Setting up business

1 Reply

Good afternoon

Looking for real-estate refferal cpa in or near Newark NJ.

Trying to set up my business however not sure how to structure it. Llc? S-corp? Add members? Employees?

Any recommendations wanted.

@Kuron McGraw

There are a couple of CPA's on this message board who are local to the tri-state area. The reason you would want a CPA in the tri-state area is that the state tax laws in this area can be complex.

Your profile mentions that you are interested in house-hacking and there are many unique tax laws as it pertains to house-hacking.

House hacking makes your tax situation more complex.
You purchased a property that is treated as both an investment property and a personal residence. As such, payments that you make need to be prorated between business deductions and personal deductions.

Payments that you make normally fall into one of 3 buckets
100% of the payment can be factored in somewhere on the return
Partial payment can be factored somewhere on the return
0% of the payment can be factored in somewhere on the return

House-hacking also has considerable tax implications in the event that you want to sell this property.

You can potentially defer a portion or all of the gain on the investment property with 1031 exclusion.
You can potentially exclude a portion or all of the gain on the personal residence with section 121 exclusion