Anderson Business Advisors Podcast
Tax Tuesdays with Toby Mathis 09-03-2019

Tax Tuesdays with Toby Mathis 09-03-2019

September 10, 2019

Ready for another fun-filled episode where Toby Mathis and Jeff Webb of Anderson Advisors talk about tax code rules to maximize your savings and keep more of what you earn. Do you have a tax question? Submit it to taxtuesday@andersonadvisors.

Highlights/Topics: 

  • Can a married couple file a joint federal return, if we live in different states? Yes; federal government requires married couples to file jointly in some way
  • We are paying our son’s rent while he’s in dental school. Is there a deduction we can take for that expense? No, it’s considered a gift
  • Can an individual sole proprietor sponsor a 401(k) plan? Yes, but all their income is considered wages and other potentially negative factors need to be considered
  • I am a realtor sales associate. My company requires me to place my broker as additional insured. Can I Roth the portion on my premiums? Yes, as an additional insured
  • I purchased an investment property in another state and formed an LLC. Can the LLC reimburse me for flights, hotels, and meals incurred prior to formation? Costs incurred when establishing your business can be captured and amortized
  • Can a previously established LLC be reconfigured to be taxed as an S Corp? Yes, just follow same rules as making an S election
  • I have an Inc. How many LLCs can I have under it? There's no limitation
  • Do you give a 1099 to an individual who helped you find a deal for a referral fee? Give them a 1099, if it's more than $600
  • If you do a cost segregation, do you have to pay everything back, if you do a 1031 exchange in the future? No, you're just rolling forward the basis on your property right
  • I'm licensed with Primerica. Should I create an LLC for my business? It depends on how much you're making because you're personally responsible for any liabilities incurred
  • Can I submit mileage driven from my main work location to a branch office to my employer for reimbursement? Submitting it doesn't mean they're going to pay it
  • Can I form an LLC to purchase a vehicle, lease it to myself, and then use an accountable plan from my C Corp to reimburse lease payments? Don't do that.

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:

New Tax Laws That Give Real Estate Investors a Massive Deduction (free Webinar for Tax Tuesday listeners)

Franchise Tax Board of California v. Hyatt - SCOTUS

Real Estate Professional Requirements

529 Plan

Uniform Gifts to Minors Act (UGMA)

Section 7702

Roth IRAs

K-1

199A Deduction

Bonus Depreciation

MileIQ

Depreciation Recapture

Tax Cuts and Jobs Act (TCJA)

Section 179 Deduction

Who Pays if You’re in an Accident in a Company Car?

Schedule E

501(c)(3) Charities and Non-profit Organizations

Section 121

Form 1120

Form 1065

Form 1099

Form 3115

1031 Exchange

Types of Trusts

Opportunity Zones FAQ

Opportunity Zone Heat Map

280A Deductions

Toby Mathis

Anderson Advisors

Anderson Advisors Tax and Asset Protection Event

Tax-Wise Workshop

Tax-Wise 2019 3-in-1 Offer/2-for-Tuesday Bulletproof

Anderson Advisors on YouTube

Anderson Advisors on Facebook

Anderson Advisors Podcast

Financing Secrets For Successful Investors

Financing Secrets For Successful Investors

September 3, 2019

The exciting part of investing in real estate is finding a property and running the numbers. If you don't have financing ready to go, the property will probably be sold to someone else. How do you get financing for your rental properties? Today, Michael Bowman of Anderson Business Advisors and Bowman's Business Brief talks to Todd Bowman of AmeriFirst Financial about financing options. Todd is a mortgage broker, who handles mortgages for investors with rental properties.

Highlights/Topics: 

