unemplyment benefits

[Pross001]

What is the name of your state (only U.S. law)? Florida

I got fired from my job. I want to collect unemployment, but I also have an LLC which collects rent from investment property. I use all this money on business expenses, and I have not done a distribution to myself. Will this count against me as income in terms of the unemployment claim?

 

[sandyclaus]

What is the name of your state (only U.S. law)? Florida

I got fired from my job. I want to collect unemployment, but I also have an LLC which collects rent from investment property. I use all this money on business expenses, and I have not done a distribution to myself. Will this count against me as income in terms of the unemployment claim?

I believe this means you are self-employed. That means any self-income compensation you receive would be deducted from any unemployment benefits you receive. It doesn't make very good business sense to spend all your rental income on business expenses and have nothing left over. I suspect you probably ARE getting something from it, but you've insulated yourself in order to prevent it from being counted against you.

If you are collecting rent of any substantial amount from the LLC, that would eliminate just about any unemployment benefits you could claim.

 

[Pross001]

I believe this means you are self-employed. That means any self-income compensation you receive would be deducted from any unemployment benefits you receive. It doesn't make very good business sense to spend all your rental income on business expenses and have nothing left over. I suspect you probably ARE getting something from it, but you've insulated yourself in order to prevent it from being counted against you.

If you are collecting rent of any substantial amount from the LLC, that would eliminate just about any unemployment benefits you could claim.

Actually, I wont be showing a profit from these investment for awhile. These two properties are fixer uppers and many units are rented out. However, I spend about $2,500 a month on paying back people who lent me the money for the properties, I also pay about $500 a month on one building's water bill, and I have a huge box of receipts from buying building materials and from repair men. All of the receipts I give to tenents are from the LLC's receipt book. None of the receipts I give these people have my name on it. The receipts are from the LLC. My personal income that I got from my job actually help with some of the money I put into the properties.

So, I do not show a profit as of yet.

 

[Pross001]

I believe this means you are self-employed. That means any self-income compensation you receive would be deducted from any unemployment benefits you receive. It doesn't make very good business sense to spend all your rental income on business expenses and have nothing left over. I suspect you probably ARE getting something from it, but you've insulated yourself in order to prevent it from being counted against you.

If you are collecting rent of any substantial amount from the LLC, that would eliminate just about any unemployment benefits you could claim.

Additionally, I have not made an official distribution to myself from the LLC which is what is considered income.

 

[justalayman]

so, how much time do you spend each week on LLC business?

 

[Pross001]

so, how much time do you spend each week on LLC business?

It depends on different circumstances. At least 15 to 20 hours restoring different rental units that are not occupied. However, very frequently, I have make service calls on the rentals that are occupied. There are evolving amount of work to do. Seven or eight months from now, I should have the different repairs and restoration jobs well under control.

 

[sandyclaus]

It depends on different circumstances. At least 15 to 20 hours restoring different rental units that are not occupied. However, very frequently, I have make service calls on the rentals that are occupied. There are evolving amount of work to do. Seven or eight months from now, I should have the different repairs and restoration jobs well under control.

Then you are effectively self-employed at least part-time each week. That's definitely going to affect unemployment benefits, because you must be available to work.

This is one reason why students or others who have commitments that take up a major portion of their time don't always qualify - because their time is spent doing something OTHER than looking for work and they would be unavailable if a job opportunity came up.

 

[OHRoadwarrior]

You need to report your self employment status when you file. You may be denied as a result. It is your choice to buy building materials and expand your business, instead of taking profits, to pay yourself for labor.

 

[ecmst12]

I would wait for Commentator to post as she is the foremost authority on unemployment benefits on this board.

 

[sandyclaus]

Just as a generalization, from a logistics standpoint, the whole point to unemployment benefits is for it to be a source of temporary income when you've lost a job and don't have other income to fall back on. It's not intended to be a long-term solution, and it's just enough to get by on but not enough to really flourish on.

Since you are self-employed, you DO have another source of income. How you spend that income is your own business; however, if you aren't spending it on your living expenses, then that could be to your disadvantage here. The fact that you are spending it on something OTHER than your living expenses means that it's a choice and not a necessity for you to do so. And if it's not a necessity, then that money COULD be used for living expenses instead, meaning that you shouldn't need to rely on unemployment benefits to do the same thing.

I'm just saying that this is kind of the thinking behind eligibility when it comes to self-employment income.

 

[Pross001]

Just as a generalization, from a logistics standpoint, the whole point to unemployment benefits is for it to be a source of temporary income when you've lost a job and don't have other income to fall back on. It's not intended to be a long-term solution, and it's just enough to get by on but not enough to really flourish on.

Since you are self-employed, you DO have another source of income. How you spend that income is your own business; however, if you aren't spending it on your living expenses, then that could be to your disadvantage here. The fact that you are spending it on something OTHER than your living expenses means that it's a choice and not a necessity for you to do so. And if it's not a necessity, then that money COULD be used for living expenses instead, meaning that you shouldn't need to rely on unemployment benefits to do the same thing.

I'm just saying that this is kind of the thinking behind eligibility when it comes to self-employment income.

My biggest concern is the fact that the discussion is not including the fact that the LLC is it's own legal entity which has its own revenue, expenses, its own rights, protections, and other characteristics.

 

[ecmst12]

I think Sandy is full of it and completely wrong, which is why I am telling you to wait for someone who actually knows what they are talking about.

 

[justalayman]

I think Sandy is full of it and completely wrong, which is why I am telling you to wait for someone who actually knows what they are talking about.

I believe she might be wrong about the assignment of money within the LLC but to the time spent working for the LLC, I cannot see how that is not a problem. That is a serious restriction to time available to work, or even to search for work.

and yes, hopefully the 'tator will show up and tell us all what is what.

 

[ecmst12]

Except that OP was putting in that same amount of time while he was working. There are actually more than 40 hours in a week. Out of the other 128 hours available, 15-20 is not that much.

 

[justalayman]

Except that OP was putting in that same amount of time while he was working. There are actually more than 40 hours in a week. Out of the other 128 hours available, 15-20 is not that much.

UI will look at it as his time is consumed by his LLC now. When he was working they couldn't care less.

That would be no different than me having 2 40 hour job and getting fired from one. I go to file for UI and say; but I was working 80 hours. Now I'm only working 40. They go; so? you are not able to accept work because you are already working; UI denied.



that is the same reason you get denied UI if you are going to school. Your time is being consumed by something other than working at an income producing job so you get dq'd.