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Here are a couple of Questions that are asked from tax payer like you, It might pertain to you or not, but here are the questions
Question: 1
John and Linda were married in 2006. Linda sold her principal residence and moved into John's apartment on November 15, 2006. The couple lived in John's apartment until they purchased their marital residence on October 15, 2008, for $100,000. John had never owned a principal residence prior to the new house. Do John and Linda qualify for the new first-time homebuyer's credit of $7,500?
Answer:
Under §36(c)(1), a first-time homebuyer is an individual, and if married, the individual's spouse, who has not had an ownership interest in a principal residence for three years prior to the purchase of the principal residence to which the credit would apply. Since Linda had an ownership interest in a principal residence in the past three years, the couple would not be eligible for the credit.
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Question:2
You are a husband and wife in a non-community property state who opened an limited liability company (LLC) together where both are members. You are wondering if they can take advantage of the Small Business and Work Opportunity Tax Act of 2007 to report their respective share of the income and expenses as a qualified joint venture and report on separate Schedule C's rather than on Form 1065.
Answer:
They cannot. The IRS says that a business owned by a husband and wife through an LLC is not eligible for the election to be a qualified joint venture. Only businesses that are owned and operated by spouses as co-owners (and not in the name of a state law entity) qualify for the election. The IRS advises a husband and wife in a community property state to see Rev. Proc. 2002-69, for special rules applicable to state law entities in community property states. Election for Husband and Wife Unincorporated Businesses
Franklin Katz, ATP,PA, CPB
Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
Circular 230 Ruling: Compliance
This email (including any attachments) contains PRIVILEGED AND CONFIDENTIAL INFORMATION protected by federal and/or state law and is intended only for the use of the individual(s) or entity(is) designated as recipient(s). The information contained within this email should not be construed as tax advice. If you are not an intended recipient of the email, you are hereby notified that any disclosure, copying, distribution, or action taken in reliance on the contents of this email is strictly prohibited. Disclosure to anyone other than the intended recipient does not constitute a waiver of any applicable privilege. If you have received this email in error, please immediately notify us by phone at (704) 739-4039 or by email at [email protected] and then permanently delete the original and any copy of this email (including any attachments) and destroy any printout thereof.
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Here are a couple of Questions that are asked from tax payer like you, It might pertain to you or not, but here are the questions
Question: 1
John and Linda were married in 2006. Linda sold her principal residence and moved into John's apartment on November 15, 2006. The couple lived in John's apartment until they purchased their marital residence on October 15, 2008, for $100,000. John had never owned a principal residence prior to the new house. Do John and Linda qualify for the new first-time homebuyer's credit of $7,500?
Answer:
Under §36(c)(1), a first-time homebuyer is an individual, and if married, the individual's spouse, who has not had an ownership interest in a principal residence for three years prior to the purchase of the principal residence to which the credit would apply. Since Linda had an ownership interest in a principal residence in the past three years, the couple would not be eligible for the credit.
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Question:2
You are a husband and wife in a non-community property state who opened an limited liability company (LLC) together where both are members. You are wondering if they can take advantage of the Small Business and Work Opportunity Tax Act of 2007 to report their respective share of the income and expenses as a qualified joint venture and report on separate Schedule C's rather than on Form 1065.
Answer:
They cannot. The IRS says that a business owned by a husband and wife through an LLC is not eligible for the election to be a qualified joint venture. Only businesses that are owned and operated by spouses as co-owners (and not in the name of a state law entity) qualify for the election. The IRS advises a husband and wife in a community property state to see Rev. Proc. 2002-69, for special rules applicable to state law entities in community property states. Election for Husband and Wife Unincorporated Businesses
Franklin Katz, ATP,PA, CPB
Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
Circular 230 Ruling: Compliance
This email (including any attachments) contains PRIVILEGED AND CONFIDENTIAL INFORMATION protected by federal and/or state law and is intended only for the use of the individual(s) or entity(is) designated as recipient(s). The information contained within this email should not be construed as tax advice. If you are not an intended recipient of the email, you are hereby notified that any disclosure, copying, distribution, or action taken in reliance on the contents of this email is strictly prohibited. Disclosure to anyone other than the intended recipient does not constitute a waiver of any applicable privilege. If you have received this email in error, please immediately notify us by phone at (704) 739-4039 or by email at [email protected] and then permanently delete the original and any copy of this email (including any attachments) and destroy any printout thereof.
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