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Recent Self Employment Tax questions

I have a husband and wife partnership, we file a form 1065.

I have a husband and wife partnership, we file a form 1065. both the partners do not receive a w2 or a 1099. nor dothey receive any "guaranteed income"! we do however divide the partnership profit (50%) to each partner. are theprofits taxable as far as "self employment". is there a better way to do this? should I just pay each partner a "guaranteedincome" and 50% of the partnership profits. and are both distribution "self employment" taxable?? bh

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emc011075

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I just received a correction on my 2014 taxes. It says I

I just received a correction on my 2014 taxes. It says I missed a collected amount from my sole proprietorship of $69,156. And I owe 27k thats with 4k of interest and fees. I checked my online shop and realized that the 1099-k Etsy give you does not contain paypal payments I then pulled my 1099-k from paypal. Long story short the IRS was right.Now my question is should I just pay it or can I amend my 2014 taxes and hope for a lower correction? Does the IRS assume the highest self employment tax in these situations?

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emc011075

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Currently, my father in-law pays my wife a salary and takes

Currently, my father in-law pays my wife a salary and takes out taxes, social security etc.We formed a LLC. We are wondering if my father in-law paid the LLC vs. my wife, if there are tax advantages for us or would we have to pay more because of state business tax on that income + state taxes, fed, and social security?

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Mark Taylor

Certified Public Accountant

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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

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Does an LLC filing as a partnership 1065 get a break in Self

Does an LLC filing as a partnership 1065 get a break in Self Employment taxes for shareholder employees? I know an LLC can elect to be treated as an S Corp, and can then pay shareholder-employees a fair wage. And that this wage will be taxed for SS and medicare And the shareholders who are also employees can take the rest of their income as a dividend not subject to SS and Medicare. I know this can be done if the LLC has elected to be treated as an S-corp by filing a 2553 with the IRS. I am assuming a partnership LLC could elect to be treated as an S Corp by filing form 2553, and the partners would wind up owning the % of shares in the corporation that was their percent share of partnerhship. But if they did this, they would have to file an 1120S. So my understanding is if they file a 1065 and get a partner's share of profits, that that share is subject to 15.3% Self Employment (SS and Medicare) tax. Is this correct???

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Mark Taylor

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I live in Texas and would like to sell a few things on eBay.

I live in Texas and would like to sell a few things on eBay. I'm not trying to make it into a business at this time, but I read that since I live in Texas I need to get a state tax id, because I have to charge Texas customers, sales tax. I applied for one, and just put "home- eBay" as my business name. I wasn't sure if that was the right thing to do, please help. Also, I'm not sure what I need/can report when I file taxes. Hope this makes sense. Thanks

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Mark Taylor

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In 2014, my husband did some golf cart repair friend who

In 2014, my husband did some golf cart repair for a friend who owns multiple companies on five different occasions. Itemized invoices were generated with parts and labor broken down. At the end of the year, we received 1099-M's from 4 different companies (total 10K) for this work. Would this be reported on a Schedule C? And if so do I need to do separate Schedule C's for each 1099? Or are they combined and reported on one form?

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Mark Taylor

Certified Public Accountant

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IRS question. In order to avoid being classified by the IRS

IRS question. In order to avoid being classified by the IRS as a real estate 'dealer', and stay in my current classification by the IRS as a real estate 'investor' with a half dozen long term rentals and the occasional 2-3 'flips' per year, how many flip deals should I stay under? I have a rather significant capital loss carryforward from decades of investing unsuccessfully in the stock market, and want to make sure that I can offset and extinquish those stock loses with my real estate gains from both the eventual sale of my rental properties but as well from the 2-3 fix-and-flips that I want to perform every year.

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Stephen G.

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I got the answer gains in NY buyout of rent stabilized

I got the answer for capital gains in NY for a buyout of rent stabilized apartment , but what about 1099 misc as a buyout and ordinary income in Florida No state tax, so what are the brackets how much would I have to pay . Right now the Landlord put it under 1099 and not 1099 B and I would have to have it changed if I want it to be capital gains . would the Landlord get a writeoff for payment if he does a capital gain . purchase. ( can he write off a property gain from sale)

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Mark Taylor

Certified Public Accountant

Masters

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