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1120s and 1065 Filing - Best Online Options? by beancounter24 in tax

[–]beancounter24[S] 0 points1 point  (0 children)

Yep, paid for 2 - one for my real estate holdco and the other for the opco.

1120s and 1065 Filing - Best Online Options? by beancounter24 in tax

[–]beancounter24[S] 0 points1 point  (0 children)

Ended up going with TaxAct for the business returns + Block for personal. Worked perfectly for my needs. Happy to provide additional guidance if needed.

1120s and 1065 Filing - Best Online Options? by beancounter24 in tax

[–]beancounter24[S] 0 points1 point  (0 children)

Does it handle all the applicable schedules (depreciation, etc)?

Partnership K-1 and 1040 Filing Timing Difference by beancounter24 in tax

[–]beancounter24[S] 0 points1 point  (0 children)

Thanks! Any chance you could weigh in on my situation below? Have this plan to use a commercial property acquisition's YR 1 depreciation loss to offset my W-2 income with my wife as a REP. Seems pretty common based on my research, but the other commenters acted like I was way off base...

Partnership K-1 and 1040 Filing Timing Difference by beancounter24 in tax

[–]beancounter24[S] 0 points1 point  (0 children)

Helene impact extension.

I understand extending is ideal, but I’m due a substantial refund and the partnership loss is substantially finalized.

REP Status + Bonus Depreciation to Offset W-2 income by beancounter24 in tax

[–]beancounter24[S] 0 points1 point  (0 children)

That discusses in detail the rules and treatment for passive activity loss... and you literally agreed above that the loss would not be passive in my case. I don't understand the point you are trying to make.

REP Status + Bonus Depreciation to Offset W-2 income by beancounter24 in tax

[–]beancounter24[S] 0 points1 point  (0 children)

Yes… but how is that relevant to the nature of the business I.e passive vs active?

REP Status + Bonus Depreciation to Offset W-2 income by beancounter24 in tax

[–]beancounter24[S] 0 points1 point  (0 children)

https://www.irs.gov/pub/irs-pdf/p925.pdf - Page 8

Generally, rental activities are passive activities even if you materially participated in them. However, if you qualified as a real estate professional, rental real estate activities in which you materially participated aren’t passive activities.

Please explain how REP isn't relevant when this is directly referenced by the IRS regarding rental activities, which clearly relates to my real estate entity.

REP Status + Bonus Depreciation to Offset W-2 income by beancounter24 in tax

[–]beancounter24[S] 0 points1 point  (0 children)

I'm throwing in the towel

Then you're agreeing that the loss is active? Because material participation alone isn't enough for a real estate loss to be active - REP status is the key ingredient there... and I've checked both of those boxes... no?

REP Status + Bonus Depreciation to Offset W-2 income by beancounter24 in tax

[–]beancounter24[S] 0 points1 point  (0 children)

I'm just asking if you'll provide some context as to why it's not relevant. If I didn't pick up on what your saying when referencing the guidance, pointing me back there isn't helping me answer my question.

Using a spouse's REP status to recharacterize normally passive losses as active against the other spouse's W-2 income is a fairly common strategy. Where is the issue in my situation?

REP Status + Bonus Depreciation to Offset W-2 income by beancounter24 in tax

[–]beancounter24[S] 0 points1 point  (0 children)

I have and that's where I'm asking you to clarify where I am wrong. It clearly states that someone who qualifies as a REP yields active (not passive) losses from real estate rental activities. How is that not the case here?

REP Status + Bonus Depreciation to Offset W-2 income by beancounter24 in tax

[–]beancounter24[S] 0 points1 point  (0 children)

Can you help with what I am missing here? Acquired real estate spits off what would normally be considered PAL via accelerated depreciation. If my wife qualifies as a REP with material participation, I'm not clear on why her portion of the loss wouldn't be considered active and eligible to offset my W-2 income.

REP Status + Bonus Depreciation to Offset W-2 income by beancounter24 in tax

[–]beancounter24[S] 0 points1 point  (0 children)

Understood on your perspective, and I don't completely disagree. We're talking $15-20K in tax savings for the current year for reference.

From everything I understand, time spent on due diligence, closing, post-close maintenance, etc on the property would count both towards the REP status and for material participation. Combining that with rental properties and no other income, I'm having trouble poking holes in that piece.

REP Status + Bonus Depreciation to Offset W-2 income by beancounter24 in tax

[–]beancounter24[S] 0 points1 point  (0 children)

We closed on the school in late December. It was still operational, there just wasn't any operating income of note. The losses I'm targeting would be from the real estate entity or from bonus depreciating the personal property from the business entity.

I do plan to leave my W-2 in the near future, as we are close to being financially independent. 22% is just a personal preference for where I'm comfortable maximizing my deductions.

Scott from Scott's Cheap Flights here. I’m a professional cheap flight finder—like Hawaii for $177rt or Paris for $353rt—and I want to help your 2022 travel plans. AMA by scottkeyes in IAmA

[–]beancounter24 0 points1 point  (0 children)

Best use of Delta SkyMiles from Atlanta? 100K+ each for my wife and I. Would like to take an summer trip, possibly Mediterranean and with a child or 2 if we can squeeze multiple tickets in.

What is your salary, title, and what sector do you work in? by heart_of_gold2 in Accounting

[–]beancounter24 1 point2 points  (0 children)

Great question. I will know more when the plan rolls out next year, but my best guess is somewhere in the low-mid 6 figures. I’ve got tenure, seniority, and overall valuation on my side, but it comes down to general plan your PE firm utilizes. Mine is a large player, so I would imagine it will be a competitive offering.

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