Don’t be a fool in April! Make sure to get your tax questions answered by Toni Covey and Jeff Webb of Anderson Advisors. Submit your tax question to taxtuesday@andersonadvisors.

Highlights/Topics:

Do wholesalers of land need to pay self-employment tax? If you are wholesaling that is going to be ordinary income, so if it’s reported on your personal tax return, it’s subject to self-employment tax; instead put it in a corporate entity

If I run my real estate business from home, can I deduct a portion of all home expenses (i.e. property tax, utilities, and insurance)? Yes, but there are a few rules that need to be followed such as for a home office deduction and Schedule C

Startup S-Corp has no revenue yet. If I file taxes jointly with my spouse, any concerns? No, but make sure to file a tax return to prove profit motive

What is the best way to pay my children (teenagers) when they work in my business? Payroll? Cash at time of service? Year-ending 1099? To pay your children, consider what they are capable of doing and what they are going to be paid, which can be done via W-2 or 1099

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

Schedule K-1 Form 1065

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

Self-Employment Tax

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

Real Estate Professional Requirements

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

Charitable Organizations

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

Form 1099

https://www.irs.gov/forms-pubs/about-form-1099-misc

26 U.S. Code Section 168K

https://www.law.cornell.edu/uscode/text/26/168

Section 179

https://www.section179.org/

Entity Formation

https://andersonadvisors.com/entity_formation/

Cost Segregation

https://andersonadvisors.com/using-cost-segregation-residential-real-estate/

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

Wills and Trusts

https://andersonadvisors.com/living_trusts/

CARES Act

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

Home Office Deduction

https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction

Tax Cuts and Jobs Act (TCJA)

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

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

Form 1040

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

Form 8829

https://www.irs.gov/forms-pubs/about-form-8829

26 U.S. Code Section 280A

https://www.law.cornell.edu/uscode/text/26/280A

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/

While sitting poolside, Pace Morby discovered the insane power of social media. Now, he has a huge following and landed three major clients by posting before-and-after photographs of his construction work on Instagram.

In this episode, Toby Mathis of Anderson Advisors talks to Pace Morby, who has done more than 7,000 renovations and built more than 150 new homes from the ground up.

Pace owns several businesses, including American Home Offers, which does 150 wholesale transactions per year, and Blue Acorn Development, which does 50 fix-and-flip deals per year. He owns about 130 single-family homes purchased through SubTo and Seller Finance; ConstantClose transaction coordinator business; Title Alliance of Phoenix title company; VAhub virtual assistant business; SubTo creative finance education business; BombCRM software business for new investors; and Driving for Dollars BatchDriven software business. 

Also, Pace has three successful podcasts, Sunday Service, Wholesale Hotline, and Get Creative; a YouTube channel; and negotiating with A&E Television for a six-year contract to do a renovation TV show.

Highlights/Topics:

Creative Finance: Content that double, triples, and quadruples conversion rate

Day in the Life of Pace: Just a guy who wants to help everybody–come along for the ride

Estate Planning: Who do you trust to inherit and manage your properties?

Zero Equity, Loan Pain: Reasons seller sells at a discount or on seller finance

REI: Replace expenses with income

Ways to Wholesale: Direct to seller, referrals, and reviving dead leads

Previous Sellers: Where Pace gets private money to invest in more deals

Pace’s Three Choices: Live on cash flow, reinvest, or pay down lender

Art of Storytelling: Craft and tell a story from experience, not the shame of not knowing

Frequency Illusion and Full Picture: To see it, it has to be relevant for anyone doing it

The Challenge: With no resources, money, or food–get a real estate deal in 30 days

Resources:

Subto

https://www.subto.com/

Pace Morby

https://shor.by/gT0I

Pace Morby on Instagram

https://www.instagram.com/pacemorby/?hl=en

Pace Morby on Facebook

https://www.facebook.com/pacemorby/

Pace Morby on YouTube

https://www.youtube.com/pacemorby

Opendoor

https://www.opendoor.com/

Zillow

https://www.zillow.com/

Offerpad

https://www.offerpad.com/

HomeVestors Franchise

https://homevestorsfranchise.com/

HUD

https://www.hud.gov/

Depreciation

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

1031 Exchange

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

Using Cost Segregation in Residential Real Estate

https://andersonadvisors.com/using-cost-segregation-residential-real-estate/?highlight=cost%20segregation

