Anderson Business Advisors Podcast
Conservation Easements Benefits for Investors

Conservation Easements Benefits for Investors

June 8, 2021

If you Google conservation easements, you get the IRS’s Dirty Dozen list of those that have abused them. Make no mistake, laws are written to allow certain situations to benefit the taxpayer. There's a difference between doing it right and wrong.

In this episode, Toby Mathis of Anderson Advisors welcomes back Tyler Surat to talk about the right way that conservation easements can benefit investors. Tyler works in the alternative energy sources industry and helps farmers and others with the conservation and preservation of their land by creating easements.

Savvy tax investors or business people and individuals use conservation easements to do two things—help society and the environment, and get a tax benefit as a result. If you are not interested in helping the environment, then it's probably not something for you to do. The purpose is conservation.

Highlights/Topics:

  • What is a conservation easement? The U.S. government quit using funds to purchase land to conserve and expected constituents or the public to do so.
  • How did the government incentivize them? Through taxes, which is its greatest asset to offer. It’s a trade. You take a viable development or property that could be developed in some form that has a large market value. It must be developed; hold conservation piece.
  • Does it actually hold that conservation effort? The government will offer a tax deduction for the market-developed value of that property.
  • What's the good, bad, and ugly of conservation? Somebody with land or something may use conservation easements to benefit themselves. The investor can be involved, too.
  • What if ranchers have land that can be developed? If they do, can they continue to farm and ranch that land? If they can, then they typically take beautiful portions of the ranch or what they own, something that somebody would desire. They have true conservation.
  • Is it at the same multiple in private and group investments? Probably not, but their purpose is true conservation. Benefit from it.
  • What is given up or away with conservation easements? You're basically giving up the developed rights. Once you conserve and place that easement on that land, that land's not worth $2,000 an acre anymore. It's worth less because a land developer can't buy it. The only person that would want to buy it - somebody that wants green space.
  • Are green spaces in highly developed areas? They can have townhomes.
  • What are good investors doing now? Reaching out to local appraisers and getting that local feel. A good provider provides ample documents for investors to be well informed.
  • When you become a partner, you're investing in real estate development. What are the three options? Do nothing, develop, or conserve.
  • Do all states follow conservation easements or allow the deductibility? Most states go off adjusted gross or taxable income. They never get to see the conservation portion.
  • Do most people know about the statute of limitations for conservation? Three years from the time you exhaust the deduction.

Resources:

Tyler Surat on LinkedIn

https://www.linkedin.com/in/tyler-surat-1a17881b

Tyler Surat’s Email

mailto:tsurat@onetreeadvisors.com

Tyler Surat’s Phone Number: 719-580-3051

Steel City Solar

https://steelcitysolar.us/

Conservation Easements

https://andersonadvisors.podbean.com/e/conservation-easements/

Internal Revenue Service (IRS) - Dirty Dozen List

https://www.irs.gov/newsroom/dirty-dozen

Mar-a-Lago

https://www.maralagoclub.com/

Residential Energy Credit: Instructions for Form 5695 (2020)

https://www.irs.gov/instructions/i5695

Ducks Unlimited

http://www.ducks.org/

Operation Surf

https://operationsurf.org/

Toby Mathis

http://tobymathis.com/

Anderson Advisors

https://andersonadvisors.com/

Tax and Asset Protection Event

http://andersonap.com/

 

 

Tax Tuesday with Toby Mathis 05-25-2021

Tax Tuesday with Toby Mathis 05-25-2021

June 1, 2021

Did you miss the April 15 tax deadline? Are you safe from significant penalties? What’s the best way to legally, morally, and ethically not pay taxes? It depends. Jeff Webb, Tax Director, and Eliot Thomas, Senior Tax Advisor, of Anderson Advisors answer your tax questions. Submit your tax question to taxtuesday@andersonadvisors.

Highlights/Topics:

  • If you experience a one-time large capital gain from exercising stock options, is it absolutely imperative that you figure out quarterly payments to avoid penalty, and if so, what if you missed April? There’s a safe harbor for calculating tax estimates and it requires paying in 90% of the current year tax or 110% of the prior year tax; and estimated tax penalties are typical not significant, but handle missed payment soon
  • What is the best way to take advantage of Section 179 for new vehicles over 6,000 pounds? Typically, most people do not use Section 179 because of bonus depreciation, restrictions, and limitations
  • How are crypto currencies taxed, and what’s the best way to legally, morally, and ethically not pay taxes? Depends on how you are getting the crypto currency; if you are buying and selling, it is treated as a security and other rules apply; if you are mining crypto currency, find out the value of that crypto bitcoin the day it is created
  • What will happen if you open an LLC with Corp status but you missed the deadline? What should you do? If you missed the tax deadline and have a loss on your Corp, it typically doesn’t affect you; if you have a lot of startup costs, you need to file your initial tax return on time
  • Does tax on depreciation recapture, like capital gains, go away when property is inherited? When you inherit property, everything resets and goes away, like capital gains
  • Do I have to report a home I lived in and sold even though I purchased a new home? Previous Section 121 states as long as you buy a more expensive home than the one you sold, you can defer any gain until the age of 55; Section 121 now states if you lived in the home for two of last five years, you can defer a large part or all the gain

For all questions/answers discussed, sign up to be a Platinum member to view the replay!

