Income Tax For LLC

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I have a question about income tax for LLC. Do we need to be a CPA certify to do tax for LLC ? Thank you.

Comments(12)

  • mn29th October, 2005

    Thanks fbprop.
    mn

  • NewKidInTown329th October, 2005

    How is the LLC to be treated for tax purposes? Did you elect partnership, corporation, or disregarded entity?

    If you did not make a specific election, how many members are there in the LLC?

  • NewKidInTown315th October, 2005

    In 2008, and only in 2008, whatever amount of capital gain that keeps your total taxable income in the 15% tax bracket will enjoy the tax free holiday. Whatever amount of capital gain pushes your total taxable income into the 25% tax bracket (and higher) will be taxed at 15%.

    If you are married, filing jointly, I expect the top of the 15% tax bracket will be about $62K in 2008. If Congress repeals the tax cuts before 2008, the capital gains tax rates will revert to the rates in effect before the 2003 tax cuts were enacted.

  • ceinvests25th October, 2005

    Could you refer me to a site, or IRS location that has this info. in specifics? Or maybe one of your excellent examples ?
    If I am understanding the above discussion, the cap. gains rates/taxes do not stand alone.

    You will probably tell me to discuss this with a tax or estate planning professional, and I think I have found a good one finally. I find that per taxes in 2003+2004, I am in a large negative income position. I would like to consider taking advantage of this position (while it exists) and look at a sale or two of investment prop.

    Any info. / discussion is greatly appreciated.

  • peshe30th September, 2005

    Thank you Finniganps & Venator64 for your inputs.
    I would still appreciates other ideas as well. Thank you.

  • vguess991st November, 2005

    you also have the option of holding a second mortgage on the sale instead taking all your profits are once. That will lower the profit you take right waya and thus lower your tax bill. just a thought...

  • bgrossnickle2nd November, 2005

    Many people fudge on the identify date. If you are actively buying houses at the auction, then surely you can spend the 190k within the given time frame.

    The property you sold must have been an investement property, not inventory. And the property you buy you must have the intent of it being and investement property, not inventory. Rule of thumb is investment properties are held for at least 12-18 months.

  • NewKidInTown32nd November, 2005

    The problem with serial exchanges, as you propose, is that the IRS views this activity as acting as a dealer to real estate. Dealer property is inventory to your business and is not permitted to participate in a 1031 exchange.

    So after several serial exchanges, the IRS sees your pattern of dealer activity on your tax returns. They audit you, disallow all your prior exchanges, and recompute your tax returns. After adding penalties and interest to the back taxes, you have a huge income tax bill to pay.

  • NewKidInTown331st October, 2005

    I believe the IRS will consider this sale to your partner as a dealer disposition. As such, taxes will be ordinary income and payroll taxes will also apply.

  • finniganps1st November, 2005

    You might want to consider doing a lease/option with him to get the capital gains treatment. Have him lease it from you and then sell it to him after 1 year to get the LT cap. gains treatment.

  • NewKidInTown31st November, 2005

    Perhaps your attorney could work out your buyout as your liquidated share of the partnership.

  • mrbend2nd November, 2005

    Thank you both for your input. Much appreciated!

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