Charitable Contributions

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

Outkast Mural

https://wishatl.com/pages/thegallery

Estate Planning - Living Trusts

https://andersonadvisors.com/living_trusts/

Greg Boots

https://www.amazon.com/Private-Vault-Gregory-J-Boots-ebook/dp/B00G71IKNA

Brain Teaser: Can you count the Fs in this sentence? Finished Files

https://sharpbrains.com/blog/2006/09/10/brain-exercise-brain-teaser/

Blue Crab Mentality

https://www.developgoodhabits.com/crabs-bucket/

Toby Mathis

https://andersonadvisors.com/tobymathis-2/

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

Are you lucky to be alive and taking care of your taxes? Toby Mathis and Jeff Webb of Anderson Advisors answer your tax questions. Submit your tax question to taxtuesday@andersonadvisors.

Highlights/Topics:

If a non-profit (NP) organization opened a trading account and got options income less than $50,000, does the NP file an income tax return (besides a 990-N)? If you have gross receipts less than $50,000, you only need to file a 990-N (e-Postcard)

Are losses from gambling deductible? If you have gambling losses, they are deductible on Schedule A as long as you have gambling winnings on tax return

I have a rental property that is owned by my self-directed IRA. Does it need to be in an entity or is it safe in the IRA? Individual owner of an IRA is always personally reliable for the acts of the IRA, so put in an LLC or self-directed IRA

How do you claim the solar credit on your personal residence? Use Form 5695 - Residential Energy Credits; put in how much you paid for solar and multiply times percentage credit (26%)

Doing a cost segregation on a condo that was purchased out of my inherited trust to pay off other beneficiaries. Can I take bonus depreciation? Yes, and you can write-it off twice if you inherit it

Can I include my roof replacement for the solar tax credit? You can write-off roof if for dual usage; roof replacement is not part of the solar installation and labor

How is the in-home office deduction being treated since most of us have been working from home? Still a red flag for realtors? If you are an employee, there is no home-office deduction; the home office is only for sole proprietors and if you’re being taxed on Schedule C and receive a 1099, then you can deduct reasonable expenses

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 (Free 1-day virtual event on March 27)

http://aba.link/MarchTAP

Infinity Investing: How The Rich Get Richer And How You Can Do The Same by Toby Mathis

http://aba.link/infinitybook

IRS - Coronavirus (COVID) Tax Relief

https://www.irs.gov/coronavirus-tax-relief-and-economic-impact-payments

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

Charitable Organizations

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

990-N

https://www.irs.gov/charities-non-profits/annual-electronic-filing-requirement-for-small-exempt-organizations-form-990-n-e-postcard

26 U.S. Code Section 168K

https://www.law.cornell.edu/uscode/text/26/168

Section 179

https://www.section179.org/

Retirement Plans

https://andersonadvisors.com/retirement_plan/

Self-Directed IRA (SDIRA)

https://www.investopedia.com/terms/s/self-directed-ira.asp

Entity Formation

https://andersonadvisors.com/entity_formation/

Cost Segregation

https://andersonadvisors.com/using-cost-segregation-residential-real-estate/

Wills and Trusts

https://andersonadvisors.com/living_trusts/

Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics

https://www.energy.gov/sites/prod/files/2020/01/f70/Guide to Federal Tax Credit for Residential Solar PV.pdf

Real Estate Professional Requirements

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

Home Office Deduction

https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction

Section 1245

https://www.investopedia.com/terms/s/section1245.asp

Section 1250

https://www.investopedia.com/terms/u/unrecaptured-1250-gain.asp

Capital Gains and Losses

https://www.irs.gov/newsroom/capital-gains-and-losses-10-helpful-facts-to-know-0

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.&tex

When the COVID-19 pandemic hit, the Canada/U.S. border closed, putting great stress on businesses and families on both sides who depend on international traffic.

In this episode, Toby Mathis of Anderson Advisors talks to Lars Jacobson, a businessman and entrepreneur who has owned and operated his own businesses for more than 20 years.

