Are you a landlord who has their fair share of horror stories? Do you need help evicting tenants, or finding and placing the best tenants? Who should you be renting to so that you don’t bring tenants in and then have to kick them out later?  Applicants can be nice or be nightmares.

Today, Clint Coons of Anderson Business Advisors talks to David Pickron, President of Rent Perfect, an investigative screening company that helps clients onboard tenants from the initial background check to leasing and payment collection.

David is a licensed private investigator and landlord who manages several short- and long-term rentals. Also, he hosts the Rent Perfect Podcast, which offers the latest industry news and provides expert tips on how to manage properties.

Highlights/Topics:

How much is a good tenant worth? The key to managing your own cash flow.is to have stable tenants.

What’s going on with moratoriums to collect rent? The government wanted to pass another one, but it did not go through. Landlords are partners with the government right now because they can’t evict someone or take their property.

How do landlords protect themselves? They want long-term renters and holds to set it, forget it, and let them go.

What can landlords do to find the right renters? There are still a lot of regulations stacked against landlords, and there are a lot of courts that are withholding data.

Why did credit bureaus pull off all evictions, judgments, and liens? They were getting sued for putting the wrong data on the wrong people's files

Have you heard of that new Experian Boost? They're realizing that they're not giving us all the information we need on those credit bureaus. They're allowing consumers to start reporting their own credit to their own credit bureau.

If you are screening a tenant, can you find out if they were evicted because they weren't paying rent during the pandemic? There's an eviction moratorium, but some people could be or were evicted because of set parameters.

Why ask tenants for 12 months of bank statements? It shows if they paid their rent or prioritized spending money on other things, such as a new boat.

What are detailed criteria? Exactly who qualifies for your property so everybody's treated the same. Don't allow anybody with a felony record within the last 5 years or misdemeanor within the last 3 years; or collections against landlords for the last 2 years.

What is fair housing? If they have a criminal history, do an individual assessment - How long ago did the crime occur? How old was the person when they did it? Have they been in any rehabilitation that they can prove? Does this affect your property?

What does Rent Perfect offer? No more waiting for checks in the mail, no more dropping off checks. It's a complete platform and helps you find that right renter.

How much does Rent Perfect cost? There’s a one-time $4.95 signup fee. Applicants pay for everything else, such as $39 for the background and credit checks.

Resources:

Rent Perfect Landlord Registration

Rent Perfect

Rent Perfect Podcast

Sample Criteria: Email [email protected].

Rent Perfect: 877-922-2547

National Real Estate Investors Association (REIA)

Arizona Multihousing Association (AMA)

Experian Boost

Paycheck Protection Program (PPP)

Clint Coons

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

Wills and Trusts

https://andersonadvisors.com/living_trusts/

Entity Formation

https://andersonadvisors.com/entity_formation/

Retirement Plans

https://andersonadvisors.com/retirement_plan/

Real Estate Professional Requirements

https://www.irs.gov/pub/irs-utl/33-Real Estate Professionals.pdf

Airbnb

https://www.airbnb.com/

Bonus Depreciation

https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act

Depreciation Recapture

https://www.investopedia.com/terms/d/depreciationrecapture.asp

Capital Gains and Losses

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

Secure Act

https://www.congress.gov/bill/116th-congress/house-bill/1994/text

Tax Cuts and Jobs Act (TCJA)

https://www.irs.gov/tax-reform

Charitable Organizations

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

Step-Up in Basis

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.

Schedule K-1

https://www.irs.gov/forms-pubs/about-schedule-k-1-form-1065

1031 Exchange

https://www.irs.gov/pub/irs-news/fs-08-18.pdf

Self-Employment Tax

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

Cost Segregation Authority

https://costsegauthority.com/

Form 3115

https://www.irs.gov/forms-pubs/about-form-3115

Form 8949

https://www.irs.gov/forms-pubs/about-form-8949

IRC 469(c)7

https://www.law.cornell.edu/uscode/text/26/469

Schedule A

https://www.irs.gov/forms-pubs/about-schedule-a-form-1040

Schedule D

https://www.irs.gov/forms-pubs/about-schedule-d-form-1040

Toby Mathis

http://tobymathis.com/about-toby-mathis/

Anderson Advisors

https://andersonadvisors.com/

Anderson Advisors Events

https://andersonadvisors.com/all-events/

Events@and

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:

Danielle Villegas’ Email

mailto:[email protected]