  • What’s needed to qualify for an investment property loan? Pre-approved financing, two years of tax returns, and paycheck stubs to verify income
  • What type of pre-approval? Full-underwrite approval, instead of credit approval based on your credit score
  • How much of a down payment is recommended or required by lenders? 20 percent for investment properties, but some require only 10 percent for hard money loans
  • What are down payment qualifications? Your money only; or money gifted to you needs to be in your bank account 60 days prior
  • Do seller concessions factor into loans? Reduces out-of-pocket and closing costs; AmeriFirst’s $1,450 processing and underwriting fee includes six months of taxes and hazard insurance
  • What if you don’t have enough for a down payment? Use cash reserves from 401(k), IRA, or stocks and bonds portfolio 
  • What if you buy a property already being leased out? Take 25 percent of rent based on market rolls for instant income stream
  • Is it a cash cow, mailbox money, or dog of a property? Numbers don't lie; make sure it's profitable 
  • What’s an acceptable credit score? It isn't one particular number, but more about your credit profile; better FICO scores mean cheaper rates and likelihood of approval
  • How can you improve your credit score? Revolve credit lines/cards, lower balances, and don’t randomly pay off loans/debts
  • What's debt-to-income (DTI)? Based on your total debt, including credit cards, student loans, and child/spousal support 
  • What should you look at or make sure of before making an offer on a property? Do your research by driving around the neighborhood and interviewing realtors 

Resources

Todd Bowman

Zillow

Trulia

FICO

Michael Bowman

Anderson Advisors

Anderson Advisors Tax and Asset Protection Event

Anderson Advisors on YouTube

Tax Tuesdays with Toby Mathis 08-20-2019

Tax Tuesdays with Toby Mathis 08-20-2019

August 27, 2019

Taxes are confusing and challenging for most people. By answering your tax questions, Toby Mathis and Jeff Webb of Anderson Advisors give and get what you deserve. Do you have a tax question? Submit it to taxtuesday@andersonadvisors.

Highlights/Topics: 

  • What are advantages/disadvantages to lease purchase of vehicle via C Corp? Depreciation and percentage of use restrictions; better option is to reimburse mileage 
  • What’s the best tax strategy for a vacation/short-term rental that I own and sometimes use? Can’t deduct certain expenses for personal use; only ⅔ of expenses/depreciation 
  • What’s the best state to form an LLC for charging order protection? Wyoming or Nevada
  • What are two types of liability for a business? Inside and outside
  • For tax purposes, should I pull all my 401k money at one time for real estate investing? Depends on several factors, including income and losses 
  • Can I put rental payments in my personal bank account, or in property’s LLC bank account? Run it through LLC; respect your LLCs for courts to do the same
  • Are charitable contributions deductible to a C Corp? Yes, but restricted to 10% of taxable net income; offer sponsorship to make it an expense, rather than a contribution 
  • I provide gas, food, and lodging to an unrelated person. Is any of that deductible on my personal return? No; it’s considered a gift, if $15,000 or less each year  

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:

1031 Exchange

Bonus Depreciation

MileIQ

Depreciation Recapture

Tax Cuts and Jobs Act (TCJA)

Cost Segregation (erik@costsegauthority.com)

Section 121

Using Cost Segregation in Residential Real Estate

Schedule C

Schedule E

Form 1099-A

Employer Identification Number (EIN)

Doing Business As (DBA)

2018 IRS Data Book

QuickBooks

CCH Axcess

Notary Fees

Airbnb

Types of Trusts

Unrelated Business Income Tax (UBIT)

Modified Accelerated Cost Recovery System (MACRS)

Toby Mathis

Anderson Advisors

Anderson Advisors Tax and Asset Protection Event

Tax-Wise Workshop

Tax-Wise 2019 3-in-1 Offer/2-for-Tuesday Bulletproof

Infinity Investing Workshop (use code: FREETAX)

Anderson Advisors on YouTube

Anderson Advisors on Facebook

Anderson Advisors Podcast

Hard Money Loans For Real Estate Investors

Hard Money Loans For Real Estate Investors

August 20, 2019

Why use your own money, when you can use someone else's to invest in real estate? Become an informed investor. Today, Clint Coons of Anderson Business Advisors talks about hard money loans (HMLs) with Albert Bui, mortgage planning specialist at Avenue One Capital. 

Highlights/Topics: 

  • Loan Types and Trends: Percentages and prices for conventional, portfolio, commercial, and hard money loans 
  • Hard Money Loan Issues: Shortage of contractors and property doesn’t sell quickly 
  • Tradesmen/Contractors turned Cons: Sell a bill of goods and require money upfront before rehabbing properties 
  • Project vs. Profit: Project must be completed before interest rate hikes and profit loss
  • Experience-based Product: How many exits out of hard money? 
  • Exit Options: Plan ahead by considering assets, income, and credit to decide whether to sell, refinance, rent, or lease
  • What’s the difference? Some say, ‘pre-approval’; Albert says, ‘purchasing power analysis’
  • Qualifying for Loans: How much income do you expect to make and from what sources?
  • Credit Card Debt: Everything you charge, changes debt into income
  • With/Without Tenants: Use portion of rent to offset mortgage; qualify with your income
  • Lender Qualifications: Level of service and time they’re willing to spend with you
  • Terminology and Questions: What type of investors do you work with? How many real estate investors have you worked with? Are you a real estate investor?
  • Three Legs of the Stool: Credit, income, and assets/cash 

