626.5K
Downloads
344
Episodes
Real Estate Investors, Stock Traders, and Business Owners guide to preserve their wealth, protect their assets, and prosper in the future.
Episodes
Wednesday Sep 20, 2023
Wednesday Sep 20, 2023
In this episode, Clint Coons, Esq., speaks with Richard Advani, VP of Mortgage Lending at Guaranteed Rate. You’ll hear about specific loan and mortgage products, tactics, and insider information to help real estate investors looking for advantageous methods to invest in or buy primary homes and investment properties.
Highlights/Topics:
- Intro and background - Richard Advani
- DSCR loans - the details
- Other loans - assuming the seller’s mortgage
- Can you target these assumable loans through public information?
- Once the seller transfers, they are off the hook
- Equity - what to look for in loan products
- Credit checks on multiple property loans
- Marriage and mortgage qualification - what’s the ideal set up?
- Income vs. asset-backed loans
- Liabilities and LLC’s
- ‘Forward commitment’ builder programs
- Contact Richard for a no-commitment consultation
Resources:
http://www.richardadvani.com/
Richard.Advani@rate.com
Tax and Asset Protection Events
https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=aba&utm_medium=podcast&utm_content=low-interest-rates-are-available
https://andersonadvisors.com/
https://www.youtube.com/@ClintCoons
Tuesday Sep 19, 2023
Tuesday Sep 19, 2023
In this 201st episode, Eliot Thomas, Esq., hosts, along with Jeff Webb, CPA, Vice-President of Professional Services at Anderson Business Advisors. The looming filing deadlines in September and October are almost here, but we’ve still got our experts online to help answer your questions. In this episode, you’ll hear answers to questions about HELOCs, when to take social security, the Augusta rule, bad debt, and legacy planning tools, to name a few. Submit your tax question to taxtuesday@andersonadvisors.
Highlights/Topics:
- “What’s the best structure for a management company? C-corporation or partnership? Also, if you were not concerned with obtaining loans, is it more advantageous to have a holding company as an S-corp or a partnership?” – My rec is C Corp, not partnership, the downside is creating passive deductions and income at the same time…and anytime you take those properties back out, and sometimes you have to do that to refinance, that’s a taxable transaction.
- “I have a HELOC on a rental property. I used the funds from it as a gift for a down payment on a home purchase for a family member. Can I use the HELOC interest payments as part of an expense for the rental property?” - You shouldn’t be gifting money from your HELOC. Can you take money out? Yes, but it’s a distribution; it’s not a gift.
- “I’m getting ready to retire in three years. I own a small business that’s a sole proprietorship. As a single proprietor, when I receive social security, will this show up as personal income?” - What you don’t want to do is start taking social security before your full retirement age while still earning money from a wage or from self-employment.
- “Can you use the administrative office and Augusta rule deduction? Or is that considered double dipping when purchasing a property? - commonly referred to as 280A. That’s the corporate meetings. You can rent your house out for 14 days a calendar year—no more—and the income that you receive is tax-free.
- How does bonus depreciation affect a present tax bill for back taxes owed to the IRS? So if we took bonus depreciation in the current year without [...] with the prior liability I have with the IRS.” - IRS will keep taking your refunds before they ever touch your bank accounts until they have that back liability paid up.
- “We made a $5000 business loan. The business shut their doors. How do we document this bad debt? Is it bad debt loss or is it a tax write-off?” - Yes, it is a write-off, but the question is, how do you write off…
- “Is a charitable remainder trust a good legacy and tax planning tool?” - I like the CRUT (Charitable Remainder Unitrust). It’s considered a split-interest trust. The tax returns are very complicated. Don’t ever, ever, ever try to prepare one yourself.
- “I bought a house last year with the intention of renting it out. I bought rental property insurance and never lived in it. It was so expensive to repair everything that I sold it before I could rent it. Can I still deduct my expenses on my taxes? I read that there has to be income to be deductible, and I didn’t get it to a space where it was rentable. Please help. I wasted a lot of money on this house.” –Your intention was to rent. The more you can have to substantiate that intention, the better off you are…But yes, you would write it off as a capital gain or loss…
- “Could you please explain what basis is? I recently became an S-corporation after 12 years as a sole prop. I can take out tax-free my equity injection of money I put in to start the new S-corp, and the inventory that I basically carried over from my sole prop days into the new S-corp. We have no debt on the S-corp, other than the inventory and cash injection. It owes me back.” - Basis typically is your cost…it could be your entity, it could be a property, it could be any kind of asset.
