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Real Estate Investors, Stock Traders, and Business Owners guide to preserve their wealth, protect their assets, and prosper in the future.
Episodes
Tuesday Sep 06, 2022
Tuesday Sep 06, 2022
If you are into Airbnb or VRBO, what are the top tax benefits and loopholes for short-term rentals? Toby Mathis and Jeff Webb of Anderson Advisors answer your tax questions. Submit your tax question to taxtuesday@andersonadvisors.
Highlights/Topics:
- We have to clean the short-term rental the first year to get the hours necessary for active/material participation. It is a 90-to-120 (minute or mile) drive one way. Since we will be working, can we stay in the unit that night without counting it as personal use? You can include the travel time. However, staying the night will not count toward working on it. It definitely counts as personal use.
- I have a beach house that I'm starting to rent out, so I got a DBA business name. I've been renovating and fixing it up to make it more attractive. I have a regular job and was told that if I made more than $150,000, I would not be able to write off my expenses and costs associated with my rental. Is this true? It depends on if it’s a rental or residential investment. Also, in some states and counties, the DBA is a fictitious name, and it offers no kind of protection or benefit at all.
- Can you explain the short-term rental tax benefit and how to get 100 hours of material participation? If short-term rentals are seven days or less, it's a business. Determine if it’s 1245 or 1250 property and passive or active/material participation income.
- I have a four-unit that I want to live in and rent out the other three units. What are all the tax deductions and write-offs I can use to zero out earnings? Bifurcate it into two properties. One unit would be your personal residence and the other 75% would be rental properties. Any expenses related to your rental unit would go against your real estate taxes and mortgage interest.
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:
Next Level Real Estate Asset Protection by Clint Coons
https://www.amazon.com/Next-Level-Estate-Asset-Protection/dp/1950863883
https://aba.link/CSA
Real Estate Professional Status
https://www.irs.gov/pub/irs-utl/33-Real%20Estate%20Professionals.pdf
Capital Gains, Losses, and Sale of Home
https://www.irs.gov/faqs/capital-gains-losses-and-sale-of-home
https://www.law.cornell.edu/uscode/text/26/121
https://www.irs.gov/forms-pubs/about-schedule-e-form-1040
https://andersonadvisors.com/
Anderson Business Advisors on YouTube
http://aba.link/YouTube
Anderson Business Advisors on Facebook
https://www.facebook.com/AndersonBusinessAdvisors/
Anderson Business Advisors Podcast
https://andersonadvisors.com/podcast/
Thursday Aug 25, 2022
Thursday Aug 25, 2022
Small multifamily real estate does exist. You don’t have to have hundreds of units, syndicate, bring in investors, and make it complicated. So, how do you get started investing in small multifamily real estate and produce cash flow?
Today, Clint Coons of Anderson Business Advisors talks to Jen and Stacy Conkey, Founders of Warriors of Wealth and the Remote Multifamily Investing Academy™. They are two experts who know how to get into smaller deals that generate massive cash flow.
Jen and Stacy Conkey have more than 20 years of experience as entrepreneurs and real estate investors. Through their diverse real estate experiences, Jen and Stacy know what it takes to identify deals and make offers on properties that build long-lasting wealth. Also, Jen and Stacy share their knowledge and experience by teaching people what it takes to succeed in multifamily real estate investing with actionable strategies that make cash flow real estate fun and easy.
Highlights/Topics:
- Multifamily Impediments: Too big, too expensive, too much inventory, too competitive
- Where did Jen and Stacy start finding smaller deals? Education and just doing it
- Multifamily: More than big apartment buildings—anything more than a single unit/home
- Multifamily Categories: Get a good deal, good cash flow to learn process, then build up
- Four Units & Under: Build relationships with realtors in local markets to find deals
- Path of Progress: As things build out, it drives the value of other homes via BRRRR
- BRRRR Strategy: Buy, renovate, rent, refinance value-add project and maximize capital
- Stabilized vs. Value-add Strategy: When evaluating quad, is it a good investment?
