USA Several questions

[Grlnxtdr88]

Will try to make this as concise as possible.

Nov 2012 Living in NY (325,000 mortgage) & own paid off 1bdrm condo in Florida (just HOA fee).
Nov 2012 Husband got disability settlement $110,000, formed an LLC & bought a home $88,000 in Florida with plans to renovate & sell.
Nov 2012 Bought (with a $45000 mortgage) 2nd condo in Florida for our children to use.

Wife works Full-time $85,000 annually.

April 2013. Wife got job offer in Florida & we moved into paid off Florida condo.
Dec 2013. LLC house with >50,000 in expenses, nearly complete, not yet sold.

LLC is in both names & we file jointly.
Husband thinks all house/ LLC expenses are tallied/reported after house is sold in 2014 to show loss/gain. Wife thinks all expenses are written as a loss for 2013 and her salary is thereby taxed less. Gain then to be shown next year.

Children decided not to move to Florida & we began to rent out 2nd condo in April 2013. Tenants pay cash & we replaced all the appliances & the a/c unit. We just broke even (mortgage+ HOA fees + expenses). But we have no proof of what they paid to us. Is that a loss too?

Adult child paying NY mortgage (still in our name until he can qualify for mortgage) & all utilities. Pays no $ to us, he pays all bills directly. Our State income tax is now Florida, we plan to deduct the $15,000 in interest paid to the NY mortgage since its still in our name but is that home now considered my 2nd home since we reside in Florida?

Are HOA fees deductible? Is a leased vehicle deductible now that we have an LLC?

Please answer whichever portion you are able. All your help is appreciated!!

 

[kirby]

About two sentence in to your writeup it was clear to me that you need a tax or legal advisor for all this. Example: you said "house with > 50,000 in expenses. An onsite accountant would review those to see what part is capitalizable, what part is deductible for tax and what part is not deductible for tax.

 

[The Finance Writer]

As usual, I'm in total agreement with kirby on this. However, I did attempt to understand the scenario described and can add that personal expenses (e.g., HOA fees and vehicle lease payments) are not tax deductible simply because you "formed an LLC."