|
Posted by kastnna on May 10, 2007, 11:35 pm
Please log in for more thread options
A friend of mine ("John") asked for advice on the following
scenario. I am hoping you guys can help! The numbers are
somewhat hypothetical for easy accounting purposes, but they
are close to accurate.
John has a farm that generates losses every year of $50k
He is starting a consulting company with a partner (don't
know what he actually consults on) and expects to generate
$400k in income over expenses (profit) annually.
He wants to know which form of business entity he should
create that would maximize his income (S-corp, LLC, etc).
John and his partner are 50/50 owners, but the farm losses
are solely John's.
John is MFJ and his primary itemized deduction is a $20k
mortgage interest expense.
He indicated that he is leaning towards a S-corp that would
pay him a w-2 wage and a dividend distribution of the
remaining profits.
I know very little about Agr. Taxation and how it would
effect the number crunching.
Thanks in advance.
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap