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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 Jun 14, 2022
Tuesday Jun 14, 2022
Should you create a new LLC for your vacation rental? Eliot Thomas and Jeff Webb of Anderson Advisors answer your tax questions. Submit your tax question to taxtuesday@andersonadvisors.
Highlights/Topics:
- I rent my personal residence and my home office is my primary place of business for my S Corp. Am I a good candidate to take advantage of Section 280A deduction or does that fact pattern disqualify me? No, you're not disqualified. Keep the areas separate and you are a good candidate to take advantage of 280A and still have the administrative office reimbursement.
- Is it possible to minimize taxes by selling the C Corp, which holds property via a 1031 exchange and then form an LLC to buy the replacement property? Generally, no. If you're going to have appreciable real estate, a rental, you can't do 1031 on flipping property. It's considered inventory.
- I just bought a lake cabin in Wisconsin where we will be renting it out as VRBO as much as possible, but also using it for some personal use for our family. Will I need to create a new LLC to hold the cabin in and how much of it can I write off given we're unsure about how much it will be rented out, especially the first year? If your personal use exceeds 14 days or 10% of the rental time, it is considered your vacation property and you can’t take losses beyond your income.
- Is there any limit on how long a person should keep tax records? It depends. Most people recommend three to seven years, unless you know you did something wrong. You’ll want to keep all tax records to convince and defend yourself against the IRS.
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/entity-formation/
https://andersonadvisors.com/section-280a-deduction-explained/
https://www.irs.gov/pub/irs-news/fs-08-18.pdf
Qualified Business Income (QBI) Deduction (199A)
https://www.irs.gov/newsroom/qualified-business-income-deduction
https://www.irs.gov/newsroom/tax-cuts-and-jobs-act-a-comparison-for-businesses
https://www.irs.gov/forms-pubs/about-schedule-k-1-form-1065
https://andersonadvisors.com/
https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ
https://www.facebook.com/AndersonBusinessAdvisors/
https://andersonadvisors.com/podcast/
Tuesday Jun 07, 2022
Tuesday Jun 07, 2022
How do you become a real estate millionaire without using your own credit or money? Learn to implement and use various real estate investing strategies to grow your own portfolio.
Today, Clint Coons of Anderson Business Advisors talks to Daniel Kwak about reaching 87 doors in a year and becoming a real estate millionaire by the time he turned 24 years old.
Over the past 7+ years, Daniel and his brother, Sam, have built successful real estate investment companies, educational courses, coaching programs, and software to help emerging real estate professionals grow their own real estate investing businesses. The Kwak Brothers are on a mission to help as many families as possible achieve financial peace of mind.
Highlights/Topics:
- Daniel’s Dream: To constantly learn, experiment, expand, and grow
- Why Daniel got into real estate: Of top 1%, 76% earned money via real estate investing
- Daniel’s Problem: He had no money, no credit, and minus $187.65 in his bank account
- Four Currencies Concept: Time, money, knowledge, and relationships
- Daniel’s Philosophy: Never look for properties but for people to solve their problems
- Daniel’s BOLD Strategy: Build trust with older landlords/property managers to find deals
- Seller Financing Benefits: Tax advantages, make money as bank, and passive income
- Build a business by using FORCE:
- Find the property
- Owner-finance it
- Raise the capital
- Cashflow it
- Expand your empire
- Rent Bubble: Increasing rent has priced out tenants from entering housing market
Resources
daniel@thekwakbrothers.com
https://thekwakbrothers.com/
The Kwak Brothers’ YouTube Channel
https://www.youtube.com/c/TheKwakBrothers/featured
https://www.propstream.com/
https://andersonadvisors.com/clint-coons/
https://www.youtube.com/c/RealEstateAssetProtection
https://andersonadvisors.com/
Anderson Advisors Tax and Asset Protection Event
https://andersonadvisors.com/asset-protection/
https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ
Tuesday May 31, 2022
Tuesday May 31, 2022
What are the pros and cons of a C Corp and S Corp versus an LLC? calculate, calculate, calculate because it's possible to pay dividends out that are not going to be taxable to you.
Toby Mathis and Jeff Webb of Anderson Advisors answer your tax questions. Submit your tax question to taxtuesday@andersonadvisors.
Highlights/Topics:
- Do corporations get taxed double? What are the pros and cons of a C Corp, S corp, and an LLC? Double taxation means the C Corp's getting taxed on its income. When it pays out dividends, the shareholders are getting taxed on those dividends. Also, LLC is not a tax designation. An S Corp is similar to a partnership. It has stricter rules about who can be shareholders of your S Corp and it passes through its income expenses down to the shareholders. A C Corp is its own entity/being.
- I own a childcare center that is set up as a corporation and taxed as an S Corp. It has a line of credit of $150,000. I'm a new real estate investor and would like to know if I can lend those funds to myself to purchase a house to buy, repair, rent, refinance, repeat (Brrr) or fix and flip? Yes, you could do that, but make sure there are promissory notes between the S corporation and borrower. However, you do have to repay that money to the S Corporation. Document it, and then honor the document.
- I just received a notice from the IRS asking me to pay taxes on the money withdrawn from my retirement under the CARES Act in 2020. I thought I had three years to pay back the money withdrawn in 2020, which means I still have 2022 to pay back the money that was withdrawn. How do I proceed? You have until 2022 to repay this distribution. However, the IRS technically wants you to pay back taxes on a third of that distribution 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:
https://andersonadvisors.com/entity-formation/
Coronavirus Aid, Relief, and Economic Security (CARES) Act
https://www.irs.gov/newsroom/coronavirus-related-relief-for-retirement-plans-and-iras-questions-and-answers
199A (Qualified Business Income Deduction)
https://www.irs.gov/newsroom/qualified-business-income-deduction
https://andersonadvisors.com/section-280a-deduction-explained/
https://www.irs.gov/forms-pubs/about-form-1099-r
https://tobymathis.com/
https://andersonadvisors.com/
https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ
https://www.facebook.com/AndersonBusinessAdvisors/
https://andersonadvisors.com/podcast/
Wednesday May 25, 2022
Wednesday May 25, 2022
What are things that you absolutely want to make sure to avoid like the plague when it comes to estate planning? Absolutely avoid doing nothing. You should have a plan in place.
Today, Toby Mathis of Anderson Business Advisors talks about major mistakes to avoid and choices to make when estate planning and ensuring your legacy. The most important thing is to have the opportunity to put things in place and affect lives for decades, if not centuries, after you're gone.
Highlights/Topics:
- Mistake #1: Doing nothing.
- Mistake #2: Thinking that you're going to live forever.
- Three Choices: Do a simple will, living trust, or go through the probate process.
- Mistake #3: Documenting things, but not actually updating them..
- Mistake #4: Focusing only on your own mortality, not everything else you have to offer.
Resources:
https://tobymathis.com/
https://andersonadvisors.com/
https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ
https://www.facebook.com/AndersonBusinessAdvisors/
https://andersonadvisors.com/podcast/
Tuesday May 17, 2022
Tuesday May 17, 2022
How do you calculate taxes for flipping houses? Toby Mathis and Jeff Webb of Anderson Advisors answer your tax questions. Submit your tax question to taxtuesday@andersonadvisors.
Highlights/Topics:
- Is there depreciation recapture on a business vehicle when it is sold or no longer used for the business? Depreciation recapture works differently for personal/tangible property than for real estate. So, anything that's not real estate and intangible, such as a car.
- Inherited IRAs: Are distributions taxed no matter what or can you shelter them with cost seg and depreciation from short-term rentals? Can you shelter with long-term rentals? It doesn't matter if the IRA is inherited, the distributions are taxable because you could have cost segs or short-term rentals from somewhere else that are offsetting that income. IRAs, unless it's a Roth IRA, are always going to generate taxable income.
- I am a physician in a single-specialty practice under an LLP. I have set up my personal PLLC in the state. Do I need to set up payroll and give myself a W-2? It depends. Most states require that you're an S-corp. You are going to have to take a reasonable salary that is about a third of all the net profit.
- We made $200,000 on our first flip, we closed in April 2022. How much should we put aside for IRS taxes? Would you happen to know how much we should put aside for state taxes as well? if you were set up as a business before you made the $200,000, then you just made the 200,000 and that's it. Pay the tax.
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://turo.com/
https://andersonadvisors.com/retirement-plan/
Unrelated Business Income Tax (UBIT)
https://www.irs.gov/charities-non-profits/unrelated-business-income-tax
https://www.irs.gov/forms-pubs/about-form-1065
https://tobymathis.com/
https://andersonadvisors.com/
https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ
https://www.facebook.com/AndersonBusinessAdvisors/
https://andersonadvisors.com/podcast/
Tuesday May 10, 2022
Tuesday May 10, 2022
How do you get started in real estate? What is that process? What can you do to scale and grow your own portfolio or take it to the next level? Do you already have a few single-family properties, but want to get involved in multifamily investing?
Today, Clint Coons of Anderson Business Advisors talks to Abel Pacheco, President and Principal of 5 Talents Capital, who loves investing in and owning multifamily properties in Texas.
Abel is a real estate entrepreneur with a proven track record of repositioning properties and delivering quality renovated housing products to market and consistent returns to investment partners. He has experience in acquiring distressed properties, handling renovations, raising private capital, and managing single and multifamily investment properties.
