Happy Thanksgiving! What are you thankful for? Toby Mathis and Jeff Webb of Anderson Advisors talk about how to use LLCs for your wholesale real estate, retirement plans, and other tax questions. They relate seasoning and cooking the turkey as well as words of wisdom from Bobby Boucher in Waterboy to tax topics. Submit your tax question to taxtuesday@andersonadvisors.

Highlights/Topics:

Roth Account: I’m not 59 ½ yet. I know I can withdraw my contribution/conversion amounts without paying taxes, but will I be penalized? If you withdraw your contributions from a Roth IRA, there’s no taxes or penalties, but if you take out earnings from a Roth IRA held for less than 5 years and you’re under 59 ½, you’re subject to taxes, penalties

Wholesaling: Should that be an LLC by itself? One LLC per deal or just use the same one? Depends on whether your state has a series LLC because it’s easy to create a series but it’s difficult to open bank accounts for them

I’m thinking about delivering packages for a delivery service to supplement my income. My current car is paid off. Should I buy or lease a vehicle for business use? Should my earnings fall under the protection of an LLC and Employer Identification Number (EIN)? Do not lease a vehicle for something like this because you will quickly exceed the mileage limitations, but do set up an active entity (S/C Corp, LLC) for liability protection

If I purchased a course or educational support not in my LLC’s name, can I still deduct it for my business? Yes, if it is directly related to your business, but get reimbursed

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Resources:

Infinity Investing

https://infinityinvesting.com/

Retirement Plans

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

Entity Formation

https://andersonadvisors.com/entity-formation/

Capital Gains and Losses

https://www.irs.gov/taxtopics/tc409

Toby Mathis

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Anderson Advisors

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