 Fica taxex for LL's (by DS [MS]) Aug 13, 2017 6:20 PM
 Fica taxex for LL's (by NE [PA]) Aug 13, 2017 6:26 PM
Fica taxex for LL's (by GKARL [PA]) Aug 13, 2017 6:27 PM
Fica taxex for LL's (by Nicole [PA]) Aug 13, 2017 8:15 PM
Fica taxex for LL's (by GKARL [PA]) Aug 13, 2017 8:27 PM
Fica taxex for LL's (by WMH [NC]) Aug 14, 2017 6:06 AM
Fica taxex for LL's (by S i d [MO]) Aug 14, 2017 8:36 AM
Fica taxex for LL's (by Marv [IL]) Aug 15, 2017 5:25 AM
Fica taxex for LL's (by Nicole [PA]) Aug 26, 2017 8:01 AM
Fica taxex for LL's (by DS [MS]) Posted on: Aug 13, 2017 6:20 PM
Message:
Hey Everyone,
Happy day to ya! I was wondering if a person goes fulltime as a LL and has only schedule E income. Do you still have to pay FICA taxes? Some say is is passive income and not earned income so there is a difference. What say you?
Thanks ever so much.
--108.93.xxx.xxx |
Fica taxex for LL's (by NE [PA]) Posted on: Aug 13, 2017 6:26 PM
Message:
I'm not sure of the exact technical answer for you, but I can add what my accountant did.
For my flip llc, I was paying fica when I was taxed as the llc. The accountant set the llc up to elect S-corp status for tax purposes, but with that, I have to put myself on a payroll when I work on the flips & pay ss and other taxes then.
Not sure if that answers your wuiestion, but maybe it'll help. --50.32.xxx.xx |
Fica taxex for LL's (by GKARL [PA]) Posted on: Aug 13, 2017 6:27 PM
Message:
No FICA taxes are paid on investment income. Rental Income is investment income. --207.172.xx.xxx |
Fica taxex for LL's (by Nicole [PA]) Posted on: Aug 13, 2017 8:15 PM
Message:
I was going to go into the SS office and talk to them about this issue .... but I'm wondering if the rental profits affect your monthly ss payment the same way W-2 income does if you take the early benefits... I forget - something like take away every dollar for every $2 you earn ... or something worded oddly like that --72.95.xx.x |
Fica taxex for LL's (by GKARL [PA]) Posted on: Aug 13, 2017 8:27 PM
Message:
Nicole, the reduction of benefit only applies to earned income (i.e W-2 income) not rental income. However rental income and other investment income can affect how much your SSI may be taxed, but does not figure into the determination of the actual benefit. --207.172.xx.xxx |
Fica taxex for LL's (by WMH [NC]) Posted on: Aug 14, 2017 6:06 AM
Message:
There's a reason why RE is the preferred way to get rich in this country. Our tax laws really favor the property owner. No FICA, no self-employment income.
On the flip side, though, no 401k, IRA or SEP deductions - you've got to plow the money back into the business in order to get deductions. Not a bad thing, that! Incentive to take care of things.
I always say we can write a check to the government or we can improve a property. I'd rather improve a property. --173.22.xx.xx |
Fica taxex for LL's (by S i d [MO]) Posted on: Aug 14, 2017 8:36 AM
Message:
Social security is from WAGE income, so no you would not report FICA on your taxes.
For more information, see this tid-bit copied from intuit's website.
"Normally you don't pay Social Security and medicare taxes on your net rental income. You would report your income on Schedule E for rental income/loss, and only pay income tax on the profit, not Self-Employment tax.
See this link to IRS Publication 527. You would file a Schedule C in certain circumstances, and would pay Self-Employment tax then.
Generally, Schedule C is used when you provide substantial services in conjunction with the property or if the rental is part of a trade or business as a real estate dealer. Simply owning rental properties isn't enough, even if that's your major or only source of income." --173.19.xx.xxx |
Fica taxex for LL's (by Marv [IL]) Posted on: Aug 15, 2017 5:25 AM
Message:
I agree with all of above. --173.15.xx.xxx |
Fica taxex for LL's (by Nicole [PA]) Posted on: Aug 26, 2017 8:01 AM
Message:
my mind is still mulling over all this SS stuff.
Apparently widow's benefits are something unique. I was told if you take widow's benefits before you are 62, you can collect until such time as you wish to take your "regular social security" at 62, 66, 70, whichever age you chose and it won't affect what you can earn nor draw down your "regular" payment when you decide to start taking it.
anyone know? --72.95.xx.x |
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