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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 Aug 24, 2021
Tuesday Aug 24, 2021
Toby Mathis and Jeff Webb of Anderson Advisors answer your tax questions related to retirement plans, partnerships, real estate, wills, and trusts. Submit your tax question to taxtuesday@andersonadvisors.
Highlights/Topics:
- Are there any restrictions on being a real estate professional (REP) during retirement? No, if you are retired, not working anywhere else, and spending a substantial amount of time working on rentals; depending on amount of losses, you may not have to be a REP
- Why would someone invest in a Publicly Traded Partnership (PTP)? How are they taxed? Is PTP a good option to invest in for diversity? Be careful, some PTPs are complex, but as far as traxation, there’s nothing special about PTPs - look at them from an investment, not a tax perspective
- I have converted my primary home to a short-term rental (STR) this year.If I complete 100+ hours of material participation and more than anyone else, can I deduct the losses from my W-2 wages (active income)? Yes, but if it’s rental income and you accelerate depreciation, you could lose your REP status
- I plan to donate my timeshare. Does that relieve me of my maintenance fee yearly? There are two types of timeshares - right to use and for deed; the nonprofit may use them personally, within the entity, or sell it to a third-party - know who is taking over the liability/responsibility of the asset
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:
Free Tax and Asset Protection Workshop - Aug. 28
https://aba.link/AP
Infinity Investing: How The Rich Get Richer And How You Can Do The Same by Toby Mathis
http://aba.link/infinitybook
https://andersonadvisors.com/living_trusts/
https://andersonadvisors.com/entity_formation/
https://andersonadvisors.com/retirement_plan/
Real Estate Professional Requirements
https://www.irs.gov/pub/irs-utl/33-Real Estate Professionals.pdf
https://www.airbnb.com/
https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act
https://www.investopedia.com/terms/d/depreciationrecapture.asp
https://www.irs.gov/newsroom/capital-gains-and-losses-10-helpful-facts-to-know-0
Section 121 - Capital Gains Exclusion
https://www.irs.gov/taxtopics/tc701
https://www.congress.gov/bill/116th-congress/house-bill/1994/text
https://www.irs.gov/tax-reform
https://www.irs.gov/charities-non-profits/charitable-organizations
Coronavirus Aid, Relief, and Economic Security (CARES) Act
https://www.congress.gov/116/bills/hr748/BILLS-116hr748enr.pdf
https://www.investopedia.com/terms/s/stepupinbasis.asp#:~:text=A%20step%2Dup%20in%20basis%20is%20the%20readjustment%20of%20the,for%20tax%20purposes%20upon%20inheritance.&text=The%20asset%20receives%20a%20step,of%20property%20transferred%20at%20death.
https://www.irs.gov/forms-pubs/about-schedule-k-1-form-1065
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
Old Age, Survivors, and Disability Insurance (OASDI)
https://www.ssa.gov/policy/docs/progdesc/sspus/oasdi.pdf
https://costsegauthority.com/
https://www.irs.gov/forms-pubs/about-form-3115
https://www.irs.gov/forms-pubs/about-form-8949
https://www.law.cornell.edu/uscode/text/26/469
https://www.irs.gov/forms-pubs/about-schedule-a-form-1040
https://www.irs.gov/forms-pubs/about-schedule-d-form-1040
http://tobymathis.com/about-toby-mathis/
https://andersonadvisors.com/
https://andersonadvisors.com/all-events/
Anderson Advisors Tax and Asset Protection Workshop
https://andersonadvisors.com/asset-protection/
Anderson Advisors Tax-Wise Workshop
https://andersonadvisors.com/tax-wise-workshop-for-businesses-investors/
Anderson Advisors Infinity Investing Workshop
https://andersonadvisors.com/investing-workshop-passive-income-generating-machine/
https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ
https://www.facebook.com/AndersonBusinessAdvisors/
https://andersonadvisors.com/podcast/
Tuesday Aug 17, 2021
Tuesday Aug 17, 2021
If you don't qualify for a home loan because you don’t make enough to pay the mortgage, there are ways to creatively do it. Creative landlording is essential to gain maximum personal satisfaction and financial profit.
Today, Clint Coons of Anderson Business Advisors talks to Danielle Villegas, an artist and landlord who shares some of her real estate investing strategies, including how she takes investments and maximizes their value.
