NYC condo hotel as 2nd office = big tax deduction???
As full time freelance travel shooter
I already have home office / residence / FL Am anticipating a lot of NYC visits next 10 yrs to shoot a lot of stock photography... Normally it would involve hotels (100% deductible) & travel meals (50% deductible)... Am contemplating investing in NYC hotel condo & staying ~5 mos annually, leasing ~7 mos. (NYC resident taxes triggered at 6 mos 1 day) Is anyone doing this or similar? Can I claim entire apt. as 2nd office if entire time there is spent working (+ sleeping) (like 100% deductible hotel room) or is it a 2nd home office that must be divided into work area & non-work area? Of course, will call IRS to ask questions more than once, more than one agent, to make sure I'm getting same answers per same questions. But if anyone has expertise-experience, responses appreciated!!! :D:-:@:-)^:D:-:@:-)^:D:-:@:-)^ |
I'd value an experienced accountant's opinion above what I got from the IRS. Be aware that some accountants follow the maxim "it's better to ask for forgiveness than permission," meaning they advise clients to claim deductions aggressively. An experienced one will guide you towards a deduction level that balances the increased risk of an audit, and its cost, against the potential tax savings.
|
residences are not the same as hotel rooms
why hotel residence? why not apartment? if by lease you mean include in hotel inventory, it may not get the revenue you want. if regular lease, doesnt have to be hotel. although the one thing about hotel residences that can be in hotel inventory is not having the 30 day or 1 year minimum. |
IME many accountants are too conservative because they fear that if an audit leads to additional taxes,, you will blame them.
IANAL but it sounds like FL will remain as your tax home, so that temporary apartment expenses, just like hotel expenses, are deductible if reasonable and necessary. So even if you must divide into office and temporary home, it should still be deductible. However, you might need to be careful if the majority of your income comes from NYC. If you're buying rather than leasing the condo, would your business purchase it? Does this affect mortgage interest deductibility or have real estate tax implications? In fact, do association rules permit your planned extent of home office use? Meeting clients regularly could be a problem. Could storage of chemicals become an issue? |
meeting clients would be ok with hotel residence that can be put in hotel inventory.
agree re condo associations / coop boards, have to know all the details. agree real estate tax is big, unless doing one of the new (all expensive?) buildings. also - can do corporate rate at hotel, rent/lease a hotel room, prepay hotel expenses |
Originally Posted by MSPeconomist
(Post 26970476)
IME many accountants are too conservative because they fear that if an audit leads to additional taxes,, you will blame them.
|
Originally Posted by ajGoes
(Post 26970687)
When I set up my consulting business, my accountant told me that he considered any audit where the client didn't have to pay something extra a failure. It meant he hadn't been aggressive enough. He made sure to explain that to me at our first meeting.
|
Originally Posted by rbwpi
(Post 26971239)
That's basically what I convey to potential clients. "Some clients will complain if they owe money as a result of an audit. Then there are smart clients, who if they don't owe money will complain."
|
Originally Posted by TravelPhotographer
(Post 26968276)
As full time freelance travel shooter
I already have home office / residence / FL Am anticipating a lot of NYC visits next 10 yrs to shoot a lot of stock photography... Normally it would involve hotels (100% deductible) & travel meals (50% deductible)... Am contemplating investing in NYC hotel condo & staying ~5 mos annually, leasing ~7 mos. (NYC resident taxes triggered at 6 mos 1 day) Is anyone doing this or similar? Can I claim entire apt. as 2nd office if entire time there is spent working (+ sleeping) (like 100% deductible hotel room) or is it a 2nd home office that must be divided into work area & non-work area? Of course, will call IRS to ask questions more than once, more than one agent, to make sure I'm getting same answers per same questions. But if anyone has expertise-experience, responses appreciated!!! :D:-:@:-)^:D:-:@:-)^:D:-:@:-)^ Having given you my amateur opinion, follow others' advice and tax to a tax accountant first. |
Originally Posted by TravelPhotographer
(Post 26968276)
(NYC resident taxes triggered at 6 mos 1 day)
NOTE: I am not a CPA or tax attorney, this is just based on my experience of having had to pay NYS income tax in the past. Anyone can feel free to correct me. And since this is FT, I'm sure I'd be corrected even without that note. :p |
Originally Posted by ajGoes
(Post 26970687)
When I set up my consulting business, my accountant told me that he considered any audit where the client didn't have to pay something extra a failure. It meant he hadn't been aggressive enough. He made sure to explain that to me at our first meeting.
