Recent content by jmt111

This home is in Passaic County, NJ. Does that impact the capital gains tax? $50,000 is my estimate for my fees for the purchase, the fees I will incur for the closing and capital improvements. I already accounted for this by reducing the sales price from $250,000 (what I am actually expecting...

What is the name of your state? NJ I have a home in NJ that I bought for $62,000 in 2009 and that I will sell for $200,000. It is not my primary residence. $138,000 is the difference between my basis and the proposed sale amount. What is my capital gains tax if I sell the home in NJ for...

Suppose an LLC is owned and operated by 2 member-employees. Isn’t it better to elect to be taxed as a partnership rather than as an S corporation because as a partnership, the owners who are employed by the business are considered business owners, not employees, whereas with an S corporation...

What is the name of your state? NJ I have an LLC with 2 members, which I understand can file its taxes in NJ as a partnership or as an S Corp. What are the advantages and disadvantages of each? I understand that filing as an S Corp requires submitting a balance sheet and filing as a...

What is the name of your state? NJ I own a sole-member LLC registered in NJ. Rather than file its taxes under Schedule C of my Form 1040, I want to be able to file a separate return for the LLC. I understand that I need to file Form 1120-S Corp. (U.S. Income Tax Return for an S Corporation)...

The $150,000 figure came from the rule whereby taxpayers who are not real estate professionals can write off up to $25,000 of their rental property losses (i.e., passive activity losses) against their other income on Schedule E (Supplemental Income and Loss) if their AGI is less than $150,000. I...

Does this new rule also apply to federal statutory employees? I have heard that it does not apply to them and that they can list the deductions on Schedule C.

It is easy to confuse the questions I asked in separate threads and to conclude that they are the same question because they both relate to whether certain expenses or losses can be deducted from my wages. However, they are not the same question. The question relating to LLCs relates to whether...

Can anyone even offer a general range of what it might cost? Currently, I am paying about $120 using TurboTax and want to get a sense of what it would cost if I got a professional to do it for me? Would the cost be different if I signed the forms, thereby releasing the accountant from risk?

NJ What would I expect to pay an accountant to prepare my federal and state taxes? My income includes wages, a side business, IRAs, and a couple other sources of income. I have various deductions, including charitable contributions. I would characterize my taxes as having medium complexity.

How would it work if I am employed and receive wages but I also have a second business that I run as a sole proprietorship and whose profits and losses I report on Schedule C? In this case, do my sole proprietorship expenses offset my sole proprietorship income? If the sole proprietorship...

This question has nothing to do with an LLC. This question relates to wages I receive from an employer and unreimbursed expenses that I incur for travel for that employer. It is unrelated to an LLC. Thank you.

A few times in this thread, I have raised a question as to whether wages that exceed $150,000 can be offset by losses in an LLC in which I am a member, but I do not believe I have received a clear reply. Isn't there a limit that only allows for deductions to offset wages if the wages do not...

Do you have a source that shows that item 4 (Trade or business expenses (§ 162) and losses incurred in a trade or business (§ 165)) has been removed as a deduction? I cannot find anything online that shows this.

This is not the same issue as the thread about offsetting my income with an LLC's losses or Section 179 Deduction. The other thread relates to how an LLC depreciates or takes a Section 179 Deduction for expenses and how that is reported to its members and whether members can offset their other...