All Forum Posts by: Lance Lvovsky

Whether that's a good idea or not, is hard to tell without knowing more about your financial picture. I will say that make sure you speak with your CPA about the interest deductibility of that margin loan. Under interest tracing rules, you could deduct the interest against rental income. There are certain rules to follow, so it is important you discuss with a CPA.

Why don't you ask your accountant what she means? Surely she can elaborate what she means by learning how to move money.

We can only guess what she means, but without more details, guessing does not really help you. For example, if you have a LLC and your Trust is a member in a LLC, you would need to move/contribute money from a Trust checking account. But if you continually move money from an individual account, then you are not following formalities. Is this what she means? Like I said, I can only guess.

Those would be good questions for your attorney and CPA. I cannot answer those questions since a) The answers depends on your facts and circumstances and b) you have not engaged me to discuss any tax or estate planning with you. It would not be prudent of me to provide you with specific advice. I am sure you understand. 

What I will say is there are various types of Trusts. There are Revocable Living Trusts, Irrecocable Trusts, Grantor Retained Annuity Trusts, Charitable Remainder Trusts, etc. 

Make sure both the attorney and CPA you meet with have knowledge in Trusts and Estate Planning. 

Are you merely setting up a Trust to make loans to others? Trusts are very powerful, generally recommended most people hold assets in a Trust. One of the more powerful features of a Trust is that any assets properly titled to a Trust will avoid probate. With that being said, do you have a specific intention? Trusts pay income tax just like individuals if that's what you were wondering.

@Andreas W. The De Minimis Safe Harbor is not available on a Water Heater. The de minimis safe harbor applies to tangible personal property. The IRS views a water heater as part of the plumbing of the building, and as such, is not personal property.

Once rented, the property will be reported on Schedule E. Cost basis the lower of adjusted tax basis or FMV on the date you place the property in service, which for most taxpayers, you would use your adjusted tax basis.

Depreciation recapture will be reported in the year you sell the property. My recommendation: get with a CPA who knows what they are doing. It is worth the cost.

Brian Garrett Welcome to the forums! There is a wealth of information on here so definitely take the time to absorb all you can. Good luck with your investing, and don't hesitate to reach out with any questions.

That's right, your LLC is not a disregarded entity for tax purposes because your LLC has a filing requirement. As such, charitable contributions are reported as a separately stated item on Schedule K, line 13a. That flows to Box 13a of Schedule K-1.

Charitable deduction from a pass through entity such as a LLC will still flow to Sch A as a charitable deduction. Remember, in a pass through entity, all items of income and deductions retain their character. As such , a charitable deduction at the entity level will still be a charitable deduction on your individual income tax return.

Your accountant should have provided you with a balance sheet that balanced. Can you use the 12/31/15 balance sheet as reported on the tax return, Form 1065? That should be your starting point for 2016.