Danielle spent years struggling as a film and theater artist. She set her sights on home ownership and managed to become a landlord. Over time, Danielle developed a unique housing model for an underserved growing population.
Highlights/Topics:
- First Home: Make sure it includes rental rooms to earn extra income
- House Hacking: Don’t pay your own rent or mortgage if you don’t have to
- Financial Adviser: Danielle learned how the rich get richer and other tricks/tools
- Creative Financing: Refi made all the difference and cut mortgage in half to be profitable
- When selecting renters/tenants:
- Priority #1: Make sure they have at least one job to pay the rent
- Priority #2: Offer furnished rooms/rentals because it’s easier to move them out
- Weekly, monthly, or longer? Danielle rents out space weekly to make more money
- Private vs. Shared Space: People need own space, common space is wasted money
- Where Danielle tends to find tenants - she advertises mostly on Craigslist
- Potential Tenants: Let them tell you what you want/need to know to minimize risk
- Used or Not: Make money with rooms not used, won’t be used, used for something else
- It’s not just about the money: Make a difference - it's very rewarding
Resources:
mailto:artoflandlord@gmail.com
https://artoflandlording.com/
https://www.craigslist.org/
https://andersonadvisors.com/clint-coons/
https://andersonadvisors.com/
Anderson Advisors Tax and Asset Protection Event
https://andersonadvisors.com/asset-protection/
https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ
Tuesday Aug 10, 2021
Tuesday Aug 10, 2021
Can you sell your rental property as a 1031 exchange? It depends. Toby Mathis and Jeff Webb of Anderson Advisors answer your tax questions. Submit your tax question to taxtuesday@andersonadvisors.
Highlights/Topics:
- Can I offer my condo as a rent-to-own rental for six months and sell it as a 1031 exchange? If you’re offering the condo as rent-to-own, you’re contemplating the sale of that property, so it becomes a sale property, not a rental property, and taxed differently
- Should I invest into limited partnership (LP) multifamily syndications with the same LLC as I have active personal rentals? Ideally, everything should be in its own LLC or you may be at risk for outside liability
- I am a co-founder of a startup (C Corp). Can I establish a self-directed Roth IRA and put my company share in it? Yes, you can, but it depends on how you go about doing it - Rollover as Business Start-ups (ROBS)
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:
Infinity Investing: How The Rich Get Richer And How You Can Do The Same by Toby Mathis
http://aba.link/infinitybook
https://www.irs.gov/pub/irs-news/fs-08-18.pdf
https://www.irs.gov/pub/irs-drop/rr-14-17.pdf
https://www.irs.gov/newsroom/irs-issues-guidance-on-section-179-expenses-and-section-168g-depreciation-under-tax-cuts-and-jobs-act
https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act
https://www.investopedia.com/terms/d/depreciationrecapture.asp
https://andersonadvisors.com/entity_formation/
https://costsegauthority.com/
Real Estate Professional Requirements
https://www.irs.gov/pub/irs-utl/33-Real Estate Professionals.pdf
https://www.airbnb.com/
https://andersonadvisors.com/retirement_plan/
https://andersonadvisors.com/living_trusts/
https://www.investopedia.com/terms/t/taxreformact1986.asp
https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes
Old Age, Survivors, and Disability Insurance (OASDI)
https://www.ssa.gov/policy/docs/progdesc/sspus/oasdi.pdf
https://www.irs.gov/newsroom/capital-gains-and-losses-10-helpful-facts-to-know-0
Section 121 - Capital Gains Exclusion
https://www.irs.gov/taxtopics/tc701
https://www.investopedia.com/terms/s/stepupinbasis.asp#:~:text=A%20step%2Dup%20in%20basis%20is%20the%20readjustment%20of%20the,for%20tax%20purposes%20upon%20inheritance.&text=The%20asset%20receives%20a%20step,of%20property%20transferred%20at%20death.