Go to iTunes to leave a review of the Tax Tuesday podcast.

Resources:

Infinity Investing Workshop on June 5

http://aba.link/iiw

Infinity Investing: How The Rich Get Richer And How You Can Do The Same by Toby Mathis

http://aba.link/infinitybook

Capital Gains and Losses

https://www.irs.gov/newsroom/capital-gains-and-losses-10-helpful-facts-to-know-0

Section 179 Tax Deduction

https://www.section179.org/section_179_deduction/

Bitcoin

https://bitcoin.org/

Nexo - Banking on Crypto

https://nexo.io/

Entity Formation

https://andersonadvisors.com/entity_formation/

Retirement Plans

https://andersonadvisors.com/retirement_plan/

Real Estate Professional Requirements

https://www.irs.gov/pub/irs-utl/33-Real Estate Professionals.pdf

Wills and Trusts

https://andersonadvisors.com/living_trusts/

Section 121 - Capital Gains Exclusion

https://www.irs.gov/taxtopics/tc701

Bonus Depreciation

https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act

Depreciation Recapture

https://www.investopedia.com/terms/d/depreciationrecapture.asp

Schedule C

https://www.irs.gov/forms-pubs/about-schedule-c-form-1040

Form 1040

https://www.irs.gov/forms-pubs/about-form-1040

Zcash

https://z.cash/

Self-Employment Tax

https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes

Employee Retirement Income Security Act (ERISA)

https://www.dol.gov/general/topic/retirement/erisa

U.S. Department of Labor (DOL)

https://www.dol.gov/

Schedule K-1, Form 1065

https://www.irs.gov/forms-pubs/about-schedule-k-1-form-1065

Cost Segregation Authority

https://costsegauthority.com/

Step-Up in Basis

https://www.investopedia.com/terms/s/stepupinbasis.asp#:~:text=A%20step%2Dup%20in%20basis%20is%20the%20readjustment%20of%20the,for%20tax%20purposes%20upon%20inheritance.&text=The%20asset%20receives%20a%20step,of%20property%20transferred%20at%20death.

1031 Exchange

https://www.irs.gov/pub/irs-news/fs-08-18.pdf

Toby Mathis

https://tobymathis.com/

Abatement Letter

https://www.irs.gov/businesses/small-businesses-self-employed/penalty-relief-due-to-first-time-penalty-abatement-or-other-administrative-waiver

Anderson Advisors

https://andersonadvisors.com/

Anderson Advisors Events

https://andersonadvisors.com/all-events/

Events@andersonadvisors.com

Anderson Advisors Tax and Asset Protection Workshop

https://andersonadvisors.com/asset-protection/

Anderson Advisors Tax-Wise Workshop

https://andersonadvisors.com/tax-wise-workshop-for-businesses-investors/

Anderson Advisors Infinity Investing Workshop

https://andersonadvisors.com/investing-workshop-passive-income-generating-machine/

Anderson Advisors on YouTube

https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ

Anderson Advisors on Facebook

https://www.facebook.com/AndersonBusinessAdvisors/

Anderson Advisors Podcast

https://andersonadvisors.com/podcast/

How to Get Started in Multifamily Investing

How to Get Started in Multifamily Investing

May 25, 2021

If you are a real estate investor, you’ve probably been thinking about multifamily investing because there’s going to be scale in that space. Start house hacking and raise capital!

Today, Clint Coons of Anderson Business Advisors talks to Matt Faircloth from the DeRosa Group about how to get started in multifamily investing. Matt is a full-time investor and has successfully completed projects involving fix and flips, single family homes, apartment complexes, and office buildings.

Also, Matt is a regular contributor and podcast guest on BiggerPockets and has an active YouTube Channel dedicated to educating investors. He is the author of Raising Private Capital - How to Build Your Real Estate Empire with Other People's Money.

Highlights/Topics:

  • Getting Started: Matt read Rich Dad Poor Dad and discovered the power of passive investing, creating assets, and not trading hours for dollars.
  • Bigger and Better Deals: Matt and his wife didn’t get into real estate to start investing in multifamily, but worked their way up into larger deals with apartment complexes.
  • Self-managed Properties: Matt learned about tenant relations, how to select tenants, and what it takes to manage and scale single-family properties for a small portfolio of rentals.
  • Best Bang for Your Buck: Start with a small multifamily deal because it’s cheap debt and very little money down.
  • Real Estate Syndication: Scale into larger multifamily assets faster by selling equity and raising capital.
  • Words of Wisdom: Observe the masses and do the opposite to be competitive.
  • Affordability Analysis: What’s the median income in the city and surrounding area of multifamily space?
  • Can tenants afford a rent increase to justify improvements? Property management companies tend to approve tenants that make more than 3x the rent as their earned income before taxes.
  • 50/50 Mix: Matt recommends seeking multifamily properties with a mix of one- and two-bedroom units, then add amenities, such as family oriented and pet parks.
  • Self-manage vs. Property Management Companies: Depends on if you want to stay small and retain control or reduce vacancy rates and execute business plan to scale.
  • Affordable/Low-Income Housing: Owners should perform due diligence because despite the stigma, tenants don’t want to lose their Section 8 status. They must follow rules or face penalties and be evicted. Low-income housing tax credits can be lucrative.

