All Forum Posts by: Seth Macomber

@Anthony Gayden this would apply to you. Assuming your doing a Sch. E, that income is above the line, which adds to your total AGI. So your AGI would be 120k -- triggering phase out.

@Account Closed She is not entitled to anything. You consulted your lawyer friend, you know that legally you can keep the holding deposit.

With that said, you should definitely give it back.

You don't want to start your career in real estate being "that guy." Unless that's what you're going for.

To answer this question - the income from your S-Corp Tax Return would go on line 17 of your 1040. If the income is 0, put 0 on line 17. If your income is -23,234; put -23,234 on line 17. 

Hope that helps.

@Jamie Engledow is correct. Use the date on your lease agreement. 

Hiring someone is great. It will give you peace of mind. 

Doing your own taxes is fine too, as it sounds like you have been doing them for awhile.

Those renovations are capable of being written off, just be sure to write them off as capital expenses and not current expenses. Renovations are always capitalized.

Best of luck.

 Sorta. You're Schedule E would be in the green, but your checking account could be in the red :(

Take the leap.

Call her bluff. Don't give her anything, and counter sue her for damages. Don't talk to her, and only have your attorney do the communicating. 

If she can't afford to pay rent, she can't afford an attorney.

You win. 

@Mike Reynolds @Chase Worst

Okay, well now it depends. That's why I said in my previous post "generally, yes." Things are often not what they seem to be with the IRS hehe There's always an "however."

If you have your business license in 2016, you can write-off your expenses in 2016. Those write-offs will be against $0 Income, thus leaving you with a negative Net Income (on your Schedule C). That negative Income will flow from your Schedule C to your 1040 and lower your Total Income. 

If you have no documentation that your business started in 2016, than you would take the expenses in the year of the realized gain. Which sounds like it will be 2017.

Since it would be your first year reporting income, just bear in mind Capital Costs. The IRS wants start-up costs to be amortized.

Hope that helps.

You my friend, are destined for greatness.

@Rafael Lopez Generally, yes. Anytime you pay for anything business related, you write-off the expense the year it was purchased. Careful on the printer and computer though, it may have to be depreciated.