- “Can an LLC taxed as a partnership write off travel and other expenses to intend to invest in seminars such as Alpine CFS, where one would look at several properties, perhaps commit to purchase? - Basically the code says you cannot deduct the expense of any education that is helping you to do something new, that you didn’t do previously.
- Check out our events coming up later this month.
Resources:
taxtuesday@andersonadvisors.com
Tax and Asset Protection Events
https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=aba&utm_medium=podcast&utm_content=the-right-structure-for-a-management-company
https://andersonadvisors.com/
https://www.youtube.com/@TobyMathis
Tuesday Sep 12, 2023
Tuesday Sep 12, 2023
In today’s episode, Toby Mathis, Esq. welcomes his long-time business partner, Anderson Advisor’s Michael Bowman, Esq., back to the show.
Michael shares four of the top mistakes he sees when people file incorporation papers to set up a business. From simple things like using a business (not your home) address, to utilizing the correct paperwork and formats, to keeping excellent records and bookkeeping, Michael and Toby discuss interesting real stories they’ve witnessed or been part of, to illustrate each point.
Highlights/Topics:
- Many mistakes will end up in court
- The top 4 repeated mistakes- incorrect address is number one
- Registered agents
- Banks need a business address in order to loan you money
- Organizational paperwork - By-Laws vs. Operating Agreements
- Co-mingling - Business vs. Personal
- Books and recordkeeping
Resources:
https://www.linkedin.com/in/michael-bowman-318492a/
Tax and Asset Protection Events
https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=aba&utm_medium=podcast&utm_content=costly-mistakes-to-avoid-when-creating-your-business-entity
https://www.youtube.com/c/tobymathisesq
https://andersonadvisors.com/
Thursday Sep 07, 2023
Thursday Sep 07, 2023
In this episode, host Toby Mathis, Esq., joins regular guest Eliot Thomas, Esq., Manager of Tax Advisors at Anderson Business Advisors, to discuss several options that can protect homeowners and investors from paying exorbitant taxes on the sale of property. Eliot and Toby share important information and tactics for passive losses, installment sales, 121 and 1031 scenarios, Delaware Statutory Trusts, UPREITs (Umbrella Partnership Real Estate Investment Trusts), and opportunity zone funds.
Highlights/Topics:
- Passive losses and gains
- Spreading gain over several years
- Can homeowners save taxes on the sale of their home?
- The 121 exclusion and its rules
- Changing your home to a rental property - 1031 exchange and the rules
- The DST Delaware Statutory Trust and 1031 exchange
- UPREIT- Umbrella Partnership Real Estate Investment Trust
- Qualified opportunity zones and qualified opportunity zone funds
- Recapping all the options
Resources:
Tax and Asset Protection Events
https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=aba&utm_medium=podcast&utm_content=how-to-avoid-taxes-when-selling-your-rental-property
https://andersonadvisors.com/
https://www.youtube.com/@TobyMathis
https://www.tiktok.com/@tobymathisesq
Tuesday Sep 05, 2023
Tuesday Sep 05, 2023
We’ve reached quite a milestone - our 200th episode! For today’s Tax Tuesday, tax experts Toby Mathis, Esq., and returning guest Jeff Webb, Esq., CFO of Anderson Business Advisors share their expert advice on tax strategies and navigating economic uncertainties, with a focus on rental property and financial diversification. You’ll hear about the complexities of non-recourse loans and taxation, myths and strategies for day traders, taxes on land flips, the best time to do a cost seg, and more. Three lucky listeners will receive copies of our ebook in the episode. Submit your tax question to taxtuesday@andersonadvisors.
Highlights/Topics:
- Is there a minimum net income where it would be beneficial for a single-member LLC to file as an S corp rather than a disregarded entity? - It depends on individual circumstances, but if your income is quite low, you may be able to save a bit if you file as an S-corp.
