All Forum Posts by: Michael Plaks

@Dan Trinh

Technically, you DO own a business, from the tax law perspective. There is no requirement to formally create a business entity. The only requirement is to conduct business activities, which you do.

As mentioned by @Ashish Acharya, there're no tax benefits from creating an LLC. You can deduct all business expenses, including your travel to NV, with or without an LLC.

Creating an LLC may provide you with legal protection, which is completely separate from taxes and should be discussed with an attorney.

@Carl Fischer

I periodically experience glitches with BP - unable to tag people, unable to copy/paste, a message I already posted still shows as an unposted draft right below the posted copy of it, etc.

Usually these glitches disappear on their own after awhile, with no action on my part. Just wait couple hours, I suggest.

@Brandon McLean

Umm, this is not a tax savings idea thread, at least not so far. This is a "reckless slogans from Grant Cardone and similar clowns" thread. :)  Those, err, visionaries love to proclaim how "everything is deductible" and "you are entitled to..." and "let the IRS underwrite your lifestyle" and similar bull.

No, I'm not giving you hard time. I'm having a major issue with them and what they "teach."

Some specific pointers.

• cannot deduct your utility bills and such and cannot pay them from the LLC. These are personal expenses, and only a portion of them can be deducted via home office
• cannot treat drinks with your band as a business expense, with an occasional exception like maybe a celebration of a new album release
• cannot deduct "business attire or stuff I will wear at a show." No, you cannot, there're very specific rules against it, despite the YouTube webinars encouraging you to deduct them (the symphony players lost a court case against the IRS trying to deduct their performance tuxedos)
• and so on.

I know it's tempting to think you're sticking it to the IRS, but in the end they will stick it to you. Use professional advice, not some superficial garbage from the Internet. Professionals can save you big bucks legally. Peace.

@Benjamin O'Brien

I suspect that @Nicholas Aiola is right: the real problem is not the bill, but the value. For instance, what does his $500/hr give you? It is surely a high cost, but what do you get from it? If you learn how to save $5,000 - then it's a great bargain.

In simple language, here it goes.

Until the newest clarifications, the high-earning Realtors, especially brokers, were at risk of losing the new deduction. To everybody's relief, the IRS said to not worry, Realtors are safe.

Natalie is awesome. 

As to $100/hr? I'm afraid not. Plan for $250 to $500.

@Brian Schmelzlen and @Natalie Kolodij

Pardon my ignorant question, as I have not had a chance to study the TRegs yet.

Doesn't aggregation apply for the calculation of the limit for the above-threshold income only? You seem to imply that the aggregation is somehow relevant for the ToB determination, and I don't think it is. 

LLC has nothing to do with the "trade or business" definition. Section 199A (the 20% deduction) applies to all forms of business, including sole proprietorship. All of them have to pass the "trade or business" test, regardless of how they are organized. Holding renting properties, with or without LLCs, may or may not qualify, case by case.

Yes, it would. 

 There is almost no chance that it will qualify as a trade or business, unless you run this partnership