All Forum Posts by: Bill Walston

Right you are John. Since this is your seller's primary residence, he will most likely be exempt from paying taxes on the gain thanks to President Bush and the Mortgage Debt Relief Act of 2007. According to the IRS website: "The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief. This provision applies to debt forgiven in calendar years 2007 through 2012."

You can find more info here: http://www.irs.gov/individuals/article/0,,id=179414,00.html

Hope this helps!

Thanks so much for sharing! My reformed accountant's analytical brain still loves spreadsheets :-)

Way to go Frank - congratulations!!

I DID receive the same email, as I'm on the member's email list. Found out from him later that his gmail account was hacked, so this is not just a spammer at work. The hackers changed his pw, and now he has no access to his email and/or his contacts in order to let them know what's going on.

Great link Tim. Thanks!

Here are a couple more:

http://craiglook.com

http://www.searchtempest.com/

Happy searching :-)

Skeeter, I would have to disagree. Greg says that he was divorced last year so he would not be married as of 12/31/09; he would be single. Accordingly, his filing status would be single, not married filing jointly (or even married filing separately). Sheldon is spot on with his answer about this being treated as though it is a 50/50 partnership.

Hi! You really haven't given much to go on. For what is the seller suing? What is the basis of his/her claim? Who is the beneficiary of the trust? Who conveyed the property to the trust? You or the seller?

I can tell I have been up way TOO late....I really should check the dates on these posts more closely LOL Guess it just goes to show that taxes and business entity structure are always timely topics :-)

Actually, Stuart, it can. Filing a Form 8832 is simply an election by the LLC to be treated as a corporation for tax purposes. By default, a single member LLC is taxed as a sole proprietorship and a multiple member LLC is taxed as a partnership. Once a corporate election is made the LLC can file a timely 2553 and elect S-Corp status.

You are spot on Lauren. By default, a single member LLC will be taxed as a sole proprietorship UNLESS it elects corporate status by filing Form 8832. Once that election is made a timely filed (and approved) 2553 will allow S-Corp filing status and your LLC should file a 1120S each year. Income will flow to your members' personal returns via a K-1. Your LLC will have all the tax advantages (and disadvantages, if any) of any other corporation with a S election.

That being said, the TYPE of income your LLC is generating should weigh heavily in your decision on how the LLC should be taxed. Your tax pro should be able to give you guidance, and if he/she can't then find someone who can :-)