- Can my rental income be directed into a self-directed IRA and what are the advantages to doing that? - Yes, rental income can be directed into a self-directed IRA which offers several tax advantages.
- I don't understand the difference between owning rentals as a real estate professional (REP) or non-REP. And what, if any, disadvantages are there when buying a rental inside a Solo 401k using a non-recourse loan? - REP status offers tax benefits, while non-REPs face limitations. Buying a rental inside a Solo 401k with a non-recourse loan can limit potential deductions.
- How is the land flip taxed? Does land have to be held for a year like a house? - Land flips are taxed as ordinary income and there is no requirement to hold for a year.
- Is it acceptable for the IRS to trade futures from a 501c3 or a family foundation entity? Does the entity need to pay capital gains? –Yes, futures trading is allowed but can carry unrelated business income tax implications.
- If you form an LLC for rental property, is it best to report the activity on Schedule C or E? –Generally, it is better to report rental activity on Schedule E for tax purposes.
- When is the best time to do a cost segregation study? – The best time is usually after renovations are complete but it depends on individual circumstances, some you don’t have to wait on, like a pool.
- We fix and flip luxury homes and are thinking about keeping some to rent. We have held some in the past. We have an LLC but the accountant is saying to go to an S corp. - we disagree, investment property should not go into an S corp, it should go into a land trust/LLC.
- We are setting up a family trust in Florida and watch your video about trust Wyoming. The attorney says we don't need Wyoming, is this true? – The WY trust is a revocable trust. If you’re working on a living/grantor trust, your attorney is correct. Transitioning to an S corp may provide tax benefits.
- What is the best way to pay my children who actively trade in our fix flips bookkeeping? – Consider establishing them as employees and paying them a reasonable wage for their work.
- I understand anyone can gift to anyone in a year an amount not to exceed $17,000 per person. Can I gift from a family limited partnership Units not exceeding that amount, giving them a percentage of the LP units each year? Does it avoid the generation-skipping tax? – Yes, but your gift from your interest in the LP…it can be a viable strategy for tax purposes.
- Send us your questions, and check out the event schedule listed in the resources section.
Resources:
https://infinityinvesting.com/
taxtuesday@andersonadvisors.com
Tax and Asset Protection Events
https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=aba&utm_medium=podcast&utm_content=when-to-conduct-cost-segregation-studies
https://andersonadvisors.com/
https://www.youtube.com/channel/UCaL-wApuVYi2Va5dWzyTYVw
https://www.youtube.com/@TobyMathis
https://www.tiktok.com/@tobymathisesq
Monday Sep 04, 2023
Monday Sep 04, 2023
Welcome to Part III of our recession planning series. Toby Mathis, Esq. and Stefan Whitwell, Founder and Chief Investment Officer of Whitwell & Co., LLC, are back to discuss the facts, statistics, and future trends they see happening in the crumbling commercial real estate market. There are great investment deals out there, but you need to look at facts and numbers. Don’t fall for the bargain investment “story.” Enlist the assistance of a pro to make sure you don’t get in over your head.
Highlights/Topics:
- Commercial real estate – current stats and trends
- Interest rates are doubling
- Commercial building has slowed or stopped- increasing demand, but over 10 years
- Is the residential market next?
- REIT and risks
- Looking at numbers, not the story: history, past cycles and performance
- Invest with an advisor’s assistance, and don’t get greedy!
Resources:
https://whitwelladvisors.com/team/stefan-whitwell/
Tax and Asset Protection Events
https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=aba&utm_medium=podcast&utm_content=recession-planning-part-3-3
https://www.youtube.com/c/tobymathisesq
https://andersonadvisors.com/
Thursday Aug 31, 2023
Thursday Aug 31, 2023
In today’s episode, Toby Mathis, Esq. welcomes Stefan Whitwell, Founder and Chief Investment Officer of Whitwell & Co., LLC, back to the show for Part II of a three-part series. Stefan is a sought-after advisor who works closely with clients at the intersection of health, wealth, and purpose. Toby and Stefan discuss the shrinking assets and lack of funding from big banks and the private funding (as well as investment) opportunities that you might consider instead. Find a fiduciary who is a money manager and get access to these things the right way.