Lars and his family left southern California and moved to the panhandle of Idaho. He expected to semi-retire, buy 100 acres of land, and become a farmer. However, plans changed. In June 2019, Lars and his family acquired the “Little Town of Porthill, Idaho” that includes a convenience store, gas station, restaurant, and package depot on the Canadian border.

Highlights/Topics:

Picking up Packages: People don't want to ship packages from the United States to Canada because it's so expensive to get them across the border.

Starting a Business: After living in southern California, Lars shared things by learning, travelling, and teaching entrepreneurialism.

Forget about Retiring: After a year or so, God told Lars to buy a town. Wait, what? Pray about it and make it a family adventure.

God is Good: Business was fantastic and awesome, but when the coronavirus hit, the border closed, and God gave Lars a challenge. Whatever happens, persevere.

How much longer until the border opens? Remain hopeful and keep calling because nobody seems to have a clue.

What about the Americans? The closest town nearby has a couple of supermarkets, gas stations, and fastfood, but is about a half-hour away and costs much more money.

Got Money? The Economic Injury Disaster Loans (EIDLs) and Paycheck Protection Program (PPP) was supposed to be given to people and businesses that needed it.

Was it enough? No, Lars’ business is losing more than $10,000 monthly and still cutting back. All the employees were laid off except a maintenance person. Everybody’s gone.

Financial and Emotional Impact: Consider every option and do everything possible after losing what you worked so hard for all your life. Get yourself and your assets and liabilities structured, organized, and prepared.

Resources:

Jake’s Landing USA

https://jakeslandingusa.com/

GoFundMe - Save Jake’s Landing

https://www.gofundme.com/f/save-jake039s-landing?utm_medium=copy_link&utm_source=customer&utm_campaign=p_lico+share-sheet

Economic Injury Disaster Loan (EIDL)

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/covid-19-economic-injury-disaster-loans

Paycheck Protection Program (PPP)

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program

AllSearch

https://www.allsearchinc.com/

Toby Mathis

https://andersonadvisors.com/tobymathis-2/

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

Don’t be embarrassed or feel like an idiot when it comes to taxes. You’re not alone. A little knowledge goes a long way. Toby Mathis and Jeff Webb of Anderson Advisors answer your tax questions. Submit your tax question to taxtuesday@andersonadvisors.

Highlights/Topics:

What are the requirements for being a real estate professional, and what are the benefits? Either you or your spouse must have 750 hours and greater than 50 percent of personal services in real estate, and both spouses must materially participate per property unless the aggregation election is selected; and the benefits are that you get to write off losses that you typically wouldn’t be able to write off as a landlord

I have a fully depreciated rental in a high-tax state. Can I do a 1031 exchange and buy some farmland in a different state and not pay taxes to the high-tax state? Yes, temporarily, unless or until you sell the farmland property

I have an S-Corp business. I hired my 12-year-old son to work and he gets a W-2 with an annual income of about $1,400. Does he need to file a tax return? If he does not file a tax return, will that increase my chances of getting an audit for my business? If your son makes less than the standard deduction, he does not need to file a tax return, and your business is unlikely to be audited

Can I write off my monthly car payment if it’s financed and in my corporation’s name? Write off the expenses and interest, but depreciate the car if in the corporation's name; you may have more income from that vehicle than the vehicle is worth–track and reimburse your mileage

I have a rental property that is owned by a self-directed IRA. Does it need to be in an entity or is it safe in the IRA? Having the property in an LLC within the IRA is preferred, especially if there are other assets in the IRA

On a “subject to” deal, who pays capital gains and who pays depreciation recapture when the owner grants the deed to the “subject to” buyer? Seller takes care of their own capital gains and depreciation recapture; buyer resets basis and starts depreciation

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 (Free 1-day virtual event on March 13)

https://andersonadvisors.com/

Tax Toolbox

https://andersonadvisors.com/taxtoolbox/

Capital Gains and Losses

https://www.irs.gov/newsroom/capital-gains-and-losses-10-helpful-facts-to-know-0

Entity Formation

https://andersonadvisors.com/entity_formation/

Real Estate Professional Requirements

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

26 U.S. Code 469(c)(7)

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

1031 Exchange

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

MileIQ

https://www.mileiq.com/

Retirement Plans

https://andersonadvisors.com/retirement_plan/

Self-Directed IRA (SDIRA)

https://www.investopedia.com/terms/s/self-directed-ira.asp

Opportunity Zones

https://www.irs.gov/credits-deductions/opportunity-zones-frequently-asked-questions

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.

