Have a Tax Question? Ask a Tax Expert
1) Where can I apply the EIN number as soon as possible because my bank requires it ASAP? Does it require pay the fee around $200 to apply for it or is it free? ... https://sa2.www4.irs.gov/modiein/individual/index.jsp
2) Is it better to put my company name Inc. on the title vesting so all my business expenses such as all escrow closing fees, remodel fees, and the "short term" capital gains(if I am correct after the property sell to next buyer) will be allowed to deduct all business expenses instead of under my personal name? Either way ... If you set uyp as a passthrough like a sole proprietorship LLC , etc ... everything flowas through to your personal 1040 anywqay
How about the remodel fees, does it have to be coming from the business bank account or can I write the check come from my personal bank account as I have filed a corporation now. Smae answer... if it's a ligitimate business expenses, you can write it off ... some things will be a write off and some things will add to you basis in the property (depending BOTH on the item and on holding period)
3) Still confusing what kind of corporation should I use C-corp or S-corp as a self-employed realtor, renting a room and paying installment auto loan per month(not leasing) both under personal name, as I still don't know my new X Inc. is under C-corp or S-corp?? Which one will be more suitable for me? Really depends on your business model .... I recommend an LLC, as it provides the liability protection and personal capital benefit without the doube taxation of a C-corp
4) Recently purchased a short term flipping property. After it gets sold, thinking about doing 1031 exchange, so should my title must be under company corp. name or is ok even under my personal full name for tax purposes? Again depends on whether you do it as a pass-through or not.... ownership needs to be the same
how can I close the screen and see your answer much clearly as I only can see a few columns?
a string of other things too.... like klind property, qualified intermediary, buying up, not down, etc etc
5) If renting a room and paying installment auto loan per month(not leasing) all under corporation name instead of under individual personal name, is it able to deduct 100% as business expenses? How does it work if under corporation name for tax purposes? You can use the portion of the room that used exclusively for business with the home office deduction and on the car i I would use mileage, much easier than actual cost ... can't do both
I'll mov e us to Q&A so you can see everything
Hi professional adviser:
Thank you so much for your promptly response.
1) You recommend an LLC, as it provides the liability protection and personal capital benefit without the double taxation of a C-corp. My CPA told me an LLC filing fee based upon the calendar year total gross amount, but the taxation is always based upon the total profit and loss, right?
2) What are the big differences between LLC, C-corp and S-corp? Why LLC provides more liability protection than Corp?
3) After I get a new EIN under Inc., will I able to change from Inc. to LLC or close the Inc. to apply filing a new LLC? Need to get another new EIN for LLC or use the same one before from Inc. EIN?