Resources:

DeRosa Group

https://www.derosagroup.com/

DeRosa Group on YouTube

https://www.youtube.com/user/derosagroup

BiggerPockets

https://www.biggerpockets.com/

Raising Private Capital: Building Your Real Estate Empire Using Other People's Money

https://www.amazon.com/Raising-Private-Capital-Building-Peoples/dp/1947200984

Rich Dad Poor Dad by Robert T. Kiyosaki

https://www.richdad.com/

Federal Housing Administration (FHA)

https://www.hud.gov/program_offices/housing/fhahistory

U.S. Securities and Exchange Commission (SEC)

https://www.sec.gov/

Fannie Mae

https://www.fanniemae.com/

Freddie Mac

http://www.freddiemac.com/

Section 8 Housing

https://www.hud.gov/topics/housing_choice_voucher_program_section_8

LoopNet

https://www.loopnet.com/

Clint Coons

https://andersonadvisors.com/clint-coons/

Anderson Advisors

https://andersonadvisors.com/

Anderson Advisors Tax and Asset Protection Event

https://andersonadvisors.com/asset-protection/

Anderson Advisors on YouTube

https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ

Wholesaling Fix & Flip Formula with Jamil Damji

Wholesaling Fix & Flip Formula with Jamil Damji

May 20, 2021

What is wholesaling and how do you make seven figures doing it? If you are interested in becoming a wholesaler and finding fix-and-flip real estate deals, learn from a problem solver extraordinaire who is part of a supergroup.

In this episode, Toby Mathis of Anderson Advisors talks to Jamil Damji about the art of wholesaling. Jamil has been in the real estate business since 2002 and successfully built KeyGlee, which is a national franchise with 100+ employees, spanning 180 U.S. markets.

Also, Jamil runs a mentorship called, AstroFlipping, where he mentors and educates hundreds of entrepreneurs on how to be successful in their own wholesaling real estate business. He is the co-host of the fastest growing podcast on wholesale real estate called, Wholesale Hotline, and he started his own podcast called, To the Moon, where he highlights student success.

Jamil’s mission in life is to impact as many lives as possible and share knowledge he has gained with those that have a desire to learn.

Highlights/Topics:

  • Who invented wholesaling? As far as Jamil knows, he did in Canada, not Ron LeGrand
  • How to wholesale? Find condos, apartments, and single-family homes to buy then sell
  • Developers: Working and looking for raw materials for property conversions
  • Skip Transfer: Get two contracts, one to buy, one to sell property to make a profit
  • Business Model: Search classifieds for rentals to amass a small fortune, only to lose it all
  • Financial Crisis: Parents cosigned construction loans and all residences were foreclosed
  • Standup Comedy: Plan, prepare, strategize to take care of family cause it’s your fault
  • Potential Properties: Wholesalers look at as-is value and after-repair or after-risk value
  • Potential Property Sellers: Cash transaction is solution or only option to situation
  • KeyGlee’s Core Competency: Building cash buyers, flippers, and buy-and-hold renters
  • Keys to Success: No cash or credit necessary, it takes consistency and hustle
  • Indicators: Lending criteria is significantly harder and inflation is a true fear

Resources:

Jamil Damji on Instagram

https://www.instagram.com/jdamji/?hl=en

Jamil Damji on YouTube

https://www.youtube.com/channel/UCDqJP0mZNOSR9JiIRE02NxQ

KeyGlee

https://www.keyglee.com/

AstroFlipping - Real Estate Education

https://www.astroflipping.com/

Wholesale Hotline Podcast

https://www.youtube.com/watch?v=RYxRy710erI

To the Moon Podcast

https://www.youtube.com/watch?v=lQTvL0755MU

Ron LeGrand

https://www.ronlegrand.com/

HomeVestors

https://www.homevestors.com/

We Buy Ugly Houses

https://www.webuyuglyhouses.com/

Blackhawk

https://www.dnb.com/business-directory/company-profiles.blackhawk_parent_llc.77000ae18ddcfae81d823a112bd88e4b.html

Toby Mathis

https://andersonadvisors.com/tobymathis-2/

Anderson Advisors

https://andersonadvisors.com/

Anderson Advisors Tax and Asset Protection Event

https://andersonadvisors.com/asset-protection/

Anderson Advisors on YouTube

https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ

Tax Tuesday with Toby Mathis 05-11-2021

Tax Tuesday with Toby Mathis 05-11-2021

May 18, 2021

Did you happen to watch Saturday Night Live with Elon Musk? Was it a waste of time and money? Maybe you should ask Toby Mathis and Jeff Webb of Anderson Advisors to answer your questions about buying a Tesla, investing in bitcoins, and other cryptocurrencies. Submit your tax question to taxtuesday@andersonadvisors.

