What exactly was it used for? Rental income? Office Space? etc.
No problem. Since my expertise isn't in Tax, I'll charge you a cheap rate of $100/hour, billed in 30 minute increments.
Office space. I then vacated the space and rented it out.
Ok, well you might actually owe more money for your taxes.
"One of the tax benefits available to businesses is the section 179 deduction that allows you to write off the cost of certain property in the year you purchase it instead of recovering the cost through depreciation deductions. But if you later decide to close your business you may have to recapture a portion of the deduction and report it as ordinary income on your tax return.
According to the IRS, you have to recapture a section 179 deduction if your business use of the property drops to 50% or less in any year during the property's recovery period. The amount of the deduction you have to recover is calculated as the amount of the section 179 deduction you claimed minus the depreciation that would have been allowable on the property during the period you used the property for business purposes."
So hopefully Beans will chime in here, but I think you owe Self Employment taxes on the $250k. Most likely, the $500k loss might decrease your income taxes though. You need to fill out all the forms to be sure (Form 4797)
I was under the impression it should be in box 11e not box 1. Certainly shouldn't be in box 14 lol.
Forgiveness of Debt isn't subject to self employment tax.
I believe, and this is stated without all the facts laid out in front of me, the LLC return needs to be amended.
Thanks, Beans. I forwarded the links on to my accountants.
They're taking their sweet-ass time figuring this out though.
This is not meant as a reflection on anyone here.
I have used a tax professional once in the last twenty years, because my wife felt we may not be getting back all we should.
This was a referral from a friend and she quoted us $300 max but probably $200. April 14th rolls around and she hasn't finished but offers to file an extension. Fuck that, I hurry and do them on TT and get them filed. Bitch then sends us a bill for $400 along with our completed paper returns on the 18th.
To top it off I got back more than she did on my rushed return.
Testy, where was the difference between her return and yours?
I think you point out that nearly anyone can file a simple return. If you receive a W2, maybe a couple 1099's, and pay property taxes filing a 1040 is simple.
Once you start adding schedules and dealing with less-than-straightforward circumstances that need interpretation, you're better off paying a pro. It's really like most things.
Found this thread, thought I'd ask a few questions.
I have a BS in Marketing, but job market hasn't been the best for me. I had an ok GPA, but nothing special. I also have a relatively introverted personality that contrasts from a lot of marketing majors in my classes. I have a job in a large manufacturing company in a factory that pays okay, but it is unionized ( I took it to get my foot in the door). It is much more involved with management than any other position in the building as I deal specifically with quality and supplier issues. However, I haven't had any success in job searches inside and outside the company (not for a lack of trying, inside at least as I feel that my odds are much greater).
I have decided to get my Masters in Accounting. This would increase career scope and feel it matches my personality and interests more. What's great is that my department has moved me off shift to attend classes and continued to get paid, benefits, etc. However, I will have to quit/get another job eventually. Also, on off shift, I don't have nearly as much communication with management, and have lots more down time. During that time I've been told I can do some studying, but not to make it obvious.
I have to take a few deficiency courses that allow me to take the grad level classes, but in total, have to take 16 courses. I plan to be done December 2015. I have started to look into Accounting intern positions within my company and elsewhere in order to get positions that may be more beneficial to my career goals (CPA).
Any bits of advice or tips to point me in right direction or words of wisdom would be greatly appreciated.
I'd rather someone who is only a $200 bill do it themselves anyway to be honest. There is very little profit in a return that small for a firm.
And, this isn't to bash testy either, but I won't do an engineer's return, lol. You guys are massive pains in the ass.
I can't offer much until you get a bit further along in school other than say good luck.
16 course, most of which are grad level, in 5 semesters (including summer). Good luck...
My advice, definitely take an internship if you can. I feel a lack of related field experience is what held me back the most when job searching.
Edit: I'm in the middle of a grad accounting program myself. If you have any specific questions I'm happy to help if I can.
I just counted the pages of my Fed return: 34.
Fuck that, I'd tear my hair out trying to figure it out.
I am not sure where the difference was, I didn't bother to go over hers. I generally do my taxes on two or three programs and they somehow always have different results even though it is the same input. I just use the best results. Kind of scary actually.
I fully agree, I would not know where to begin with a business return.
I'm not an Engineer, I just play one at work.
I get what you mean though, I never put numbers on a design proposal for the simple fact engineers can't get past them. The more decimal places you add, the more it messes with their head.
Glad it worked out for you. I can appreciate the dynamics of trying to deal with the guy that is 'in' with the local community, but that does smack of poor form to go from $500 to over $2,000 without saying something. Even my plumber will let me know if it's going to cost me $500 rather than the $250 he originally quoted.
What about Doctor's, Beans? My wife hates doing a return for a doctor.
I've seen some of the stuff you do, and read the language you use, you're an engineer in my book, lol.
Yes, you are correct. Also, engineers have this weird hardon for taxation that I can't explain. I want nothing to do with what they do for a living.
Case in point, a family friend is an actual rocket scientist, like works for the government and has clearance so high I shouldn't be talking to him. Anywho, he tries to talk to me about tax every get-together. So irritating. It's like "dude, do I ask you detail and offer advice on how to make the super awesome death machine you are working on right now? Nope. So stop asking me about your fucking taxes."
Doesn't bother me. I like watching them pay more in medicare than most people make in a year though. Always demotivating. But, I think doctors (some not all) deserve more than they make as it is.