|
Posted by Harlan Lunsford on February 18, 2008, 6:06 pm
Please log in for more thread options
removeps-groups@yahoo.com wrote:
> wrote:
>
>> "Piercing the corporate veil" is a term used when trying to do things
>> within a corporation instead of proper place, individually. Quite the
>> reverse of this case.
>
> What if the LLC is sued and has to sell its assets to make payment.
> If it just uses the building, then perhaps the lawyer can construe
> that as the LLC owns the building (which is why it doesn't have to pay
> rent). So then it means that the building could be lost in a
> lawsuit. However, if there is a rental contract, them the building is
> protected. I'm no lawyer, so could be way off here.
>
We're only talking about the tax aspects here, and as for "where to put
it", IRS don't give a rat's... uh... whatever. Just so you PUT it!
ChEAr$,
Harlan Lunsford, EA n LA
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by Gil Faver on February 18, 2008, 7:10 pm
Please log in for more thread options
be way off here.
>>
> We're only talking about the tax aspects here, and as for "where to put
> it", IRS don't give a rat's... uh... whatever. Just so you PUT it!
>
> ChEAr$,
> Harlan Lunsford, EA n LA
some of us like to look at "the big picture", not just tax aspects. I think
that is good advice to all . . .
--
<< ------------------------------------------------------- >>
<< 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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by Harlan Lunsford on February 18, 2008, 11:02 pm
Please log in for more thread options Gil Faver wrote:
> be way off here.
>> We're only talking about the tax aspects here, and as for "where to put
>> it", IRS don't give a rat's... uh... whatever. Just so you PUT it!
>>
>> ChEAr$,
>> Harlan Lunsford, EA n LA
>
>
> some of us like to look at "the big picture", not just tax aspects. I think
> that is good advice to all . . .
>
I certainly agree with you statement. However in looking at the big
picture, remember that we are here to serve the client, not to make his
life more complicated. Remember that in the OP's case, what's done is
already done, so we can't have him go back and fill out a backdated lease.
ChEAr$,
Harlan Lunsford, EA n LA
--
<< ------------------------------------------------------- >>
<< 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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by Gil Faver on February 19, 2008, 11:24 am
Please log in for more thread options
> Gil Faver wrote:
>> be way off here.
>>> We're only talking about the tax aspects here, and as for "where to put
>>> it", IRS don't give a rat's... uh... whatever. Just so you PUT it!
>>>
>>> ChEAr$,
>>> Harlan Lunsford, EA n LA
>>
>>
>> some of us like to look at "the big picture", not just tax aspects. I
>> think that is good advice to all . . .
> I certainly agree with you statement.
always good to hear.
However in looking at the big
> picture, remember that we are here to serve the client, not to make his
> life more complicated.
I agree, that's why I made the point of following state law regarding
treating separate entities as separate entities.
>Remember that in the OP's case, what's done is already done, so we can't
>have him go back and fill out a backdated lease.
We don't know if the OP just bought the building or not. But, in any event,
he can certainly sign a lease now, for going forward.
--
<< ------------------------------------------------------- >>
<< 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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by JV on February 20, 2008, 11:25 pm
Please log in for more thread options Hello All,
Thanks for all the replies. I have been away for a few days and am
amazed at the discussion this has generated. I would like to
summarize what my original question was.
I own a single member LLC that is disregarded as a corp. for tax
purposes, I fill out a schedule C and pass the income to my 1040. The
LLC generates income, there is no tax loss in this case. In February
2007 I purchased a building under my own name "JV". The plan was to
have JV lease the building to the LLC. Triple net lease has been
generated. The reasons for having the building in my name are:
1) Remove large asset from LLC assets (lawyer said that's the way to
do it).
2) I plan to sell or close down the business in 5-7 years and rent out
the building for retirement income.
3) Rent is expense to LLC and passive income to JV.
I hired a CPA to do my taxes this year. In looking over my
information, he said that "since I had elected to be disregarded as a
corporation, I can't rent the building to my LLC". In his opinion I
am basically "renting to myself".
>From some of the previous comments:
- I am married and can transfer the building to my wife if needed.
- I am the only person who has seen the lease, it could easily be
changed.
- I am paying a fair market value.
- There is no tax loss.
What I did in the past that can't change:
- The LLC paid rent to JV in 2007.
- The LLC issued a 1099-MISC to JV and reported it to the IRS.
My goal here is to get as much outside information so I know what
options I have to move forward, and more important, is this his "TAX
OPINION" or a "TAX FACT". If I have to make the rental income to me
non-passive, then that's ok.
Thanks to all for the helpful information.
JV
--
<< ------------------------------------------------------- >>
<< 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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
| Similar Threads | Posted | | Buying pre-owned SUV (i.e. 6000 + lb) and Section 179 tax code? | February 20, 2008, 12:00 pm |
| Buying pre-owned SUV (i.e. 6000 + lb) and Section 179 tax code? | February 26, 2008, 11:04 am |
| Tax Effects of Dividends From Wholly Owned Subsidiary | September 28, 2008, 6:58 pm |
| Single member LLC | January 20, 2008, 1:18 am |
| LLC member salaries uneven? | November 10, 2006, 5:29 pm |
| Member Active in LLC and Self Employment Tax | April 9, 2007, 3:10 am |
| A foreign partner (member) in a LLC | March 27, 2008, 11:15 pm |
| LLC foreign member tax problem | April 16, 2006, 2:29 am |
| LLC Tax Question - Member exiting the business | November 26, 2006, 10:54 am |
| Death of a owner of a Single Member LLC | January 18, 2008, 7:41 pm |
|
|
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap