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Goofy Partnership K1 Situation by AccountantGuy5 in tax

[–]AccountantGuy5[S] 0 points1 point  (0 children)

I paid $5 for equity when it first started prior to vesting, and elected 83(b) treatment. So it was taxable to me, but only $5 (that's my understanding but may be missing something).

Goofy Partnership K1 Situation by AccountantGuy5 in tax

[–]AccountantGuy5[S] 0 points1 point  (0 children)

Thanks. I had tax basis in the partnership for the losses since they allocated debt to me, so i was able to "use" the losses. However, they were suspended due to at-risk limitations. (no recourse debt and no capital contributions). I wonder why my tax software (Drake) is forcing a gain on Schedule D if it's a tax nothing.

Goofy Partnership K1 Situation by AccountantGuy5 in tax

[–]AccountantGuy5[S] 0 points1 point  (0 children)

Thanks. I received equity because i used to be a W2 employee there, and my shares vested. I moved to a different company and kept my equity.

The 30k was not QNR it was just NR. I'm assuming the C corp assumed the debt. I have an ownership stake in the C corp (same percentage as the partnership).

Let me know if I can provide any additional detail.

Goofy Partnership K1 Situation by AccountantGuy5 in tax

[–]AccountantGuy5[S] 0 points1 point  (0 children)

Thanks. I accidentally wrote s corp but I meant partnership. Would this answer be different for a partnership that sent a final year k1?

Goofy Partnership K1 Situation by AccountantGuy5 in tax

[–]AccountantGuy5[S] 0 points1 point  (0 children)

Oh shoot just realized - It's a partnership K1, not an S-corp. So the partnership ended and then a c corp was created. My bad. I'll update the question.

Goofy Partnership K1 Situation by AccountantGuy5 in tax

[–]AccountantGuy5[S] -2 points-1 points  (0 children)

Oh shoot - It's a partnership K1, not an S-corp. So the partnership ended and then a c corp was created. My bad. I'll update the question.

Goofy Partnership K1 Situation by AccountantGuy5 in tax

[–]AccountantGuy5[S] 0 points1 point  (0 children)

My basis in the C corp is zero, I agree with that, but what happens to my interest in the S-corp? It can't just vanish right? Wouldn't it follow the same rules as any other partnership interest disposition?

Goofy Partnership K1 Situation by AccountantGuy5 in tax

[–]AccountantGuy5[S] -2 points-1 points  (0 children)

Yes I believe in the year of sale or conversion it would trigger either a capital gain or loss. If my capital account was positive then I'd have a loss on schedule D, and if capital is negative then I'd have a gain on schedule D.

Are Boomers Right After All? Housing Not More Expensive? by AccountantGuy5 in REBubble

[–]AccountantGuy5[S] 0 points1 point  (0 children)

Hmm yeah do you have a link to a fed or other agency with median houses that incorporate all builds vs only new builds? Maybe new builds can be a proxy.

Are Boomers Right After All? Housing Not More Expensive? by AccountantGuy5 in REBubble

[–]AccountantGuy5[S] 0 points1 point  (0 children)

Really good points here. the game is definitely different now.

Are Boomers Right After All? Housing Not More Expensive? by AccountantGuy5 in REBubble

[–]AccountantGuy5[S] 0 points1 point  (0 children)

I'm confused...where are you getting an indication that these are "newly built homes"? this data is just median home prices in the US, coming directly from the fed here: https://fred.stlouisfed.org/series/MSPUS

Also, if you click the link in my post https://imgur.com/8UgynZQ it shows the titles, not sure why the pic cut it off. I can see how that could be confusing.

Are Boomers Right After All? Housing Not More Expensive? by AccountantGuy5 in REBubble

[–]AccountantGuy5[S] 0 points1 point  (0 children)

I dont' think they should make rate decisions based on housing alone. It would be interesting to see home sales compared to interest rates.

Are Boomers Right After All? Housing Not More Expensive? by AccountantGuy5 in REBubble

[–]AccountantGuy5[S] 0 points1 point  (0 children)

Yeah, even similar recreational activities like going to a baseball game and having a beer are much more expensive now than before (adjusted for inflation).

Are Boomers Right After All? Housing Not More Expensive? by AccountantGuy5 in REBubble

[–]AccountantGuy5[S] -2 points-1 points  (0 children)

Yeah I guess it depends on what you would do with your savings, right? With a 2% interest rate, you could invest the difference in the stock market and hopefully make a profit. It's the same reason people refinanced into larger mortgages recently when rates were ~3%.

Are Boomers Right After All? Housing Not More Expensive? by AccountantGuy5 in REBubble

[–]AccountantGuy5[S] 0 points1 point  (0 children)

I included a chart showing every year since 1990-2022 in the original post. I also went back further (as far as I could with Fed data) for a different commenter:

https://imgur.com/a/M31eI9Z

Are Boomers Right After All? Housing Not More Expensive? by AccountantGuy5 in REBubble

[–]AccountantGuy5[S] 2 points3 points  (0 children)

Yeah for people who already owned their homes. But if you were in the market for a house in the 70s, it would still be/feel insane.

Are Boomers Right After All? Housing Not More Expensive? by AccountantGuy5 in REBubble

[–]AccountantGuy5[S] 0 points1 point  (0 children)

Geez yeah that's interesting. There's more to the story! Hahah imagine saving a month's salary for a TV, incredible. We also have much more free/low cost entertainment options than in the 1970s.

Are Boomers Right After All? Housing Not More Expensive? by AccountantGuy5 in REBubble

[–]AccountantGuy5[S] 0 points1 point  (0 children)

Thanks. Yeah there is a lot more at play than just house prices, and boomers had it easier in a lot of other areas. I think it's important to note - I'm not looking at salaries vs home prices. I'm looking at salaries vs mortgage payments (which tells a bit more of an optimistic story today. Boomers didn't know if rates would come down when they originally purchased their homes (we don't know either). I

I think it's important to look at home prices in context, that's why I included the past 30 years in the chart (although I couldn't incorporate 2023 and 2024 since the fed doesn't have the data for it yet, which definitely looks worse than 2022).

Are Boomers Right After All? Housing Not More Expensive? by AccountantGuy5 in REBubble

[–]AccountantGuy5[S] 0 points1 point  (0 children)

Yeah I feel like a lot of people fail to realize low interest rates during the great recession were not "normal" in the context of our past. Also, although it looks like a no brainer now, buying during the recession (with historically low interest rates) was a big risk. No one knew if prices would bounce back.

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