Charitable Organizations

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

Form 1120

https://www.irs.gov/forms-pubs/about-form-1120

Cost Segregation

https://andersonadvisors.com/using-cost-segregation-residential-real-estate/

Schedule K-1 Form 1065

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

FHA Loan Requirements

https://www.fha.com/fha_loan_requirements

Wills and Trusts

https://andersonadviso

It’s never a good idea to gift things to somebody. Instead, make them work for it. Take care of yourself, your family, and your taxes. Toby Mathis and Jeff Webb of Anderson Advisors answer your tax questions. Submit your tax question to taxtuesday@andersonadvisors.

Highlights/Topics:

How do I gift my son a fully depreciated rental property without causing a tax consequence? Typically, gifts do not cause tax consequences; however, it is not always wise to do so

We are considering purchasing a vehicle, which will be used about probably 75% of the time for our real estate business. Should we purchase it in the LLC (an S Corp) or personally? What are the advantages and disadvantages of both? Consider liability, tax consequences, cost factor, and value of vehicle; unless it’s a maintenance or utility vehicle, put it in your personal name and get reimbursed for the mileage because commercial insurance is much more expensive

Excluding the 1031 Exchange, is there any way to legally avoid paying depreciation recapture tax when you sell a rental property? Don’t have a gain on your sale

I have several vendors refusing to give me their W-9, and I have to threaten to withhold payments. When should I collect and not collect W-9? Vendors need to complete the W-9, but you are not required to issue them 1099s—although you should anyway

Can we sell our home on an installment sale to an Intentionally Defective Grantor Trust (IDGT) and then lease it back? And at the same time, have the depreciation and other costs flow to our return because of IDGT taxation rules? IDGT is an irrevocable trust that is not actually irrevocable because of adding ‘Grantor’ wording to make it intentionally defective for tax purposes

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:

Tax and Asset Protection Workshop (Free 1-Day Virtual Event on Feb. 27)

http://aba.link/TAP227

Wills and Trusts

https://andersonadvisors.com/living_trusts/

MileIQ

https://www.mileiq.com/

Real Estate Professional Requirements

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

Doing Business As (DBA)

https://www.entrepreneur.com/encyclopedia/doing-business-as-dba

Entity Formation

https://andersonadvisors.com/entity_formation/

1031 Exchange

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

Form W-9

https://www.irs.gov/forms-pubs/about-form-w-9

Intentionally Defective Grantor Trust (IDGT)

https://www.investopedia.com/terms/i/igdt.asp

Section 121 Exclusion

https://www.irs.gov/taxtopics/tc701

FHA Loan Requirements

https://www.fha.com/fha_loan_requirements

Capital Gains and Losses

https://www.irs.gov/newsroom/capital-gains-and-losses-10-helpful-facts-to-know-0

Form 1099

https://www.irs.gov/forms-pubs/about-form-1099-misc

Retirement Plans

https://andersonadvisors.com/retirement_plan/

Self-Directed IRA (SDIRA)

https://www.investopedia.com/terms/s/self-directed-ira.asp

Unrelated Business Income Tax (UBIT)

https://www.irs.gov/charities-non-profits/unrelated-business-income-tax

Conservation Easements

https://www.conservationeasement.us/what-is-a-conservation-easement/

Solar Investment Tax Credit (ITC)https://www.seia.org/initiatives/solar-investment-tax-credit-itc#:~:text=Quick%20facts,large%2Dscale%20utility%20solar%20farms.

Taxpayer Certainty and Disaster Tax Relief Act of 2020

https://www.finance.senate.gov/download/section-by-section_-taxpayer-certainty-and-disaster-tax-relief-act-of-2020

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.