https://www.fanniemae.com/
http://www.freddiemac.com/
https://www.irs.gov/forms-pubs/about-schedule-a-form-1040
https://www.irs.gov/forms-pubs/about-schedule-c-form-1040
https://www.irs.gov/forms-pubs/about-schedule-e-form-1040
https://www.irs.gov/forms-pubs/about-schedule-k-1-form-1065
Unrelated Business Income Tax (UBIT)
https://www.irs.gov/charities-non-profits/unrelated-business-income-tax
Unrelated Debt-Financed Income (UDFI)
https://www.irs.gov/pub/irs-tege/eotopicn86.pdf
Rollover as Business Start-ups (ROBS)
https://www.irs.gov/retirement-plans/rollovers-as-business-start-ups-compliance-project
https://www.law.cornell.edu/uscode/text/26/469
https://www.congress.gov/bill/116th-congress/house-bill/1994/text
http://tobymathis.com/about-toby-mathis/
https://andersonadvisors.com/
https://andersonadvisors.com/all-events/
Anderson Advisors Tax and Asset Protection Workshop
https://andersonadvisors.com/asset-protection/
Anderson Advisors Tax-Wise Workshop
https://andersonadvisors.com/tax-wise-workshop-for-businesses-investors/
Anderson Advisors Infinity Investing Workshop
https://andersonadvisors.com/investing-workshop-passive-income-generating-machine/
https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ
https://www.facebook.com/AndersonBusinessAdvisors/
https://andersonadvisors.com/podcast/
Tuesday Jul 27, 2021
Tuesday Jul 27, 2021
The IRS is 35-million tax returns behind by their own admission, and they managed to answer 3% of the calls that were placed last year. If you need an answer to your tax question, don’t call the IRS. Toby Mathis and Jeff Webb of Anderson Advisors are here to help and answer your tax questions sooner than later. Submit your tax question to taxtuesday@andersonadvisors.
Highlights/Topics:
- What is the process for a non-profit to invest in syndication? Depends on whether you are required to be an accredited investor or not
- What are the pros and cons of moving a company to Puerto Rico for tax planning purposes? You have to be a bonafide resident in Puerto Rico to get any benefit at all
- Are life insurance proceeds taxable if a revocable living trust is the beneficiary? No, life insurance proceeds, in general, if you did not deduct the premiums, are not taxable
- Is tuition for professional learning deductible? CPE, CME, and CLE credits/courses are deductible when something new for your career, but not when starting a new career
- Can I buy an Airbnb with money inside and outside of an IRA? Yes, but form a partnership between yourself and your IRA, so it does not become a prohibited transaction or if you are a disqualified party
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:
Infinity Investing: How The Rich Get Richer And How You Can Do The Same by Toby Mathis
http://aba.link/infinitybook
https://infinityinvesting.com/
https://www.irs.gov/charities-non-profits/charitable-organizations
https://andersonadvisors.com/entity_formation/
https://www.irs.gov/newsroom/capital-gains-and-losses-10-helpful-facts-to-know-0
Section 121 - Capital Gains Exclusion
https://www.irs.gov/taxtopics/tc701
Real Estate Professional Requirements
https://www.irs.gov/pub/irs-utl/33-Real Estate Professionals.pdf
https://www.law.cornell.edu/uscode/text/26/469
https://andersonadvisors.com/living_trusts/
https://andersonadvisors.com/retirement_plan/
https://www.airbnb.com/
https://www.irs.gov/tax-reform
https://www.irs.gov/forms-pubs/about-schedule-e-form-1040
https://costsegauthority.com/
https://www.investopedia.com/terms/f/franchise_tax.asp
https://www.ftb.ca.gov/forms/2020/2020-568.pdf
Continuing Professional Education (CPE)
https://www.aicpa.org/cpe-learning/cperequirements.html
Continuing Medical Education (CME)
https://www.accme.org/
Continuing Legal Education (CLE)
https://www.americanbar.org/events-cle/mcle/
Unrelated Business Income Tax (UBIT)
https://www.irs.gov/charities-non-profits/unrelated-business-income-tax
Unrelated Debt-Financed Income (UDFI)
https://www.irs.gov/pub/irs-tege/eotopicn86.pdf
https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act
https://www.investopedia.com/terms/d/depreciationrecapture.asp
Qualified Opportunity Fund/Zone
https://www.irs.gov/credits-deductions/businesses/invest-in-a-qualified-opportunity-fund
https://www.investopedia.com/terms/s/stepupinbasis.asp#:~:text=A%20step%2Dup%20in%20basis%20is%20the%20readjustment%20of%20the,for%20tax%20purposes%20upon%20inheritance.&text=The%20asset%20receives%20a%20step,of%20property%20transferred%20at%20death.
