I am a licensed real estate agent, but my primary source of income is flipping homes. I purchase them, repair/remodel, then sell them for profit. I am using Turbotax Business download version.
I have a unique situation this year. I am attempting to keep my Adjusted Gross Income (AGI) as high as possible this year so that I can qualify to refinance a couple of my properties. Unfortunately, when I take some of the write-offs that are legitimately due to me such as the Mileage Expense and the Home Office, it drops my AGI below a level that lenders require for the refinance.
I would like to keep my AGI high for this year, even if it requires me to pay additional taxes. I just don’t want to lose out on some of the deductions that I would have to omit in order to keep it that high. This is several thousand dollars in taxes.
So what can I defer until next year? I chose to depreciate some of my business assets (computers), rather than take a Section 179 deduction.
I have one “flip” that took a significant loss, and would remedy the situation in one swoop if I could defer it until 2021 taxes.
The one “flip” was actually a 50% venture with another partner, and I was thinking maybe there was some way to let him claim the entire loss, but I believe we are required to claim 50/50. That would probably solve the problem as well if he could eat the whole thing. The loans are taken out against my personal, so my partners income doesn’t matter.
I have an S-Corp as well, but the flip wasn’t officially done under that business, though it is a similar business.
Or I could try and carry over the mileage and home office expense, but I don’t think I’m allowed to because I did have a decent net profit this year.
Please help.