Also, to the OP: what about renting an apartment through your business, and letting it out via services such as AirBnB when you don't need it for work? |
Please get professional tax advice instead of asking us here about prepaid travel or NYC apartments. Your advice here is worth exactly what you paid for it. You're not the first small business to have a good year and want to shelter it all. Most of the obvious ways are dead now. I don't want you to spend a bunch of money then find out later it's not deductible.
And don't rely on the irs for advice. That's not how it works. |
Originally Posted by darthbimmer
(Post 26972004)
Also, to the OP: what about renting an apartment through your business, and letting it out via services such as AirBnB when you don't need it for work?
http://gothamist.com/2016/06/18/its_...o_advertis.php |
hotel residences that can be included in hotel inventory are ok to rent for less than 1 month
meeting clients there would also not have problems like with owners/renters boards i dont think OP is in market for brownstone, but 'single owner' buildings also ok for renting |
Some points & clarifications:
Some free advice is worth lots more that what's paid for it. Especially if from authoritative sources or from those with on-target experience. Wheat, chaff... Am considering specifically 1bd or studio in The Plaza Hotel -- yes I know about issue of prices not previously rising like other bldgs. Update: forget Plaza, condos are separate entity in same building unassociated with hotel... I would occupy hotel condo ~4 mos & will research if leasing-renting ~8 mos will cover annual expenses. I do not know what role hotel plays as renter, but there are realtors advertising apts. for lease... I do not receive clients. I go out daily to make new images. I would process-keyword images in hotel-condo when not out, also eat, sleep. Home office percentage determined by area used exclusively for business. But the question is: if hotel room is used for sleeping + eating + working + base for working in area & is 100% deductible, would an "owned-by-me" hotel condo 2nd office be a likewise 100% deduction or be an area-devoted-to-work-only partial deduction, as is primary home office??? Please, if possible, provide link to any 14-15 work day rule for NY or NYC. I only found definition for NYC resident & therefore NYC residential taxes to be if one is in NYC-NY any part of a day for 1/2 year plus one day... e.g., daily commuters from CT/NJ have been stung by NYC residential taxes. Thanks for responses. Wheat winnowing in progress... :D :D :D ^ ^ ^ |
- why not trump international?
- trump soho may be less because only ~4 months occupied a year. (only one like this) could also look at the timeshare/fractional properties - buying multiple in same unit - there are fractionals at st regis for example although those plaza units were bought in bulk at one point, buyer may still own some park hyatt is also selling their rentals in bulk, not sure re after that sale happens if youre trying to entirely avoid paying for tax advice, that really is not possible |
Originally Posted by Kagehitokiri
(Post 26978241)
if youre trying to entirely avoid paying for tax advice, that really is not possible
|
plaza hotel has residences (the ones you mentioned) that can be in hotel inventory, and im pretty sure not all of them were sold in bulk to the bulk buyer, so if some are currently owned by individual owners, you could contact them, and or local high end realtors
the bigger residences at plaza are like the 'tower' residences at trump international, which are different from the 'condohotel' units (which can be occupied 365 nights a year by owner) at plaza and trump and the fractionals at st regis hmm, i actually worked up partial list of (plaza) original sale prices, ill take a look |
Originally Posted by TravelPhotographer
(Post 26976673)
Some points & clarifications:
Some free advice is worth lots more that what's paid for it. Especially if from authoritative sources or from those with on-target experience. Wheat, chaff... |
i think they may have word wrap from something else, based on that quote, but not sure
|
Originally Posted by TravelPhotographer
(Post 26976673)
Please, if possible, provide link to any 14-15 work day
rule for NY or NYC. I only found definition for NYC resident & therefore NYC residential taxes to be if one is in NYC-NY any part of a day for 1/2 year plus one day... e.g., daily commuters from CT/NJ have been stung by NYC residential taxes. http://www.hodgsonruss.com/media/pub...n%20Issues.pdf http://www.hodgsonruss.com/media/pub...06_2009-v2.pdf http://www.eisneramper.com/new-york-...rule-0912.aspx And per this CNN article (and pretty much any other source out there), NYS is very aggressive about trying to collect non-resident taxes. There are also stories about the "employer of convenience" rule whereby NYS considers you to be working in the state of NY if your employer is located in-state, even if you are physically working outside the state for a majority or even all of the year. I'm not sure if that would apply in your situation, but again, you really should talk to a tax attorney or CPA about the non-resident, resident, and employer of convenience rules (at the very least). |
> building his background knowledge by talking to experienced lay people so that he can ask more pertinent questions...
