All Forum Posts by: Jamie Engledow

I agree with Jeff, however USUALLY you are better off filing joint.  Do you have any unusual or different scenario this year that makes you wonder if you should file separately?

It depend on your current expertise and complexity of the return.  I am a tax professional and prepare my own return.  If you have basic understanding of tax, 1 rental property (solely owned, not in partnership or Corp), some stock investments, and a W-2 is not that complicated.  Add anything like a partnership, Scorp,Corp, Disposition of business assets, like kind exchange, etc,  hire a professional.  And, I do not like to talk other businesses down, but the big chains like H&R Block do not even require a Bachelor's degree for their preparers.  I have seen so many nightmare returns prepared by the chains.  They worry more about returns being prepared quickly, rather than quality.  They tend to aim for low income taxpayers who live off the refund and are not experienced for complex returns.  If you have a simple return use the H&R, if not, big mistake.  

If you transfer to LLC and you have a partner, yes, F1065. Your situation is complex. You need agreements in place for allocation. You could take the whole property as owned by partnership and you pay rents to reside in your portion, and income or loss split 50/50, or it could state that you own personally as primary residence the unit you reside in_ possibly, but I don't know how you have set up or local regs. You need an Attorney to set this up and then probably a CPA to prepare return based on how business is legally set up.

No problem Huiping.  Just remember, report ALL your income relating to your business as a real estate agent, and only the expenses that are ordinary and necessary for a real estate agent on the schedule C.  If you have any questions, feel free to ask.  Good luck!

In general: If first your flow the loss from your 1120S to your schE part 2 as non passive loss if you spent 100% of your hours working on the flipping bussiness.   This will offset your wife's W-2 income.  Sorry, still not sure if I am addressing your question. Also, my answer is over simplified, because I do not have all your facts.  Much of your "expenses" for the flipping business may be expenditures that need to be capitalized and included in the basis of your property.  You certaintly need to work with a CPA.

I have always been split on his advice.  My deceased husband was a total fan of his and why we never took the real estate investing route_ we always had debts to pay off or savings to initiate first.  He makes logical sense, but so does leveraging, which he does not advocate.

Just please don't take your family and also vacation and try to write off the entire trip as business!

Huping, you received a F1099 for commissions as a real estate agent?  If so, file a Schedule C reporting all incime received as a real estate agent whether or not reported to you on F1099.  Then you can deduct your ordinary and necessary expenses for your business as a real estate agent on schedule C.

Is this rental properties?  If not, what is the business?  A F1120S and a F1065 partnership are both flow through entities.  For the most part the nature of the income or loss flows through as same to the partners or shareholders.  Ie, profit and loss from business to Sch E part 2, for rental, part 1, investment interest income, sch , cetain business credits, etc....

As previous poster said, it appears much of the repairs you put out will probably be capitalized to the basis of the property and depreciated.  Any part of the current loss in excess of the $25,000 is not neccessarily lost, but carried forward to subsequent years.  Ie., you had a current year loss of $100,000, but were only allowed to take $25,000 this year.  If next year, you had a $100,000 income, you could use your remaining $75,000 of loss from previous year to offset that years income.  Example for simplicity sake, certain circumstances such as AGI over $150,000 could change scenario.