http://tobymathis.com/about-toby-mathis/
https://andersonadvisors.com/
https://andersonadvisors.com/all-events/
Anderson Advisors Tax and Asset Protection Workshop
https://andersonadvisors.com/asset-protection/
Anderson Advisors Tax-Wise Workshop
https://andersonadvisors.com/tax-wise-workshop-for-businesses-investors/
Anderson Advisors Infinity Investing Workshop
https://andersonadvisors.com/investing-workshop-passive-income-generating-machine/
https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ
https://www.facebook.com/AndersonBusinessAdvisors/
https://andersonadvisors.com/podcast/
Tuesday Jul 13, 2021
Tuesday Jul 13, 2021
How was your 4th of July? Did you enjoy your time off and travel to visit family and friends? Now, back to reality and talk about taxes. Toby Mathis and Jeff Webb of Anderson Advisors answer your tax questions. Submit your tax question to taxtuesday@andersonadvisors.
Highlights/Topics:
- Business Vehicle: Buy or lease? What are the pros and cons of each? Do trucks and SUVs have an added deduction? Better to buy than lease larger vehicles, but it’s better to lease versus buy vehicles, such as sedans and coupes, under 6,000 lbs because depreciation is limited
- Can I pocket money when I file taxes when there is no profit with the business? Yes, if it’s your business; the only time you can’t take money is in excess of your business and you are not at risk for the business
- Are solo 401ks impacted by the new IRS rules for IRA accounts? Play by the rules and don’t begrudge those who win by playing the rules
- How many properties should one have before considering doing a cost segregation? One property is all you need to do a cost segregation
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:
Anderson Advisors Tax and Asset Protection Workshop (July 17)
http://aba.link/TAP17
Infinity Investing: How The Rich Get Richer And How You Can Do The Same by Toby Mathis
http://aba.link/infinitybook
https://andersonadvisors.com/entity_formation/
Real Estate Professional Requirements
https://www.irs.gov/pub/irs-utl/33-Real Estate Professionals.pdf
https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act
https://www.investopedia.com/terms/d/depreciationrecapture.asp
https://www.irs.gov/newsroom/capital-gains-and-losses-10-helpful-facts-to-know-0
Section 121 - Capital Gains Exclusion
https://www.irs.gov/taxtopics/tc701
https://andersonadvisors.com/retirement_plan/
https://andersonadvisors.com/living_trusts/
https://www.ml.com/
https://www.edwardjones.com/us-en
https://www.airbnb.com/
https://www.irs.gov/pub/irs-news/fs-08-18.pdf
https://costsegauthority.com/
https://www.investopedia.com/terms/f/franchise_tax.asp
https://www.mileiq.com/
Qualified Opportunity Fund/Zone
https://www.irs.gov/credits-deductions/businesses/invest-in-a-qualified-opportunity-fund
https://www.investopedia.com/terms/s/stepupinbasis.asp#:~:text=A%20step%2Dup%20in%20basis%20is%20the%20readjustment%20of%20the,for%20tax%20purposes%20upon%20inheritance.&text=The%20asset%20receives%20a%20step,of%20property%20transferred%20at%20death.
https://www.congress.gov/bill/116th-congress/house-bill/1994/text
https://andersonadvisors.com/section-280a-deduction-explained/
https://home.treasury.gov/policy-issues/coronavirus
https://www.paypal.com/
https://www.irs.gov/charities-non-profits/charitable-organizations
https://www.wework.com/
http://tobymathis.com/about-toby-mathis/
https://andersonadvisors.com/
https://andersonadvisors.com/all-events/
Anderson Advisors Tax and Asset Protection Workshop
https://andersonadvisors.com/asset-protection/
Anderson Advisors Tax-Wise Workshop
https://andersonadvisors.com/tax-wise-workshop-for-businesses-investors/
Anderson Advisors Infinity Investing Workshop
https://andersonadvisors.com/investing-workshop-passive-income-generating-machine/
https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ
https://www.facebook.com/AndersonBusinessAdvisors/
https://andersonadvisors.com/podcast/
Tuesday Jun 29, 2021
Tuesday Jun 29, 2021
Do you want to be the next Elon Musk of Tesla Motors? Do you have stocks that you want to buy, sell, or borrow against? Find out first if they have tax benefits or consequences by asking Toby Mathis and Jeff Webb of Anderson Advisors your tax questions. Submit your tax question to taxtuesday@andersonadvisors.