Highlights/Topics:
- Opportunities in this market
- Types of industries private funds are lending to
- Bank assets are shrinking
- Accessing private funds - different structures are providing new options
- Interest rates and rates of return
- Using IRA’s to avoid taxes
- Risks - higher returns
- Top 10 US Metro areas - Office building ‘physical occupancy’ is only at 50%
- Bailing out the banks - Feds messed it up badly by bailouts
- Be patient and watch for good opportunities
Resources:
https://whitwelladvisors.com/team/stefan-whitwell/
Tax and Asset Protection Events
https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=aba&utm_medium=podcast&utm_content=recession-planning-part-2-3
https://www.youtube.com/c/tobymathisesq
https://andersonadvisors.com/
Tuesday Aug 29, 2023
Tuesday Aug 29, 2023
In today’s episode, Toby Mathis, Esq. speaks with Stefan Whitwell, Founder and Chief Investment Officer of Whitwell & Co., LLC. Stefan leads the overall Firm and its investment practice. He is also a sought-after advisor who works closely with clients at the intersection of health, wealth, and purpose. Toby and Stefan reveal that the “bad stuff” is not over with big banking, and that we will continue to see bank failures and devastating client money losses … so make sure your money is protected, see a professional!
Highlights/Topics:
- The state of big banks today
- What happens to your $1 Million if a bank suddenly fails?
- Custodial accounts to protect your money
- SIPC insurance vs. FDIC
- Business owners and three things you need to protect
- You can end up on the hook to pay your employees
- Custodial accounts – you need to do your homework
- Bank debt and commercial real estate
- Stay informed, make sure your money is safe
Resources:
https://whitwelladvisors.com/team/stefan-whitwell/
Tax and Asset Protection Events
https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=aba&utm_medium=podcast&utm_content=recession-planning-part-1-3
https://www.youtube.com/c/tobymathisesq
https://andersonadvisors.com/
Tuesday Aug 22, 2023
Tuesday Aug 22, 2023
In today’s Tax Tuesday episode, tax experts Toby Mathis, Esq., and returning guest Jeff Webb, Esq., CFO of Anderson Business Advisors, discuss several interesting and complicated questions around collecting rent, refinancing your rental home, accountable plan reimbursements, and cost segregation. Submit your tax question to taxtuesday@andersonadvisors.
Highlights/Topics:
- "I am single-family home real estate investor… should I collect the rent in a separate checking account LLC” - a property management entity should be collecting and paying the LLCs. Don’t have renters pay directly to the ‘holding’ LLC. The way you’re doing it is okay.
- “If you refi a rental home can you start depreciating at the refi amount?” First of all, why would you refi now at 7%? But let’s say you do refi; your depreciation does not start over. Unless you get cash out to improve the home, that remodel depreciation starts anew.
- “Thanks for talking so much about S-corps, literally saving my business. If my business doesn’t have enough to reimburse me after the accountable plan” …no, you can’t deduct it if you haven’t been reimbursed. You can give the money to the company, creating a loss, then reimburse.
- “How do you determine the quality of a cost seg vendor… does it even matter.” - you need an actual person that stands behind the analysis, don’t just use software.
- “What are the tax benefits to writing off the rental property” - you can identify each part that is NOT 27.5 years… you’re supposed to do 5, 7 years, 15 years, for certain home element improvements.
- “I made a loan to an individual from my self-directed IRA. He wants to pay it back from a self-directed IRA. will this create a taxable event to either of us? - for you no, for him yes
- “I had a property vacant for repairs until April 2023…can I still claim my expenses?” - ‘ordinary and necessary’ can be, yes - roof replacement, repairs, etc. but not ‘improvements’. Put it into service first.
- “Can a self-directed IRA co-invest with you and not create a prohibited transaction, even if you self-manage, and may use the assets?” - yes you can set up a joint venture… but you can’t use the asset, you can’t buy a property and ‘use it’ or do any work on it.
- “What biz entity can leverage life insurance as an exec bonus plan for tax deduction?” - we can’t think of any way to leverage it, but there are ways to write it off. Talk to somebody who works on exec compensation plans.
- “When taking into account bonus depreciation on investment property - how far back and forward in time?” - net operating losses cannot be carried back…only forward, indefinitely.
