SusanH
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- Got Cheered for Yes you can allocate the usage of a single asset between.... June 24, 2020 12:27 AM
- Got Cheered for Yes. You need to report the 1099-MISC income because othe.... May 25, 2020 11:09 AM
- Got Cheered for Yes you can allocate the usage of a single asset between.... April 11, 2020 8:53 AM
- Got Cheered for If you are considered a real estate professional and fili.... April 4, 2020 2:44 PM
- Posted The sale of a business is comprised of the sale of indivi... on Business & farm. June 7, 2019 3:05 PM
- Posted You will need to associate your business with either you... on Get your taxes done using TurboTax. June 7, 2019 3:05 PM
- Posted Yes, you can count display items as business expenses. Yo... on Business & farm. June 7, 2019 3:03 PM
- Posted It won't affect the return as far as income/loss. If you'... on Deductions & credits. June 7, 2019 3:00 PM
- Posted No, you should report the true capital contribution becau... on Deductions & credits. June 7, 2019 3:00 PM
- Posted If your LLC's business is flipping properties, you can de... on Deductions & credits. June 7, 2019 3:00 PM
- Posted If you are considered a real estate professional and fili... on Deductions & credits. June 7, 2019 3:00 PM
- Posted Unfortunately, there is no way to amend your return a sec... on After you file. June 7, 2019 2:59 PM
- Posted If you didn't purchase the house and shortly thereafter u... on Investors & landlords. June 5, 2019 10:30 PM
- Posted The IRS may use the main office address as the return add... on Get your taxes done using TurboTax. June 5, 2019 10:27 PM
- Posted No, you cannot enter something that you did not pay and o... on Deductions & credits. June 5, 2019 10:23 PM
- Posted Unfortunately, you will have to be the squeaky wheel. If... on Get your taxes done using TurboTax. June 5, 2019 10:23 PM
- Posted Storm damage is considered a casualty loss. Here's how to... on Deductions & credits. June 5, 2019 10:20 PM
- Posted If the stumps are there because of a storm and not just b... on Deductions & credits. June 5, 2019 10:20 PM
- Posted When you do your amendment, you can include the details i... on After you file. June 5, 2019 10:19 PM
- Posted If you have state income taxes paid that are not included... on Get your taxes done using TurboTax. June 5, 2019 10:18 PM
June 7, 2019
3:05 PM
The sale of a business is comprised of the sale of individual physical assets (if any) and the sale of intangible assets such as goodwill. You will need to tell TurboTax you've sold the business and then record the sale of any assets or goodwill.
To tell TurboTax you've sold the business
Go into business income and expenses and edit your business.
Click on update your Business
Profile
Scroll down to Disposed
of Business in Current Year and click edit
Indicate that you sold your business in 2015
To record the sale/disposition of goodwill and any other assets
Regarding the Goodwill that was previously entered as an
asset in a prior year;
Edit the asset and at ‘Tell Us About This Asset’, indicate
the item was sold, retired etc and enter the date you sold your business.
At ‘Enter Asset Sale Information’ enter the Sales Price (if
any) that was allocated towards Goodwill. If none was allocated towards Goodwill,
enter zero.
You may also wish to review TurboTax
Tips on Closing a Business
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June 7, 2019
3:05 PM
You will need to associate your business with either you or your spouse if yours is a single-member LLC and considered a 'disregarded entity' by the IRS. The IRS generally considers any income from a single member LLC to belong to the single-member of the LLC when it is reported on a Schedule C under Business Income. If yours is not a single-member LLC that you should first be filing your business return as appropriate (C-Corp, S-Corp, Partnership etc) and then report your portion of the LLC earnings on your personal return via the K-1 issued to you by the LLC.
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June 7, 2019
3:03 PM
Yes, you can count display items as business expenses. Your starter kit can be included as a regular expense since you got it at/near the same time you started your business; start up costs are for costs incurred prior to starting your business. Whatever your kit is mostly comprised, office materials or advertising for instance, is how you would categorize it. If the display items are strictly for display and not for sale, you can count them as advertising or enter them under "Other expenses" with a Display Items description.
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June 7, 2019
3:00 PM
It won't affect the return as far as income/loss. If you've already filed as zeroes, that's fine. Just make sure that you report the cash contributions properly on your 2016 return when you report the sale of the property.
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June 7, 2019
3:00 PM
No, you should report the true capital contribution because that doesn’t change. As an example, if you each contributed $50k in capital to the LLC, bought a property for $80k and spent $20k in rehab costs, the amount you contributed to the LLC didn’t change. You still each contributed $50k, only the form in which that equity was held was changed; you each simply converted the $50k that was a cash asset to a $40k property asset and $10k in additions to asset basis.
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June 7, 2019
3:00 PM
If your LLC's business is flipping properties, you can deduct the normal type of business operating expenses, office supplies, phone etc. You can also include business mileage or the business portion of a car lease (if taking actual expenses) that you had during 2015. You cannot deduct any of the rehab costs until the property is sold. If the LLC is only in existence for this one property and will dissolve when the property is sold, then all of the expenses go to basis and are taken into consideration when you sell the property.
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June 7, 2019
3:00 PM
1 Cheer
If you are considered a real estate professional and filing a Schedule C, you can deduct the taxes and insurance. If you are not, you must wait until you sell the property. Since this was purchased as an investment to fix and resell, you add the carrying costs including mortgage interest, property taxes and rehab expenses to the basis of the property. When you sell it, all of these costs (and others from the purchase) become part of the adjusted basis for determining gain or loss on the property. Property taxes are added to the basis and are not deductible on Schedule A since they are considered a business expense, not a personal one, because of the status as an investment property. Next year you will report the sale under the investment section unless you are considered a real estate professional; if you need directions at that time, please post a new question. Until the property is sold, you do not report any expenses from the purchase or updates you have completed except as noted above for real estate professionals.
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June 7, 2019
2:59 PM
Unfortunately, there is no way to amend your return a second time using the same .tax file. You will need to create a 2nd 2013 tax return and make it exactly match what your return said after it was amended the first time. After you have re-created your 2013 amended return, you will be able to amend it. If you need them, we have instructions on amending in the following FAQ.
How to amend a return you
already filed
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June 5, 2019
10:30 PM
If you didn't purchase the house and shortly thereafter use it as a rental, then yes, the assessor's website is an excellent tool to determine fair market value for the property and the land. Most county assessors have property cards that are available online for free. You’ll be able to find the breakdown of land, improvements (house) and total value. This is a good source to use. Some assessors have assessed values that are much lower than the market value so when you look at your property card information, make sure you are using market value if it's different that the assessed value. When you see the property card, somewhere on there will be the
land value, improvement value and total value. It will tally like this for
example, $15k (land value) + $95k (improvement value) = $110k Total value.
In our example, you would enter $110k for the fair market value
and $15k for the land; TurboTax will do the rest of the math.
To find your property card,
google the following: [your county] {your state] property tax
records. If you lived in Montgomery County, Maryland, you would search for
‘Montgomery County Maryland property tax records’. Look for your county
assessor’s office in the first few links. When you get to the assessor’s page,
look for something like ‘Search Records’. You should be able to search by
owners name or address.
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June 5, 2019
10:27 PM
The IRS may use the main office address as the return address or it could be a different one altogether. The IRS uses different addresses for different things. For instance, where you live (generally, not specifically), there are separate addresses for mailing a return when you owe and are sending a check, owe but not including a check or are due a refund. If you'd like to know for certain from where your check would be mailed, you may contact your Local IRS Office.
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