All Forum Posts by: Ryan Thompson
Ryan Thompson has started 0 posts and replied 2 times.
Post: Tax reform Q&A Thread 1 - Pass-through and 20% deduction
- Sugar Land, TX
- Posts 2
- Votes 0
Originally posted by @Michael Plaks:
Hi, neighbor! :)
You do not need an LLC to claim the 20% deduction for flipping. Do the deal in your own name.
And stop reading random articles from non-experts, you can drive yourself crazy. And broke.
Awesome. Thank you.
Learning the industry is tough enough. Learning tax code is a whole other league.
One more rookie question along similar lines. Let's use this example.
I leave the house in my name, no LLC, as you mentioned. I sell the house and "net" $40k.
However, I spent $20k in repairs, etc. BUT I did so with my LLC. Let's assume I did nothing else with the LLC.
Since the LLC is a pass through, do those expenses land in the same spot as my $40k "profit" yielding a 20k profit, when tax time comes?
I realize I could just pay the expenses with my personal funds but I would really like to keep them as separate as possible. And I already have the LLC and associated business accounts.
I hope this is not too dumb of a question.
Thanks and have a great weekend!
RT
Post: Tax reform Q&A Thread 1 - Pass-through and 20% deduction
- Sugar Land, TX
- Posts 2
- Votes 0
First BP post so please be kind to the newb.
I have been reading and reading about how to move my FLIP property to my LLC for the sole reason of the 20% deduction...hey I'm being positive that I will turn a profit...why not.
Being that I have a conventional loan, moving title to the LLC looks to be difficult at best.
In this thread, it was mentioned that rental income may be eligible for the 20% deduction even if the property is not held by a business entity.
What are the thoughts on flip income on a personally held property and the 20%?
Much thanks.
RT