All Forum Posts by: Steve Legnaioli
Steve Legnaioli has started 5 posts and replied 15 times.
Post: Calculating home office square footage?
- Posts 18
- Votes 1
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
Post: Rent paid Dec.31 for Jan. Goes on what years taxes
- Posts 18
- Votes 1
Thanks guys, that’s what I’m gonna do
Post: Rent paid Dec.31 for Jan. Goes on what years taxes
- Posts 18
- Votes 1
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 ?
Post: Depreciation Calculations-please help to figure it out
- Posts 18
- Votes 1
Originally posted by @Natalie Kolodij:
Originally posted by @Erik W.:
@Natalie Kolodij, so you're saying even if I have documented evidence (listings, comps) showing that the value of the land is LESS THAN 20% of the purchase price, the IRS will reject it automatically? Could you please provide a citation of that so I can show it to my CPA?
If you have adequate Comps showing land values then you could use THOSE VALUES.
That's allowable and reasonable.
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“
Post: Depreciation Calculations-please help to figure it out
- Posts 18
- Votes 1
Originally posted by @Natalie Kolodij:
Originally posted by @Erik W.:
@Natalie Kolodij, so you're saying even if I have documented evidence (listings, comps) showing that the value of the land is LESS THAN 20% of the purchase price, the IRS will reject it automatically? Could you please provide a citation of that so I can show it to my CPA?
Just saying oh 80/20....is not an allowable any thing .
look, I just might be some stoned guy sitting on his couch watching Joe Rogan podcasts, but I do understand that there are properties in this country that fall under 80/20 , it’s just a simple fact of reality, areas with this ratio exist , and are probably quite common where Land is plenty full.
Post: Setting up HSA’s, IRA’s, or Corps at tax time
- Posts 18
- Votes 1
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
Post: Options for corporation profits ?
- Posts 18
- Votes 1
Originally posted by @Account Closed:
@Steve Legnaioli
It’s pretty tough to change the past especially since the year is over with.
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
Post: Options for corporation profits ?
- Posts 18
- Votes 1
Originally posted by @Account Closed:
Steve - This depends on how the entity that the profits are being retained in was organized. If it is a C Corporation profits will be retained and taxed at the corporation level. If and when you distribute these profits from the corporation you will then be taxed at the individual level. If the entity was set up as either and LLC or S Corporation the profits will flow through to you and taxed to you individually. I would discuss the specifics with your CPA.
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.
Post: Options for corporation profits ?
- Posts 18
- Votes 1
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
Post: Separating rental income to reduce Obamacare MAGI
- Posts 18
- Votes 1
Originally posted by @Mindy Jensen:
@Steve Legnaioli, I think perhaps you phrased your question incorrectly.
The way you phrased it sounds like you're trying to hide this additional income. If you're trying to reduce your taxable income, there are a variety of ways to accomplish this, all of which are legal.
I asked two questions in my post, they are at the end, they are about creating an S Corp., nobody has answered those two questions, those questions are not phrased in a way that I am trying to Illegally hide money , That was an accusation that the people replying to my post placed on me.