All Forum Posts by: Lance Lvovsky

I strongly suggest speaking with a tax advisor knowledgeable in this area. Changing the name on the deed of a real estate property is not as simple as going to an attorney to do it. Well an attorney may say so but they may not necessarily tell you what the tax implications are. For example, in the situation, you have to be careful of any gift tax that may be triggered by transferring ownership of the property. If the property is in a revocable trust and that revocable trust put up the money for the property, they would likely be a gift. It doesn’t mean gift tax is owed but it does mean a gift tax return likely needs to be filed. If the property is owned in an irrevocable trust, then you need a competent tax professional to review the trust agreement and give you advice as to whether or not the property can be distributed from the trust. 

As mentioned above, it’s hard to find someone with expertise in both areas but it does happen and you may find someone who can help you. Perhaps finding a CPA would a bigger accounting firm may be the route for you to go, as they have more fire power to assist you with a deeper bench and deeper resources

You can convert a Roth IRA contribution (which would have been 6k or less) to a traditional IRA. the income tax deduction would be allowed assuming you meet the other requirements under the tax law

How about gifting LLC membership interests to the kids (or selling it). The LLC is the one who is the borrower on the loan. Gifting the membership interest (or selling it) to your kids changed the ownership of the LLC, but the LLC is still on the hook for the loan. Need to be mindful of any personal guarantors and whether the promissory note has any clauses regarding change in ownership of LLC.

The LLC may have Nexus in Virginia, which would be the proper terminology your accountant should be using.

Nexus is a complex matter and they should explain to you why there is Nexus in VA.

For example, I have a client LLC that has 2 members 50/50. 1 member resides in NJ, the other in FL.

The LLC is in the property management business. All the property management is done in FL by the member who resides in FL. The NJ member maintains the financial affairs of the LLC. Under NJ tax law, this creates nexus in NJ, and the LLC is required to file a NJ tax return. HOWEVER, no income is sourced (apportionment) to NJ, so while a tax return gets filed in NJ, there will be no income (and therefore no tax) levied in NJ on the LLC.

Grouping multiple different activities makes it one activity for tax purposes; and thus can limit the use of losses. For example, suspended passive losses are released upon the disposition of an activity. If that activity has more than 1 operation in it, you may be limited with the release of losses.

Grouping can be very powerful election, but you must understand the risks.

This is a complex discussion and I have only touched the surface here.

Speak to your CPA.

The Tax Cuts and Jobs Act changed the tax law in that you can no longer recharacterize a Roth conversion. You can however recharacterize a Roth contribution. Subtle but distinct difference there.

Depending on how your transactions occurred, you may or may be able to recharacterize.

Now if Vanguard made a mistake, then you may have a leg to stand on.

You can consider a full servicing accounting firm that can provide all accounting, business, and tax services. 

Its unlikely you will find good legal counsel with the above services so that may be the one area you need to split up. 

I will not comment as to the tax laws and underlying rules - that is a discussion you can have with your tax advisor who presumably you are paying to help you.

What I will do is provide practical and business guidance on tracking time.

Firstly, there are apps available that can assist with time tracking where you can specifically detail your time, who you met with, etc. Secondly, calendar and email functions/apps on computers and smartphones provide great records and a log. Keeping contemporaneous records is critical.

I believe there is someone from Ohio online here; do not recall a name. I would use the search function.

You can also speak with local colleagues.