Anderson Business Advisors Podcast

Tax Tuesdays with Toby Mathis 05-12-2020

May 19, 2020

Do you loathe the Internal Revenue Service (IRS) and Small Business Administration (SBA)? Why? Lately, both are doing everything possible to undo what Congress is doing to provide financial assistance and relief related to the coronavirus pandemic (COVID-19). Toby Mathis and Jeff Webb of Anderson Advisors answer your tax questions and clarify information about the CARES Act. Do you have a tax question? Submit it to taxtuesday@andersonadvisors.

Highlights/Topics: 

  • Updates on Tax Impact of CARES Act:
    • Paycheck Protection Program (PPP) 
    • Economic Injury Disaster Loan (EIDL)
    • Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act
  • My wife is 60. In 2019, she had $13,200 of Social Security income and $0 in income earned from work. Can she contribute to her health savings account (HSA) for 2019? High-deductible health plan is required to make contributions to HSA
  • What’s the best way to set up a real estate LLC, if you’re an investor that does both buy and hold, and fix and flips? Split them; put buy and holds into LLC or partnership, and fix and flips into S- or C-Corp
  • If I pull equity from a house, does the money need to go back into the house or can I use it on another property or for other things? You can use it for whatever you want, but deduct interest on Schedule A
  • Can we write off donations to our nonprofit, even though we still haven’t been approved for 501(c)(3) status? Yes, you have 27 months from the application date to get approval 
  • Is it too late to apply for a PPP loan for a contract worker? No, but apply ASAP
  • Will there be a penalty (forgiveness/tax) for paying an employee more than the average 2019 salary calculated (PPP) because of overtime or pension plan payments? There’s no penalty to help with forgiveness amount, but can’t pre-pay anything  

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Resources:

Infinity Investing Workshop 

CARES Act

HEROES Act

SECURE Act

Small Business Administration (SBA)

Internal Revenue Service (IRS)

U.S. Government Accountability Office (U.S. GAO)

Paycheck Protection Program (PPP)

Economic Injury Disaster Loan (EIDL)

Coronavirus Tax Relief

Individual Retirement Arrangements (IRAs) 

Traditional and Roth IRAs

IRS Payment Tool

Tax Cuts and Jobs Act (TCJA)

Self-Employment Tax

Unemployment Insurance

Non-Filers: Enter Payment Info Here

Real Estate Professional Requirements

501(c)(3)

Schedule A

Schedule E

457b

403b

Employer Identification Number (EIN)

Schedule K-1/Form 1065

Wills and Trusts

1031 Exchange

Cost Segregation

Section 1031

Section 1245

1244 Stock

Capital Gains Exclusion/Section 121

Form 1099

Form 1099-H

Depreciation Recapture

Bonus Depreciation

Franchise Tax Board

25 CFR 162.2

Lady Bird Deeds

Toby Mathis

Anderson Advisors

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