BAM!!! Thanks for timeshare-fractional info. Might make more sense as it is more "hotel-like" & therefore reasonably 100% deductible...? Does flyertalk have timeshare forum in which a newbie can learn issues & investment prospects? Those links to non-residents working in NY are scary. As sole proprietor, I'd be working in NY & making future income from NY subjects but not making $$ in real time whilst in NY = foggy...? My royalty checks do not come from NY addresses... Commander Chgoeditor: :o :o :o :o :o Does it break forum rules? If not, read it like poetry which the world needs more of...? |
http://tugbbs.com/forums/
timeshares - wyndham (former alex hotel) ; 2 hiltons ; manhattan club st regis hotel has fractionals (non chain hotel fractionals = phillips club) quick search re hotel residences that can be put in hotel inventory $800K studio trump soho (owner occupied up to 120 days due to zoning) $1.2m studio trump international |
Whether the lodgings are hotel-like or not shouldn't affect tax deductibility if your stays are clearly temporary and your tax home remains elsewhere. Temporary away from home lodging can mean up to a year or two in one place if you return to your tax home afterward. For that length of stay, most people would choose an apartment or even house over a hotel.
|
perhaps the question re pre-paying for hotel (another thread?) would be has anyone on FT who had a negotiated corporate rate also had an account with hotel where they or their company deposited funds with hotel, with account 'dropping' when nights are used/booked
|
Originally Posted by TravelPhotographer
(Post 26989823)
Commander Chgoeditor:
:o :o :o :o :o Does it break forum rules? If not, read it like poetry which the world needs more of...? IMHO, it makes it much more difficult to read. You're assuming that everyone is looking at FT using a display that shows the same amount of text on each line. So what you think of as poetry instead can end up looking like this one one person's display: IMHO, it makes it much more difficult to read. You're assuming that everyone is looking at FT using a display that shows the same amount of text on each line. So what you think of as poetry instead can end up looking like this one one person's display: |
Originally Posted by TravelPhotographer
(Post 26976673)
Some points & clarifications:
Please, if possible, provide link to any 14-15 work day rule for NY or NYC. I only found definition for NYC resident & therefore NYC residential taxes to be if one is in NYC-NY any part of a day for 1/2 year plus one day... e.g., daily commuters from CT/NJ have been stung by NYC residential taxes. Thanks for responses. Wheat winnowing in progress... :D :D :D ^ ^ ^ The 14 day limit is in regard to withholding taxes. Theoretically, you are responsible for taxes as of day one of NYS income. |
Originally Posted by TravelPhotographer
(Post 26968276)
As full time freelance travel shooter
I already have home office / residence / FL Am anticipating a lot of NYC visits next 10 yrs to shoot a lot of stock photography... Normally it would involve hotels (100% deductible) & travel meals (50% deductible)... Am contemplating investing in NYC hotel condo & staying ~5 mos annually, leasing ~7 mos. (NYC resident taxes triggered at 6 mos 1 day) Is anyone doing this or similar? Can I claim entire apt. as 2nd office if entire time there is spent working (+ sleeping) (like 100% deductible hotel room) or is it a 2nd home office that must be divided into work area & non-work area? Of course, will call IRS to ask questions more than once, more than one agent, to make sure I'm getting same answers per same questions. But if anyone has expertise-experience, responses appreciated!!! :D:-:@:-)^:D:-:@:-)^:D:-:@:-)^ Sadly I didn't know about this when I bought my condo in FiDi. I essentially lost out on $20k and have regretted it ever since... Feel free to google the topic but this page has a pretty good overview of how it works: http://hauseitreviews.com/buyer-agen...on-rebate-nyc/ |
All times are GMT -6. The time now is 10:28 pm. |
This site is owned, operated, and maintained by MH Sub I, LLC dba Internet Brands. Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Designated trademarks are the property of their respective owners.