Author Topic: any accountants out there that i can ask a question?  (Read 632037 times)

Offline Dawie

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Re: any accountants out there that i can ask a question?
« Reply #2560 on: December 23, 2024, 11:45:26 AM »
Thanks!
Great MM for explinations.

This is complicated enough that it needs to be done by an experienced accountant/lawyer?
IMHO yes (can also be done by an experienced company that does Corp setups - like a Vcorp Services (now part of Wolters Klewer))

Offline nafnaf12

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Re: any accountants out there that i can ask a question?
« Reply #2561 on: December 23, 2024, 11:47:00 PM »
Will iyh be purchasing a car and leasing one
My wife is on a W-2, myself on a K1.

Is there any structure that would be beneficial for either one?

I can put both on me/her or 1/1

Thanks in advance!
A smooth sea never made a skilled sailor.

Offline Berenstein Bear

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Re: any accountants out there that i can ask a question?
« Reply #2562 on: January 12, 2025, 10:12:23 AM »
If one operates an at-home business (ex: daycare), how much of mortgage can be written off as business expense?

Offline Definitions2

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Re: any accountants out there that i can ask a question?
« Reply #2563 on: January 12, 2025, 05:37:18 PM »
If I were to give a gift of $18k to someone towards a down payment on a house then be gifted it back at a later point in full. What are the tax implications if any (i.e. a tax audit red flag) Would there be any reporting necessary when depositing it back into my bank account or any liability on my part since it's not really a gift?

Asking from both a tax and mortgage perspective

Offline cgr

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Re: any accountants out there that i can ask a question?
« Reply #2564 on: January 12, 2025, 06:06:52 PM »
If one operates an at-home business (ex: daycare), how much of mortgage can be written off as business expense?
% of the home used for the business

Offline Help

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Re: any accountants out there that i can ask a question?
« Reply #2565 on: January 12, 2025, 09:22:00 PM »
If I were to give a gift of $18k to someone towards a down payment on a house then be gifted it back at a later point in full. What are the tax implications if any (i.e. a tax audit red flag) Would there be any reporting necessary when depositing it back into my bank account or any liability on my part since it's not really a gift?

Asking from both a tax and mortgage perspective
The annual exclusion for 2025 is 19k.

Online etech0

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Re: any accountants out there that i can ask a question?
« Reply #2566 on: January 12, 2025, 09:25:07 PM »
If I were to give a gift of $18k to someone towards a down payment on a house then be gifted it back at a later point in full. What are the tax implications if any (i.e. a tax audit red flag) Would there be any reporting necessary when depositing it back into my bank account or any liability on my part since it's not really a gift?

Asking from both a tax and mortgage perspective
In terms of the mortgage they should speak to their broker, they will probably need a letter/form stating that it's a gift.
Workflowy. You won't know what you're missing until you try it.

Offline Definitions2

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Re: any accountants out there that i can ask a question?
« Reply #2567 on: January 12, 2025, 09:26:10 PM »
In terms of the mortgage they should speak to their broker, they will probably need a letter/form stating that it's a gift.
Yes I was told that. I'm just trying to figure out the risks on my part (aside from the actual risk of getting paid back)

Offline Dawie

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Re: any accountants out there that i can ask a question?
« Reply #2568 on: January 13, 2025, 11:04:30 AM »
% of the home usedexclusively for the business
FTFM

Offline Help

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Re: any accountants out there that i can ask a question?
« Reply #2569 on: January 13, 2025, 05:00:18 PM »
FTFM
very important.

However, if used for daycare, the exclusive use requirement does not apply.

Offline Berenstein Bear

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Re: any accountants out there that i can ask a question?
« Reply #2570 on: January 13, 2025, 05:10:53 PM »
Case in point is daycare. Any issue with using majority of home- bedrooms for naps, kitchen for meal prep, dining room for storytime, playroom for free play.....? ;)
It would be a legal daycare, and all areas would be inspected and designated appropriately. Purely from a tax perspective, should there be an issue with that?

