Tax Tuesday with Toby Mathis 07-28-2020

Are you smarter than your accountant, especially when they tell you there’s nothing they can do? Toby Mathis and Toni Covey of Anderson Advisors answer your tax questions to provide clarity and understanding. Do you have a tax question? Submit it to taxtuesday@andersonadvisors.

 

Highlights/Topics: 

• I have an empty plot of land. If I sell it and have a loss, am I able to write-off the loss on my taxes? If treated as a capital loss because it’s a capital asset, the loss is deductible against any other capital gains or up to $3,000 of ordinary income
• Can you set up a hedge fund or other entity where you can trade your stocks, so you’re not taxed as long as the proceeds stay in the fund you created until they are reinvested? Hedge funds are usually operating in an LLC taxed to a partnership or limited partnership, which flows through owner’s tax return 
• Are there any strategies to reduce paying taxes on benefit or pension income and Social Security benefits? Distributions from a retirement plan are taxable income most of the time; Social Security benefits may/may not be taxable, depending on other income
• What are the tax benefits of setting up a charity? Charity doesn’t pay any tax and you can give it assets
• Can I use my self-directed IRA as a hard money lender? Yes, but you’re personally responsible for excess liabilities with an IRA 
• I was a passive real estate investor and I have passive activity losses (PALs). Now, I’m a real estate professional. Can I use those PALs against my ordinary income, if I’m a real estate professional? No, they’re suspended until you substantially dispose all the activity
• I’ve noticed that taxes on new construction properties are generally lower for a year or two before increasing. Why? Property taxes are based on assessed value of the home
• What are the limits for bonus depreciation? There are none; you can create $1 million worth of loss and not pay tax for a long time
• Does getting a disaster loan and PPP affect taxes? No

 

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Resources:

 

New Opportunities in Real Estate Accounting with Aaron Adams

https://andersonadvisors.com/new-opportunities-real-estate-accounting

Tax-Wise Business Ownership by Toby Mathis

https://andersonadvisors.com/shop/

Infinity Investing Workshop

http://aba.link/iiw

1-day Online Tax-Wise Class

https://andersonadvisors.com/tax-wise-workshop/

Individual Retirement Arrangements (IRAs) 

https://www.irs.gov/retirement-plans/individual-retirement-arrangements-iras

Traditional and Roth IRAs

https://www.irs.gov/retirement-plans/traditional-and-roth-iras

1031 Exchange

https://www.irs.gov/businesses/small-businesses-self-employed/like-kind-exchanges-real-estate-tax-tips

CARES Act

https://home.treasury.gov/policy-issues/top-priorities/cares-act

Economic Injury Disaster Loan (EIDL)

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance

Paycheck Protection Program (PPP)

https://home.treasury.gov/system/files/136/PPP--Fact-Sheet.pdf

Paycheck Protection Program (PPP) Flexibility Act

https://www.investopedia.com/paycheck-protection-program-flexibility-act-of-2020-an-overview-4846944

Small Business Administration (SBA)

https://www.sba.gov/

457 Plan

https://www.investopedia.com/terms/1/457plan.asp

Cost Segregation

https://andersonadvisors.com/podcast/cost-segregation-with-brett-hansen-replay/

Real Estate Professional Requirements

https://www.irs.gov/pub/irs-utl/33-Real%20Estate%20Professionals.pdf

469(c)(7)

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

Self-Employment Tax

https://www.irs.gov/taxtopics/tc554

Form 1065: Schedule K-1

https://www.irs.gov/pub/irs-pdf/f1065sk1.pdf

Capital Gains Exclusion/Section 121

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

403(b) Plan

https://www.investopedia.com/terms/1/403bplan.asp

Charitable Organizations

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

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

Camp YouCan

https://www.midwestyoucan.org/camp-youcan

Internal Revenue Service (IRS)

https://www.irs.gov/

Schedule C

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

Schedule D

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

Schedule E

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

Form 3115

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

Statute 12B-4.014

https://www.flrules.org/gateway/RuleNo.asp?id=12B-4.014

UCC-1 Statement

https://www.investopedia.com/terms/u/ucc-1-statement.asp

Wills and Trusts

https://andersonadvisors.com/living_trusts/

Rollover as a Business Start-up (ROBS)

https://www.irs.gov/retirement-plans/rollovers-as-business-start-ups-compliance-project

Form 941

https://www.irs.gov/pub/irs-pdf/f941.pdf

Form 1040-EZ

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

Traders in Securities

https://www.irs.gov/taxtopics/tc429

Section 199A Deduction

https://www.irs.gov/newsroom/qualified-business-income-deduction

Toby Mathis

http://tobymathis.com/

Anderson Advisors

https://andersonadvisors.com/

Anderson Advisors Events

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

Events@andersonadvisors.com

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

Tax-Wise Workshop

https://andersonadvisors.com/tax-wise-workshop/

Anderson Advisors on YouTube

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

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https://andersonadvisors.com/podcast/