Flipping a house, any lawyers here?

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green1

green1

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Me and a buddy (he already closed on the house, in his name), retired but not on SS yet. I am out on SS disability. SSA says, with me investing $ in the house, they don't care, not wages. I'm only putting in 25%, but splitting the profit (ex construction super) .

? is; H&R Block said to set up an LLC, or partnership. Problems: we don't want to pay transfer fees to move the title. Also,how to return my investment, with profit, so when the house sells, he doesn't pay all the taxes? I don't mind paying my share, but don't want to upset the cart, as far as SSA. Is a 1099 wages? As most of it will be my invest return, then some profit.
 
green1 said:
Me and a buddy (he already closed on the house, in his name), retired but not on SS yet. I am out on SS disability. SSA says, with me investing $ in the house, they don't care, not wages. I'm only putting in 25%, but splitting the profit (ex construction super) .

? is; H&R Block said to set up an LLC, or partnership. Problems: we don't want to pay transfer fees to move the title. Also,how to return my investment, with profit, so when the house sells, he doesn't pay all the taxes? I don't mind paying my share, but don't want to upset the cart, as far as SSA. Is a 1099 wages? As most of it will be my invest return, then some profit.
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I am not a lawyer but yes a 1099 is taxable income. I get 1099s from a couple things I am involved in and it is counted as wages with the IRS.
 
Be very, very, careful with SS Disability. Had a friend that lost his because he was working 10 hours a week at Mickey D's and a $5000 lottery winner put him over the limit and he was cut off. They don't give a rat's *** how you make the money. If you somehow bring home more than the earnings limit you WILL be cut off. I am battling with them right now because in their eyes I have been miraculously healed since my family physician can not produce any images or treatment records relating to my injuries. Duh, I went to a pain clinic for that and he had all the relevant images and records. My records are now in the possession of the DEA since they raided his office and confiscated everything on the premises on December 8, 2010. I guess that Social Insecurity is doing their part to lessen the impact of the Fiscal Cliff to the taxpayers, but what about folks like us? If you give them any grease, they WILL use it.
 
Get an LLC or set up a C Corporation. Run everything through that with an EIN # instead of your social. Set up a bank account with that LLC or Corp and use that account to run everything thru. Personal expenses and everythings. At the end of the year write it all down/off on the LLC or Corp and you will only be responsible to pay around $800.00 in Taxes no matter how much $$ you make. If SSA ever finds out show them your LLC, Corp taxes and prove you are not making any $$.... DUNNNNN
 
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