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Recent Passive Income questions

I have two forms of income. 1 income as a consultant AND 2

I have two forms of income. 1 income as a consultant AND 2 income as owner of rental real estate. Will I get credit for the income from the real estate income for future social securityJA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: What do you want to know?JA: Is there anything else important you think the Accountant should know?Customer: Income from Rental property is approx 50,000 but expenses are around 20,000. The income goes into my tax return which is a joint return.

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

9,014 satisfied customers
I have a house (single family dwelling) that I converted to

I have a house (single family dwelling) that I converted to a rental property. I am now in the process of selling the property. Extensive maintenance was needed, as well as upgrades in order to offer the property for sale at a reasonable sales prices.What expenses may I claim as part of the rental property? Can any expenses be claimed to offset capital gains that will accrue with the sale? How should I derive the point in time where the rental ended and the improvements to sell the house began?

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ABC Accounting Group

Bachelor's Degree

184 satisfied customers
I have an annuity with that was set up approximately three

I have an annuity with ***** ***** that was set up approximately three years ago that pays me every month. It's not a great amount. ***** ***** moves things around in my portfolio, on which I pay taxes and, of course, I pay taxes on the monthly amount. I feel like I'm paying taxes twice on the same thing. I am thinking of cashing in the portfolio and using the proceeds to buy a house as rental property. Would this be a good idea?JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?Customer: I have no idea, I'm a real novice in this area.

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Robin D.

Vocational, Technical or Trade School

21,190 satisfied customers
I cashed out my foreign employer pension and taxes were paid

HiI cashed out my foreign employer pension and taxes were paid to the foreign country.When filling out Form 1116 (to claim a credit for these foreign taxes), should I used the "Lump-Sum Distributions category" box or this doesn't fall under the "lump sum distributions category?The type of foreign pension was very similar to a 401K. I was contributing money and the employer was contributing as well. I am living in the USA so I cant claim the tax treaty benefit of Form 2555.

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Robin D.

Vocational, Technical or Trade School

21,190 satisfied customers
Lane How to report rental income for the following scenario

Hello LaneHow to report rental income for the following scenario (1) on Schedule C or E? (2) Passive or Active? (3) if on Schedule E, can I combine them all together?1. 5BR vocational house rented for 9 nights in 20152. 2Br vocational Villa rented for 8 nights in 20153. 4BR vovational cabin rented for 13 nights in 20154. 1BR NYC apartment rented for 223 nights

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emc011075

Tax advisor and Enrolled Agent

Bachelor's Degree

4,192 satisfied customers
I have a question redgarding NY state individual tax return,

Hi,JA: Hi. What is your issue regarding?Customer: I have a question redgarding NY state individual tax returnJA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: I have a K-1 presenting a federal passive loss (rental loss) of 14629. The NY addition (EA-16) is 14449, which means the NY loss is only 180. The PAL is not deductable this year. I would like to know whether on form IT-182 the NY loss to be presented is 180 or 14629. If the latter - does that mean there is a taxable NY income of 14449 (the addition)? And finally, next year, if PAL could be used on NY return - will I be using a PAL of 14629 or 180, or in other words do NY additions and subtractions of prior years have to be taken into account in the year when using the PAL.JA: Is there anything else important you think the Accountant should know?Customer: I think I gave the full information - hope its clear

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Dr. Fiona Chen

President

Ph.D.

550 satisfied customers
Scenario: I'm in the 31% tax bracket and the commercial

Scenario: I'm in the 31% tax bracket and the commercial building that I hold in a single person LLC is now providing significant income pass through via form 1065 to my personal return. I have bought a new single family rental property as an individual since I couldn't get a lender to finance it in the LLC. The new property will have a loss and I would like it to cancel some of the LLC properties gain.Sidenote: I feel that the LLC is not serving me well (I have very good insurance coverage on the building, I personally guarantee the commercial building loan any way, alot of extra hassle). My commercial lender is in the process of re-financing the LLC's building so now would be a good time to get their approval to transfer back to me personally. Both properties and the LLC are in Washington State, so it is only a federal tax issue.My Belief (may or not be true): I assume the loss on the residential rental property(closing costs, maintenance, minimal rent income) will not reduce my personal tax burden for 2016? I'm under the impression that gains after depreciation, taxes, interest, etc on rental real estate are taxable as additional income but losses will not reduce my adjusted gross income.Question: Am I correct? If so, then it seems I need both properties in the LLC or both out of the LLC to accomplish my goal. Is the transferring the commercial bldg. from the LLC back to me personally a taxable event? Anything special I must do to make sure it is not. Any other thoughts, advice?

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Mark Taylor

Certified Public Accountant

Masters

1,228 satisfied customers
I would like to know how to calculate Part V (Distributions

I would like to know how to calculate Part V (Distributions From and Dispositions of Stock of a Section 1291 Fund) of Form 8621 for my situation. I'm a US permanent resident. My 2013 Tax status was non-resident, and 2014 tax status is resident. This question is for Tax year 2014. I bought foreign stocks through a trading account while I was in India. In the year 2014 I sold all those stocks. Let's take a specific stock ABC. I bought several lots of this stock over a period of time, all prior to 2013 but sold them all on the same day in 2014.

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Dr. Fiona Chen

President

Ph.D.

550 satisfied customers
I'm forming a single member LLC in Texas, and this LLC will

I'm forming a single member LLC in Texas, and this LLC will have only one purpose: investing in rental real estate properties. At first glance, it appears that I would file Schedule E for the income and expenses because this is considered passive income, and you would not be subject to self-employment taxes. HOWEVER, I read on a forum that if you structure the LLC as a member managed LLC as opposed to manager managed LLC, that you would incur self-employment taxes and have to file Schedule C. Now I'm confused about how to structure the LLC. Can you please provide me with a detailed explanation of how I could actually structure things that would ensure filing Schedule E and not paying SE taxes unnecessarily?

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Mark Taylor

Certified Public Accountant

Masters

1,228 satisfied customers
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