Art of Landlording

https://artoflandlording.com/

Craigslist

https://www.craigslist.org/

Clint Coons

https://andersonadvisors.com/clint-coons/

Anderson Advisors

https://andersonadvisors.com/

Anderson Advisors Tax and Asset Protection Event

https://andersonadvisors.com/asset-protection/

Anderson Advisors on YouTube

https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ

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

1031 Exchange

https://www.irs.gov/pub/irs-news/fs-08-18.pdf

IRS - Section 168

https://www.irs.gov/pub/irs-drop/rr-14-17.pdf

IRS - Section 179

https://www.irs.gov/newsroom/irs-issues-guidance-on-section-179-expenses-and-section-168g-depreciation-under-tax-cuts-and-jobs-act

Bonus Depreciation

https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act

Depreciation Recapture

https://www.investopedia.com/terms/d/depreciationrecapture.asp

Entity Formation

https://andersonadvisors.com/entity_formation/

Cost Segregation Authority

https://costsegauthority.com/

Real Estate Professional Requirements

https://www.irs.gov/pub/irs-utl/33-Real Estate Professionals.pdf

Airbnb

https://www.airbnb.com/

Retirement Plans

https://andersonadvisors.com/retirement_plan/

Wills and Trusts

https://andersonadvisors.com/living_trusts/

Tax Reform Act of 1986

https://www.investopedia.com/terms/t/taxreformact1986.asp

Self-Employment Tax

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

Capital Gains and Losses

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

Step-Up in Basis

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.

Fannie Mae

https://www.fanniemae.com/

Freddie Mac

http://www.freddiemac.com/

Schedule A

https://www.irs.gov/forms-pubs/about-schedule-a-form-1040

Schedule C

https://www.irs.gov/forms-pubs/about-schedule-c-form-1040

Schedule E

https://www.irs.gov/forms-pubs/about-schedule-e-form-1040

Schedule K-1

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

IRC 469(c)7

https://www.law.cornell.edu/uscode/text/26/469

Secure Act

https://www.congress.gov/bill/116th-congress/house-bill/1994/text

Toby Mathis

http://tobymathis.com/about-toby-mathis/

Anderson Advisors

https://andersonadvisors.com/

Anderson Advisors Events

https://andersonadvisors.com/all-events/

Anderson Advisors Tax and Asset Protection Workshop

https://andersonadvisors.com/asset-protection/

Anderson Advisors Tax-Wise Workshop

https://anderson

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

Infinity Investing

https://infinityinvesting.com/

Charitable Organizations

https://www.irs.gov/charities-non-profits/charitable-organizations

Entity Formation

https://andersonadvisors.com/entity_formation/

Capital Gains and Losses

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

IRC 469(c)7

https://www.law.cornell.edu/uscode/text/26/469

Wills and Trusts

https://andersonadvisors.com/living_trusts/

Retirement Plans

https://andersonadvisors.com/retirement_plan/

Airbnb

https://www.airbnb.com/

Tax Cuts and Jobs Act (TCJA)

https://www.irs.gov/tax-reform

Schedule E

https://www.irs.gov/forms-pubs/about-schedule-e-form-1040

Cost Segregation Authority

https://costsegauthority.com/

Franchise Tax

https://www.investopedia.com/terms/f/franchise_tax.asp

Form 568

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

Bonus Depreciation

https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act

Depreciation Recapture

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

Step-Up in Basis

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.

Toby Mathis

http://tobymathis.com/about-toby-mathis/

Anderson Advisors

https://andersonadvisors.com/

Anderson Advisors Events

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 In

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

Entity Formation

https://andersonadvisors.com/entity_formation/

Real Estate Professional Requirements

https://www.irs.gov/pub/irs-utl/33-Real Estate Professionals.pdf

Bonus Depreciation

https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act

Depreciation Recapture

https://www.investopedia.com/terms/d/depreciationrecapture.asp

Capital Gains and Losses

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

Retirement Plans

https://andersonadvisors.com/retirement_plan/

Wills and Trusts

https://andersonadvisors.com/living_trusts/

Merrill Lynch

https://www.ml.com/

Edward Jones

https://www.edwardjones.com/us-en

Airbnb

https://www.airbnb.com/

1031 Exchange

https://www.irs.gov/pub/irs-news/fs-08-18.pdf

Cost Segregation Authority

https://costsegauthority.com/

Franchise Tax

https://www.investopedia.com/terms/f/franchise_tax.asp

MileIQ

https://www.mileiq.com/

Qualified Opportunity Fund/Zone

https://www.irs.gov/credits-deductions/businesses/invest-in-a-qualified-opportunity-fund

Step-Up in Basis

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.

