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Do law firm partners use personal LLCs to write off their cars and shit?
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Date: October 17th, 2017 7:23 PM Author: Walnut balding new version address Please explain to a non-taxmo (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34465811) |
Date: October 17th, 2017 7:24 PM Author: 180 den round eye you mean s-corp PC's.
attorneys cant be LLCs. no limited liability shields.
but yes. |
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Date: October 17th, 2017 7:29 PM Author: erotic boyish giraffe school cafeteria you know of biglaw partners who signed their biglaw partnership agreement using an entity? (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34465859) |
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Date: October 17th, 2017 7:32 PM Author: 180 den round eye it depends on the biglaw partnership. some firms seem to allow it, others dont.
some biglaw firm lawyers even have a ", P.C." after their name on their firm bios |
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Date: October 17th, 2017 7:34 PM Author: erotic boyish giraffe school cafeteria wow, that would be huge for self-employment tax purposes (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34465896) |
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Date: October 17th, 2017 7:36 PM Author: 180 den round eye not a tax MFE or a partner, but isnt a partner's draw not treated as w2 income anyway? (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34465920) |
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Date: October 17th, 2017 7:37 PM Author: Emerald charismatic tanning salon kitty If he’s a “partner” it should show up on a schedule K
Flow that shit through to an s-Corp, slide and let do |
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Date: October 17th, 2017 7:38 PM Author: erotic boyish giraffe school cafeteria Cr. it would flow up to his S corp, where he would then pay himself a 'reasonable' salary much lower than the amount distributed to him from the partnership and only pay self-employment tax on that salaried amount.
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Date: October 17th, 2017 8:10 PM Author: Motley Set Which works great until the first audit. The IRS says that lawyers can't do this. Reasonable salary for us = the whole nut. Same for doctors. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466207) |
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Date: October 17th, 2017 8:13 PM Author: 180 den round eye irs doesnt say this. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466220) |
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Date: October 17th, 2017 8:13 PM Author: Emerald charismatic tanning salon kitty i thought that rule was for c-corps though. Personal holding corporations.
Might be wrong though, feel free to educate me |
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Date: October 17th, 2017 9:54 PM Author: Nubile Translucent Sneaky Criminal Fat Ankles (lol @ Are Reptile's SPS legal analysis getting shouted down by actual lawyers) (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466955) |
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Date: October 17th, 2017 10:01 PM Author: Emerald charismatic tanning salon kitty Yeah he’s done here. Tried to play outside his 25% tax bracket (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34467028) |
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Date: April 2nd, 2018 10:18 AM Author: Walnut balding new version address (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#35742815) |
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Date: October 17th, 2017 7:38 PM Author: 180 den round eye i assume what's exactly the idea. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34465940) |
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Date: October 17th, 2017 7:35 PM Author: sickened temple boiling water Some put it on their pleadings too (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34465905) |
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Date: October 17th, 2017 7:38 PM Author: 180 den round eye Morty R. Weisenberg, P.C. Alvin J. Schwartz, P.C. DLA PIPER P.C. |
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Date: October 17th, 2017 7:41 PM Author: sickened temple boiling water Always wondered if this is even arguably legally necessary or just showing off dat equity (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34465962) |
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Date: October 17th, 2017 7:58 PM Author: 180 den round eye i dont think the pleading needs to state this shit. the idea is that you're not holding yourself out to people you do biz with that there's a corp shell (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466102) |
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Date: October 17th, 2017 8:33 PM Author: Seedy electric gay wizard I think the P.C. statute says you have to identify yourself as a PC. Just like the firm has to say LLP. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466349) |
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Date: October 17th, 2017 9:30 PM Author: 180 den round eye where do we draw the line?
