All Forum Posts by: Lance Lvovsky

If your balance sheet balances in Quickbooks, then why can't you get it to balance on Form 1065? 

Land is shown on the balance sheet. There is a separate line item for Land on Schedule L, Form 1065.

@Kevin Polite

Yes, it does matter where the expenses are tracked. All of your rental expenses should be on Form 8825. You should not be reporting rental expenses attributed to your rentals on page 1 of Form 1065.

I would put accounting expenses under "Legal and other professional fees". Any expenses that don't fall under one of the categories on Form 8825 can go on a separate line item. 

The net rental income or loss will be reported in Box 2 of Schedule K-1, "Net rental real estate income (loss)".

@Martha Daisley A husband and wife LLC in Florida (or any other non-community property state) DOES require filing a separate tax return, Form 1065. Don't listen to your accountant as he is wrong. Since Florida is a non community property state, a husband and wife LLC will need to file a separate tax return. You can't report the LLC income on Schedule E.

In a community property state, a husband and wife LLC can report on Schedule E.

If you want an EIN without being classified as a "partnership" for tax purposes, then you will need a SMLLC (single member LLC). A SMLLC is disregarded for tax purposes, and you will be able to report your rental activity on Schedule E.

Hope this helps.

Deduct the rental insurance premium in full (from June onwards)

As Dave said, there is no deduction for property insurance on a primary residence.

Christian Scalla It depends. First question to ask is are you a passive investor or do you materially participate in the activity? Next, do you have basis in the S Corp if you are nonpassive with respect to the S Corp? I recommend you consult with a CPA who knows both real estate and pass through taxation to assist you

Your question is not specific enough. S corps are pass through entities and generally do not pay tax. Income will pass through to the individual and retain its character. So dividend income will remain dividend. Rent income will remain rent income. All subject to the same tax rates as the individual.

Xero is a good program too, in addition to quickbooks. For mileage tracking, I recommend apps on your phone such as MileIQ or Everlance.

Land does not get depreciated. You only depreciate the "building/improvement" portion. Subtract the percentage of land as assessed by your county from the amount you bought your house and that is the depreciable basis. For example: You paid $100,000 for a house. The county assessed the property for $80,000 with 5,000 as land and 75,000 and building. In other words 6.25% of your purchase price is allocated toward land, or in this example, 6,250. So $6,250 is allocated to land and the remaining you can depreciate.

@Account Closed I can't help but notice that you have given incorrect advice numerous times on the Tax/Legal forum. As @Brandon Hall now mentioned to you a couple times, you are providing incorrect advice. While the community certainly appreciates your willingness to help, please refrain from providing "advice" regarding Tax issues, as you are providing inaccurate information.

This post is not meant to attack you in anyway. Again, I am sure you have good intentions, but Taxes are very complicated, and unless you know the answer, please don't be giving inaccurate advice to our fellow members.

Thank you.

@Rich Hupper Income from wholesaling is ordinary income.