All Forum Posts by: Steve Legnaioli

my house measures 1522 ft.² overall, I rent out 430 ft.² of that, I have a 10 x 10 home office also in the house, in order to calculate the percentage for the home office, do I include the total square footage of the house, or just the square footage of the house where I live in, minus the 430 I rent out?

thanks

Thanks guys, that’s what I’m gonna do

If a renter deposits rent on December 31 to cover rent for January of next year, what year’s taxes will the money land on ?

but for some strange reason, in the post right before this you made, you stated that it is never allowable.

in the next breath you define it as “allowable and reasonable“

I can set up a hsa or ira before tax deadline and stuff it full of money that changes the previous years taxes. This is a common practice used to lower AGI.

Can the same be done with a corporation and allow it to retain the money without passing through ?
can a corporation be set up at tax time and be given the previous years rental income profits to be retained and kept off my personal tax return? ....to be used for a future investment by the corporation.

Research hasn’t given me an answer and cpa’s in key west are barely capable

and yet I can set up a hsa or ira before tax deadline and stuff it full of money that changes last years taxes.

Can the same be done with a corporation and allow it to retain the money without passing through ?

Research hasn’t given me an answer and cpa’s in key west are barely capable 

that makes sense, thank you. If I could present another scenario, let's say I collected some rent last year from renting a room in my primary residence, this happened in 2019, it's now 2020, I know that I can set up a IRA account or HSA account at this time (before tax time )and put money into it that That would reduce my MAGI , would it be possible to create a corporation just before tax time so the rental income from last year could be deposited in to the corporation account, and be retained there (For a future Investment)Without it being passed through and landing on my personal taxes.

My goal is to reduce my MAGI , or to keep the rental income From the last four months of last year Off my personal taxes. I don’t mind paying taxes on the money, I don’t even mind paying higher taxes on the money through a corporation, this has to do with hitting the Obamacare phaseout number. I know what I have to do for the coming year, but last year it isn’t sorted out yet.

If I start a corporation to collect rental income and there is 10,000 left after all expenses (profits) at year end , how is that taxed?

On my personal taxes?

Is it taxed separately before I take it?

Is it part of my MAGI I report to the IRS?

Can the corporation just retain the profits and pay taxes on it to keep it off my MAGI?

Thanks