Highlights/Topics:

  • I would like to make my investment condo my primary residence for tax benefits upon its sale - without sleeping there 731 days over five years. Is that only a safe harbor measurement or a hard-and-fast rule? Refer to Section 121 - Capital Gains Exclusion because your primary residence is where you spend the most nights
  • How can I take profits out of an S Corp without paying a lot in taxes? If you are the 100% shareholder of the S Corp, whatever profit that S Corp has, that’s your income and you pay tax on that income, regardless of whether you take money out of that S Corp or not
  • How do you account for remodeling expenses versus maintenance expenses for a rental property? Maintenance expenses or repairs are expenses for keeping the asset at its current value; remodeling expenses are improvements such as renovations or a betterment to increase the value of the asset
  • Can an employer contribute to a profit-sharing retirement plan if there was no profit for the year? It has nothing to do with profit, but it does help to have profit to pay the contributions or create a loss
  • If my business and house are in my revocable living trust when I die, what kind of tax will my kids (the beneficiaries) have to pay on getting the business or the house? When you die, a portion of the assets in the revocable living trust go into an irrevocable trust, so your estate may pay tax, but beneficiaries will never pay tax on inheritance or gifts

For all questions/answers discussed, sign up to be a Platinum member to view the replay!

Go to iTunes to leave a review of the Tax Tuesday podcast.

Resources:

Infinity Investing: How The Rich Get Richer And How You Can Do The Same by Toby Mathis

http://aba.link/infinitybook

Opportunity Zones FAQ

https://www.irs.gov/credits-deductions/opportunity-zones-frequently-asked-questions

Entity Formation

https://andersonadvisors.com/entity_formation/

Retirement Plans

https://andersonadvisors.com/retirement_plan/

Bitcoin

https://bitcoin.org/

Wills and Trusts

https://andersonadvisors.com/living_trusts/

Real Estate Professional Requirements

https://www.irs.gov/pub/irs-utl/33-Real Estate Professionals.pdf

Capital Gains and Losses

https://www.irs.gov/newsroom/capital-gains-and-losses-10-helpful-facts-to-know-0

Tax Cuts and Jobs Act (TCJA)

https://www.irs.gov/tax-reform

Section 26 U.S. Code 1400Z

https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1400Z-2&num=0&edition=prelim

Step-Up in Basis

https://www.investopedia.com/terms/s/stepupinbasis.asp#:~:text=A%20step%2Dup%20in%20basis%20is%20the%20readjustment%20of%20the,for%20tax%20purposes%20upon%20inheritance.&text=The%20asset%20receives%20a%20step,of%20property%20transferred%20at%20death.

Section 121 - Capital Gains Exclusion

https://www.irs.gov/taxtopics/tc701

Bonus Depreciation

https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act

Depreciation Recapture

https://www.investopedia.com/terms/d/depreciationrecapture.asp

1031 Exchange

https://www.irs.gov/pub/irs-news/fs-08-18.pdf

Unrelated Business Income Tax (UBIT)

https://www.irs.gov/charities-non-profits/unrelated-business-income-tax

Unrelated Debt-Financed Income (UDFI)

https://www.irs.gov/pub/irs-tege/eotopicn86.pdf

Cost Segregation Authority

https://costsegauthority.com/

Nexo - Banking on Crypto

https://nexo.io/

Section 168(k) Tax Deduction

https://www.irs.gov/newsroom/additional-first-year-depreciation-deduction-bonus-faq

Section 179 Tax Deduction

https://www.section179.org/section_179_deduction/

Form 1040

https://www.irs.gov/forms-pubs/about-form-1040

Form 3115

https://www.irs.gov/forms-pubs/about-form-3115

Form 1065

https://www.irs.gov/forms-pubs/about-form-1065

Form 1041

https://www.irs.gov/forms-pubs/about-form-1041

Self-Employment Tax

https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes

Renewable Energy Tax Credits

https://www.energystar.gov/about/federal_tax_credits/renewable_energy_tax_credits

American Family Act

https://www.bennet.senate.gov/public/index.cfm/american-family-act

CARES Act

https://www.congress.gov/116/bills/hr748/BILLS-116hr748enr.pdf

Section 26 U.S. Code 469

https://www.law.cornell.edu/uscode/text/26/469

Toby Mathis

http://tobymathis.com/about-toby-mathis/

Anderson Advisors

https://andersonadvisors.com/

Anderson Advisors Events

https://andersonadvisors.com/all-events/

Events@andersonadvisors.com

Anderson Advisors Tax and Asset Protection Workshop

https://andersonadvisors.com/asset-protection/

Anderson Advisors Tax-Wise Workshop

https://andersonadvisors.com/tax-wise-workshop-for-businesses-investors/

Anderson Advisors Infinity Investing Workshop

https://andersonadvisors.com/investing-workshop-passive-income-generating-machine/

Anderson Advisors on YouTube

https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ

Anderson Advisors on Facebook

https://www.facebook.com/AndersonBusinessAdvisors/

Anderson Advisors Podcast

https://andersonadvisors.com/podcast/

 

How Underwriters Evaluate Loans to LLCs or Land Trusts

How Underwriters Evaluate Loans to LLCs or Land Trusts

May 11, 2021

How do underwriters evaluate loans to LLCs or land trusts? By effectively guiding a loan from application through underwriting to a successful closing and helping mortgage lenders comply with regulations.  