Offline cgr

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Re: any accountants out there that i can ask a question?
« Reply #2571 on: January 13, 2025, 05:23:35 PM »
Case in point is daycare. Any issue with using majority of home- bedrooms for naps, kitchen for meal prep, dining room for storytime, playroom for free play.....? ;)
It would be a legal daycare, and all areas would be inspected and designated appropriately. Purely from a tax perspective, should there be an issue with that?
And deduct the full interest on the personal end?

Offline Berenstein Bear

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Re: any accountants out there that i can ask a question?
« Reply #2572 on: January 13, 2025, 05:37:59 PM »
And deduct the full interest on the personal end?
Sorry, not understanding.

Using majority of home and write off majority of mortgage as business expense.

Issue from a tax perspective?

Offline Help

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Re: any accountants out there that i can ask a question?
« Reply #2573 on: January 13, 2025, 05:38:20 PM »
Case in point is daycare. Any issue with using majority of home- bedrooms for naps, kitchen for meal prep, dining room for storytime, playroom for free play.....? ;)
It would be a legal daycare, and all areas would be inspected and designated appropriately. Purely from a tax perspective, should there be an issue with that?
Even though the exclusive requirement use does not apply, you can only deduct the % used for daycare.

So assuming that 50% of your house is used 25% of the time (6 hours / 24 hours) for daycare, you can deduct 12.5% (50% x 25%) of the home expenses.
« Last Edit: January 13, 2025, 05:57:18 PM by Help »

Offline cgr

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Re: any accountants out there that i can ask a question?
« Reply #2574 on: January 13, 2025, 05:42:11 PM »
Sorry, not understanding.

Using majority of home and write off majority of mortgage as business expense.

Issue from a tax perspective?
If you deduct let's say 90% of your mortgage on the business side, how does that affect your ability to deduct your 1098 on the personal side?

Offline Help

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Re: any accountants out there that i can ask a question?
« Reply #2575 on: January 13, 2025, 05:53:05 PM »
If you deduct let's say 90% of your mortgage on the business side, how does that affect your ability to deduct your 1098 on the personal side?
You obviously can’t double dip.

But a business deduction is more valuable than an itemized deduction.

Offline Berenstein Bear

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Re: any accountants out there that i can ask a question?
« Reply #2576 on: January 13, 2025, 06:01:24 PM »
You obviously can’t double dip.

But a business deduction is more valuable than an itemized deduction.

I was just going to clarify that. Thanks!

I appreciate both of your responses.

Regarding:
Even though the exclusive requirement use does not apply, you can only deduct the % used for daycare.

So assuming that 50% of your house is used 25% of the time (6 hours / 24 hours) for daycare, you can deduct 12.5% (50% x 25%) of the home expenses.
Any area that would be used exclusively for daycare, and not used for family at all, would percentage of time using it apply?

Offline Help

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Re: any accountants out there that i can ask a question?
« Reply #2577 on: January 13, 2025, 06:28:32 PM »

Any area that would be used exclusively for daycare, and not used for family at all, would percentage of time using it apply?
I beleive that portion is 100% business use.
« Last Edit: January 13, 2025, 06:48:46 PM by Help »

Offline SamCan

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Re: any accountants out there that i can ask a question?
« Reply #2578 on: January 13, 2025, 10:22:20 PM »
How does the IRS view Canadian government registered retirement plans, for US citizens living in Canada making income from a regular US corp as a 1099.

Online Mordyk

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Re: any accountants out there that i can ask a question?
« Reply #2579 on: January 13, 2025, 10:46:26 PM »
Even though the exclusive requirement use does not apply, you can only deduct the % used for daycare.

So assuming that 50% of your house is used 25% of the time (6 hours / 24 hours) for daycare, you can deduct 12.5% (50% x 25%) of the home expenses.
I believe by expensing your house, you need to start depreciating it.  Not sure if that's something you want to do
#TYH