Resources

Albert Bui at Avenue One Capital 

Albert Bui’s Phone: 949-514-5106 (California) or 425-951-5300 (Washington)

Albert Bui’s Email

Form W-2

Federal Insurance Contributions Act (FICA)

BiggerPockets

Fannie Mae

Freddie Mac

Federal Housing Administration (FHA)

FHA 203(k) Rehab Loans

U.S. Securities and Exchange Commission

InvestorIQ

Clint Coons

Anderson Advisors

Anderson Advisors Tax and Asset Protection Event

Anderson Advisors on YouTube

Tax Tuesdays with Toby Mathis 08-06-2019

Tax Tuesdays with Toby Mathis 08-06-2019

August 13, 2019

When you do things right, you don’t get sued, harassed, or audited. That’s why Toby Mathis and Jeff Webb of Anderson Advisors answer your tax questions. Do you have a tax question? Submit it to taxtuesday@andersonadvisors.

Highlights/Topics: 

  • I’m starting a real estate business. How should the LLC be taxed? LLCs choose how they are taxed
  • Is there an annual amount you have to pay contractors that require 1099 and W-9 forms? Minimum is $600
  • What is a quitclaim? Transfer of interest in county record of your interest
  • What is the simplest software or way to log vehicle mileage? MileIQ 
  • What is a qualified business income (QBI) deduction? Deduct up to 20% QBI, 20% qualified real estate investment trust (REIT) dividends, and qualified publicly traded partnership (PTP) income
  • Can you invest money earned through 501(c)(3) to invest in dividends and stocks? Yes
  • Can you explain the 100% depreciation changes in the new tax code? Bonus depreciation allows 100% deduction as expense of asset
  • Are you familiar with the Deferred Sales Trust concept? Yes, it works to sell a highly appreciated business under an installment note to spread out tax over a lifetime  

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:

Individual Retirement Account (IRA)

Form 5498

Form 709

501(c)(3) Charities and Non-profit Organizations

Form W-9

Form 1099

Form 1099-INT

TD Ameritrade

Fidelity Investments

Taxable Event

Quitclaim

MileIQ

Bill Gates

Tax Cuts and Jobs Act (TCJA)

Schedule E

QBI/Section 199A

Airbnb

1031 Exchange

Howard Hughes Medical Institute

Bonus Depreciation

Modified Accelerated Cost Recovery System (MACRS)

Section 1245 Property

Cost Segregation Audit Techniques

Section 183

Types of Trusts

Unrelated Business Income Tax (UBIT)

Section 121 

American Express

Toby Mathis

Anderson Advisors

Anderson Advisors Tax and Asset Protection Event

Tax-Wise Workshop

Tax-Wise 2019 3-in-1 Offer/2-for-Tuesday Bulletproof

Infinity Investing Workshop (use code: FREETAX)

Anderson Advisors on YouTube

Anderson Advisors on Facebook

Anderson Advisors Podcast

Cost Segregation with Brett Hansen [Replay]

Cost Segregation with Brett Hansen [Replay]

August 7, 2019

What possibilities are available when you own rental real estate? Different strategies are available to maximize tax benefits. For example, learn how to take advantage of a tax saving tool that saves you thousands of dollars each year. In this episode, Clint Coons is joined by Brett Hansen of Cost Segregation Authority to discuss such benefits associated with residential real estate investments. 

