All Forum Posts by: Christopher Smith

Yep

Sound a little like constructive fraud

I would presume that you would use actual FMV of the personal property on the date of disposition. But it would be interesting to hear how the tax preparers are treating situations such as this.

Typically you will report it just like any other reportable income. Certain deductions (e.g., tax depreciation) may be calculated differently so you'll need to know those rules. You'll also need to determine how any foreign taxes paid are to be treated (e.g., credit or deduction).

If you feel you can't handle these tax aspects of foreign rental income reporting yourself, then find a preparer who has experience in this area. This is pretty basic international tax work, so it shouldn't be that hard to find someone who can handle it. 

You're presence in California constitutes the conduct of business in California on behalf of your Ohio LLC. I have Ohio rentals as well California rentals. There is virtually no way to avoid this treatment by California although there are a few BP yahoos who might tell you otherwise.

Likely it was what was needed to stay within budget balancing projection constraints, no economic rationale or magic just a make it fit approach.

I'd probably take the one w/o the need for rehab, avoid the rehab risk and personal effort required. Wouldn't let the tax tail wag the dog.

Can we assume tenant will be voluntarily moving at the end of the current lease term? If yes than you will have an opportuntiy to release the property at market rates. If not, then you may have a legal issue requiring legal guidance / assistance given the eviction moratorium rule or rules potentially applicable to your situation. 

Well lets see. First its not my opinion since its a quote taken directly from the FTB, the folks that will audit you, then assess your deficiency and further penalize you if deemed appropriate. Second, following directly from the First, your dispute is not with me, its with the FTB, so take your aforementioned "sources of authoritative information" to the FTB, make your case and when you clearly prevail lets us all know by pointing to the FTB's notice to the public that it has reversed its heretofore unmistakenly unambiguous position on the issue. 

Is that clear enough for you?  

First you might realize that setting up a single member LLC has no inherent tax advantages. It's typically a liability mitigation tool, which has nothing to do with tax.