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Old 02-08-2014, 01:50 AM
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I need help balancing a small business loss this year and using it in a future positive years so I can qualify for a house this year

I have a tough tax question in regards to how a small business loss would work. I have income from two sources, I'm a 1099 contractor and was paid 130000. I also have a LLC business in the same type of work where I made 63000. I'm a 50% owner in this business. I bought equipment for 38500 during the year, had 20500 of write offs like hotels, taking clients out to eat, and hard costs for running my LLC, etc. I also paid out 100600 in commissions to my sales reps/techs and paid myself 33000 in commissions. I also have a car deduction of 23000 for miles driven during the year. I'd like to claim around 40000-45000 on my personal taxes so I can qualify for a mortgage. My question is how can I maximize all of my deductions and expenses to achieve this. I know that I can take a loss on my business this year and deduct it off a future year. Currently my business is valued at around 100,000 and I plan on selling all of it in 2-3 years for 2-3 times that amount so I'd like to deduct what I'm investing now to reduce future taxes. Because the equipment I bought was used for my 1099 job and my LLC, can I deduct that once wherever I want? Any help would be appreciated, thanks.



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Old 02-08-2014, 03:54 AM
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Help

I will try to help you
Thanks



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Old 02-11-2014, 03:39 AM
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Thanks, I appreciate any help!



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Old 02-11-2014, 06:42 AM
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Quote:
Originally Posted by ryaah2000 View Post
can I deduct that once wherever I want? Any help would be appreciated, thanks.
I guess so; for example, Most new business equipment can be either depreciated over its useful life or expensed immediately under irc sec 179 if youapply sec 179 exp on the eqmt.. 179 expenses passed through via K-1s from 1065 or on Sch C
also aslongas you are using the eqmt for both 1099job AND the MMLLC , then, you need to prorate depreciation deduction as attributable for each business. you willhave to determine the depreciation basis (as a percentage of business use between th e1099 job and LLC, as 50% owner of th eLLC,then the amount of depreciation.After that you need to pro rate that amount as attributable for each business.
Corresponding amounts will be reported on schedule C line 13 and sch k1 of 1065. The sec 179 expense the partnership gets is passed through to the individual partners.aslongas you deduct the eqmt for your MMLLC biz, as a 50% owner in the biz, I guess you need to determine the depreciation amount between the other 50% partner.


when you dispose of the eqmt later, youmust recapture sec 1245 deprec taxed at ordianry rate of 25%.



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