Highlights/Topics: 

  • When you buy property, you can depreciate it over time; Cost Segregation Authority accelerates depreciation to increase your expenses/lower your net taxable income
  • If you pay less tax to the IRS, save that money to increase your portfolio and invest in things that get a return; it’s not a deduction, but reduced amount of taxable income
  • Smart Tax Planning: Maximize depreciation deduction to reduce tax burden; re-classify assets of a property to identify components that can be depreciated faster
  • For assets that you didn’t capitalize on (up to 20 years), you can bring them forward into the next tax return via the Section 481(a) adjustment tax form 
  • CPA must understand value cost set to use cost segregation for residential property
  • Cost segregation studies meet IRS guidelines to protect clients from/during audits
  • Changes in Tax Laws: Bonus depreciation - no longer need to purchase new equipment and bonus percentage changed to 100%
  • Next Steps: To analyze your property, provide the total cost you paid for it, the year you purchased it, and the property’s address to get the projected benefit and associated cost 

Resources

Cost Segregation Authority

Brett Hansen’s Cell (801-884-8358)

Section 481(a)

Clint Coons

Anderson Advisors

Tax and Asset Protection Event

Insuring For Maximum Real Estate Investment Protection

Insuring For Maximum Real Estate Investment Protection

August 3, 2019

When getting insurance for your entity, make sure to pay the least amount for the most amount of coverage. Today, Clint Coons of Anderson Business Advisors talks to Drew Maconachy of Maconachy Stradley Insurance about insurance inspections.

Highlights/Topics: 

  • Appearance is Everything: Do you look like a mom-and-pop or professional real estate investor to your insurance carrier? 
  • Fake it, til You Make It: You’re smart, knowledgeable, and know what you’re doing - even if you don’t - when carriers inspect your properties
  • Matrix of coverage and cost determines which carrier is picked to insure your property
  • Inspection Required: Insurance carrier may require an inspection within 60 days and has the right to cancel coverage due to the results
  • Failed Inspection means: This isn’t a great operator, this isn’t a great building, or both
  • Failing an inspection is worse than losing your policy; finding coverage won’t be easy
  • Certificate of Insurance to Lender: If insurance company changes within annual term, notifying the lender is required
  • 3 ways to prepare for inspection: 
    • Professional housekeeping and maintenance: Clean, clear, and repair general areas
    • Management Summary Report: Aggregate maintenance and housekeeping records to show people are being held accountable for specific tasks
    • Know your building/property: All the nuts and bolts from foundation to roof; be able to answer questions before being asked 
  • Cost-benefit Analysis/ROI: Spend a little money now, to save a ton later

Resources

Maconachy Stradley Insurance

Drew Maconachy’s Email

Drew Maconachy’s Phone Number: 330-966-5170

Essential Elements of a Commercial Insurance Policy – Drew Maconachy

How to Win Insurance Inspection – Drew Maconachy

Insurance Planning For Multifamily & Commercial Real Estate

Clint Coons

Anderson Advisors

Anderson Advisors Tax and Asset Protection Event

Anderson Advisors on YouTube

Tax Tuesdays with Toby Mathis 07-23-2019

Tax Tuesdays with Toby Mathis 07-23-2019

July 31, 2019

As Americans, taxes are one of our biggest expenses; even more than housing, food, and clothing combined. Taxes are overpaid by about a billion dollars every year. Toby Mathis and Jeff Webb of Anderson Advisors save you money by answering your tax questions. Do you have a tax question? Submit it to taxtuesday@andersonadvisors.

Highlights/Topics: 

  • How many stock option trades must you make in a year to be considered a professional trader by the IRS? Activity has to be regular and frequent
  • Is TurboTax comparable to using a certified public accountant (CPA)? No, because tax-based computer systems don’t ask the right questions
  • How many rental properties should I own before creating a C Corp? It’s not about how many properties, but how much you’re making/earning
  • Can you have multiple 401(k) plans? Yes
  • Does a leasing real estate subsidiary pass-through have to pay self-employment tax? When renting real estate, nobody pays self-employment tax; it’s not earned income 
  • Can you explain the depreciation recapture for a property that was never depreciated? If you can deduct or depreciate, you must recapture (Publication 946)
  • What’s the rule for claiming meals and entertainment; is it still 50%? TCJA took away entertainment write-offs, but writing off meals can be 50-100%  

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:

Standard Deduction

Tax Benefits for Education: Information Center

Publication 15-B (2019), Employer's Tax Guide to Fringe Benefits

Trader Status

Schedule C

Schedule D

Schedule E

Tax Cutting Jobs Act (TCJA)

Tax Cuts and Jobs Act, Provision 11011 Section 199A - Qualified Business Income Deduction FAQs