What’s the difference between 831(b) and 401(k) planners? Not much, just a different tax code. Both allow clients to put away profits today to weather tomorrow’s storms.

In this episode, Toby Mathis of Anderson Advisors talks about captive insurance with Van Carlson, CEO and founder of Strategic Risk Alternatives (SRA).

Van has more than 25 years of experience within the risk management industry. He began his career with Farmers Insurance Group as an agent. Now, he focuses SRA on risk management primarily and facilitates SRA to assess and solve for clients’ risks. Van’s primary goal is to continue the upward growth of SRA and develop new products to bring to market.

Highlights/Topics:

S. Tax Code and Americans: The tax code is used for tax planning, but should be used for its original purpose to be a risk mitigation tool.

Umbrella Policy and Casualty Insurance: You find out how good of a policy you have when you need it. An umbrella policy isn’t over the top, but it doesn’t cover everything.

COVID-19: Read the fine print of policies and seek advice from agents. Pandemic coverages are not considered a coverage under the Business Interruption Endorsement.

Captive Insurance: Set up your own insurance company—you own it and you're paying premiums you deduct. The insurance company doesn't have to pay tax on premiums.

Who is it for and what type of risk could it insure? Risk is not a problem. Business owners that are advanced in their thought processes and more forward-thinking recognize and understand asset protection and the risk it takes.

Actual Physical Loss: Business Interruption Policy pays for your employees and building loans, unless it doesn't have direct physical loss.

Right to Defend on Liability Policies: Even if there's no coverage but you get sued, general liability policies cover the legal defense. Lawsuits are going to be the next big thing when people, guests, and patients, not employees, contract COVID.

Rules and Regulations: Two tax codes allow you to defer income out of your business. 401(k) for the retirement of yourself and employees, and 831(b) to build up reserves, take profits today and in the future.

Four-Part Test: Do transfer risk, risk distribution, insure only things that can happen by accidents (not business risks), and act in a principal’s insurance to elect under 831(b).

Gross Revenue: Cap it because if your gross revenue goes up, your premium increases. The more gross revenue you have, the more exposure you have for claims.

Cancel Culture: Detrimental to businesses; have cash on hand because banks aren't going to help you out all of a sudden.

Declare a Dividend: Take it out as a long-term dividend rate and shut it down, pull out capital gains, or put it to work.

Investment Agreement: What can be done with the reserves? There are rules, but for the most part, clients just leave it to the bank and go forward with the risk.

Brand Damage: Dependent on third-party vendors, you can’t go and unlock your door, open it, and open for business. Get there, reach in, and obtain client information.

Resources:

Strategic Risk Alternatives (SRA)

https://strategicriskalternatives.com/

SRA’s Email

mailto:[email protected]

831(b)

https://www.captive.com/articles/the-basics-of-the-831(b)-election-for-captives

401(k)

https://www.irs.gov/retirement-plans/401k-plans

Business Interruption Insurance Policy

https://www.investopedia.com/terms/b/business-interruption-insurance.asp

Errors and Omissions (E&O)

https://www.investopedia.com/terms/e/errors-omissions-insurance.asp

Health Insurance Portability and Accountability Act (HIPAA)

https://www.hhs.gov/hipaa/for-professionals/privacy/laws-regulations/index.html

Paycheck Protection Program (PPP)

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program

Toby Mathis

https://andersonadvisors.com/tobymathis-2/

Anderson Advisors

https://andersonadvisors.com/

Anderson Advisors Tax and Asset Protection Event

https://

Tax season is near. Toby Mathis and Jeff Webb of Anderson Advisors answer your bookkeeping, real estate, and other tax-related questions. Submit your tax question to taxtuesday@andersonadvisors.

