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Recent Passive Income questions

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.

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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

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My Client uses personally owned trucks -100% use. He leases

My Client uses personally owned trucks -100% for business use. He leases the trucks back to his own LLC (owned 100% by him and his wife, taxed as a partnership). Can he lease a work truck to his own LLC and ALSO claim tax deductible expenses (through his 1065) all "actual expenses" of the vehicle (gas, repairs, insurance, etc) as listed in IRS Topic 510 (lease in lieu of depreciation)? Note: He also claims the lease payments as income on his personal tax return (via 1099) as "passive" income.

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Robin D.

Vocational, Technical or Trade School

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20,588 satisfied customers
An architect is making close to $200,000 yearly. Currently

Hello Stephen,An architect is making close to $200,000 yearly. Currently he owns a second property in the Florida Keys which is declared in Schedule A .He is thinking of renting this property part of the year and he is considering to open a LLC to get more protection of his assets. If the LLC becomes a corporation and later an S Corp, he can only upset this corporation income against other passive income, correct?. In other words, if he has a loss in his rental property he will not be able to deduct his losses due to his high income

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emc011075

Tax advisor and Enrolled Agent

Bachelor's Degree

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I recently lost my job. I was the only income family of 4.

I recently lost my job. I was the only income for my family of 4.To "save" our house, we moved back in with my parents, and started renting our Primary Home to Med Students at a local Med School. We hope to move back in in the next 3 to 4 years.To try to survive and make it attractive to the students we decided on the monthly rent to cover everything that went with the home (Mortage, Insurance, Sanitation, Solar Lease Fees, Garbage, Water, Security System). This came out to be about $3200.After posting the home as a rental for a week without a hit, we initially panicked and lowered the rent to $3,000 a month.We found a group who signed for $3,000 a month. So no we're eating the $200.We didn't even think about the Tax implications because we were too busy trying to stop the "bleeding".Currently still unemployed, receiving unemployment, and will be going back to school to change professions.How do I report this on my taxes?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

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We own a home in South Dakota. Military is sending us to

We own a home in South Dakota. Military is sending us to Alaska for three years. If we find a renter to rent our house, but the rent is less than our mortgage, can we claim that loss when we file taxes?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

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I live in an owner-occupied duplex and rent out the second

I live in an owner-occupied duplex and rent out the second unit. I am considering installing solar panels on the property. I met with a solar energy consultant and we determined that my unit is not eligible to be hooked up to the solar system for low electricity usage, but the rental unit is.My question: Can I claim the solar investment tax credit given that the solar panels will be for the use of the rental unit only?

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Lev

Retired

Bachelor's Degree Equivalent

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24,192 satisfied customers
An LLC is created. This LLC is purchasing a property

An LLC is created. This LLC is purchasing a property renovating it, using some of it as an office and then renting the rest out. The owner is considering having his single member S-Corp own the LLC. I know the LLC is a disregarded entity and the income and expenses of the LLC will be on the 1120-S of the S-Corp. Is it still required to keep separate books for the LLC and have the income and expenses listed separately on the 1120-S? If neither the S-Corp or the sole member are real estate professionals will any losses resulting from the LLC rental property business be deductible on the member;s individual return or is it the same passive income limitations that apply as if it where owned directly by the individual?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

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16,732 satisfied customers
Please explain in what case and how passive income loss in

Hello, Please explain in what case and how passive income loss in Form 8582 line 16 works. I see the loss is allowed, but it does not go to sch E page 2 (line 29) Passive loss in my software. Thank you

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

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16,732 satisfied customers
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