Market-to-Market Election 

Qualcomm

TurboTax

Aggregation Election/199A

Cost Segregation

Publication 946

IRS Data Book 2018

The Ultimate Guide to Real Estate Taxes

Form 1098

Airbnb

1031 Exchange

Section 1250 Recapture
Form 4797

401(k) Contribution Limits

Self-employment Tax

Home Office Deduction

Veil Piercing

W-9

K-1

H&R Block

Types of Trusts and Wills

Toby Mathis

Anderson Advisors

Anderson Advisors Blueprint/Strategy Session 

Anderson Advisors Tax and Asset Protection Event

Tax-Wise Workshop

Tax-Wise 2019 3-in-1 Offer/2-for-Tuesday Bulletproof

Infinity Investing Workshop (use code: FREETAX)

Anderson Advisors on YouTube

Anderson Advisors on Facebook

Anderson Advisors Podcast

Residential Assisted Living with Michelle Pinkowski [Replay]

Residential Assisted Living with Michelle Pinkowski [Replay]

July 27, 2019

Have you considered investing in residential assisted living (RAL)? Do you see it as an opportunity to make money in the real estate space? Did you know that there’s several ways to make additional revenue in this area? Then, you’ll need an attorney who specializes in RAL because of associated liabilities. You could be sued several different ways because you’re taking care of other individuals. In this episode, Clint Coons of Anderson Business Advisors talks to Michelle Pinkowski, an attorney, about RAL. Michelle actually developed a system for finding the perfect location for an assisted living residence and strives to impress upon people the importance of asset protection. She’s a big proponent of having enough insurance to handle risks.

Highlights/Topics:

  • Unlike flipping and fixing single- and multi-family homes, real estate investors need to understand the underlying land use for RAL
  • Fair Housing Act: When looking for a location, identify if it’ll be assisted living for seniors, disabled adults, or recovering addicts; each group has protected disabled populations
  • State regulations govern limits on the care you can provide, but the state licensing agency doesn’t have the jurisdiction or power to make certain determinations
  • Besides licensing statutes, you need to understand zoning regulations that define how many people you can put in your RAL home
  • Each entity (HOA, county, city, etc.) has its own rules; don’t get discouraged/give up because one entity tells you that you can do something, but another says you can’t
  • Don’t find a house first; find the path of least resistance – the locale that will be the best place to start your search
  • Educate yourself and do research before calling a planning department – may or may not tell you the correct information; know what questions to ask to avoid getting bad advice
  • People open RAL homes because they want to help people and make a difference; they don’t want to be litigating cases in court or facing zoning enforcement actions
  • Utilize a professional who specializes in RAL to overcome obstacles and get your house open, up and running, and making some money off it

Resources

Michelle Pinkowski

Zoning Hacks to Get You Started FAST Course

Michelle Pinkowski’s Phone Number: 303-803-4309

Gene Guarino’s Residential Assisted Living Academy

Fair Housing Act

Clint Coons

Anderson Advisors

Tax and Asset Protection Event

Managing A Residential Assisted Living Business

Managing A Residential Assisted Living Business

July 24, 2019

As we get older, most of us know we’ll need help and have to give up some control when it’s time to be spoiled and waited on hand-and-foot. Today, Toby Mathis of Anderson Business Advisors talks to Rocky McKay of Peak Care Assisted Living Homes about available options.

Highlights/Topics: 

  • What is residential assisted living (RAL)? Remodeled homes in residential neighborhoods that fit the needs of geriatric residents 
  • Activities of Daily Living (ADLs): Basic physical and mental tasks, including bathing, brushing teeth, laundry, and cooking 
  • Typical Age Group for RAL: 85 to 90 years old
  • Why invest in RAL real estate? Need for good quality, high-end homes to provide great care; and strong margins rival any other real estate investment
  • Typical Monthly Fee: $4,000 to $7,500 private pay per month, per resident for 24/7 assistance/care
  • Three RAL Businesses: Real estate property/home, investor/money person, and operating actual business
  • Biggest RAL Pitfalls: Not understanding operations side and daily involvement required 

Resources

Peak Care Assisted Living Homes

Rocky McKay’s Email

Rocky McKay’s Phone: 1-800-906-1030 Ext. 101

Arizona Assisted Living Homes Association (AALHA)

Toby Mathis

Anderson Advisors

Anderson Advisors Tax and Asset Protection Event

Anderson Advisors on YouTube