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Recent Passive Income questions

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.

240 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

802 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.

240 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

802 satisfied customers
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

20,894 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

3,954 satisfied customers
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

17,158 satisfied customers
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

17,158 satisfied customers
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

24,192 satisfied customers
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