All Forum Posts by: Patrick J.

@Eamonn McElroy

Yes own kid. Just wondered if you had to file W2 if the income was under the standard deduction for a child. I guess medicare and ss would be run as $0 for payroll. Thanks.

@Michael Plaks

Thanks.

Do you have to issue a w2 to a child employee that makes under $12,000??

Is capital gains counted for the income limit? Lets say the income limit is $40,000 for single filers to get the 0% capital gains rate, if you make under that income limit but have capital gains of like $100,000 for example, would you pay 0% in capital gains??

@Ashish Acharya

So basically should a 2 member LLC for operations, not for rentals choose S-Corp taxation or partnership taxation to minimize taxes?

The other part of the question is if its better to form 2 S-Corporations, one for each partner to own the LLC 50/50 rather than 1 S-Corp.

I've read that its better to form an LLC and then 2 S-Corps underneath it that own the LLC for a partnership rather than forming a normal partnership for operations. Is this better for taxes?

Could partners just elect to have the LLC taxed as an s-corp and then share 50/50 on the s-corp or should they form 2 seperate S-Corporations under the LLC?

And what paperwork is needed so that the S-Corps can own the LLC?

Are tax savings based on effective tax rate or the highest income bracket you're in??

For example, let's say you take a $5,000 business loss and your highest tax bracket is 32%, are the savings based on 32% or reduced for your effective tax rate?? Thanks

If S-Corps are not supposed to recieve 1099s, then what do you tell the companies paying you to file?? Do they file nothing? For example, Realtors that are S-Corps and used to receive 1099s from their brokerages.

Is Schedule E + 4797 and 8949 filed for the year a rental is sold and what's the difference between 4797 and 8949?

What's the use of a holding company for rental properties? Is it suppouse to reduce taxes? Reduce liability? Reduce management headache of "needing" multiple bank accounts?