Highlights/Topics:
- 5 Talents Capital: Abel buys apartment buildings and allows people that don’t have much time available to invest in commercial multifamily real estate via syndications.
- Cash Flow Positive: Don't overlook the amount of time that you have available for side hustles and to make more money.
- Education and Knowledge: Learn about wholesaling, seller financing, hard money loans, and finding motivated sellers for free from conferences, YouTube, and Google.
- Knowledge: After educating yourself on different ways to invest, it takes mental and tactical shifting to find properties.
- Networking: Unlock your mindset. You don't have to do everything yourself. You don't have to know everything. You just have to partner with people that are experts.
- Create Luck: It's where planning meets opportunity. Then, when that opportunity is there and you plan for it, you better be ready to take action and be willing to move forward.
- In multifamily, net worth equates to the size of the loan amount, equity enough to buy the deal, general partners need their own money for a deal.You have to have experience.
- Where to Find Deals: Off- and on-market. In commercial real estate, almost all the deals actually trade through brokers.
Resources:
https://www.linkedin.com/in/abelpacheco/
https://www.facebook.com/bullpacheco/
https://www.instagram.com/abeljpacheco/?hl=en
http://www.5talents.capital/
https://podcasts.apple.com/us/podcast/5-talents-podcast-passive-investing-cashflow-wealth/id1531901889
https://www.meetup.com/
Rich Dad, Poor Dad by Robert Kiyosaki
https://www.amazon.com/Rich-Dad-Poor-Teach-Middle/dp/1543626610
The ABCs of Real Estate Investing
https://www.amazon.com/ABCs-Real-Estate-Investing-Investors/dp/1937832031
https://andersonadvisors.com/clint-coons/
https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ
Thursday May 05, 2022
Thursday May 05, 2022
Many people talk about flipping and buying properties, but a niche area of real estate investing that most people are unaware of is called note buying.
Today, Clint Coons of Anderson Business Advisors talks to Bill Mencarow of Paper Source Online. The Paper Source, Inc., was founded in 1987 by Bill and his wife and business partner, Alison.
Bill and Alison have been note investors since the 1980s. Also, he is the editor and she is the publisher of The Paper Source Journal and they co-host the radio talk show, First Couple of Texas Radio.
Would you like to learn more about note investing and network with other note investors? Attend The Paper Source Note Convention on May 12-14, 2022. Register for the live event and use the discount code, NOTES2022, with your affiliate link for $50 off through May 1. Toby Mathis of Anderson Advisors will be speaking at this event.
Highlights/Topics:
- What is a real estate note? A promise to pay—mortgage secured by real estate.
- What’s your role if you own a real estate note? You’re the banker, not the landlord.
- Why not be a landlord? You have to deal with tenants, toilets, and termites.
- What are the reasons to buy/own real estate notes? Cash flow, higher yields, lower risk.
- How the process of buying notes work? Sell note for lump sum to investor at a discount.
- What are the different types of notes? First, second, or third position against note.
- How do you know what you are buying? Perform due diligence—paper, property, payer.
- How do you verify payments, borrower’s credit, and value of note to know what to offer?
- What do you need to get started buying notes? Cash investment or broker note.
- How to find real estate notes? Network to establish context with people with notes.
Resources
The Paper Source Facebook Group
Tuesday May 03, 2022
Tuesday May 03, 2022
Is income from your rental properties active or passive? What is the best way to report your income and expenses for rentals? How long do you have before having to pay taxes on the sale of your property rental? Toby Mathis and Jeff Webb of Anderson Advisors answer your tax questions about income from rental properties. Submit your tax question to taxtuesday@andersonadvisors.
Highlights/Topics:
- Is retirement income considered passive or active income? If it is a passive income, then can passive real estate depreciation be used against retirement income? Retirement income is not passive, active, earned, or portfolio income. It's ordinary income. Retirement income is not going to offset your passive losses, but it can cause social security to become taxable.
- I've been told that filing Schedule E for rental properties, which I've been doing for the past several years, is not a good way to report your income and expenses for rentals. I want to file 1065, but I don't have a partner and don't intend to get one. I don't think Form 1120 or 1120S is a good way to file either. What do you recommend for next year? Stay away from corporations because of liability and other issues with appreciated property. If you take an appreciated asset out of a corporation, it's a taxable event.
- I closed on a co-owned rental property in April 2021. I did not have an LLC with my co-owner, and we are still in the process of forming an LLC to protect the asset. Can we still take all the real estate deductions on our 2021 tax return, absent having an LLC in place last year? You don’t have to necessarily have a partnership agreement to form a partnership. Whether you had an LLC or not, you have effectively created a partnership, unless you've done this as tenants-in-common.