- Why Jen and Stacy never visit their properties, but do everything online/on the phone
- Where do Jen and Stacy find contractors? Get them to go to a locked property and bid
- How do they find a property manager? Google and then find and call all of them
Resources
https://www.warriorsofwealth.com/
Remote Multifamily Investing Academy
https://www.wowaua.com/home
Facebook Group: https://www.facebook.com/groups/PassiveIncomeRealEstateInvesting
https://www.thumbtack.com/
https://www.homeadvisor.com/
https://www.angi.com/
https://www.marcopolo.me/
https://andersonadvisors.com/clint-coons/
https://andersonadvisors.com/
https://www.youtube.com/channel/UCaL-wApuVYi2Va5dWzyTYVw
Tuesday Aug 23, 2022
Tuesday Aug 23, 2022
Are you a real estate professional? Then, how do you avoid an IRS audit? Toby Mathis and Jeff Webb of Anderson Advisors answer your tax questions. Submit your tax question to taxtuesday@andersonadvisors.
Highlights/Topics:
- Do you pay tax on discrimination judgment? If so, how much percentage? What qualifies as non-taxable income? Usually, pain and suffering is non-taxable and then compensatory judgments where they're paying you for lost wages is always taxable because your wages would have been taxable.
- Are solar credits available for the installation of solar panels and equipment on an RV or travel trailer? What if the RV or travel trailer is used to live in for a substantial part of the year? You can put solar panels on your main home and second home. Your RV could qualify to be your second home as long as it has a bathroom, kitchen, and sleeping area.
- We plan to claim qualified real estate professional status for my unemployed wife this year. We have been maintaining records, and she has been using a separate phone and email to track all her real estate efforts. We live in New Jersey, and if we get audited for this, what will the IRS likely ask for and how many years back? Forget about the phone and its deductibility and the email. Instead, keep good logs of her time spent to meet the various tests for real estate professional status. You may be asked about any contemporaneous records and numbers. If you are a real estate professional and you're accelerating depreciation, you'll need your cost seg report and records of your purchase and improvements. It is unlikely that you will be audited.
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:
Homeowner’s Guide to the Federal Tax Credit for Solar
https://www.energy.gov/eere/solar/homeowners-guide-federal-tax-credit-solar-photovoltaics
26 U.S. Code § 45L - New energy efficient home credit
https://www.law.cornell.edu/uscode/text/26/45L
Inflation Reduction Act of 2022
https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/15/by-the-numbers-the-inflation-reduction-act/
Real Estate Professional Status
https://www.aicpa.org/resources/article/tax-rules-for-real-estate-professionals
https://www.irs.gov/taxtopics/tc701
https://www.irs.gov/credits-deductions/opportunity-zones-frequently-asked-questions
https://andersonadvisors.com/
Anderson Business Advisors on YouTube
http://aba.link/YouTube
Anderson Business Advisors on Facebook
https://www.facebook.com/AndersonBusinessAdvisors/
Anderson Business Advisors Podcast
https://andersonadvisors.com/podcast/
Thursday Aug 18, 2022
Thursday Aug 18, 2022
What is the single-most effective way to affect your adjusted gross income (AGI) in the conservation easement realm? Preserve land while deducting taxes. There are people who are doing really good things with conservation easements. Is Donald Trump one of them?
In this episode, Toby Mathis of Anderson Advisors talks to Tyler Surat about tax incentives for conservation easements.
Tyler works in the renewable energy industry. His work involves solar involvement, solar installation, and solar sales in southern Colorado. Tyler talks to clients about renewable energy—the benefits and tax savings.
Highlights/Topics:
- Why might people put solar on a property they own or even investment properties? Aside from the benefits of being green, contributing back to the grid, and knowing that a perpetual power bill can become cost controlled by your solar investment, there are financial reasons.
- Explain the economics of it. Do most people finance solar systems? On a residential level, most people finance solar systems because most don’t have $35,000 available. Ultimately, a finance payment is in exchange for a power bill.
- Why did the U.S. government create a program for conservation easements? As a way to incentivize a private conservation effort because it cannot single-handedly serve every piece of land that should be conserved.
- What is a conservation easement? When you place boundaries on a property to where development cannot happen.
