All of that consists of just pre-printed forms that the attorney will pull off his harddrive (and that you can get in a book). Georgia makes it very easy.
[addsig]
You are right, 1245 property is your personal property.
Section 1231 property is the property used by your business in the conduct of your business. The building that houses your offices, the warehouse that stores your inventory, the manufacturing plant that produces your merchandise are all examples of Section 1231 property.
I am not in a partnership and I have never completed a partnership return. I do have a general understanding of the tax reporting process, but I am not clear on specific details. Please consult your own tax preparer for specific guidance.
Here is my general understanding: You are correct about the partnership LLCs. My response does change.
For your dealer realty, report your sales on Form 1065 and its associated Schedule A instead of Schedule C (1040). Your partnership share of the results of your activity will be reported on Schedule K-1, part III, lines 1 and 14. The amount of your income on line 1 of the K-1 migrates to Schedule E (1040), line 28J. The amount on line 14A of the K-1 migrates to Schedule SE (1040)
For your rental property sales, you first complete Form 4797. The amount on Form 4797 line 17 is transferred to Form 1065, line 6. And then subsequently tranfers to Schedule D (1040) from your Schedule K-1, line 8 or 9. Form 4797 is submitted with Form 1065, and is not included with your Form 1040, for your partnership rental property sale.
Thanks for the kind words. I am just an investor that has been through the trenches. When I started in 1980 with a buy and hold strategy, no one helped me with my tax returns. Whatever specific knowledge I have about income taxes is from attending the school of hard knocks without a scholarship.
Over the years, I have been there, done that, made the mistakes quite a few of us have made in certain investing niches. It was through participating in RE online investing forums such as this that I first learned about 1031 exchanges.
Through real estate investing, I have made enough money and have enough unearned income that my wife and I decided in 1998 to live the leisure life of the retired and self-unemployed. So if I can give back to the online community in some small fashion, I am happy to share my self-taught expertise in income tax matters.
Well, NewKid... I have to agree with Erick. Your response was great, and I too have noticed that you always give people excellent advice. I, for one, really appreciate it and have learned a lot from your posts.
So, Thank You!!!
: )
Well, NewKid... I have to agree with Erick. Your response was great, and I too have noticed that you always give people excellent advice. I, for one, really appreciate it and have learned a lot from your posts.
So, Thank You!!!
: )
All of that consists of just pre-printed forms that the attorney will pull off his harddrive (and that you can get in a book). Georgia makes it very easy.
[addsig]
Personally, I let my CPA worry about the details of tax returns.
I prefer to spend my time buying houses.
[addsig]
Erick,
You are right, 1245 property is your personal property.
Section 1231 property is the property used by your business in the conduct of your business. The building that houses your offices, the warehouse that stores your inventory, the manufacturing plant that produces your merchandise are all examples of Section 1231 property.
I am not in a partnership and I have never completed a partnership return. I do have a general understanding of the tax reporting process, but I am not clear on specific details. Please consult your own tax preparer for specific guidance.
Here is my general understanding: You are correct about the partnership LLCs. My response does change.
For your dealer realty, report your sales on Form 1065 and its associated Schedule A instead of Schedule C (1040). Your partnership share of the results of your activity will be reported on Schedule K-1, part III, lines 1 and 14. The amount of your income on line 1 of the K-1 migrates to Schedule E (1040), line 28J. The amount on line 14A of the K-1 migrates to Schedule SE (1040)
For your rental property sales, you first complete Form 4797. The amount on Form 4797 line 17 is transferred to Form 1065, line 6. And then subsequently tranfers to Schedule D (1040) from your Schedule K-1, line 8 or 9. Form 4797 is submitted with Form 1065, and is not included with your Form 1040, for your partnership rental property sale.
Erick,
Thanks for the kind words. I am just an investor that has been through the trenches. When I started in 1980 with a buy and hold strategy, no one helped me with my tax returns. Whatever specific knowledge I have about income taxes is from attending the school of hard knocks without a scholarship.
Over the years, I have been there, done that, made the mistakes quite a few of us have made in certain investing niches. It was through participating in RE online investing forums such as this that I first learned about 1031 exchanges.
Through real estate investing, I have made enough money and have enough unearned income that my wife and I decided in 1998 to live the leisure life of the retired and self-unemployed. So if I can give back to the online community in some small fashion, I am happy to share my self-taught expertise in income tax matters.
Well, NewKid... I have to agree with Erick. Your response was great, and I too have noticed that you always give people excellent advice. I, for one, really appreciate it and have learned a lot from your posts.
So, Thank You!!!
: )
Well, NewKid... I have to agree with Erick. Your response was great, and I too have noticed that you always give people excellent advice. I, for one, really appreciate it and have learned a lot from your posts.
So, Thank You!!!
: )