Today, Clint Coons of Anderson Business Advisors talks to Andrew Duane, Associate Attorney at Polunsky Beitel Green, LLP. Andrew’s focus on lender support includes file underwriting, complex loan products, and post-closing matters.

Andrew is Due Diligence Certified (DDC) by the International Due Diligence Organization and a professional member of the State Bar of Texas. Previously, he worked with the firm’s document review and preparation team while attending law school.

Highlights/Topics:

  • What if a client or investor wants to refinance a transaction and pull property out of a land trust? Find a lender willing to refinance the property in the name of the trust.
  • Why create a living trust? You don't want to tell the lender to move it out of the trust and have another effect on their asset protection portfolio or other kinds of disastrous effects.
  • What was the solution? Convert the land trust into a living trust because all trusts can be amended and restated.
  • What is Andrew’s role? He is an attorney that represents lenders. He doesn’t represent individual borrowers, but banks and lenders closing home loans in the State of Texas.
  • Why does Andrew perform underwriting and review guidelines? What are lenders like Fannie Mae and Freddie Mac experiencing on origination? Andrew backs up, not just the closing process, but that underwriting process.
  • Why is Andrew’s firm the backstop for lenders? There are other attorneys that do this. When the underwriter gets a document such as a land trust or limited liability company (LLC), they don't understand it and want to make sure it is legitimate and can be used.
  • When the loan originator/lender can't sell it, they don't want to hold it. They don’t deal with that land trust? When investors/clients talk to their loan officers, Fannie Mae requires direct negotiation for the land trust. Freddie Mac doesn't. Freddie buys the land trust where they are statutorily authorized and the individual beneficiary is the borrower.
  • If the property was in an LLC and it's a residential loan, would it get across the goal line? It’s doubtful. Fannie and Freddie do not allow for LLCs. In their general borrower eligibility section, they like a natural person.Then, they make exceptions. An LLC for people selling to Fannie and Freddie isn’t possible because it’s a residential mortgage.
  • If you put it into a land trust and the land trust is owned by the LLC, you can convert the land trust to a living trust, get the loan, and it doesn’t state your name? If you're thinking about your structures and you plan to refinance the property, if you don't want it in your name, consider using a land trust held by an LLC for your asset protection.
  • If you buy or close on new investment property, are there any traps to be aware of before going to the lender? Get your documentation ready to go. If it's closing in a trust, check with the attorney that did it. If it's been a few years, it might be time to restate and update it. It makes the process smoother all around for borrowers and lenders.
  • What’s FHA’s anti-flipping provision? It’s in the HUD handbook. FHA is concerned that houses are going to get flipped for an artificial value and FHA will have to insure all of them. Guidelines and recommendations include waiting 180 days from the time that the deed is delivered, when they acquire legal ownership, to go under contract.
  • If you transfer property to yourself, deeded in the corporation, when you list it for sale, and a first-time homebuyer will not qualify because of that transfer? FHA wants the seller on record to be the person making the sale.
  • When it comes to putting deals together if you're a real estate investor, do you need an authorized signer? When selling a property that might be held in an LLC, or you're with a private bank or wealth company that could close in an LLC, get an authorized signer.

Resources:

Andrew Duane’s Email

mailto:andrew.duane@mortgagelaw.com

Polunsky Beitel Green

https://www.mortgagelaw.com/

International Due Diligence Organization

https://www.international-due-diligence.org/

Texas Government Code A3.001

https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2001.htm

Fannie Mae

https://www.fanniemae.com/

Freddie Mac

http://www.freddiemac.com/

Land Trusts

https://andersonadvisors.com/land_trusts/

Living Trusts

https://andersonadvisors.com/living_trusts/

Entity Formation

https://andersonadvisors.com/entity_formation/

Federal Housing Administration's HUD Program

https://www.hud.gov/program_offices/housing/fhahistory

Clint Coons

https://andersonadvisors.com/clint-coons/

Anderson Advisors

https://andersonadvisors.com/

Anderson Advisors Tax and Asset Protection Event

https://andersonadvisors.com/asset-protection/

Anderson Advisors on YouTube

https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ

 

Tax Tuesday with Toby Mathis 04-27-2021

Tax Tuesday with Toby Mathis 04-27-2021

May 4, 2021

From entity formation, income, and inheritance to losses, proceeds, and profits, Toby Mathis and Jeff Webb of Anderson Advisors answer your tax questions. Submit your tax question to taxtuesday@andersonadvisors.

