All Forum Posts by: William Behm

When my S-Corp sells real estate flips should the title company issue a 1099-s or is this not required for an S-Corp?

Thank you

I created a new Solo 401k in 2014. During 2014 I rolled over an existing 401k, Pension, and IRA; all three held at different institutions.

The first two institutions issued a 1099-R with Distribution Code: G which is what I expected. But the latter company for the IRA did not. They have stated that because this was a Custodian to Custodian 'transfer' that they do not issue a 1099-R.

Does this seem accurate or do I need to press them on this issue?

I greatly appreciate the feedback!

I am purchasing a property in FL via Homesearch.com

Looking at the contract it appears that they are trying to sneak in that the buyer will have to pay the doc stamps which is normally something the seller pays.  

I will likely not sign the contract because of this.  Has anyone had experience with this and do you know if these sellers will end up renegotiating and covering the doc stamps to avoid the deal falling apart?

Thank you!

Hi All!

I have a Solo 401k and the company that set-up is not very helpful in providing info on how to properly complete a 1099-R for an in-plan conversion of moving funds from the Traditional bucket to the Roth bucket (I will not call the company out here).  I would advise that if you set up a Solo 401k to make sure that the company you chose offers full support for 1099-R.

Can anyone with experience in this matter please provide feedback for completing this form?  

In 2014, within my Solo 401k I converted $15,000 from the Traditional Bucket to the Roth Bucket which I know is a taxable event for that year.  Below I have written out all of the boxes on the 1099-R; which do I fill out?

1099-R

-Payer Details (would this be the 401k entity and tax id?)

-Recipient Details (would this be the individual (myself) and social security number)

-1 Gross Distribution (I assume $15k entered here?)

-2a Taxable amount (I assume $15k?)

-2b Taxable amount not determined

-2b Total distribution

-3 Capital gain - included in box 2a

-4 Federal income tax withed

-5 Employee contributions/Roth contributions

-6 Net unrealized appreciation

-7 Distribution code(s)  

-8 Other amount

-9a Your percentage of total distribution

-9b Total employee contributions

-10 Amount allocable to IRR within 5 years

-11 1st year of desig. Roth contrib.

-12 State tax withheld

-13 State

-14 State distribution

-15 Local tax withheld

-16 Name of locality

-17 Local distribution

Current business snapshot:

-Currently buy/renovate/sell 25+ SFR per year.

-Avg hold time from purchase to sale is 3 months (no property ever held longer than 4 months)

-Hold approx 6 properties at any given time per 3 months.

-All properties are 'Free & Clear'

-Only one owner involved (no partners or outside funds)

-Considering entity solution of Multiple LLCs under S Corp Holding company.

Would greatly appreciate feedback on ideas for a business entity structure. An attorney and I discussed a structure of an S Corp that holds liquid funds and then two 'disregarded' LLC entities that actually hold the properties. 'Disregarded' meaning that the two LLCs will not have tax IDs and the profits will roll up to the S Corp for taxation on the aggregated profits. The purpose of two LLCs is to reduce the risk of total loss from any potential lawsuit by spreading housing assets among more than one LLC. The purpose of the S Corp holding company is to be a centralized entity for the business capital (LLC can transfer cash here when not in use thereby reducing LLC value as lawsuit target) and S Corp assists in reduction of S/E tax. The entities would also be covered by business umbrella policies and all properties would have individual property insurance.

I am trying to determine if this suggested structure is too complex/overkill or if it is the most suitable. Would it be more practical to have just one LLC electing to be taxed as an S Corp? Or some other structure?

Thank you for your feedback