All Forum Posts by: Jamie Engledow

To add to my comment, I note you stated multi member, LLC. You may need file 1120S instead of Partnership F1065. More info is needed. depends on how you organized with your State.

You need to issue a K-1 to you and your partner if you are a partnership registered in your State and recognized as a partnership by the IRS. You should also file a F1065 Partnership return.

I apologize if this is a repeat. I posted 3x and the question did not show in recants. Can a minor purchase a tax lien certificate in the State of Florida?

If this is a rental (schedule E) of a business (schSch c) or any other entity, Scorp, Corp, or Partnership. interest expenses for property purchased for a business involved in real estate activities is deductible as a business expense providing that no other criteria thst may otherwise disallow is present, such as personal use of the property or hobby loss is present

okay, you might both win here! Only the interest and current depreciation is expensed currently. You are correct on the interest. You are also allowed depreciation. So in a backdoor way, you are sort of expensing principal. If the property is a rental it can be depreciated over the useful life. Then when you sale the property , years down the road, the basis, which is essentially your purchase price or "principal" less the deprecation expenses prior to sale can be used to reduce the receipts from the sale. So, the depreciation taken is in sorts an expense of the principal currently, but then recovered at sale.

I will start my response by stating I have zero knowledge of Canadian taxation, but figure you may be taxed there no matter where the income was sourced from. I am not a professional in the taxation for any State or Locality. Though Florida has no income tax for individual Florida residents, it does have an corporate tax for Corporations and if you set up a Corp in Florida as a Canadian resident, I would presume you would be subject to both Florida and Us taxes, ie, you would have to file both a Florida Corporate return and a F1120 Return for Federal taxation. Also, don't forget that if you hire any independent contractors for repairs you need to issue F1099s and any employees of the Corp you need to issue W-2s and file 940s and 941's for federal employment taxes and WC to state of Florida.

For your bookkeeper you simply need to make a note on the invoice.

OMG! That is near impossible for many! In my younger years I paid $2,100 rent and only made $3,000/mo. Now I am within the criteria, but I would be living on the streets in my younger years if every landlord followed those rules! I think you need to consider discretionary income to qualify. For instance someone that makes $1,500 per month and has rent of $500, allocates 33% to rent and had $1,000 to allocate to other expenses such as water, electricity, phone, food and other expenses. As a landlord, you might want to estimate what those mandatory expense are. The expenses beyond the mandatory are discretionary. In the example of the $500 rent, let's say thst their other living expenses such as water and electricity and food were $500. The remaining $1500-500-500=1000. They have$1,000 of discretionary spending, which would indicate they could afford the rental. As you go up in rental price from say $500 to $4,000, most of the fixed costs remain the same. electricity may go up for greater square footage, but the same principle applies. Am individual that makes $8,000 per month , paying $4,000 in rent (only 2x salary) has the same $1,000 in living expenses, but discretionary of 3,000. Are you going to disqualify the individual making $8,000 per month that pays 50% of their salary towards rent?

If you are a buy and hold, I would not worry.

GENERAL RULE: Benefit of greater than one year and attached to home-Depreciate. Again, general rule, some variations.