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

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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/

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