ICOR presents, Saturday, NOVEMBER 1st
Quickbooks for Real Estate & Rental Property Investors
- Steve and Beth attended all the real estate courses, and thought they understood how to set up their new company legal structure. They purchased their first rental property, and put it into their newly formed C Corporation. This is fine for legal purposes, but for tax purposes, the rental property losses could not be applied to their personal income tax return for the first year. The next year they had to pay taxes on the profits of the rental house income. When they go to sell the property, the gain will be taxed in the C Corporation, and again on their personal income tax return. Essentially paying 30% tax on the income verses the 15 % tax they should have paid.
- Mr and Mrs Jones are owners of as S Corporation. Their business was very successful, however they didn’t keep their business receipts in order, if at all. They were selected for audit by the IRS, since the records were not in order, the agent was in their office for 4 full days looking and asking for information. In addition, correspondence regarding this case lasted over 2 years. This, of course was very disruptive to the operations of the business. Since the auditor was not satisfied with the lack of organization of the records, receipts, or documentation. Many previous deductions were not allowed, therefore increasing their amount of tax owed. The amount accessed to them was over $375,000 for the 3 years audited. Although, the deductions may have been legit at the time, the fact that the IRS could not locate proof that the expenses occurred, the deductions were disallowed, and penalties were added to the total bill owed to the IRS.
Also, if you know someone who is getting started or could use a refresher, share Saturday, November 15th's Event
The Heart of Wholesale Workshop
In this class, John Fisher will teach those who want to be wholesalers and those who want to get deals from wholesalers. We discuss the pros and cons of each side of a wholesale deal as well as cover entities, closing tips as John shares his “secret sauce,” tips of the wholesale trade. John has wholesaled over 400 deals and has intimate knowledge of the details and quirks that accompany wholesaling.