Highlights/Topics:

  • How does a single, high W-2 earning individual take advantage of passive losses? It’s difficult because passive losses for a high earner are going to be subject to limitations
  • How are inherited stock shares treated when sold? If you inherit stocks, they are valued at fair market value now, not when they were bought due to the step-up in basis
  • Should an S Corp pay profits as dividends? An S Corp does not pay dividends; it passes on profits and losses to shareholders
  • Is it preferable to have a C Corp or an LLC as your holding entity? It’s better to have an LLC as your holding entity; there’s no tax treatment for an LLC
  • Are proceeds received from winning a court case ($20 million) taxable? It depends on the source of the claim, as a matter of rule, and attorney fees are no longer deductible

For all questions/answers discussed, sign up to be a Platinum member to view the replay!

Go to iTunes to leave a review of the Tax Tuesday podcast.

Resources:

Anderson Advisors’ Infinity Investing Through Stocks and Real Estate - Free event on May 15

http://aba.link/iiw

Infinity Investing: How The Rich Get Richer And How You Can Do The Same by Toby Mathis

http://aba.link/infinitybook

Capital Gains and Losses

https://www.irs.gov/newsroom/capital-gains-and-losses-10-helpful-facts-to-know-0

Charitable Organizations

https://www.irs.gov/charities-non-profits/charitable-organizations

Wills and Trusts

https://andersonadvisors.com/living_trusts/

Entity Formation

https://andersonadvisors.com/entity_formation/

Retirement Plans

https://andersonadvisors.com/retirement_plan/

Real Estate Professional Requirements

https://www.irs.gov/pub/irs-utl/33-Real Estate Professionals.pdf

Home Office Deduction

https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction

Kiddie Tax

https://www.irs.gov/taxtopics/tc553

1031 Exchange

https://www.irs.gov/pub/irs-news/fs-08-18.pdf

Step-Up in Basis

https://www.investopedia.com/terms/s/stepupinbasis.asp#:~:text=A%20step%2Dup%20in%20basis%20is%20the%20readjustment%20of%20the,for%20tax%20purposes%20upon%20inheritance.&text=The%20asset%20receives%20a%20step,of%20property%20transferred%20at%20death.

Bonus Depreciation

https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act

Depreciation Recapture

https://www.investopedia.com/terms/d/depreciationrecapture.asp

California Proposition 19

https://www.boe.ca.gov/prop19/

Self-Employment Tax

https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes

Old-Age, Survivors, and Disability Insurance (OASDI) Program

https://www.ssa.gov/policy/docs/progdesc/sspus/oasdi.pdf

121 Capital Gains Exclusion

https://www.irs.gov/taxtopics/tc701

CARES Act

https://www.congress.gov/116/bills/hr748/BILLS-116hr748enr.pdf

Schedule A

https://www.irs.gov/forms-pubs/about-schedule-a-form-1040

Schedule E

https://www.irs.gov/forms-pubs/about-schedule-e-form-1040

Section 162 - Trade or Business Expenses

https://www.irs.gov/pub/irs-drop/rr-99-7.pdf

Form 1040

https://www.irs.gov/forms-pubs/about-form-1040

Form 1099

https://www.irs.gov/forms-pubs/about-form-1099-misc

Tax Cuts and Jobs Act (TCJA)

https://www.irs.gov/tax-reform

Rich Dad Poor Dad by Robert Kiyosaki

https://www.amazon.com/Rich-Dad-Poor-Teach-Middle/dp/1543626610

Insperity

https://www.insperity.com/

Payroll City

https://payrollcity.com/

Paycheck Protection Program (PPP)

https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program

Toby Mathis

http://tobymathis.com/about-toby-mathis/

Anderson Advisors

https://andersonadvisors.com/

Anderson Advisors Events

https://andersonadvisors.com/all-events/

Events@andersonadvisors.com

Anderson Advisors Tax and Asset Protection Workshop

https://andersonadvisors.com/asset-protection/

Anderson Advisors Tax-Wise Workshop

https://andersonadvisors.com/tax-wise-workshop-for-businesses-investors/

Anderson Advisors Infinity Investing Workshop

https://andersonadvisors.com/investing-workshop-passive-income-generating-machine/

Anderson Advisors on YouTube

https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ

Anderson Advisors on Facebook

https://www.facebook.com/AndersonBusinessAdvisors/

Anderson Advisors Podcast

https://andersonadvisors.com/podcast/

Investing in Raw Land

Investing in Raw Land

April 27, 2021

Looking for land? It’s tough to find.So, where do you find the niches to find the riches to invest in raw land? 

 

Today, Clint Coons of Anderson Business Advisors talks to Seth Williams, founder of REtipster, an online community that offers real-world guidance for real estate investors.

 

Seth discusses how he realized that land is probably the better way to go. It’s easier to find deals on land than houses and it costs a lot less.

