 Two tax questions (by Scott [OR]) Feb 11, 2008 8:30 AM
 Two tax questions (by Marv [IL]) Feb 11, 2008 8:45 AM
Two tax questions (by Terry [CA]) Feb 11, 2008 9:34 AM
Two tax questions (by Dan [MA]) Feb 11, 2008 11:34 AM
Two tax questions (by Marv [IL]) Feb 11, 2008 11:47 AM
Two tax questions (by Susan [OH]) Feb 11, 2008 12:20 PM
Two tax questions (by Steve [NJ]) Feb 12, 2008 6:46 AM
Two tax questions (by Scott [OR]) Posted on: Feb 11, 2008 8:30 AM
Message:
1. If I borrow money from rental property one (cash out refi) to purchace rental property two, is the extra interest an expense of rental property one or two?
2. I have an LLC which I own 100%. I have loaned it money to it make repairs on my property. To show that it is completely seperate from my pesonal finances, the LLC has been paying me 5% interest on my loan. For the IRS, do I report the interest as income personally and an expense for the LLC or do I just ignore it all and let it "pass though" as a zero.
Scott --76.105.xxx.xxx |
Two tax questions (by Marv [IL]) Posted on: Feb 11, 2008 8:45 AM
Message:
1. two
2. zero --74.139.xxx.xxx |
Two tax questions (by Terry [CA]) Posted on: Feb 11, 2008 9:34 AM
Message:
Hmm..been my experience that you must only write off interest for property loan is against due to 1098/IRS and the fact that property 1 in this case is the asset backing that loan. I think you would need some sort of formal paperwork to do otherwise. --207.200.xxx.xx |
Two tax questions (by Dan [MA]) Posted on: Feb 11, 2008 11:34 AM
Message:
Marv may be correct, but I know that I've borrowed from Property A to buy Property B numerous times and my CPA always attributes all the interest to Property A. --74.8.xx.x |
Two tax questions (by Marv [IL]) Posted on: Feb 11, 2008 11:47 AM
Message:
From Pub 535 page 11 (2006)
In general, you allocate interest on a loan the same way you allocate the loan proceeds. You allocate loan proceeds by tracing disbursements to specific uses.
Secured loan: The allocation of loan proceeds and the related interest is not generally affected by the use of property that secures the loan. --74.139.xxx.xxx |
Two tax questions (by Susan [OH]) Posted on: Feb 11, 2008 12:20 PM
Message:
I would think that if you ignore the interest you received from your LLC, you will be getting a nice letter form the IRS asking why you didn't claim it. --24.29.xxx.xxx |
Two tax questions (by Steve [NJ]) Posted on: Feb 12, 2008 6:46 AM
Message:
If the LLC does not claim the money as a deduction and does not report it, then it would be nearly impossible for the IRS to know about this transaction.
Overall you are worring about this way to much. I am very anal when it comes to paperwork and taxes and then I go to my accountant and he will undo things I did and group them together and delete stuff. He keeps saying it does not matter.
You only get in trouble if you owe them money. Paying on one part and deducting in another part comes out flat. Since you do not owe them money you cannot get in trouble for not doing it. --67.82.xxx.xxx |
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