does every thanks email to the client have to say
thanks, morty PC |
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Date: October 17th, 2017 8:06 PM Author: Seedy electric gay wizard It works if the flag has gold fringe, so they know you mean the lawyer the sovereign man and not the straw man. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466197) |
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Date: October 17th, 2017 8:12 PM Author: Seedy electric gay wizard Link? (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466216) |
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Date: October 17th, 2017 8:22 PM Author: sickened temple boiling water https://www.kirkland.com/sitecontent.cfm?contentID=220&itemID=7800 (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466278) |
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Date: October 17th, 2017 8:30 PM Author: Seedy electric gay wizard That's crazy. I guess the statute says a person can serve as a partner in a LLP and an s-corp is a "person," but I wonder what kind of restrictions the partnership agreement imposes on this. (Like is it harder to claw back from a P.C. than a person if needed? How does capital contribution work, etc.) (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466335) |
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Date: October 17th, 2017 9:53 PM Author: big tan piazza digit ratio doesn't this basically let u know which ones are the kirkland equity partners and which are just super senior associates? (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466950) |
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Date: October 17th, 2017 9:54 PM Author: 180 den round eye PC means they're equity, but absence of a PC is indeterminate. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466959) |
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Date: October 17th, 2017 9:54 PM Author: sickened temple boiling water yes (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466960) |
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Date: October 17th, 2017 9:55 PM Author: naked maize location turdskin yup (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466966) |
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Date: October 17th, 2017 10:57 PM Author: passionate stain MISINFORMATION ALERT. Plenty of equity partners don’t have p.c in their titles (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34467559) |
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Date: October 17th, 2017 11:00 PM Author: big tan piazza digit ratio (Kirkland 12th year) (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34467580) |
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Date: October 18th, 2017 6:30 PM Author: Walnut balding new version address this is what I was talking about (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34473837) |
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Date: October 17th, 2017 8:14 PM Author: rusted razzmatazz indian lodge There are professional LLCs out there. They just don't absolve the practitioner of his malpractice exposure. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466225) |
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Date: October 17th, 2017 8:15 PM Author: 180 den round eye i suppose it depends on the state, then.
i've seen "PLLC" sometimes. mfh doesnt have them |
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Date: October 17th, 2017 8:22 PM Author: rusted razzmatazz indian lodge They are available in New York. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466275) |
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Date: October 17th, 2017 8:32 PM Author: 180 den round eye well, then. i dunno why mfh biglawyers are all PC's (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466347) |
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Date: October 17th, 2017 8:34 PM Author: rusted razzmatazz indian lodge There are plenty of LLPs. Or are you talking about single attorneys and not law firms? (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466356) |
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Date: October 17th, 2017 8:35 PM Author: 180 den round eye yes, i'm talking about a single attorey (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466364) |
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Date: October 17th, 2017 7:28 PM Author: lake aggressive native i think earl looked into this stuff (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34465854) |
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Date: October 17th, 2017 7:30 PM Author: crawly theater sound barrier Stew is a write off? (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34465862) |
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Date: October 17th, 2017 7:33 PM Author: 180 den round eye (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34465885) |
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Date: October 17th, 2017 7:35 PM Author: Beady-eyed bawdyhouse genital piercing (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34465906) |
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Date: October 17th, 2017 7:43 PM Author: Fragrant old irish cottage sanctuary (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34465970) |
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Date: October 17th, 2017 8:20 PM Author: embarrassed to the bone federal locus (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466265) |
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Date: October 17th, 2017 7:34 PM Author: Emerald charismatic tanning salon kitty If they aren’t retarded, yes. They make enough that the expense looks reasonable (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34465898) |
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Date: October 17th, 2017 7:52 PM Author: vigorous windowlicker business firm You can't just randomly expense a car lmao. If you got audited you'd be fucked.
Is this how xo proles think the rich live? Expensing all of their expenses and not paying taxes? |
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Date: October 17th, 2017 8:01 PM Author: 180 den round eye tbf, that's how the rich live. w2 wagecucks lose out on so many deductions.
i have no idea about cars, but every biglaw partner is writing off a portion of his westchester mansion as a "home office"
and they're all writing off every single meal and bar receipt. they're always with SOME buddy who is an attorney or potential client so it's arguably a biz meal. although there's only a 50% deduction. |
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Date: October 17th, 2017 8:21 PM Author: claret becky space wow! (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466270) |
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Date: October 17th, 2017 8:58 PM Author: vigorous windowlicker business firm Home office, sure. And probably a lot of meals, but no, there is not always SOME buddy who is an attorney or potential client at every meal or bar.
