Patricia LeightonI (Abby) am the sole member in an LLC. The sole asset of the LLC is a Rental Property with an adjusted basis for tax purposes of $150,000 and a fair market value of $400,000. My friend, Bob, wishes to purchase a 1/2 interest in the LLC for $200,000 in cash. How should we structure … Continue Reading
Winning The S Corporation Election Many small businesses and start-up entrepreneurs consider using the S corporation as the entity of choice for running their business. The formation, management, and functioning of an S corporation is the same as, or very similar to, the formation of a C corporation. The primary difference between the S corporation … Continue Reading
The Hidden Dragon of Imputed Depreciation I bought a house in July 1988 for $137,500 and rented it out for ten years. I took deductions for depreciation in tax years 1988 through 1995, but I forgot to take depreciation deductions in 1996 through 1998. My total depreciation deductions for years 1988 through 1995, as … Continue Reading