Highlights/Topics:
- Can we defer capital gains tax or spread it across multiple years? Use the 1031 exchange with real estate only to defer the capital gains; or the qualified opportunity fund/zone for any other capital gains installments over multiple years
- Can I do a 1031 exchange from a single house rental into a percentage group rental? Or to a partial interest in multiple rentals? Only if you are a tenant in common (TIC), but not in a partnership
- How does an LLC that’s a disregarded entity differ from a living trust in terms of estate planning? What if you have both? How do I use both in estate planning? An LLC is for liability protection, so the recommendation is to have both - LLC owned by the living trust
- Are the gains in a traditional self-directed IRA taxed the same as the rest of the money in the SDIRA when doing a conversion to a Roth SDIRA? There is no such thing as capital gains in IRAs
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:
Anderson Advisors Tax and Asset Protection Workshop (July 17)
http://aba.link/TAP17
Infinity Investing: How The Rich Get Richer And How You Can Do The Same by Toby Mathis
http://aba.link/infinitybook
https://andersonadvisors.com/entity_formation/
https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes
Old-Age Survivors and Disability Insurance (OASDI) Tax
https://www.ssa.gov/policy/docs/progdesc/sspus/oasdi.pdf
Real Estate Professional Requirements
https://www.irs.gov/pub/irs-utl/33-Real Estate Professionals.pdf
https://www.investopedia.com/terms/s/stepupinbasis.asp#:~:text=A%20step%2Dup%20in%20basis%20is%20the%20readjustment%20of%20the,for%20tax%20purposes%20upon%20inheritance.&text=The%20asset%20receives%20a%20step,of%20property%20transferred%20at%20death.
https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act
https://www.investopedia.com/terms/d/depreciationrecapture.asp
https://www.irs.gov/forms-pubs/about-schedule-k-1-form-1065
https://www.irs.gov/newsroom/capital-gains-and-losses-10-helpful-facts-to-know-0
Section 121 - Capital Gains Exclusion
https://www.irs.gov/taxtopics/tc701
https://www.irs.gov/pub/irs-news/fs-08-18.pdf
https://www.irs.gov/forms-pubs/about-schedule-c-form-1040
https://www.irs.gov/forms-pubs/about-schedule-d-form-1040
https://www.irs.gov/forms-pubs/about-schedule-e-form-1040
https://www.airbnb.com/
https://andersonadvisors.com/retirement_plan/
https://andersonadvisors.com/living_trusts/
https://www.investopedia.com/terms/s/section-1244-stock.asp
https://www.investopedia.com/terms/c/cryptocurrency.asp
https://costsegauthority.com/
Qualified Opportunity Fund/Zone
https://www.irs.gov/credits-deductions/businesses/invest-in-a-qualified-opportunity-fund
https://www.irs.gov/charities-non-profits/charitable-organizations
Paycheck Protection Program (PPP)
https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program
http://tobymathis.com/about-toby-mathis/
https://andersonadvisors.com/
https://andersonadvisors.com/all-events/
Anderson Advisors Tax and Asset Protection Workshop
https://andersonadvisors.com/asset-protection/
Anderson Advisors Tax-Wise Workshop
https://andersonadvisors.com/tax-wise-workshop-for-businesses-investors/
Anderson Advisors Infinity Investing Workshop
https://andersonadvisors.com/investing-workshop-passive-income-generating-machine/
https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ
https://www.facebook.com/AndersonBusinessAdvisors/
https://andersonadvisors.com/podcast/
Tuesday Jun 22, 2021
Tuesday Jun 22, 2021
Are you thinking of investing in or buying real estate during the housing boom? What lending options and products are available for investors and other homebuyers?
In this episode, Toby Mathis of Anderson Advisors talks to Benson Pang from NestMade Mortgage in Monrovia, Calif.
