All Forum Posts by: Manuel Lam

@Michael Plaks   I have subleasing income in excess of my rent expense.  Doubled.  So I actually have an extra 500$ per month.    If it were less... i would have deducted it yes.  

@Curt Davis Sorry!  I didn't realize I posted three times... because there were errors when i posted initially.  more than happy to take extra posts down. 

Hi, many folks reinvest back into their business to leverage their money or other people's time.  Can I invest money into a fund that returns dividends with business income... like in a fund that returns a dividend/interest?  Or is it better to pay yourself and then invest the money into the said fund?  Advantages/disadvantages?

Thanks!

I have a consulting business (professional corp).  I pay $600 to lease my office (cheap i know). It turns out that it is common practice to sublease other days to offset my lease.  I sublease at $250/day.  So i can get positive cash flow on leasing if I sublease at three days.  

I have active income where I see clients.  I have a rent expense.  I have income from subleasing (passive income).  Is the subleasing passive income separate from my active consulting business?  i.e.  It's a different business in itself, and I would file it as a schedule E? as a sole proprietor?  Should I deposit the passive income into a different account or is that considered commingling?  Seems like a hassle to organize it separately but I see the tax advantages.  Kinda want to just clump it together.  It can offset some business expenses, and it doesn't look like I need to work as hard. 

What are your thoughts?

Hi, I have a consulting business (professional Corp). I pay $600 to lease my office. It turns out that it is common practice to sublease other days to offset my lease. I sublease at $250/day in this market. So I can get positive cash flow on leasing if I sublease three days, which I have. So I have active income where I see clients. I have a rent expense, and I have income from subleasing (passive income?) my question: is the passive income is separate from my (active) consulting business? So it’s a completely different business in itself (sole proprietor?) Should I deposit the passive income into a different account or can I deposit into the same account or is that considered commingling? Is it a schedule E? Seems like a hassle to organize it separately but I see the tax advantages. Kinda want to just clump it together... Also... can I invest the business income into funds that give a dividend (like ahpfund), or will the earnings be taxed as ordinary? Or is it better to pay yourself and then invest from personal account? Advantages and disadvantages? Thanks for your insight.

I'm thinking about buying a place in greenfield, but need to have a reliable and trusted property manager who can cover it there.  please send me some contacts.  thanks!