- I just sold my condo that I owned for three years. One year I lived in it and two years I rented it out. How long do I have before I have to pay taxes on my sale? Technically, your taxes are due as they're accrued. You might have some quarterly taxes on it and your actual tax bill is going to be April 15 of the following year. If you sell it in 2022, you have to pay the tax on April 15, 2023.
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/forms-pubs/about-schedule-e-form-1040
https://www.investopedia.com/financial-edge/0110/10-things-to-know-about-1031-exchanges.aspx
https://andersonadvisors.com/entity-formation/
https://www.irs.gov/forms-pubs/about-form-1065
National Alliance for Recovery Residences (NARR)
https://narronline.org/
https://tobymathis.com/
https://andersonadvisors.com/
https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ
https://www.facebook.com/AndersonBusinessAdvisors/
https://andersonadvisors.com/podcast/
Tuesday Apr 19, 2022
Tuesday Apr 19, 2022
How can reinvesting help you avoid capital gains taxes? Jeff Webb and Eliot Thomas of Anderson Advisors answer that question and others about capital gains. Submit your tax question to taxtuesday@andersonadvisors.
Highlights/Topics:
- Is it true that creating a revocable living trust will raise my capital gains taxes if I sell my primary residence vs. if I transfer the house into my name, I must live in it for two to five years to qualify for lower capital gains taxes? If you take advantage of Section 121,You have to live in it for two to five years no matter what. Putting it under the revocable living trust or in your own name, that can be done.
- I have sold a real estate transaction in 2022. Can I avoid capital gains taxes if I purchase another real estate transaction in 2022? It depends. If you have already sold it and received the proceeds from the sale, Section 1031 (like-kind exchange) is no longer available or possible.
- I am a retired person wanting to give a sum of money to my son. How can I advise him regarding deferring taxes on that inheritance money? You don't have to tell your son anything because he's not the one who has to pay taxes on it. The recipient doesn't have to pay tax. It's the grantor, donor, gift giver that may have to pay taxes on it.
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/taxtopics/tc409
https://andersonadvisors.com/entity-formation/
https://www.irs.gov/forms-pubs/about-schedule-c-form-1040
https://www.irs.gov/taxtopics/tc701
https://www.irs.gov/businesses/small-businesses-self-employed/like-kind-exchanges-real-estate-tax-tips
https://andersonadvisors.com/
https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ
https://www.facebook.com/AndersonBusinessAdvisors/
https://andersonadvisors.com/podcast/
Thursday Apr 07, 2022
Thursday Apr 07, 2022
If you haven’t watched “Triple Digit Flip” on A&E yet, you need to because it’s tough to find real deals. What do you need to look at when analyzing properties and going through the numbers?
Today, Clint Coons of Anderson Business Advisors talks to Pace Morby, who shares his real estate investing secrets for 2022. If you haven’t listened to Pace’s first episode, go to Creative Financing Strategies with Pace Morby.
Pace is on a mission to bring others value and snuff out the fluff in the industry. He is known as the go to "subto guy" bringing creative strategies to the mainstream real estate investment industry.
Pace and his partner have amassed more than $32 million in buy-and-hold properties while operating wholesale, fix-and-flip, and other symbiotic businesses.
Also, Pace’s high energy and no BS approach attracts loyal followers across social media. He is able to tell stories and crush it when closing sellers.
Highlights/Topics:
- Highest and Best Offer: How much are you willing to pay for a property?
- Wholesale vs. Cash: Seller is willing to work with cash or terms in competitive market
- Secure Creative Financing: Structure loan the right way to buy deals and not overpay
- Why? Sellers accept terms rather than cash because of tax liability and capital gains
- Morby Method: Use better negotiation tactics or find lender to get a non-recourse loan
- Cash Flow: Do you listen and follow Robert Kiyosaki or Dave Ramsey’s advice?
- Where to find off-market deals and comp listings? PropStream or BatchLeads
- Triple Digit Flip: How to get selected and start in real estate for free with Pace
Resources:
Pace Morby Mentorship: http://subto.com/
http://subto.com/
Pace Morby Ebook: Subto Seller Spells
https://go.subto.com/ebook-seller-spells
Pace Morby on Youtube: https://www.youtube.com/c/PaceMorby
https://www.youtube.com/c/PaceMorby
Pace Morby on Instagram: https://www.instagram.com/pacemorby/
https://www.instagram.com/pacemorby/
Facebook Group: Creative Financing with Pace Morby
https://www.facebook.com/groups/creativefinancewithpacemorby
https://www.aetv.com/shows/triple-digit-flip
https://www.myinvestorloan.com/
https://andersonadvisors.com/clint-coons/
https://andersonadvisors.com/
https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