Benson started his career as a civil engineer. Then, he pivoted to mortgage lending and obtained his broker’s license. Benson decided to start his own company, which has helped more than 1,000 individuals and families with their home purchase journey.
Highlights/Topics:
- Housing Boom: People want to own a piece of the real estate market.
- Why? Rent and home prices are on the rise, and interest rates remain low.
- Money Options: Trillions of dollars are being pumped into the economy.
- Who’s looking to buy? Healthcare workers, families, and homebuyers wanting another home or to upgrade with new money.
- Home Prices: Depending on the location, buyers are offering thousands to millions above the asking price.
- Appraisals: Buyers need to work with their lenders to close escrow quickly and require financing contingencies to compete with cash offers.
- Delay Financing, Refinance, or Lien.Ways to get a home and then get your money back.
- Deed of Trust. After escrow closes, get a rate-and-term refinance loan from the lender.
- Worst Case Scenario: Understand risk of removing any of the financing contingencies.
- Cash Flow Crunch: Your tax scenario may not be your cash scenario.
- Inflation: With more money being printed, comes inflation and raising interest rates.
- Reality Check: What are you paying in rent? What can you afford to not be house poor? Make an educated choice and lifestyle change before buying a home.
- Forgotten Upgrade Costs: Once you own a house, you want to do things to it.
- Should you pay off your home mortgage loan? It depends.
Resources:
Monrovia Mortgage Broker - NestMade Mortgage
https://nestmade.com/
https://www.fanniemae.com/
http://www.freddiemac.com/
Form W-2: Wage and Tax Statement
https://www.irs.gov/forms-pubs/about-form-w-2
Debt Service Coverage Ratio (DSCR)
https://www.multifamily.loans/apartment-finance-blog/what-is-dscr
Principal, Interest, Taxes, and Insurance (PITI)
https://www.investopedia.com/terms/p/piti.asp
http://tobymathis.com/
https://andersonadvisors.com/
Tax and Asset Protection Event
http://andersonap.com/
Tuesday Jun 15, 2021
Tuesday Jun 15, 2021
What’s the best way to handle the ups and downs of investing and tax consequences? Sit on your hands long enough until everything is okay, again. The hardest thing sometimes is waiting. In the meantime, Toby Mathis and Jeff Webb of Anderson Advisors answer your tax questions. Submit your tax question to taxtuesday@andersonadvisors.
Highlights/Topics:
- Does day trading cause a higher tax consequence than long-term investing? Typically, if you have gains, it’s going to have a higher tax consequence, primarily because the day trading is all going to be short-term trades; however, long-term capital gains is subject to that long-term capital gain treatment - usually a much lower tax percentage
- If I own a property and I owe back taxes, can the government take it? If you owe back taxes, the government can certainly take your property and put a tax lien on it; then if it’s not paid, the government can sell it to make up for the taxes
- Can I rent a house owned by one of my LLCs? You can’t rent to yourself your own house
- How does rental income get taxed? Rental income is taxed at ordinary rates, it’s ordinary income; however, it is passive income and passive losses are limited
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:
Infinity Investing: How The Rich Get Richer And How You Can Do The Same by Toby Mathis
http://aba.link/infinitybook
https://www.irs.gov/newsroom/capital-gains-and-losses-10-helpful-facts-to-know-0
Section 121 - Capital Gains Exclusion
https://www.irs.gov/taxtopics/tc701
https://andersonadvisors.com/entity_formation/
https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes
https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act
https://www.investopedia.com/terms/d/depreciationrecapture.asp
https://www.irs.gov/pub/irs-news/fs-08-18.pdf
https://www.investopedia.com/terms/c/cryptocurrency.asp
https://nexo.io/
Real Estate Professional Requirements
https://www.irs.gov/pub/irs-utl/33-Real Estate Professionals.pdf
https://www.energystar.gov/about/federal_tax_credits/renewable_energy_tax_credits
https://www.energystar.gov/about/federal_tax_credits/renewable_energy_tax_credits
https://andersonadvisors.com/retirement_plan/
https://andersonadvisors.com/living_trusts/
The Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019
https://www.congress.gov/bill/116th-congress/house-bill/1994
https://www.investopedia.com/terms/s/stepupinbasis.asp#:~:text=A%20step%2Dup%20in%20basis%20is%20the%20readjustment%20of%20the,for%20tax%20purposes%20upon%20inheritance.&text=The%20asset%20receives%20a%20step,of%20property%20transferred%20at%20death.
