Should you use your personal name as a beneficiary of a Lady Bird Deed or should you set up a new entity to receive ownership?

In the first Tax Tuesday episode of 2022, Toby Mathis and Jeff Webb of Anderson Advisors discuss how to set up a beneficiary deed and answer additional tax-related questions.

Submit your tax question to taxtuesday@andersonadvisors.

Highlights/Topics:

Are the profits from my real estate syndication investment considered passive income? It’s highly likely that your syndication income is passive in nature for two reasons - you’re probably a limited partner and it’s real estate, which are both passive activities.

Should I use my personal name as a beneficiary of a Lady Bird Deed or should I set up a new entity to receive ownership? Medicare can take a real estate asset to pay for care, but a Lady Bird Deed is an enhanced life estate allowed in five states for a beneficiary to protect their home as an inheritance.

How does a C Corp pay me (the homeowner) for the use of part of my house as office space? Don’t report it on your 1040. It’s a tax-free reimbursement. However, if you rent your home to the corporation, then it is taxable income.

Can we still rollover a regular IRA to Roth? For now, you can still do a Roth conversion.

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Resources:

Lady Bird Deed

https://www.medicaidplanningassistance.org/lady-bird-deeds/

Business Structures

https://www.irs.gov/businesses/small-businesses-self-employed/business-structures

Coronavirus Aid, Relief, and Economic Security (CARES) Act

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

Retirement Plans

https://andersonadvisors.com/retirement-plan/

Toby Mathis

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

Anderson Advisors

https://andersonadvisors.com/

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