Tax returns

[Emo EMAW]

So hypothetically if someone had a rental property in an LLC...how many years could that LLC go making almost no money before it raised red flags with the IRS?

[chum1]

I love how some ppl act like they make "SO MUCH $" on this board at times.

Pro tip: You're not poor if you're making 40k or higher. And by saying that, does not reflect my current salary, just saying, I think that's the salary that draws the line. Of course making higher is alway better tho. However, grats, lopa.

I think you and I have different definitions of poor.  But then again when I was your age I was married with a kid on the way, so responsibilities you know.  Can't really support a family on 40k.

How many people would be shocked to learn this?  200 million?

[420seriouscat69]

I love how some ppl act like they make "SO MUCH $" on this board at times.

Pro tip: You're not poor if you're making 40k or higher. And by saying that, does not reflect my current salary, just saying, I think that's the salary that draws the line. Of course making higher is alway better tho. However, grats, lopa.

I think you and I have different definitions of poor.  But then again when I was your age I was married with a kid on the way, so responsibilities you know.  Can't really support a family on 40k.

That's fair and a good point. I guess i'm in the mode where I want to pay my bills right now and have enough extra to travel to cats game when I want to. I do see this changing as I get older and think about marriage, family, house, etc.

[michigancat]

I love how some ppl act like they make "SO MUCH $" on this board at times.

Pro tip: You're not poor if you're making 40k or higher. And by saying that, does not reflect my current salary, just saying, I think that's the salary that draws the line. Of course making higher is alway better tho. However, grats, lopa.

I think you and I have different definitions of poor.  But then again when I was your age I was married with a kid on the way, so responsibilities you know.  Can't really support a family on 40k.

How many people would be shocked to learn this?  200 million?

You can easily raise a family for under 40k in the US, but possibly not with the privileged lifestyle everyone here enjoyed.

[michigancat]

Also, fanning, didn't you brag about making $100k at your last job?

[420seriouscat69]

Also, fanning, didn't you brag about making $100k at your last job?

I said it had potential to, before I got let go, I was on pace to, and that was just to shut up carnes about my student debt. I obviously fell into his troll trap.

[lopakman]

I love how some ppl act like they make "SO MUCH $" on this board at times.

Pro tip: You're not poor if you're making 40k or higher. And by saying that, does not reflect my current salary, just saying, I think that's the salary that draws the line. Of course making higher is alway better tho. However, grats, lopa.

I think you and I have different definitions of poor.  But then again when I was your age I was married with a kid on the way, so responsibilities you know.  Can't really support a family on 40k.

How many people would be shocked to learn this?  200 million?

You can easily raise a family for under 40k in the US, but possibly not with the privileged lifestyle everyone here enjoyed.

Yes, I should have said I would hate to raise a family on 40k.  Also, the people that are raising families on 40k probably don't think it's that easy. 

[Dugout DickStone]

I also use BITB, CPA.

3 of us.

[The_Wippuh]

40k a year is a lot more than you think.  You can live on that pretty easily to be honest.  Even afford a nice mortgage.

Here's a sample budget of what it may cost to live comfortably
$1200 mortgage
$200 power
$150 car gas
$600 groceries
$100 phones
$75 gas
$100 car insurance
$75 misc utilities (water, trash, etc...)

That simple little budget, which could be cut tighter in some areas probably, is $2500 a month, which is $30,000.  That's probably leaves you a little left after taxes, not totally sure.  Then you could build in some clothes, tv, internet, etc....  If you're in an apartment, you could do a little more.  The problem comes in with ill advised car payments (you can't afford a brand new Camry on that) and other stupid stuff like financing items you don't truly don't need.

40k/26 pay periods = $1538/80 hours = ~$19.23/hr.  This just kind of gives you a reference.  Lots of people on here would perk up at the idea of $20/hr for a job.

Are you going to "get ahead" on the above, probably not.

The problem comes in when you're a single parent with no education, making slightly above minimum wage at a dead end job.
 
$10/hr * 80hrs = 800 * 26 pay periods = $20,800/year.  That is rough.

[felix rex]

I feel sad for people grinding it out in used Camrys.


Sent from my iPhone using Tapatalk

[mocat]

40k a year is a lot more than you think.  You can live on that pretty easily to be honest.  Even afford a nice mortgage.

Here's a sample budget of what it may cost to live comfortably
$1200 mortgage
$200 power
$150 car gas
$600 groceries
$100 phones
$75 gas
$100 car insurance
$75 misc utilities (water, trash, etc...)

That simple little budget, which could be cut tighter in some areas probably, is $2500 a month, which is $30,000.  That's probably leaves you a little left after taxes, not totally sure.  Then you could build in some clothes, tv, internet, etc....  If you're in an apartment, you could do a little more.  The problem comes in with ill advised car payments (you can't afford a brand new Camry on that) and other stupid stuff like financing items you don't truly don't need.

40k/26 pay periods = $1538/80 hours = ~$19.23/hr.  This just kind of gives you a reference.  Lots of people on here would perk up at the idea of $20/hr for a job.

Are you going to "get ahead" on the above, probably not.

The problem comes in when you're a single parent with no education, making slightly above minimum wage at a dead end job.
 
