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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
Wednesday Oct 04, 2023
Wednesday Oct 04, 2023
Host Toby Mathis, Esq. speaks with Bill Mencarow, founder of The Paper Source and 30-year veteran of real estate note investing. Bill writes for Think Realty magazine and has authored several guides and seminars on notes. He has been interviewed on numerous radio and TV programs including “Good Morning America,” national networks and in major U.S. newspapers and magazines.
You’ll hear Bill and Toby discuss the pros and cons of note investing, including how and when you can buy and sell, getting cash out of your note, and what to look for when buying a note - including the three P’s - Property, Paper, and Payer.
Highlights/Topics:
- What is note investing?
- Selling notes for cash
- Pros and cons, options for using this ‘negotiable instrument’
- Selling your property using a note
- Where can you find notes to buy?
- What you should avoid- rules of thumb
- Slicing and dicing your note for sale
- Why go to a megabank corporation when you can get a note with someone in your community?
- Sign up for Bill’s free eCourse or email him for advice
- 3P’s - Look at Paper, Property, and Payer
Resources:
Unlock the secrets of note investing and become a savvy investor with our exclusive 360 Pro Membership!
https://infinityinvesting.com/pricing/
Tax and Asset Protection Events
https://papersourceonline.com/
https://www.youtube.com/c/tobymathisesq
https://andersonadvisors.com/
Tuesday Oct 03, 2023
Tuesday Oct 03, 2023
On today’s Tax Tuesday, tax experts Toby Mathis, Esq., and returning guest Jeff Webb, CPA of Anderson Business Advisors, share their expert advice on tax strategies associated with setting up a home office, the potential consequences of being classified as a real estate dealer instead of investor, and how the IRS can view real estate flips as inventory and treat you as a dealer, leading to self-employment tax and other repercussions. Listeners are also guided through minimizing stock gains as a day trader and understanding rental property ownership. Submit your tax question to taxtuesday@andersonadvisors.
Highlights/Topics:
- What are the requirements for bonus depreciation? - Bonus depreciation applies to tangible personal property with a depreciation life of 20 years or less.
- Can I 1031 exchange the entire proceed from the sale of a property with two structures, one rented and one as a main house? - Yes, you can 1031 exchange the rental portion, and possibly the entire property if it is converted into a rental before sale.
- Can I still invest in the 2022 tax year such as starting a solo 401K if I extended my tax return filing to October 2023? - Yes, you can make retirement contributions for 2022 up until your tax return deadline, including extensions.
- What are the benefits of an S corporation status for a small business owner versus sole proprietorship or LLC? - S-Corp can provide tax savings through reduced self-employment taxes, and may have lower audit rates than sole proprietorships.
- Can first-year business expenses be carried forward to the following year if there is no income in the setup year? - Yes, you can carry forward business losses to offset future income.
- Can I have a home office deduction if I rent the property? - Yes, renters can take a home office deduction if they meet certain requirements.
- How can I minimize day trading stock taxes? - Strategies include careful risk management, using tax-advantaged accounts, and offsetting gains with losses.
- Can I deduct expenses from my LLC registered as a partnership for fix and flip houses? - Yes, expenses related to the business operation can generally be deducted, though there may be limitations.
- Are all expenses related to the purchase and rehab of a rental property included in the basis for depreciation? - Yes, purchase price and most rehab expenses are included in the depreciable basis of a rental property.
- What's the best way to minimize the loss of passive losses on rental activities due to the AGI phase-out? - Carry forward passive losses until passive income is earned, become a real estate professional, or dispose of the activity.
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=how-day-traders-can-reduce-taxes-legally
https://andersonadvisors.com/
https://www.youtube.com/@TobyMathis
https://www.tiktok.com/@tobymathisesq
Thursday Sep 28, 2023
Thursday Sep 28, 2023
Should you be terrified by the IRS’ new league of 89,000 agents that they claim they’re hiring to do audits on people who make over $400K? Host Toby Mathis, Esq. and Lauren Robins, Esq., a Senior Attorney at Anderson, discuss the reality of what these numbers mean, and what they could mean for the average Jane and Joe Taxpayer.
Highlights/Topics:
- What is actually happening with 89,000 new agents?
- 89K agents is actually the number being hired over 10 years
- Funding for agents is going to “taxpayer services” like answering phones
- Low-income resource centers being opened
- Business expenses - have the paperwork, and you have nothing to worry about
- Taxing you now vs. your retirement funds later
- Audit rates and ‘proportionality”- the poor always get audited more often
- Fear-mongering vs. reality
Resources:
Tax and Asset Protection Events
https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=aba&utm_medium=podcast&utm_content=what-you-need-to-know-about-the-irs-crackdown
https://www.youtube.com/c/tobymathisesq
https://andersonadvisors.com/
Tuesday Sep 26, 2023
Tuesday Sep 26, 2023
In today’s episode, Toby Mathis, Esq. welcomes Carter Coons, Esq., an attorney at Anderson whose last name you may recognize… he is also the son of partner Clint Coons. Carter shares some of the benefits of utilizing a Wyoming Statutory Trusts (WSTs) as holding companies for your California LLCs to avoid the $800 per entity tax that is due annually. You’ll hear how to layer these protections to secure your anonymity and save money.
Highlights/Topics:
- California properties and LLCs
- How can we avoid this franchise tax?
- Wyoming Statutory Trusts (WST) are exempt
- WST as a holding company
- How does California feel about these trusts?
- Protections you can benefit from with a WST
- There is no reason that you shouldn’t take advantage of this protection
- Integrating out-of-state LLCs
- If you’re not a CA resident, all you need is the WST to own titles to your properties
- This strategy is legit, inexpensive, and has worked for decades
- Share this with someone who could benefit
Resources:
https://www.linkedin.com/in/carter-coons-708629117
Tax and Asset Protection Events
https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=aba&utm_medium=podcast&utm_content=avoid-the-ca-franchise-tax
https://www.youtube.com/c/tobymathisesq
https://andersonadvisors.com/
Thursday Sep 21, 2023
Thursday Sep 21, 2023
In today’s episode, Toby Mathis, Esq. welcomes Joshua Robertson, Esq., Senior Attorney at Anderson Business Advisors, to the podcast to discuss different approaches to protecting your property and assets from liability and lawsuits.
Josh shares three important strategies for building a structurally sound legal protection plan that will prevent your assets from appearing in public information records and protect them from being targeted. From setting up LLCs as owners, to separating ownership of your assets and the ‘use’ of those assets, Josh explains some simple tactics that take simple “anonymity” a step further - building additional legal protection behind the scenes.
Highlights/Topics:
- Control everything, own nothing directly
- Business entities that own your assets
- Member vs. manager
- Using strategies creatively to enhance your protection
- Splitting ‘ownership’ from ‘use’ - separate LLCs
- Separating LLCs in property ownership
- Isolating substantial assets
- Anonymity is not protection in itself, it is the undergirding legal structure
- Understand where your potential risk lies!
Resources:
https://www.linkedin.com/in/joshuatrobertson/
Tax and Asset Protection Events
https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=aba&utm_medium=podcast&utm_content=3-ways-to-keep-your-assets-hidden
https://www.youtube.com/c/tobymathisesq
https://andersonadvisors.com/
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