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Recent Passive Income questions

My wife and I own 3 investment properties and one makes

Hello. My wife and I own 3 investment properties and one makes taxable income and the other two lose money. My question is can we use the losses in the two to offset the income in the other, and over the long run can we use the cumulative losses in the two to offset any gain should we sell one? We don't manage the properties full time and our wage income is over $160,000.

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emc011075

Tax advisor and Enrolled Agent

Bachelor's Degree

4,942 satisfied customers
I have 3 houses that I rent, my property manager, who is a

I have 3 houses that I rent, my property manager, who is a realtor, discount her and the lawn mower money before depositing me my part. The total amount taken by the manager and the lawn mower is more than 600 a year.I have three questions:1. Do I have to report management and maintenance fees described above when doing my taxes or just entering the net amount I receive is enough?2. Do I need the manager to provide receipt or invoice or just showing my bank statements to an eventual IRS auditor will be enough?3. Do I have to provide the manager and the lawn mower a 1099 tax form?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

19,754 satisfied customers
2015 Situation, A property that has been a rental property

2015 Situation, A property that has been a rental property of the decease (DOD 10/1205) and reported on personal taxes for several year was transfered to it's beneficiary -- Warranty Deed (12/2015). The Property was in a Trust for 54 days before the transfer took place. The beneficiary were the tenants of the property. The tenants paid the XX Revocable Trust it's rent until the indenture took place. Assuming that the two rents received after death is recorded as income on the Trust return. From DOD to this indenture date, does this property declared on the 2015 1041? The decease had unallowed loss from previous years. What happens with all the losses?

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taxmanrog

Master's Degree

1,020 satisfied customers
I have large deferred passive losses from a rental. I have

I have large deferred passive losses from a rental. I have previously declared being an active participant. If I have a year making less then $10000 of other income, do I have to take the $25000 "allowed loss" ? I am already going to pay no federal tax?. Can I elect not to be an active participant?JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?Customer: The home is rented by one of my children.

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Robin D.

Vocational, Technical or Trade School

22,424 satisfied customers
I started receiving SSD and will get my first check this

Hi. I started receiving SSD and will get my first check this week. They sent me a check for retroactive pay last month. Do I pay taxes on these?JA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: I receiveive pay I receivedd a lump sum payment for the retro active pay dated from 6/14. Do I have to pay taxes on the monthly check and the retro active pay I received?JA: Is there anything else the Accountant should be aware of?Customer: I also get workers comp from a private company every 2 weeks. The total of the 2 equals $2681.10 before any lawyers and medicare deductions.

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Robin D.

Vocational, Technical or Trade School

22,424 satisfied customers
I have a small web development/marketing business. I read an

I have a small web development/marketing business. I read an article that says there is a provision in the tax code that says... for time that I work IN the business, the IRS considers this earned income and I am taxed at my normal rate. But for time that I work ON the business, the IRS treats that as investment income and therefore I can pay 15.3% less on that income.The people who wrote the article say this is true, but do not show a particular tax code reference. I have never heard of this before. I can certainly ask my accountant, but I figured I'd try here first.Thank you for the info.

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

19,754 satisfied customers
I am currently a 50% partner of a Texas LLC which is in it's

Hi,I am currently a 50% partner of a Texas LLC which is in it's 9th year of successful operation.This past year, I have been absent from daily operations and management of the business due to other business interests. My partner and I have both agreed I would decline a salary and be removed from payroll going forward and be removed from daily management duties.When it came to taxes, I have always had a W2 and a K1 from the Texas LLC and paid my taxes based on my personal tax rate.My question is, now that I am not an employee of Texas LLC and in essence a silent equity partner. Can I categorize this income as capital gains?By the way, my partner and I both agreed to have the K1 from the Texas LLC pass through to my new "Holding LLC" rather to myself.Thanks,James

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

19,754 satisfied customers
With regards to a net operating loss calculation, a taxpayer

With regards ***** ***** net operating loss calculation, a taxpayer sold a publicly traded MLP that freed up $100,000 in losses that flowed to the front page of form 1040 and will create a NOL. In calculating the NOL classification worksheet, is that loss a Business loss or a non-business loss ????

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

19,754 satisfied customers
My daughter is a US citizen, married to a citizen of the UK.

My daughter is a US citizen, married to a citizen of the UK. She has lived in the UK for nine years. He started a business in 2010. It now includes sales of computer equipment and service bureau which provides computer services. They both receive yearly incomes and dividends which are taxed at UK rates. They are both 50% owners of the business. He is currently negotiating the sale of the entire business. The UK will tax proceeds as a capital gain (at 10% entenpreneur rate). How can they minimize the US and Ohio capital gains tax for her ?JA: The accountant will know how to help. Is there anything else important you think the accountant should know?Customer: Her share of the proceeds may exceed $400k. As an asi9de, a ;local tax accountant advised me that she did not have to file a federal od state return for the dividend and salary she has been receiving for the past five years. While doing research fot this capital gains situation I have determined that the advise I was given was incorrect. He dividends have averaged about $17,000 pounds, her salary about $7,000 pounds.The sale price is in pounds.

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Robin D.

Vocational, Technical or Trade School

22,424 satisfied customers
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