All Forum Posts by: Steven Hamilton II

Honestly, I wouldn't bother calling, I'd send a letter and wait. No point in waiting on hold for so long. You can pay it and then they will refund with interest if you're paranoid about it; however, try at 7am local time or as I said send a letter and not worry about it until you get a response about 14 months later. 

Residence. No question. Let the rentals cover you and the rentals will be the most deductible. Also lines of credit are easier to get on the primary residence. 

The problem is most individuals do not understand taxes, there are things you can do and things you cannot do based upon your situation. 

I can help a client reduce their tax burden to zero; however, they may not have enough income to live off. I think you should consider talking over some of the things you read with your accountant and ask why they don't apply to you. Also if you're only seeing your accountant during tax season you're not helping yourself. You should be consulting their firm throughout the year before you make decisions. 

What did your accountant say?

Was last year's return filed timely? If you mailed the extension, they are still not caught up on processing them. 

To be a real estate professional, an individual must spend the majority of his or

her time in real property businesses:

• Development or redevelopment

• Construction or reconstruction

• Acquisition or conversion

• Rental

• Management or operation

• Leasing

• Brokerage

The taxpayer must meet each of the following two time requirements:

• More than 50 percent of his/her time working in real property businesses;

AND,

• More than 750 hours of service during the year. 

Simply let them know that those were after tax funds it may have been an error at account set up. 

You may have some significant tracking issues that need to be cleaned up. there is no Roth or after tax SEP. You will need to get the ENTIRE paper trail to make sure this is fixed. Keep in mind employer matches and contributions from an employer to a SEP are traditional contributions. 

@Shannon Kiefhaber,

Is there any opportunity to inherit the entity instead? If you move the properties all out in that same year that you acquire the stock in the S-Corp by inheritance, thereby receiving the step up, you will be able to net the gains from inside with the loss of the stock basis. That would be the "tax free" (about tax free) way to get them out of there. 

 Eammon is correct. Personal labor also isn't deductible; however, the cost of you paying for labor to included as a sponsor of an event can be considered an advertising expense. Alternatively when a company is advertising that they donate $1/item purchased etc, that is a marketing expense and not a charitable deduction. 

Your example does not include enough information. They often will do things at cost or occasionally actually lose on a project for the recognition. A donation of materials nd supplies would actually be an itemized deduction even from an S corp it would pass through as a separately stated item. 

I think you may be over complicating it.  I can tell from your questions that you are in a bit over your head and before you make an incorrect decision you should STRONGLY consider a consultation with someone. This is both a legal and tax question. 

A LLC that holds rental property is NOT reported on schedule C. Take the money you would be spending on filing and additional costs and put it toward an umbrella policy. Maintain good business practices an carry a decent insurance company. If you moved it to an LLC that both of you own it will be a partnership and that has its own consequences and costs.

The scope of what you asked covers a broad area from estate planning, to tax planning and forward. 

 Hi Evan,

I've been out of the office a few days. Give the office a call to my contact info attached on my profile