Highlights/Topics:

What happens when you donate a business vehicle that you used Section 179 on in 2019 and 2020 and then you donate it to a non-profit organization in 2021? If you take Section 179 before five years of ownership, you will need to recapture the gain

I have a rental in Phoenix, Arizona, that I am installing solar on. I’ve seen that I would qualify for the 26% federal tax credit as well as take the depreciation for the remaining amount that is being financed. Is this accurate? You can take a 26% credit for personal solar, but a deduction lowers your income; for business purposes, you can take 26% plus depreciation

If I invested in an Opportunity Zone last year with capital gains, I understand the taxes are deferred until 2026. Are those taxed at 2020 rates or 2026 tax rates? The 2026 rates because the income, not the taxes on that income, is being deferred until 2026

I’m selling a house that I inherited. I am on Social Security disability. Will the sale of the house affect my status? A sale of a home or any property has no affect on your Social Security; only early retirement income impacts your disability status

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:

Tax and Asset Protection Workshop (Free 1-Day Virtual Event on Feb. 27)

http://aba.link/TAP227

Section 179

https://www.section179.org/section_179_deduction/

Charitable Organizations

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

Kars4Kids

https://www.kars4kids.org/

Form 940

https://www.irs.gov/forms-pubs/about-form-940

Form 941

https://www.irs.gov/forms-pubs/about-form-941

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

Solar Investment Tax Credit (ITC)

https://www.seia.org/initiatives/solar-investment-tax-credit-itc#:~:text=Quick%20facts,large%2Dscale%20utility%20solar%20farms.

Section 38

https://www.law.cornell.edu/uscode/text/26/38

Section 48

https://www.law.cornell.edu/uscode/text/26/48

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

Opportunity Zones

https://www.irs.gov/credits-deductions/opportunity-zones-frequently-asked-questions

Wills and Trusts

https://andersonadvisors.com/living_trusts/

Homestead Exemption

https://andersonadvisors.com/what-is-a-homestead-exemption/?highlight=homestead%20exclusion

CARES Act

https://www.congress.gov/116/bills/hr748/BILLS-116hr748enr.pdf

Retirement Plans

https://andersonadvisors.com/retirement_plan/

Real Estate Professional Requirements

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

1031 Exchange

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

Form 1099

https://www.irs.gov/forms-pubs/about-form-1099-misc

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

Entity Formation

https://andersonadvisors.com/entity_formation/

Section 754 Election

https://tax.thomsonreuters.com/blog/consequences-of-a-section-754-election/

MileIQ

https://www.mileiq.com/

Cost Segregation

https://www.irs.gov/businesses/cost-segregation-audit-techniques-guide-chapter-1-introduction

Tax Cuts and Jobs Act (TCJA)

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

Section 121 Exclusion

https://www.irs.gov/taxtopics/tc701

Toby Mathis

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

COVID-19 has created massive changes in the commercial working environment. The pandemic has taken a bite out of commercial spaces, retail is getting decimated, and people are starting to reconsider office space. According to the IDC, 1.8 billion people in the workforce worldwide are working permanently two or more days a week outside their primary office space.

In this episode, Toby Mathis of Anderson Advisors talks to Frank Cottle, founder of Alliance, which has about 1,200 facilities representing 30-million square feet of space in 54 countries.

Frank is one of the largest players in the virtual office space and has a unique global management perspective. He has been in the service office industry and flexible workspace sector for 40 years.

Highlights/Topics:

Remote Work:

One day a week equals a 20% vacancy factor in commercial office space

Two days a week, it’s 40%

Today, most people now work three-and-a-half days a week at home

Corporate America: Office space isn’t needed; policies to work wherever you want

Who wants to commute? Nobody, especially when told not to take public transportation

Real Estate Cyclicality: Good and bad markets sometimes equal vacancy or waiting list

Repurpose Space: If not used for original intent, turn it into residential, retail, other uses

New Hybrid Office: Work from home, near home, or electronically commute to office

Property vs. Technology: Property companies require capital, don’t scale on same basis

Membership Care/Pass: Allows access to office facilities worldwide anytime, anywhere

Flexible vs. Fixed Office Space: Seek solutions to get away from inefficient fixed cost

Conference Rooms: Use for Zoom, Teams, Webex, GoToMeeting—it’s all ubiquitous

Constant Change: With every new lease and tenant, how can you make improvements?

