All Forum Posts by: Sylvia B.

Yes.

Good luck getting a straight answer out of BOA. They are the worst!

Yep, it's not for everyone. We are coin dealers, so we hear it all, from the hype to the doom & gloom. I should have put $400,000 in "cash". Exactly where that money will be we're not sure, but it won't all be in the bank!

Our retirement plans are different from most. We don't expect to draw Social Security, we don't have a retirement plan through work, no IRA, no 401k, no stocks, bonds or mutual funds. Our sole investment has been in our business, and now our rental homes. We also have no debt, and the cost of living is fairly low where we are, so I feel like we are setting pretty high goals to have a retirement income of $60k/year, though I'm sure many here would consider that just scraping by.

But you are right, that's a lot of money to just sit on. But that's a snapshot of the point of retirement. What we'll actually do with that money is hard to say.

I intend to! :-D

I have an appointment with my accountant on Thursday, and this is one of the things I want to discuss with her. I just wanted to see what the BP group had to say.

That would probably be counter-productive in our case. Normally this LLC has only passive income - rents. All income passes straight through to our personal 1040, and moving money in and out is simple.

Our other LLC is an S-corp, which is our retail business. This one makes most of our income, but getting money out of it is a little more difficult. First, it rents the building it's in from our property LLC. In addition, we draw out equity distributions in an amount equal to what we pay ourselves as employees. That last amount is subject to SSDI & unemployment taxes. That can be both costly and time consuming.

I think the way we have things set up is avoiding the most taxes possible at this time, but if you have suggestions I'd love to hear them.

Okay, any other issues?

Hubby and I were just discussing this last week, and actually put it in writing. We intend to retire in 2023 when we are 65 & 62. At that time we want to have 12-15 SFH which should cash flow about $5,000/month, 300 ounces of gold, and $400,000 in cash.

That's the goal. It'll be fun to see how soon we reach it.

We purchased a house last week that we intend to rehab and then rent. However, if someone wants to buy it before we get it rented, we are not averse to making a quick chunk of cash. So what are the tax consequences of selling a property less than 1 year after purchase?

The property is owned by an LLC,(not S-corp) and the sole members are Hubby and me.

Mary, you are posting in ignorance. From the link Duncan posted: "If you are a minister performing ministerial services, all of your earnings, including wages, offerings, and fees you receive for performing marriages, baptisms, funerals, etc., are subject to income tax, regardless of whether you earn the amount as an employee or self-employed person." There are tax cheats in all professions.

Thank you, @Duncan Taylor

Hogwash! The only way a minister can not pay property taxes on his home is if it is owned by a tax exempt organization, such as a church. If he owns it personally, he owes the tax. And ministers are NOT exempt from income tax! They can opt out of social security by using a religious objection, but they must pay income tax just like anyone else.