- Send us your questions and check out the event schedule listed in the resources section.
Resources:
https://infinityinvesting.com/
taxtuesday@andersonadvisors.com
Tax and Asset Protection Events
https://andersonadvisors.com/real-estate-asset-protection-workshop-training/
https://www.youtube.com/@TobyMathis
https://www.tiktok.com/@tobymathisesq
Tuesday Aug 08, 2023
Tuesday Aug 08, 2023
In today’s Tax Tuesday episode, tax experts Toby Mathis, Esq., and returning guest Jeff Webb, Esq., CFO of Anderson Business Advisors discuss a number of common tax topics including IRA to Roth conversions, real estate depreciation deductions, LLC’s, S-Corps and Sole Proprietorships, gifting vs. inheriting property, and the title question about structuring your real estate business. Submit your tax question to taxtuesday@andersonadvisors.
Highlights/Topics:
- "If I move money from my SDIRA, which stands for self-directed IRA, to a Roth self-directed IRA, can I use bonus depreciation from real estate owned outside of my IRAs to offset the taxes I owe from the Roth conversion?" - It's really going to depend on where that depreciation is coming from.
- "I'm new to real estate investing and haven't purchased the property yet. Do I need to have an LLC to claim deductions this year on real estate–related expenses already incurred?" - An LLC really has nothing to do with taxes. It is strictly for liability protection, and asset protection.
- "I'm a small business owner with three other employees working for me. I'm trying to open a solo 401(k) or some other retirement plan for myself as an owner. I believe I need to offer the same to my employees as well, which I can but am not interested in offering any matching contributions to other employees. How does it work? What is the best way to set this up?" - yes, you can open up a 401(k) and have your employees participate assuming they're eligible to participate. However, you can't pay yourself a match and not pay them a match. You have to treat everybody equally.
- "I won $10,000 worth of furniture from a raffle or gaming event. How do I report this on my income tax?" - Whoever you won it from should be issuing you a 1099 miscellaneous with $10,000 of other income on it. You'll record it on your tax return as other income.
- "I'm a realtor operating as a sole proprietor. Should I be operating under a different entity to minimize taxes and liability? Over the years, I've received conflicting information and just don't know." - the math is 14.1% in addition to your state income taxes, in addition to your federal income taxes. The way you nix that is you run it through an S-corp or an LLC taxed as an S-corp.
- "At what point in my real estate operation should I move from a single-owner LLC to S-corp for tax purposes?" - If we're talking about investment real estate and rental properties, you don't ever want to put them in an S-corporation. It's a bad idea.
- "If I transfer my rental property into an LLC for the purposes of depreciation, will the LLC get a step up and basis to the current market value of the property? Or will the LLC inherit my lower basis? - If you contribute property to any kind of entity that you own, it gets your basis.
- “Do unrelated businesses have to have separate schedule Cs or LLCs, or can I rebrand myself on my Schedule C, DBA, JL Enterprises, and put everything together? What are the advantages or disadvantages?" -...most times I don't see a whole lot of advantage to grouping unless it's a real estate activity with an operation or something like that.
- "In my father's will, he's leaving me a house." Yes. "I've been living in it for nine years." "If he puts my name on the title now along with his name, will I have to pay more taxes? I prefer to do that now. What would the difference be? He does have a living will." - He would have to file a gift tax return for his basis in that half, or actually its fair market value on that half. I'm not a big fan of mixing things up under these circumstances…
- "We are fixing the downstairs area of our home to rent out as a short-term rental. Are there any expenses that can be used in tax deductions? Should we run it under an entity?" - The repairs that you're doing down there would be deductible. If you're doing improvements to the property, it would be depreciable.
- Send us your questions, and check out the event schedule listed in the resources section.
Resources:
https://infinityinvesting.com/
taxtuesday@andersonadvisors.com
Tax and Asset Protection Events
https://andersonadvisors.com/real-estate-asset-protection-workshop-training/
https://andersonadvisors.com/
https://www.youtube.com/channel/UCaL-wApuVYi2Va5dWzyTYVw
https://www.youtube.com/@TobyMathis
https://www.tiktok.com/@tobymathisesq