https://www.law.cornell.edu/uscode/text/26/469
Old-Age Survivors and Disability Insurance (OASDI) Tax
https://www.ssa.gov/policy/docs/progdesc/sspus/oasdi.pdf
https://costsegauthority.com/
https://www.law.cornell.edu/uscode/text/26/1256
https://www.irs.gov/forms-pubs/about-form-8283
https://www.irs.gov/forms-pubs/about-form-3115
http://tobymathis.com/about-toby-mathis/
https://andersonadvisors.com/
https://andersonadvisors.com/all-events/
Anderson Advisors Tax and Asset Protection Workshop
https://andersonadvisors.com/asset-protection/
Anderson Advisors Tax-Wise Workshop
https://andersonadvisors.com/tax-wise-workshop-for-businesses-investors/
Anderson Advisors Infinity Investing Workshop
https://andersonadvisors.com/investing-workshop-passive-income-generating-machine/
https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ
https://www.facebook.com/AndersonBusinessAdvisors/
https://andersonadvisors.com/podcast/
Tuesday Jun 08, 2021
Tuesday Jun 08, 2021
If you Google conservation easements, you get the IRS’s Dirty Dozen list of those that have abused them. Make no mistake, laws are written to allow certain situations to benefit the taxpayer. There's a difference between doing it right and wrong.
In this episode, Toby Mathis of Anderson Advisors welcomes back Tyler Surat to talk about the right way that conservation easements can benefit investors. Tyler works in the alternative energy sources industry and helps farmers and others with the conservation and preservation of their land by creating easements.
Savvy tax investors or business people and individuals use conservation easements to do two things—help society and the environment, and get a tax benefit as a result. If you are not interested in helping the environment, then it's probably not something for you to do. The purpose is conservation.
Highlights/Topics:
- What is a conservation easement? The U.S. government quit using funds to purchase land to conserve and expected constituents or the public to do so.
- How did the government incentivize them? Through taxes, which is its greatest asset to offer. It’s a trade. You take a viable development or property that could be developed in some form that has a large market value. It must be developed; hold conservation piece.
- Does it actually hold that conservation effort? The government will offer a tax deduction for the market-developed value of that property.
- What's the good, bad, and ugly of conservation? Somebody with land or something may use conservation easements to benefit themselves. The investor can be involved, too.
- What if ranchers have land that can be developed? If they do, can they continue to farm and ranch that land? If they can, then they typically take beautiful portions of the ranch or what they own, something that somebody would desire. They have true conservation.
- Is it at the same multiple in private and group investments? Probably not, but their purpose is true conservation. Benefit from it.
- What is given up or away with conservation easements? You're basically giving up the developed rights. Once you conserve and place that easement on that land, that land's not worth $2,000 an acre anymore. It's worth less because a land developer can't buy it. The only person that would want to buy it - somebody that wants green space.
- Are green spaces in highly developed areas? They can have townhomes.
- What are good investors doing now? Reaching out to local appraisers and getting that local feel. A good provider provides ample documents for investors to be well informed.
- When you become a partner, you're investing in real estate development. What are the three options? Do nothing, develop, or conserve.
- Do all states follow conservation easements or allow the deductibility? Most states go off adjusted gross or taxable income. They never get to see the conservation portion.
- Do most people know about the statute of limitations for conservation? Three years from the time you exhaust the deduction.
Resources:
https://www.linkedin.com/in/tyler-surat-1a17881b
mailto:tsurat@onetreeadvisors.com
Tyler Surat’s Phone Number: 719-580-3051
https://steelcitysolar.us/
https://andersonadvisors.podbean.com/e/conservation-easements/
Internal Revenue Service (IRS) - Dirty Dozen List
https://www.irs.gov/newsroom/dirty-dozen
https://www.maralagoclub.com/
Residential Energy Credit: Instructions for Form 5695 (2020)
https://www.irs.gov/instructions/i5695
http://www.ducks.org/
https://operationsurf.org/
http://tobymathis.com/
https://andersonadvisors.com/
Tax and Asset Protection Event
http://andersonap.com/
Tuesday Jun 01, 2021
Tuesday Jun 01, 2021
Did you miss the April 15 tax deadline? Are you safe from significant penalties? What’s the best way to legally, morally, and ethically not pay taxes? It depends. Jeff Webb, Tax Director, and Eliot Thomas, Senior Tax Advisor, of Anderson Advisors answer your tax questions. Submit your tax question to taxtuesday@andersonadvisors.