SECURE Act

https://www.congress.gov/bill/116th-congress/house-bill/1994/text

IRC Section 280a

https://andersonadvisors.com/section-280a-deduction-explained/

CARES Act

https://home.treasury.gov/policy-issues/coronavirus

PayPal

https://www.paypal.com/

Charitable Organizations

https://www.irs.gov/charities-non-profits/charitable-organizations

WeWork

https://www.wework.com/

Toby Mathis

http://tobymathis.com/about-toby-mathis/

Anderson Advisors

https://andersonadvisors.com/

Anderson Advisors Events

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/

Anderson Advisors on YouTube

https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ

Anderson Advisors on Facebook

https://www.facebook.com/AndersonBusinessAdvisors/

Anderson Advisors Podcast

https://andersonadvisors.com/podcast/

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

Entity Formation

https://andersonadvisors.com/entity_formation/

Self-Employment Tax

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

Step-Up in Basis

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.

Bonus Depreciation

https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act

Depreciation Recapture

https://www.investopedia.com/terms/d/depreciationrecapture.asp

Schedule K-1 (Form 1065)

https://www.irs.gov/forms-pubs/about-schedule-k-1-form-1065

Capital Gains and Losses

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

1031 Exchange

https://www.irs.gov/pub/irs-news/fs-08-18.pdf

Schedule C

https://www.irs.gov/forms-pubs/about-schedule-c-form-1040

Schedule D

https://www.irs.gov/forms-pubs/about-schedule-d-form-1040

Schedule E

https://www.irs.gov/forms-pubs/about-schedule-e-form-1040

Airbnb

https://www.airbnb.com/

Retirement Plans

https://andersonadvisors.com/retirement_plan/

Wills and Trusts

https://andersonadvisors.com/living_trusts/

Section 1244 Stock

https://www.investopedia.com/terms/s/section-1244-stock.asp

Cryptocurrency

https://www.investopedia.com/terms/c/cryptocurrency.asp

Cost Segregation Authority

https://costsegauthority.com/

Qualified Opportunity Fund/Zone

https://www.irs.gov/credits-deductions/businesses/invest-in-a-qualified-opportunity-fund

Charitable Organizations

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

Toby Mathis

http://tobymathis.com/about-toby-mathis/

Anderson Advisors

https://andersonadvisors.com/

Anderson Advisors Events

https://andersonadvisors.com/all-events/

Anderson Advisors Tax and Asset Protection Workshop

https://anders

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/

Fannie Mae

https://www.fanniemae.com/

Freddie Mac

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

Toby Mathis

http://tobymathis.com/

Anderson Advisors

https://andersonadvisors.com/

Tax and Asset Protection Event

http://andersonap.com/

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

Capital Gains and Losses

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

Entity Formation

https://andersonadvisors.com/entity_formation/

Self-Employment Tax

https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes

Bonus Depreciation

https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act

Depreciation Recapture

https://www.investopedia.com/terms/d/depreciationrecapture.asp

1031 Exchange

https://www.irs.gov/pub/irs-news/fs-08-18.pdf

Cryptocurrency

https://www.investopedia.com/terms/c/cryptocurrency.asp

Nexo - Banking on Crypto

https://nexo.io/

Real Estate Professional Requirements

https://www.irs.gov/pub/irs-utl/33-Real Estate Professionals.pdf

Renewable Energy Tax Credits

https://www.energystar.gov/about/federal_tax_credits/renewable_energy_tax_credits

Federal Solar Tax Credit

https://www.energystar.gov/about/federal_tax_credits/renewable_energy_tax_credits

Retirement Plans

https://andersonadvisors.com/retirement_plan/

Wills and Trusts

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

Step-Up in Basis

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.

Section 26 U.S. Code 469

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

Cost Segregation Authority

https://costsegauthority.com/

26 U.S. Code Section 1256

https://www.law.cornell.edu/uscode/text/26/1256

Form 8283

https://www.irs.gov/forms-pubs/about-form-8283

Form 3115

https://www.irs.gov/forms-pubs/about-form-3115

Toby Mathis

http://tobymathis.com/about-toby-mathis/

Anderson Advisors

https://andersonadvisors.com/

Anderson Advisors Events

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://andersonadvi

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:

Tyler Surat on LinkedIn

https://www.linkedin.com/in/tyler-surat-1a17881b

Tyler Surat’s Email

mailto:[email protected]

Tyler Surat’s Phone Number: 719-580-3051

Steel City Solar

https://steelcitysolar.us/

Conservation Easements

https://andersonadvisors.podbean.com/e/conservation-easements/

Internal Revenue Service (IRS) - Dirty Dozen List

https://www.irs.gov/newsroom/dirty-dozen

Mar-a-Lago

https://www.maralagoclub.com/

Residential Energy Credit: Instructions for Form 5695 (2020)

https://www.irs.gov/instructions/i5695

Ducks Unlimited

http://www.ducks.org/

Operation Surf

https://operationsurf.org/

Toby Mathis

http://tobymathis.com/

Anderson Advisors

https://andersonadvisors.com/

Tax and Asset Protection Event

http://andersonap.com/