A property owner has a commercial building he bought in 2001
A property owner has a commercial building he bought in 2001 that he rented to another business owner. Several years later the tenant goes out of business and vacates the building. The landlord finds the occasional tenant but nothing permanent and finally stops paying the mortgage and the property taxes. In about 2012, both the city and lender bring legal actions against the owner for what is owed them. In 2014, the city seizes the property for the back taxes and promptly sells it, leaving no money for the property owner or the lender. In 2015, the lender agrees to a $75,000 settlement of its debt. At the end of all this, nobody issues any tax documents to the property owner, who is left to decide the tax consequence. The owner has lost about $200,000 in total. So, for 2014 and 2015, how is the loss figured and is it ordinary or capital? The property is in Chicago and the owner resides in Connecticut.
We did a lease to buy on an equipment through a bank and I'm
We did a lease to buy on an equipment through a bank and I'm wondering how we would list this out in QBO for the Chart of Accounts/ Classifications.The bank takes an ACH every month for the repayment of the machine. It's a $1 buy out type of lease.
We have a small co-op for homeschool. We have donated
We have a small co-op for homeschool. We have donated inventory, supplies, P E Equipment, microscope. How do I code that on the chart of accounts?JA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: I have an inventory. Some came from donations, some came by class fees. I know I need to do a journal entry. But not sure how to code it and what type of account inventory should be.JA: Is there anything else the Accountant should be aware of?Customer: no
I wrote moments ago about a trust. How would you suggest
I wrote moments ago about a trust. How would you suggest presenting the following scenario to a trustee for approval. I want to live on a boat - permanently. I pay 1550 per montn in rent and utilities. My costs for ownership of the boat would be the same or less.
Thank you in advance; My husband and I will retire in four
Hi, and thank you in advance; My husband and I will retire in four years. Our home and all debt will be paid off. My children, mother and our only grandchild live in Michigan, while we live in Louisiana. My husband and I intend to spend 6 months a year in Michigan when we retire.My mother is aging and wants to stay in her home there. (She purchased my large victorian from me when I moved down south.) We are considering paying off her mortgage for her when we retire, and then living on one floor of the home, enabling her to continue living there.There is currently a tenant in the basement apt who has lived there 15 years and pays $600 monthly. Mom lives on the 2nd floor and we would live on the main floor (1500 square feet.) If we did this, eventually we would rent the upstairs apt for about $800 monthly. The house's monthly expenses, including taxes and maintenance, are about $800 monthly.My husband will have retirement of about $50k a year after taxes, and our expenses will be about half of that. We will only be 55, so we will be self-funding our insurance for 10 years. We will have about $200k in our retirement investment, and we would pay off her mortgage of approx $60k from that.Does this seem like a sound investment vs purchasing a Class C RV or renting an apartment every year? We would be absentee owners 6 months a year (during snowy winter months) but our daughter will be available to attend to any issues.Again, thank you for your advice!
JD, MBA, CFP, CRPS
I drive on the side for Lyft, kind of... I drive on the side
Hi, I drive on the side for Lyft, kind of...Hi, I drive on the side for Lyft, kind of like uber but newer and maybe better. .I have recently come across a chat on a thread about about taxes and how as independent contractors, us professional drivers can recieve a tax break for miles driven on the clock. Interesting idea! But none of themseemed to have any real knowledge. Can you enlighten me on this?
Manal Elkhoshkhany I figured out the first part. I just need
For Business Tutor Manal ElkhoshkhanyI figured out the first part. I just need to figure out the free cash flow.Additional Data (from the screenshot) :1. Dividends declared and paid were $19,400.2. During the year equipment was sold for $9,800 cash. This equipment cost $17,800 originally and had a book value of $8,000 at the time of sale.3. All depreciation expense, $13,700, is in the operating expenses.4. All sales and purchases are on account.