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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2309
Experience:  Certified Public Accountant
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My S Corp will be earning profits this year of over $250K.

Customer Question

My S Corp will be earning profits this year of over $250K. Anyway I can reduce my income tax for 2016? I heard I should buy some rental properties but can't seem to understand how that would help. AMT would kick in right? if I'm over 2016 for the depreciation. Just have to pay more taxes on rental income? Am I wrong or am I missing something?
JA: The accountant will know how to help. Is there anything else the accountant should be aware of?
Customer: I'm single and only income I have is from my S corp. Any other suggestions for ways to reduce my tax liability?
Submitted: 11 months ago.
Category: Tax
Expert:  Mark Taylor replied 11 months ago.

Hi, my name is Mark. I will be happy to help you with your questions. Please give me a moment to prepare your response.

Expert:  Mark Taylor replied 11 months ago.

Rental properties would not help you. Based on your level of income any loss from a rental property would be suspended. It sounds like you have already taken advantage of the section 179 expense (accelerated depreciation). Do you have any employees?

Customer: replied 11 months ago.
No employees. I have already beefed up on my retirement plans this year.
Customer: replied 11 months ago.
any other way to defer some income? I don't mind paying taxes later, just not right now.
Expert:  Mark Taylor replied 11 months ago.

You were one step ahead of me. You already purchased equipment?

Customer: replied 11 months ago.
Rental property would not lower my taxes, but would maybe allow me to invest my additional funds? Additional rental income to offset the taxes I owe? Am I wrong? I'm expecting a visitor soon so can't talk. But maybe after 4?
Expert:  Mark Taylor replied 11 months ago.

After 4. With a rental activity any losses would be limited to $25,000 unless you are a real estate professional. The loss is eliminated at an Adjusted Gross income of $150,000 is you are married.

Expert:  Mark Taylor replied 11 months ago.

After 4 is fine.