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artp

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  1. I need to clarify that the taxpayer is married and an IL resident. If they decide to form an LLC (for limited liability purposes per the attorney) and to purchase and hold title to the property in the LLC should they (or can they) elect to be a single owner-husband and wife- (that is to be disregarded as a separate entity) or should they elect to be classified as a partnership? IL is not a community property state. If the plan is to later transfer ownership (control) to their children how would this effect your response? Needing guidance here as I do not have a lot of experience with real estate in an LLC. Thanks
  2. IL taxpayer wants to purchase 30-acre wooded tract of hunting ground which includes a house for personal use for himself and family members. He is not looking to rent it out or develop the property. Purchase price is $325,00 with $70,00 cash down and loan for the balance. There will be no income from the property, just expenses for real estate taxes, mortgage payments and liability insurance and other personal expenses. Attorney is advising client to form an LLC owned by the taxpayer to purchase the property and hold title in the name of the corporation for liability purposes. If personal liability is major concern, alternative to corporate ownership? If the property is later sold would this not create corporate tax issue for client? Alternative suggestions?
  3. Is there a way to fund LTC from an IRA account tax-free? Taxpayer has $150,000 in IRA and wants to purchase a whole life policy with LTC benefit. Plan would be to transfer the IRA to purchase 10-year annuity. Problem is taxpayer will get 1099-R each year from the annuity company showing $15,000 taxable. Anyone see a way to accomplish this without incurring income tax bite? Taxpayer is 62 so 10% penalty is not an issue.
  4. Has anyone seen a post on this? Art
  5. Thanks for your replies. After further consideration we will not be filing a MO return for $75 of wages.
  6. I guess I am not making myself clear. Let me try again. Taxpayer is an IL resident who is itemizing on the Fed return and deducting $2700 of real estate tax on his IL home. He has $75 of wage income in MO. The MO-A is adding the real estate tax back to MO source income on line 5 of the MO-A and flows thru to line S on MO-NRI. I am attaching a redacted copy of the MO schedules.MO Tax Return.pdf
  7. He is an IL resident paying real estate taxes on his personal residence in IL.
  8. No. It is on his personal residence.
  9. Bart It is added back on line S (Missouri modifications) on the NRI and comes from line 5Y on MO-A. The effect is to add this to Missouri source income. Art
  10. Taxpayer received $23,000 in SRECs from the Adjustable Block Program in Illinois (payments from IL Power Authority), but has not received any 1099 form. How does this get reported on the 1040? Anyone run across this yet? Art
  11. Filing a non-resident MO 1040 with $75 of MO source W-2 income who itemizes on Fed return with $2700 of real estate tax. MO NRI form is adding back the real estate tax as MO source income with result that she is paying $97 of MO tax on $75 of MO source income. How is that correct? What am I missing? Art
  12. Do small employers (under 250 W-2s) still get relief from reporting for 2019? There was an exception for 2018, but I did not see anything for this year.
  13. I have already had 8 clients who have gotten notices that IL could not verify property tax for 2018 and they are requesting proof - copy of bill and payment. The parcel # is clearly shown on the return. Never had a problem in prior years. Anyone else getting a rash of these notices?
  14. Thanks for all of the replies! I appreciate the feedback
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