Highlights/Topics:

 

  • Raw Land Investments: Low liability, low risk, no tenants, and property taxes are cheap.
  • What’s worth buying or not? Vacant land is simple, but is not easy.
  • Always Ask: Is the property zoned right? Are there restrictions? What are the setbacks?
  • Environmental Due Diligence: How much is spent on raw land development? A fortune.
  • DataTree: You can get most of the information you need without spending a fortune.
  • How to get started? Identify market, location, seller financing, state laws, and tax rules.
  • Where? New Mexico and Southwest—less complex and fewer variables to understand.
  • Invest to Sell: Market property with Facebook Marketplace, Craigslist, and Zillow FSBO.
  • Leads: Pros and cons of using direct mail, automated offers, and not knowing markets.

Resources:

REtipster

https://retipster.com/

REtipster on YouTube

http://retipster.com/youtube

DataTree

http://retipster.com/datatree

Land Investing

https://retipster.com/category/land-investing/

The Land Flipping Lifecycle

https://retipster.com/land-flipping-lifecycle

The Truth About Land Investing

https://retipster.com/truthaboutlandinvesting

LandWatch

https://www.landwatch.com/

Land and Farm

https://www.landandfarm.com/

MLS

http://www.mls.com/

Clint Coons

https://andersonadvisors.com/clint-coons/

Anderson Advisors

https://andersonadvisors.com/

Anderson Advisors Tax and Asset Protection Event

https://andersonadvisors.com/asset-protection/

Anderson Advisors on YouTube

https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ

Tax Tuesday with Toby Mathis 04-13-2021

Tax Tuesday with Toby Mathis 04-13-2021

April 20, 2021

With all the lack of tax knowledge going around and politicians being pushed by their parties, get your tax questions answered by Toby Mathis and Jeff Webb of Anderson Advisors. Submit your tax question to taxtuesday@andersonadvisors.

Highlights/Topics:

  • When you have a PLLC, what do you put on a personal or business credit card? If you have a business credit card that’s great, but a lot of the credit card companies are not willing to issue credit cards to new small businesses; use a personal credit card and make sure to separate personal and business expenses
  • How do you claim the solar credit on your personal residence? Use Form 5695
  • Should I file a return with my kids as dependents or should they file their own return if they are paid from the family business? If they are dependents and not supporting themselves, they are still dependents on your return; however, the children can file their own return as well and claim the standard deduction up to the amount of their earned income plus $300
  • I have a rental property in California. When I go there to work on it, can I use per diem plus mileage rather than actual receipts for housing and meals? Depends if you are self-employed or you have the rentals owned personally, you cannot use the per diem for housing but can use it for meals
  • I haven’t done taxes for 2020 and I’d like to know how to write-off bills for my emotional support animal. Can that be done with business taxes? Maybe, depends on the IRS’ primarily for and but for tests

For all questions/answers discussed, sign up to be a Platinum member to view the replay!

Go to iTunes to leave a review of the Tax Tuesday podcast.

Resources:

Infinity Investing: How The Rich Get Richer And How You Can Do The Same by Toby Mathis

http://aba.link/infinitybook

Anderson Advisors Tax and Asset Protection Workshop (April 24)

https://andersonadvisors.com/real-estate-asset-protection-workshop-training/

Charitable Organizations

https://www.irs.gov/charities-non-profits/charitable-organizations

Capital Gains and Losses

https://www.irs.gov/newsroom/capital-gains-and-losses-10-helpful-facts-to-know-0

Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics

https://www.energy.gov/sites/prod/files/2020/01/f70/Guide to Federal Tax Credit for Residential Solar PV.pdf

Form 5695 - Residential Energy Credits

https://www.irs.gov/forms-pubs/about-form-5695

Entity Formation

https://andersonadvisors.com/entity_formation/

Retirement Plans

https://andersonadvisors.com/retirement_plan/

Real Estate Professional Requirements

https://www.irs.gov/pub/irs-utl/33-Real Estate Professionals.pdf

MileIQ

https://www.mileiq.com/

Self-Employment Tax

https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes

Home Office Deduction

https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction

Old-Age, Survivors, and Disability Insurance (OASDI) Program

https://www.ssa.gov/policy/docs/progdesc/sspus/oasdi.pdf

Bonus Depreciation

https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act

Cost Segregation

https://andersonadvisors.com/using-cost-segregation-residential-real-estate/

Depreciation Recapture

https://www.investopedia.com/terms/d/depreciationrecapture.asp

Section 162 - Trade or Business Expenses

https://www.irs.gov/pub/irs-drop/rr-99-7.pdf

Step-Up in Basis

https://www.investopedia.com/terms/s/stepupinbasis.asp#:~:text=A%20step%2Dup%20in%20basis%20is%20the%20readjustment%20of%20the,for%20tax%20purposes%20upon%20inheritance.&text=The%20asset%20receives%20a%20step,of%20property%20transferred%20at%20death.