- Why would you partner in a deal to buy land that will be devalued considerably? Your investment is essentially the developed cost and the government is giving the marketable developed value as a deduction. You get 25% of your money back that you invested as income. Now, your investment turns into a deduction of your AGI.
Resources:
https://www.linkedin.com/in/tyler-surat-1a17881b%20Steel%20City%20Solar%20https:/steelcitysolar.us/
tsurat@onetreeadvisors.com
Tyler Surat’s Phone Number: 719-580-3051
https://steelcitysolar.us/
Conservation Easements Benefits for Investors
https://andersonadvisors.com/podcast/conservation-easements-benefits-for-investors/
Internal Revenue Service (IRS) – Dirty Dozen List
https://www.irs.gov/newsroom/dirty-dozen
https://www.blm.gov/
http://tobymathis.com/
https://www.youtube.com/channel/UCaL-wApuVYi2Va5dWzyTYVw
https://andersonadvisors.com/
Tuesday Aug 09, 2022
Tuesday Aug 09, 2022
Answers to tax questions are never quite as straightforward as you want. Toby Mathis and Jeff Webb of Anderson Advisors talk about how dividends are taxed (how to reduce your tax bill) and answer additional tax-related questions. Submit your tax question to taxtuesday@andersonadvisors.
Highlights/Topics:
- What are the tax implications of selling stock and using the proceeds to invest in real estate? It depends. If you sell some stock and then go out and buy some real estate, one actually has nothing to do with the other, except in one circumstance - if you buy real estate in a qualified opportunity zone.
- What's the best way to avoid taxes when getting income from forex trading? The IRS is actually very hard on forex traders. There's one tool called, the 988 election. When you do forex trading, it's subject to the 1256 rules. No matter when you bought and sold it, 60% gets treated as long-term, 40% as short-term.
- Can I get a hard money loan with no collateral? Maybe, but it depends solely upon the lender. A hard money loan is money from a private lender, not from a bank.
- I bought a real estate course in April 2022 and then started my LLC in May 2022. Can I write-off the cost of the course as a business expense on my taxes? It depends primarily on how your LLC is being taxed. If it's being taxed as a corporation, a C Corp, you can use those costs and the C Corp should reimburse you.
- I have a nonprofit mentoring business that I often fund with my personal finances. Is there any way that I can write this money off on my taxes? Instead, let the nonprofit pay its own expenses. Every time you give them cash, they should give you a receipt. Anytime you fund a nonprofit, it's going to be a charitable donation. As long as you document it, then the organization is paying that expense.
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:
https://andersonadvisors.com/living-trusts/
https://www.irs.gov/credits-deductions/businesses/opportunity-zones
https://www.investopedia.com/financial-edge/0110/10-things-to-know-about-1031-exchanges.aspx
https://www.investopedia.com/terms/w/washsalerule.asp
Capital Gains and Losses (Schedule D)
https://www.irs.gov/forms-pubs/about-schedule-d-form-1040
https://andersonadvisors.com/entity-formation/
https://andersonadvisors.com/
https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ
https://www.facebook.com/AndersonBusinessAdvisors/
https://andersonadvisors.com/podcast/
Tuesday Aug 02, 2022
Tuesday Aug 02, 2022
There is no greater path to wealth for you and your future generations than through real estate, but the biggest challenge is getting started on that journey.
Today, Clint Coons of Anderson Business Advisors talks to Brett Hadley about how to get started in real estate investing and the need to network to find deals.
Brett started at ground level with nothing and built up his investing into multifamily and syndications. He explains what that journey was like for him, how the market looks right now, and what he did. Brett offers insight on what you should focus on, putting teams together, and how to approach real estate investing.