Highlights/Topics:
- If you experience a one-time large capital gain from exercising stock options, is it absolutely imperative that you figure out quarterly payments to avoid penalty, and if so, what if you missed April? There’s a safe harbor for calculating tax estimates and it requires paying in 90% of the current year tax or 110% of the prior year tax; and estimated tax penalties are typical not significant, but handle missed payment soon
- What is the best way to take advantage of Section 179 for new vehicles over 6,000 pounds? Typically, most people do not use Section 179 because of bonus depreciation, restrictions, and limitations
- How are crypto currencies taxed, and what’s the best way to legally, morally, and ethically not pay taxes? Depends on how you are getting the crypto currency; if you are buying and selling, it is treated as a security and other rules apply; if you are mining crypto currency, find out the value of that crypto bitcoin the day it is created
- What will happen if you open an LLC with Corp status but you missed the deadline? What should you do? If you missed the tax deadline and have a loss on your Corp, it typically doesn’t affect you; if you have a lot of startup costs, you need to file your initial tax return on time
- Does tax on depreciation recapture, like capital gains, go away when property is inherited? When you inherit property, everything resets and goes away, like capital gains
- Do I have to report a home I lived in and sold even though I purchased a new home? Previous Section 121 states as long as you buy a more expensive home than the one you sold, you can defer any gain until the age of 55; Section 121 now states if you lived in the home for two of last five years, you can defer a large part or all the gain
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:
Infinity Investing Workshop on June 5
http://aba.link/iiw
Infinity Investing: How The Rich Get Richer And How You Can Do The Same by Toby Mathis
http://aba.link/infinitybook
https://www.irs.gov/newsroom/capital-gains-and-losses-10-helpful-facts-to-know-0
https://www.section179.org/section_179_deduction/
https://bitcoin.org/
https://nexo.io/
https://andersonadvisors.com/entity_formation/
https://andersonadvisors.com/retirement_plan/
Real Estate Professional Requirements
https://www.irs.gov/pub/irs-utl/33-Real Estate Professionals.pdf
https://andersonadvisors.com/living_trusts/
Section 121 - Capital Gains Exclusion
https://www.irs.gov/taxtopics/tc701
https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act
https://www.investopedia.com/terms/d/depreciationrecapture.asp
https://www.irs.gov/forms-pubs/about-schedule-c-form-1040
https://www.irs.gov/forms-pubs/about-form-1040
https://z.cash/
https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes
Employee Retirement Income Security Act (ERISA)
https://www.dol.gov/general/topic/retirement/erisa
U.S. Department of Labor (DOL)
https://www.dol.gov/
https://www.irs.gov/forms-pubs/about-schedule-k-1-form-1065
https://costsegauthority.com/
https://www.investopedia.com/terms/s/stepupinbasis.asp#:~:text=A%20step%2Dup%20in%20basis%20is%20the%20readjustment%20of%20the,for%20tax%20purposes%20upon%20inheritance.&text=The%20asset%20receives%20a%20step,of%20property%20transferred%20at%20death.
https://www.irs.gov/pub/irs-news/fs-08-18.pdf
https://tobymathis.com/
https://www.irs.gov/businesses/small-businesses-self-employed/penalty-relief-due-to-first-time-penalty-abatement-or-other-administrative-waiver
https://andersonadvisors.com/
https://andersonadvisors.com/all-events/
Anderson Advisors Tax and Asset Protection Workshop
https://andersonadvisors.com/asset-protection/
Anderson Advisors Tax-Wise Workshop
https://andersonadvisors.com/tax-wise-workshop-for-businesses-investors/
Anderson Advisors Infinity Investing Workshop
https://andersonadvisors.com/investing-workshop-passive-income-generating-machine/
https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ
https://www.facebook.com/AndersonBusinessAdvisors/
https://andersonadvisors.com/podcast/