So for 2018 the Scotland club has GBP 43M in debt over 1 year, which is up over a million from the prior year. Tangible assets are GBP 31M, so this is about 60% LTV based on the statements. That is relatively high for this type of riskier property. The place shows GBP 215k in gross profit (before depreciation, etc.). That is in 2018…probably uglier now. That is not a good position and we have no idea what cross collateralization is out there.
also the $70 mil tax refund might get reversed LOL
It’s not that hard. Anybody with a capital-intensive business (note the special emphasis) and a mediocre CPA can do the same thing.
Nerdy was right.
1 - make money
2 - put that money back into the business
3 - deduct the money you put into the business
That’s all there is to it. As long as your business losses are greater than your salary, you’ll have negative taxable income. And yes–you can do this in perpetuity, as long as you can prove to the IRS that it’s a bona fide business and not a hobby.
Neither of these two reasons are good reasons to vote for Biden. You could just as easily vote for Mickey Mouse. (Unless you think that Biden has special superpowers that allow him to personally create a miracle vaccine that nobody else in the world can.)
I thought that this was harder if my income was over $150k. But I don’t know much about taxes.
I’ve got two businesses going this year - one will not be capital intensive and one will be real estate. I plan to find a CPA to help minimize my taxes. But from the hot takes I’m reading on Twitter, apparently tax lawyers are who really save you money? What do you think - they say lawyers are more creative than the CPAs in reducing taxable income
Well, I’d argue that there are two things Biden brings (outside of any policy whatsoever) that no other candidate can match:
- He is not Donald Trump.
- He has a chance to win.
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^True.
There’s no magic to the $150k number. You might lose credits or otherwise be subject to extra taxes (AMT or NIIT), but it’s not like the Internal Revenue Code says that at $150k, you can’t write off business expenses or anything.
Lawyers may get more creative with the entity structuring, or they may also know of ways to take an aggressive stance on an issue.
But a lot of it just depends on how conservative or aggressive your tax person is. I have worked with some extremely conservative CPAs who follow the letter of the law, and if there’s any grey, then they take the most conservative possible stance. That’s certain to keep the CPA out of trouble, but it’s not good for the client.
I’ve also worked with CPA’s who were straight-up crooks. The fact that they haven’t been thrown in jail is mind-boggling. But that’s good for their clients–as long as they don’t get caught.
Personally–I like to think that I’m “aggressive, but not fraudulent”. I’ll go to bat for them, but I won’t go to jail for them.
I used to say I was against abortion - until I needed one.
i recall there is a limit to how often you can have losses. something like 3 years. may have changed though.
for a business. you can create a solo 401k. i did it for my sista. you can deduct as high as 52k in income and invest it in tax deferred account.
for real estate. there is a limit to how much you can deduct your personal income. you have to be in the realtor or something like that.
Hate the game, not the player. Don’t like the game? Vote for people willing to change it.
You would trust the government under Creepy Joe? That’s part of the problem. People were willing to overlook Trump’s issues because he was more similar to them than Killary was. Now they’re willing to overlook Creepy Uncle Joe because Trump is morally bankrupt instead of just morally questionable.
The two-party system is broken. Jorgensen or bust.
As broken as our federal tax system may be, I find it very difficult to believe there is any regulation about who you have to be banging at the time your deductions are claimed.
haha. technically if you are married your taxes go lower assumign she has no income. i think for me id get like a 10k benefit married or something like that.
The IRS likes to see income in two of the past five years. If you don’t pass that test, you can probably expect an audit. That doesn’t mean that you can’t lose money consistently–you’ll just probably get audited, and they’ll test to see if it’s a bona fide business, or a hobby loss. If it’s a bona-fide business, then nothing changes. If it’s a hobby loss, they add back the income on your tax return and tax you. (And charge penalties and interest, too. And maybe a fraud penalty. And you get on the black list, where you will stay for a long time.)
It’s more like $56k, but only if you have enough income to support it. You have to make $250k to take that kind of deduction. And even then, it has to be the right kind of income.
There’s no limit to how much you can deduct. However, for any passive activity, the Passive Activity Loss rules kick in. And you have to have a Passive Income Generator in order to take a Passive Activity Loss. No PAL’s without PIG’s.
meant passive income to offset ordinary income. im pretty sure most people dont have passive income so the key is to offset ordinary income with passive. for real estatae for example. id say ur first 5 years, ur prolly posting a tax loss.
https://moskowitzllp.com/how-to-deduct-unlimited-real-estate-losses-against-other-income-while-avoiding-the-pitfalls-of-tax-laws/#:~:text=As%20a%20general%20rule%2C%20a,%2C%20interest%2C%20or%20dividend%20income.&text=Federal%20tax%20law%20provides%20that,be%20netted%20against%20ordinary%20income.
The Internal Revenue Code places constraints on netting real estate loss against income from other sources. As a general rule, a taxpayer cannot offset passive losses against wage, interest, or dividend income. The rental of real estate is generally a passive activity. However, Congress has promulgated special tax laws for passive losses associated with real estate rental income. Federal tax law provides that up to $25,000 of losses associated with real estate rental activities can be netted against ordinary income.
The key to claiming real estate losses from rental property is to qualify by actively participating in rental activity. Active participation standards are met if you own at least ten percent of the rental property and have substantial involvement in managing the rental (defined as you spending more than 500 hours at the activity and no one else spending more hours in that particular real estate activity than you). If you are a limited partner in the real estate rental activity, you will not qualify for the deduction. The $25,000 special loss allowance is phased out by fifty percent if your modified gross income exceeds $100,000. It reaches zero by the time your income hits $150,000.
Trump 2017 taxes