarding it. However, I will not be get back for awhile. you reviewed and commented on the employer/job area, but I see there is an area that covers those who are self employed. If you want to, you may look at this section further down the pub where it has an example of a self employed accountant moving to another state. In mentions he has to have 78 weeks of full time work within 2 years in the same general area of where he moved to. Please check this out and see my first inquiry. It appears if I am self employed before moving, I full fill the requirements.

Customer:

another question, at tax time do I fill out a schedule C for each business, one for the llc payroll company, one for the daycare, and one for the condo rental? thanks

bkb1956 :

I will answer your last question first. You will utilize a Schedule C for each business (payroll and daycare) and the condo rental would go on Schedule E (rental property).

bkb1956 :

As to the self-employed aspect, please see the following:


For purposes of the time test for self-employed persons, the following three rules apply.





  • You count any full-time work you do either as an employee or as a self-employed person.




  • You do not have to work for the same employer or be self-employed in the same trade or business for the 78 weeks.




  • You must work within the same general commuting area for all 78 weeks.




bkb1956 :

It is my opinion that you would qualify to deduct moving expenses. Please let me know if you require further information or clarification when you are able.

Customer:

thanks for the info on the schedules for each one and verifying with what I see that I can deduct the moving expenses.

Barbara, Tax Preparer
Category: Tax
Satisfied Customers: 929
Experience: Tax Preparer for 16 years; 25+ years experience as a real estate/corporate paralegal.
Barbara and 8 other Tax Specialists are ready to help you

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