Lawyers are risk averse as fuck so I doubt most take deductions they have no defense of if audited. |
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Date: October 17th, 2017 9:06 PM Author: 180 den round eye who are biglaw partners socializing with? lawyers and other professionals (bankers, consultants, etc.) all of them is a potential client. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466589) |
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Date: October 17th, 2017 9:20 PM Author: vigorous windowlicker business firm lol it doesn't work like that (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466685) |
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Date: October 17th, 2017 9:29 PM Author: Emerald charismatic tanning salon kitty I get it now. You’re Agent Jenkins from the IRS. GTFO (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466758) |
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Date: October 17th, 2017 9:31 PM Author: 180 den round eye it exactly works like that.
drinks w your law school buddy who is a partner at another firm = discussing cross-referrals, etc. |
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Date: October 17th, 2017 9:52 PM Author: vigorous windowlicker business firm I mean if you lie and say that's what all your meetings are about, sure. But if IRS sees you have 50 expensive "business dinners" a year, it's not gonna hold up if they actually look into it. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466944) |
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Date: October 17th, 2017 10:00 PM Author: Emerald charismatic tanning salon kitty (Agent Jenkins playing good cop) (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34467022) |
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Date: October 18th, 2017 12:36 AM Author: aromatic domesticated striped hyena roast beef are you kidding? yes it is. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34468252) |
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Date: October 18th, 2017 12:41 AM Author: Jet Dilemma my wife’s an inhouse lawyer and we right off everything we do, from vacations to shows, as a business expense. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34468277) |
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Date: October 17th, 2017 8:02 PM Author: Emerald charismatic tanning salon kitty Holy fuck you’re done here lmao (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466161) |
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Date: October 17th, 2017 8:04 PM Author: 180 den round eye (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466182) |
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Date: October 17th, 2017 8:59 PM Author: vigorous windowlicker business firm (guy that thinks the rich "write off" their vacation homes) (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466544) |
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Date: October 17th, 2017 9:03 PM Author: Emerald charismatic tanning salon kitty I know quite a bit more about what “rich people” do on their taxes than you do, wagecuck (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466569) |
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Date: October 17th, 2017 9:21 PM Author: vigorous windowlicker business firm lol im definitely not a wage cuck (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466687) |
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Date: October 17th, 2017 9:07 PM Author: 180 den round eye they write off their vacations tho as "conferences" (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466590) |
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Date: October 17th, 2017 9:08 PM Author: Emerald charismatic tanning salon kitty (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466599) |
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Date: October 17th, 2017 9:56 PM Author: vigorous windowlicker business firm yeah they won't hold up if audited, unless you can show the conference was actually the primary purpose of the trip. Going to Hawaii for 7 days for a small 6 hour conference that's available 50 miles from home as well isn't deductible. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466981) |
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Date: October 17th, 2017 9:59 PM Author: Emerald charismatic tanning salon kitty (Agent Jenkins laying a honeypot) (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34467020) |
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Date: October 17th, 2017 9:18 PM Author: amber high-end mad cow disease I don't believe there is an advantage to using an S-corp over a C-corp.
A C-corp allows you as a company with one employee to create a health benefit plan which pays for 100% of the out of pocket expenses of the employee (me) and his spouse (my wife). So basically all co pays, glasses, sunglasses, and pharmacy stuff is purchased by the corporation.
you pay your car lease with your corporation, together with insurance and gas and maybe allocate 10% of the cost to personal use. After all my BMW is the company car. My wife's prius is the personal car. Gas for both cars goes on the corporate credit card.
I don't deduct my home office since I don't want to fuck around with my mortgage interest deduction.
The corporation does pay for home internet, cell phone plan, all cell phones, all tablets, all computer equipment, office furniture, a safe for all my guns plus some work papers, etc.
Corporation pays for 50% of all business meals which are basically all meals over $80.
Corporation pays for some travel - not vacations with wife to hawaii, but basically whenever I go anywhere there is a potential client to speak to and take to lunch.