Unreimbursed Business: Provide complete remote workspace technology or access to it

Dual Hybrid Model: When the government stops making rules, we’re back to normal

Virtual Office vs. Virtual Address: What’s the difference? Pay as-needed or 24/7

Office Space Models:

Classic: People, place, and technology provide business growth

Incubator: Same thing but provides mentoring

Accelerator: Does what an incubator, but provides access to capital

Resources:

Alliance Virtual Offices

https://alliancevirtualoffices.grsm.io/AndersonPodcast 

Allwork.space

https://allwork.space/

IDC

https://www.idc.com/

WeWork

https://www.wework.com/

International Workplace Group (IWG)

https://www.iwgplc.com/

Regus

https://www.regus.com/

Spaces

https://www.spacesworks.com/

UPFLEX

https://www.upflex.com/

Deskpass

https://www.deskpass.com/

Collo

https://www.upwork.com/l/dz/freelancers-in-collo/

Alliance Access

https://www.swift.com/our-solutions/interfaces-and-integration/alliance-access

Tony Hsieh’s American Tragedy: The Self-Destructive Last Months Of The Zappos Visionary

https://www.youtube.com/watch?v=lBZt_wngSQA

Zoom Rooms

https://zoom.us/zoomrooms

Microsoft Teams

https://www.microsoft.com/en-us/microsoft-teams/log-in

Cisco Webex

https://www.webex.com/

GoToMeeting

https://www.gotomeeting.com/

Cube

https://cube-usa.com/

Flexi Zone

https://www.nokia.com/networks/products/flexi-zone/

BizSpace

https://www.bizspace.co.uk/

Novel Coworking

https://novelcoworking.com/

Clean Air Act

https://www.epa.gov/clean-air-act-overview

Schedule A

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

Office Evolution

https://www.officeevolution.com/

Venture X

https://venturex.com/

All Good Works Foundation – Office Leasing Meets Nonprofit

https://andersonadvisors.com/podcast/all-good-works-foundation-office-leasing-meets-nonprofit/

Toby Mathis

https://andersonadvisors.com/tobymathis-2/

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

Practicing social distancing to avoid getting sick and livin’ la vida loca to experience the calm before the storm of tax season, Toby Mathis and Jeff Webb of Anderson Advisors answer your tax questions. Do you have a tax question? Submit it to taxtuesday@andersonadvisors.

Highlights/Topics:

How can you accelerate a large capital loss carryforward instead of just offsetting from capital gains every year? To get rid of large capital loss carryforwards, there must be capital gains to offset them

When would it make sense for stock/options traders to do the mark-to-market election? If you’re a trader, you should do 750+ trades per year and expect no time off or W-2 income; you need to do the mark-to-market election sooner than later (by April 15) and if you’re going to lose lots of money

Is there any additional tax benefit besides the federal solar tax credit when you install the solar on a rental property? Yes, the current tax credit is 26 percent for 2020 through 2022, and 87 percent of the solar installation cost can be depreciated

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 on Jan. 30, 2021

http://aba.link/TAP130

Real Estate Professional Requirements

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

Capital Gains and Losses

https://www.irs.gov/newsroom/capital-gains-and-losses-10-helpful-facts-to-know-0

Schedule K-1

https://www.irs.gov/pub/irs-pdf/f1065sk1.pdf

Charitable Organizations

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

MileIQ

https://www.mileiq.com/

CARES Act

https://www.congress.gov/116/bills/hr748/BILLS-116hr748enr.pdf

Small Business Administration (SBA)

https://www.sba.gov/

Paycheck Protection Program (PPP)

https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp

Economic Injury Disaster Loan (EIDL)

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loans

Home Office Deduction

https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction

Solar Investment Tax Credit (ITC)

https://www.seia.org/initiatives/solar-investment-tax-credit-itc#:~:text=Quick%20facts,large%2Dscale%20utility%20solar%20farms.

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

Mark-to-Market Election

https://www.irs.gov/taxtopics/tc429

Tax Cuts and Jobs Act (TCJA)

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

Form 1065

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

Form 2553

https://www.irs.gov/forms-pubs/about-form-2553

Form 8332

https://www.irs.gov/forms-pubs/about-form-8332

1031 Exchange

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

Cost Segregation

https://www.irs.gov/businesses/cost-segregation-audit-techniques-guide-chapter-1-introduction

State and Local Tax (SALT) Deduction

https://taxfoundation.org/tax-basics/salt-deduction/

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/