Highlights/Topics:
- Brett’s Backstory: Where he came from and what it took to buy his first house
- Biggest Mistake: Getting in the game before getting educated first and foremost
- Lesson Learned: Value of investing in yourself via education is extremely important
- Anderson Advisory Group: Guides, leads, and establishes asset protection to grow
- Accelerators and Masterminds: Network enables ability to execute vast amounts of deals
- Start Small: You can have capital to execute a deal and go in and do what you promised
- Real estate is real estate—understand the basics and the foundations to build a house
- Changing Minds: Show people results from hard work, dedication, and ability to execute
- Like-minded People: Portfolio grows faster with those who know more than you that help
- Yin and Yang: Partnership is a marriage; be careful who you partner with and can trust
- Team Effort: Get experienced people who have done it, been there, and closed deals
- Preferential Treatment? Build relationships to benefit from network and close deals
- Finish Line: Find a great deal, know it's going to cost you, and be able to execute/close
- Current Market: Find area with tailwinds—it's going to be a competitive environment
Resources
http://www.babinvestment.org/
https://military-millionaire-academy.teachable.com/p/the-war-room
Service Academy Business Mastermind (SABM)
https://sabmgroup.com/
https://sabmgroup.com/realestate
Personal Mentoring: The Apartment King - Brad Sumrok
https://bradsumrok.com/personal-mentoring
The Secrets of Successful Syndication Seminar - Radio Real Estate Guys
https://realestateguysradio.com/events/how-to-raise-money-for-real-estate-investing
https://andersonadvisors.com/clint-coons/
https://www.youtube.com/c/RealEstateAssetProtection
https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ
Thursday Jul 28, 2022
Thursday Jul 28, 2022
A lot of people make a lot of money by investing in self storage. How do you get started in it and collect mailbox money to put yourself into a different asset class and create retirement plans or a financial future that you’ve always wanted?
Today, Clint Coons of Anderson Business Advisors talks to Ryan Gibson, CIO of Spartan Investment Group, which has a half-billion under management and more than 300 million square feet of self storage.
Highlights/Topics:
- What attracted Ryan to self storage? 3 Es: Easy to own, easy to evict, easy to maintain
- Why did Ryan start Spartan? Less involvement and fewer restrictions from government
- Is self storage insulated from the economy? Self storage tends to be recession resistant
- How did Ryan find and acquire his first deal? Off-market by sending letters to owners
- What due diligence did Ryan do? Learn about the industry from top operators
- Why did Ryan go the syndication route? To bring the opportunity to his investors
- What are the demographics for opportunities? Check demand, occupancy, underwriting
- Are there operators that handle the management of units? Yes, small and regional ones
- Is there a minimum size for evaluating units? Depends on price thresholds, expectations
- What should investors avoid? Flood zones, smaller properties, and overpriced facilities
- Is it worth it to build from the ground up? Yes, but the stakes are much higher
- What are the rents for self-storage units? $15 a square foot or higher per year
Resources
https://spartan-investors.com/
https://selfstorage101.com/
Jay Graham - Self Storage Advisor
https://www.storageadvisors.com/brokerage
https://www.insideselfstorage.com/
https://shop.insideselfstorage.com/
https://andersonadvisors.com/clint-coons/
https://www.youtube.com/c/RealEstateAssetProtection
https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ
Tuesday Jul 26, 2022
Tuesday Jul 26, 2022
Toby Mathis and Jeff Webb of Anderson Advisors talk about how to avoid taxes from borrowed money and other tax-related questions. Submit your tax question to taxtuesday@andersonadvisors.
Highlights/Topics:
- Is the money I get from a line of credit or loan taxable? No, proceeds from or payments back on a loan are never taxable. What's the best way to avoid taxes on money borrowed toward investment? Utilize interest and repay your loan to avoid taxes.
- I am a co-owner of a property. I don't get proceeds from rent but want to invest in the renovations. Are there any tax advantages for me? You can get tax advantages/deductions for repairs, but renovations may depend on your income, operating agreement, and other factors.
- If I move my paid-off condo to a trust, will the trust pay taxes on it? Don’t put your condo into an irrevocable trust. If it's a living trust or land trust, neither are considered disregarded entities nor pay taxes. If I sell it one year after owning it then put it in trust before I sell it? Also, it is not recommended to change a title shortly before selling it.