$10/hr * 80hrs = 800 * 26 pay periods = $20,800/year.  That is rough.

if you make $40k you bring home less than $30k after taxes numbnuts

[michigancat]

yeah a $1200 mortgage is probably pretty high for someone making $40k

[Dugout DickStone]

So hypothetically if someone had a rental property in an LLC...how many years could that LLC go making almost no money before it raised red flags with the IRS?

pretty long

[420seriouscat69]

My side job (for fun), is all cash. I LOVE IT! Uh oh, my buddy who I work for reads this board, maybe I shouldn't have reported that. 

[The Tonya Harding of Twitter Users Creep]

  at people thinking they'll get audited.

[schreds21]

40k a year is a lot more than you think.  You can live on that pretty easily to be honest.  Even afford a nice mortgage.

Here's a sample budget of what it may cost to live comfortably
$1200 mortgage
$200 power
$150 car gas
$600 groceries
$100 phones
$75 gas
$100 car insurance
$75 misc utilities (water, trash, etc...)

That simple little budget, which could be cut tighter in some areas probably, is $2500 a month, which is $30,000.  That's probably leaves you a little left after taxes, not totally sure.  Then you could build in some clothes, tv, internet, etc....  If you're in an apartment, you could do a little more.  The problem comes in with ill advised car payments (you can't afford a brand new Camry on that) and other stupid stuff like financing items you don't truly don't need.

40k/26 pay periods = $1538/80 hours = ~$19.23/hr.  This just kind of gives you a reference.  Lots of people on here would perk up at the idea of $20/hr for a job.

Are you going to "get ahead" on the above, probably not.

The problem comes in when you're a single parent with no education, making slightly above minimum wage at a dead end job.
 
$10/hr * 80hrs = 800 * 26 pay periods = $20,800/year.  That is rough.

if you make $40k you bring home less than $30k after taxes numbnuts

Not to mention deductions for health ins., 401k/Roth/other retirement plans, any other voluntary deducts.

[420seriouscat69]

Also, my buddy (former coworker) makes a crap load of money playing poker every year. He won a tournament on fox sports last year in Vegas. Anyways, he reports it all. I find that kind of weird, but if you're on tv I guess that makes sense..

[Emo EMAW]

So hypothetically if someone had a rental property in an LLC...how many years could that LLC go making almost no money before it raised red flags with the IRS?

pretty long

 

[sys]

if you make $40k you bring home less than $30k after taxes numbnuts

married couple with 40k between them?  pretty sure that isn't true.  not in most states at any rate.

[Pendergast]

So hypothetically if someone had a rental property in an LLC...how many years could that LLC go making almost no money before it raised red flags with the IRS?

pretty long

 

You have to do it correctly.  Are you amortizing the depreciation of the structure?  Are you placing additional funds (potential profit) into accounts for repairs/maintenance/upgrades?  Are you leaving the funds in an account under the LLC or your name?  If you're taking the profit and putting it in your personal account, the answer is not long, and you'll be in deep crap soon.  If you leave it under the LLC, you have to 'hide' it appropriately, and there are legal ways to do so, with the right CPA.

If you have a rental property, you should consider finding a CPA experienced in this area, make sure you ask them if they prepare returns for other rental property owners.  Ideally they will have a few clients that are very wealthy, meaning they know all the tricks.  You should also keep buying them whenever possible.  Fastest way to wealth for most people.

[420seriouscat69]

Do you guys report winnings from a casino? Don't you think that ppl that do are weird? 

[Emo EMAW]

So hypothetically if someone had a rental property in an LLC...how many years could that LLC go making almost no money before it raised red flags with the IRS?

pretty long

 

You have to do it correctly.  Are you amortizing the depreciation of the structure?  Are you placing additional funds (potential profit) into accounts for repairs/maintenance/upgrades?  Are you leaving the funds in an account under the LLC or your name?  If you're taking the profit and putting it in your personal account, the answer is not long, and you'll be in deep crap soon.  If you leave it under the LLC, you have to 'hide' it appropriately, and there are legal ways to do so, with the right CPA.

If you have a rental property, you should consider finding a CPA experienced in this area, make sure you ask them if they prepare returns for other rental property owners.  Ideally they will have a few clients that are very wealthy, meaning they know all the tricks.  You should also keep buying them whenever possible.  Fastest way to wealth for most people.

Basically I want to take any profit and put it into my current house but make it appear it was spent on the rental. 

[steve dave]

Do you guys report winnings from a casino? Don't you think that ppl that do are weird? 

vegas casinos will force you to pay taxes on anything over $5k. your buddy writes off all of his winnings by also reporting his losses though.

[chum1]

I love how some ppl act like they make "SO MUCH $" on this board at times.

Pro tip: You're not poor if you're making 40k or higher. And by saying that, does not reflect my current salary, just saying, I think that's the salary that draws the line. Of course making higher is alway better tho. However, grats, lopa.

I think you and I have different definitions of poor.  But then again when I was your age I was married with a kid on the way, so responsibilities you know.  Can't really support a family on 40k.

How many people would be shocked to learn this?  200 million?

You can easily raise a family for under 40k in the US, but possibly not with the privileged lifestyle everyone here enjoyed.

Yes, I should have said I would hate to raise a family on 40k.  Also, the people that are raising families on 40k probably don't think it's that easy.

I thought we were talking about individuals making that amount, not households, in which case your standard for poor is way, way off. 

[420seriouscat69]

Do you guys report winnings from a casino? Don't you think that ppl that do are weird? 

vegas casinos will force you to pay taxes on anything over $5k. your buddy writes off all of his winnings by also reporting his losses though.

Interesting. Thanks for the knowledge.