Steven Hamilton
We specialize in preparing tax returns for small businesses, real estate investors and self directed retirement accounts. We will create a specialized tax plan based on your needs We are looking to develop long lasting partnerships with our clients. We achieve this through continuous contact, we do not want you to see us once per year. We encourage you to consider us your financial partner.
We are an office of Enrolled Agents. Wondering what an Enrolled Agent is? Enrolled Agents (EAs) are federally licensed tax practitioners who have technical expertise in the field of taxation and are licensed to represent taxpayers for audits, collections, and appeals before the Internal Revenue Service at administrative levels. Enrolled Agents are the only tax practitioners required by federal law to maintain their expertise through continuing professional education. (National Association of Enrolled Agents.)
Steven Hamilton provides quality continuing education through our partner Gryphon CE. He provides quality advanced education to those looking to advance their tax knowledge. You can sign up even as a non-tax professional to learn everything from basic tax to advanced concepts and audit representation.
Do you have a tax question for which you cannot find an answer or an IRS letter that you do not understand? We can help solve your tax problems.
Please use our Contact Us page to request a quote or to provide us feedback.
Forum Replies Created
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in reply to: Solo 401k trust/ IRA and Margin Accounts @N Hedge,
Enabling margin does not trigger it. However, if it is not used there is no UDFI concern.
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in reply to: UBIT Tax Considerations – Using seller finance with Roth Solo 401k Hello Divina,
Typically seller financing will not trigger UBTI on real estate transactions. Whereas inside an IRA the allocated amount of net profit would be taxable.
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in reply to: What tax forms do I need to file for solo 401k? Great questions with a complicated answer.
There are two different items to address:
Form 5500/EZ: $250k+ Based upon Fair Market Value on 12/31/2020 https://www.irs.gov/instructions/i5500ez#idm140490140682768
Form 990-T: UBTI of 1k or more. In the case of a solo 401k that will NOT include debt financed income.Many firms have no idea what they are looking at or even asking when presented with these things. Those firms are often focused on pounding out tax returns and that is it. A quality firm who works with clients in strategizing can make all of the difference in the world.
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in reply to: What tax forms do I need to file for solo 401k? Being 100% honest, which I can’t help. I question their qualifications on that. Out of curiosity, and you can PM me, who do you use? You’re welcome to reach out to me directly about any referral work as we have clients worldwide.
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in reply to: Need to file 5500-EZ after Revocation Of Election? A current election does not change a requirement for the past, nor does it change it for other entities.
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in reply to: Paying taxes when you sell a real estate investment when you have a IRA. I love these questions. UDFI is Unrelated Debt Financed Income, it is income derived from the debt financed portion of that income for example a rental property financed at 60% LTV will have 60% of the income as UDFI. Keep in mind this is after expenses are applied. UDFI is treated as Unrelated Business Taxable Income.
The first $1,000 is not taxable; however, after that we use the Trust tax rates which increase substantially, after about 13,050 of Income you’re looking at a tax rate of 37%.
The short rough calculation to ESTIMATE it is: 37% on 60%(assuming 60% LTV) of the Net profit after expenses.
A form 990-T will need to be filed.
If you use a 401k, not an IRA you would not be subject to tax on a debt financed real estate transaction.
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in reply to: Master Limited Partnership UBTI tax treatment in Solo401K You will definitely have to take it into consideration. It is not the distributions themselves that are subject to taxation it is the net profit or loss of the MLP and it’s underlying activities.
If there is more than $1,000 of net profit of UBTI activities you will need to file a 990-T