I figure its good for $30K-35K in business expenses this year - which is low but I don't spend that much. My corporation pays me $160K in salary which covers the mortgage and all other living expenses. At the end of the year I will need to gross out the pay after taxes for the year and cut myself a check for the rest. On december 31 my c-corp closes its books with $0 profit and only the initial investment of $5,000 I made in the account. |
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Date: October 17th, 2017 9:21 PM Author: Emerald charismatic tanning salon kitty YNYYYY I like this structure
The fact that you end in a wash down to the initial investment does increase your audit risk though. They want to pwn you at the corporate level too. |
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Date: October 17th, 2017 9:23 PM Author: amber high-end mad cow disease it's a professional corporation called "Earl Manigoat, P.C." - I think the IRS knows what kind of corp it is an they always wash out.
No professional corporation pays corporate tax. Except for the medical expenses I think all of those business expenses I could take without the corporation.
However, $35,000 in business expenses would probably put me in the top 10% of the individual filers, putting me at moderate audit risk. $35,000 in business expenses is probably the bottom 1% of C-corp expenses. |
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Date: October 17th, 2017 9:28 PM Author: Emerald charismatic tanning salon kitty Audit risk doesn’t really matter anyway as long as you have documentation. Everyone has an automatic audit risk anyway.
I have both entities right now. An s-corporation that owns interest in several different partnerships so I pay a salary and flow the rest of the money through, and a c-corporation that owns my income properties. I like the idea of a health benefit plan because right now the c-corp is just sitting there with cash in the bank. Any other advice as a c-Corp haver? |
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Date: October 17th, 2017 9:47 PM Author: vigorous windowlicker business firm Read rules for deducting "company car" expenses. He would be fucked on his car if he got audited. Probably same for all of his home electronic expenses as well. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466894) |
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Date: October 17th, 2017 9:48 PM Author: Emerald charismatic tanning salon kitty STFU Agent Jenkins (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466907) |
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Date: October 17th, 2017 9:50 PM Author: vigorous windowlicker business firm I mean if you don't get audited you have nothing to worry about. But don't act like its all done within the rules. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466929) |
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Date: October 17th, 2017 9:51 PM Author: Emerald charismatic tanning salon kitty (Agent Jenkins running false flag flame) (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466936) |
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Date: October 17th, 2017 9:35 PM Author: 180 den round eye your audit risk is much less as a corp than on a schedule C, apparently. i guess the IRS is more skeptical of schedule C filers and thinks corps are inherently more reliable (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466807) |
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Date: October 17th, 2017 9:33 PM Author: 180 den round eye ljl this is goyishe
>>Corporation pays for some travel - not vacations with wife to hawaii, but basically whenever I go anywhere there is a potential client to speak to and take to lunch.
there are confs in hawaii all the fucking time. you can easily figure out how to write off your HI trips. |
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Date: October 17th, 2017 9:40 PM Author: erotic boyish giraffe school cafeteria How does your medicare tax work-- only on the 160k? (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466849) |
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Date: October 18th, 2017 12:40 AM Author: amber high-end mad cow disease i pay myself the balance of my comp as a end of year bonus, so medicare is paid on all of that sadly. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34468268) |
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Date: October 17th, 2017 9:48 PM Author: 180 den round eye btw, you have to allocate your home internet, cell phone, etc. you should at least allocate it at 90% (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466905) |
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Date: October 17th, 2017 9:29 PM Author: black heaven mood Yeah. All the time. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466761) |
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Date: October 17th, 2017 9:50 PM Author: Nudist Transparent Menage Twinkling Uncleanness They just WRITE IT OFF, JERRY! (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466927) |
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Date: October 17th, 2017 9:57 PM Author: naked maize location turdskin "...but they do, and they're the ones writing it off"
lmao |
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Date: October 17th, 2017 10:07 PM Author: erotic boyish giraffe school cafeteria (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34467054) |
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Date: October 18th, 2017 12:41 AM Author: aromatic domesticated striped hyena roast beef health insurance / healthcare and retirement accounts are where you really cash in with self-employment. the car, meals, the incidental expenses like internet and computers, the occasional family vacation you write off because you attended a conference for half a day, they're ok, but the real significant value is in the first two categories. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34468276) |
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Date: October 18th, 2017 10:28 AM Author: Drunken voyeur gas station This is almost exactly like those "free man on the land" types who rant about their corporate personhood and actual personhood, except we make fun of those guys. They must read threads like this and wonder what the fucking difference is (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34469584) |