26 U.S. Code Section 168K

https://www.law.cornell.edu/uscode/text/26/168

Kiddie Tax

https://www.irs.gov/taxtopics/tc553

Americans with Disabilities Act (ADA)

https://www.ada.gov/

HIPAA

https://www.hhs.gov/hipaa/index.html

Small Businesses Affected by Border Closures

https://andersonadvisors.com/podcast/small-businesses-affected-by-border-closures/

Toby Mathis

http://tobymathis.com/about-toby-mathis/

Anderson Advisors

https://andersonadvisors.com/

Anderson Advisors Events

https://andersonadvisors.com/all-events/

Events@andersonadvisors.com

Anderson Advisors Tax and Asset Protection Workshop

https://andersonadvisors.com/asset-protection/

Anderson Advisors Tax-Wise Workshop

https://andersonadvisors.com/tax-wise-workshop-for-businesses-investors/

Anderson Advisors Infinity Investing Workshop

https://andersonadvisors.com/investing-workshop-passive-income-generating-machine/

Anderson Advisors on YouTube

https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ

Anderson Advisors on Facebook

https://www.facebook.com/AndersonBusinessAdvisors/

Anderson Advisors Podcast

https://andersonadvisors.com/podcast/

A lesson in what the super-rich know about minimizing taxes and maximizing income

A lesson in what the super-rich know about minimizing taxes and maximizing income

April 13, 2021

People don’t like to talk about taxes or being separated from their money, especially because of the country’s complex tax system. So, how do the rich get richer? Learn a lesson from the super-rich about minimizing taxes and maximizing income and infinity investing.

In this episode, Toby Mathis of Anderson Advisors talks to Mike Consol, Editor of Real Assets Adviser – one of seven titles published by Institutional Real Estate, Inc. (IREI).

Mike is responsible for the magazine’s editorial content and production and has been a professional journalist since 1983. He has spent his entire career working for business publications. Mike joined IREI in 2012 as editor of Institutional Real Estate Americas. Prior to IREI, he spent 17 years with American City Business Journals (ACBJ), the nation’s largest publisher of metropolitan business journals with 40 weekly newspapers.

Highlights/Topics:

  • How does the tax code system work in the United States where the rich get richer and the people of average means stay right where they are? There is a misunderstanding of what assets and liabilities are, and people end up buying more liabilities than assets.
  • Assets put money in your pockets. Every year, does it increase what’s in your bank account that you can buy groceries with, or does it take it away, like does it cost you money? If you use that analysis, you won’t be misled.
  • Tax Code Highlights: Incentivizes investing in specific types of assets and punishes you if all you have is ordinary income.
  • Social Security: Regressive taxes hurt the poor worse than they hurt the rich. The 15.3% tax is embedded in all earned income. Make other types of income that are not subject to that regressive tax. That’s your unearned, passive, and portfolio income.
  • Things written in the tax code are specific to an individual company or industry and given extremely gracious treatment. Sometimes, investments are not made based on fact and reason, but tax efficiency or tax break.
  • Cheat by Copying: What do rich people do? Diversification, which involves rents, royalties, dividends, interest, and short-term capital gains on sale of options.
  • Zero Corporate Tax: Don’t tax corporations but people. When the United States lowered its corporate tax, other countries followed. It created tremendous worldwide growth, but pushed wealth into the hands of very few people.
  • What is infinity investing? Changes the way you think of your net worth. How many days can you survive without working? Consider passive income sources so you never have to work again.

Resources:

Mike Consol

https://aba.link/mike

Institutional Real Estate, Inc. (IREI)

https://irei.com/

Real Assets Adviser

https://irei.com/real-assets-adviser/

A lesson in what the super-rich know about minimizing taxes and maximizing income

https://irei.com/video-and-podcast/lesson-super-rich-know-minimizing-taxes-maximizing-income/

Paycheck Protection Program (PPP)

https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program

U.S. Code: Title 26

https://www.law.cornell.edu/uscode/text/26

Charitable Organizations

https://www.irs.gov/charities-non-profits/charitable-organizations

Real Estate Investment Trust (REIT)

https://www.investopedia.com/terms/r/reit.asp

Self-Employment Tax

https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes

Tax Cuts and Jobs Act (TCJA)

https://www.irs.gov/tax-reform

David Cay Johnston (former New York Times tax reporter)

https://www.nytimes.com/by/david-cay-johnston

The Gospel of Wealth by Andrew Carnegie

https://www.carnegie.org/about/our-history/gospelofwealth/

CARES Act

https://home.treasury.gov/policy-issues/cares

Wills and Trusts

https://andersonadvisors.com/living_trusts/

Infinity Investing: How The Rich Get Richer And How You Can Do The Same

https://www.amazon.com/Infinity-Investing-Rich-Richer-Same/dp/1950863271

Toby Mathis

https://andersonadvisors.com/tobymathis-2/

Anderson Advisors

https://andersonadvisors.com/

Anderson Advisors Tax and Asset Protection Event

https://andersonadvisors.com/asset-protection/

Anderson Advisors on YouTube

https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ

 

 

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