All Forum Posts by: Adolf A.

If my S-Corp has an operating loss and no distributions in the calendar year, am required to take a salary? 

I am planning taking most of next year off and not working in my S-Corp Flipping Business. Any ideas on how I should calculate my owners salary? Do I need to show a salary??  Either way I will send in the Form 941 returns.

THX for the comments.  The adjoining neighbors have no interest in the lot.  The lot is too far from the bus line for Habitat for Humanity to consider.  

So, I am considering "walking away", how to legally abandon the property? My investment was not substantial, just paying the property tax to me is making the pain worse.  Cutting losses seems to be the next move.

I have a empty residential lot in a good neighborhood that I bought for cash, thinking to build a spec house on it.  The reality is the lot is too steep (needs grading, piers, sewage pumps, ect.) to build cost effectively.  It's buildable, but doubt I could make any $.

So, its been for sale for 3 years and no takers.  So it's sitting there and I do nothing but pay property taxes on it. 

How can I legally abandon it? It is owned by my LLC

Any  ideas?

THX

Below is the scenario that is unfolding for us. Looking to minimize taxes and and maximize retirement funding.

Appreciate any insights.

-------------------------------------------------------

I am part of a multi member LLC that has rental properties taxed as a Partnership.

We sold 2 properties (held for 20 yrs) which have accumulated a lot of depreciation.

Using Turbo Tax Business, I see a Section 1231 Gains on my K-1. ($105K)

Question: Can these Long Term Section 1231 Gains be Treated as Ordinary Income for the Partners?

I would like to salary defer (max. SOLO 401 K limit of $53K) with Income.

Our net income for the properties this year was only $20K from rents since the buildings were empty during the listing/sale period.

What is your strategy for your business vehicle?

I have an LLC for my rentals and a S-Corp for my flips. My wife and I work full time across both. Currently we deduct the std mileage. Now are cars are getting old. Time to rethink the cars / tax strategy. Down payment and cash flow are not a problem.

We desire "higher end" cars (not trucks over 6000 lbs.). My challenge (question) is "do the depreciation rates make sen$e" to buy a high end business vehicle..(Telsa X? ...that has little operating expense/maintenance).

Second challenge is the exit strategy (lease...easy, just walk away) vs. (buy/depreciate...gain or loss).

Appreciate your wisdom!