- Should I put my college kid on my payroll for $24-to-30,000 a year rather than just pay their rent out of my pocket? Makes perfect sense to do this, but your child actually has to be doing something for your business that is worth $24-to-30,000 a 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:
https://www.irs.gov/pub/irs-news/fs-08-18.pdf
https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes
https://www.irs.gov/forms-pubs/about-schedule-e-form-1040
https://www.section179.org/
https://www.irs.gov/taxtopics/tc701
Small Business Administration (SBA)
https://www.sba.gov/
https://andersonadvisors.com/
https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ
https://www.facebook.com/AndersonBusinessAdvisors/
https://andersonadvisors.com/podcast/
Tuesday Jul 12, 2022
Tuesday Jul 12, 2022
How do you write off your vehicle exclusively for your business? Toby Mathis and Jeff Webb of Anderson Advisors answer your tax questions. Submit your tax question to taxtuesday@andersonadvisors.
Highlights/Topics:
- I have an LLC but I want to know if I need one for each of my properties that are short-term rentals (STRs)? You don't need one for every short-term rental. If you can do that, it's a great idea to have one for every rental, but you don't have to.
- Can you write off a new truck purchase for use exclusively for my business? It depends on the size and type of truck. If it qualifies as equipment, you can write off 100% of it. Don't put your car in your business because you have to use it more than 50% or there's adverse tax consequences. If your company owns your truck and you start using it personally, it's a taxable event to you.
- I operate my business out of my home and want to rent the home to my entity so I can write off the mortgage rental expense as a business expense and use a primary residence loan to purchase a new home. Can I achieve this by writing a lease to my business? Never rent to your corporation or rent your house out to a business. Instead, have the business reimburse you.
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:
1202 - Qualified Small Business Stock
https://www.taftlaw.com/news-events/law-bulletins/the-abcs-of-i-r-c-section-1202-qualified-small-business-stock
https://www.irs.gov/businesses/cost-segregation-audit-techniques-guide-chapter-1-introduction
https://www.irs.gov/forms-pubs/about-schedule-c-form-1040
https://www.irs.gov/newsroom/irs-issues-guidance-on-section-179-expenses-and-section-168g-depreciation-under-tax-cuts-and-jobs-act
https://www.law.cornell.edu/uscode/text/26/469
Infinity Investing: How The Rich Get Richer And How You Can Do The Same by Toby
https://www.amazon.com/Infinity-Investing-Rich-Richer-Same/dp/1950863271
https://andersonadvisors.com/
https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ
https://www.facebook.com/AndersonBusinessAdvisors/
https://andersonadvisors.com/podcast/
Tuesday Jun 28, 2022
Tuesday Jun 28, 2022
Eliot Thomas and Jeff Webb of Anderson Advisors talk about how to maximize tax deductions for your home office and answer more of your tax questions. Submit your tax question to taxtuesday@andersonadvisors.
Highlights/Topics:
- I have an S corporation. Can I institute a health reimbursement account (HRA) plan? Yes, you can have an HRA and an S Corp. The problem is that you cannot benefit 5% shareholders. An HRA can only be for the employees of the company.
- Can a real estate professional status be claimed year to year with yearly gaps on any years that you may not qualify? Yes, this is an annual test. So, you must re-attain real estate professional status every year or possibly experience passive losses.
- If I personally fund my small business, can I deduct all the monies I put into the business from my business taxes? It depends on the type of business and how it is structured. Basically, you are contributing money to your business. So, even if it's a pass through, if it's a corporation, it's not a deduction, but an investment.
- What expenses can/must be kept/recorded in order to get tax reductions or deductions for a home office? All of them, including your utilities, water, trash removal, HOA fees, gas/electric power, property taxes, cleaning expenses, and mortgage interest. Keep any records around those items. Also, calculate for the depreciation to that area.
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:
https://www.irs.gov/pub/irs-news/fs-08-18.pdf
26 US Code Section 721 Exchange
https://www.law.cornell.edu/uscode/text/26/721
https://www.eisneramper.com/irc-section-199a-aggregation-election-0919/
https://www.law.cornell.edu/uscode/text/26/1244
https://www.investopedia.com/terms/w/washsalerule.asp
https://turo.com/
https://andersonadvisors.com/
https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ
https://www.facebook.com/AndersonBusinessAdvisors/
https://andersonadvisors.com/podcast/