It’s the first Tax Tuesday of the year. This time, you’re not only listening but watching 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:

If we received PPP in our business, then get approved for forgiveness, will we still be able to deduct the rents and utilities we applied for the PPP to? Any loan forgiveness is not taxable, anything paid for with PPP is fully deductible, and any PPP loan forgiveness gives you basis

I recently read that Elon Musk is moving his private foundation from California to Texas. Is there a tax advantage for moving a private foundation or a nonprofit from California to Texas? No tax advantage, but both states highly regulate nonprofits

Do you have to be married to create an entity that allows you to hire your children? No, as long as they are your children

How long after the sale of a primary residence do you have to apply the proceeds to a new home purchase to avoid taxation? No law ceased to exist, refer to Section 121 Exclusion and 1031 Exchange

I’m 70 years old and haven’t made a deposit to my Roth in 10 years. Am I free to withdraw all my account without penalty, or am I limited by cost basis? Once you have the Roth for at least five years and over 59.5 years old; you can take it all out, but then you have no protected active income stream

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Resources:

Post-Pandemic Real Estate Investing Class with Toby Mathis and Aaron Addams

http://aba.link/REI2021

Paycheck Protection Program (PPP)

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

Charitable Organizations

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

California State Board of Equalization - Proposition 19

https://www.boe.ca.gov/prop19/

California Proposition 13

https://www.californiataxdata.com/pdf/Prop13.pdf

Community Property with Right of Survivorship

https://lslcpas.com/real-estate-ownership-community-property-right-survivorship-better-joint-tenancy/

Kiddie Tax

https://www.irs.gov/taxtopics/tc553

Individual Retirement Arrangements (IRAs)

https://www.irs.gov/retirement-plans/individual-retirement-arrangements-iras

Traditional and Roth IRAs

https://www.irs.gov/retirement-plans/traditional-and-roth-iras

Home Office Deduction

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

MileIQ

https://www.mileiq.com/

CARES Act

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

Real Estate Professional Requirements

https://www.irs.gov/pub/irs-utl/33-Real%20Estate%20Professionals.pdf

Form 1099

https://www.irs.gov/pub/irs-pdf/i1099gi.pdf

Wills and Trusts

https://andersonadvisors.com/living_trusts/

Small Business Administration (SBA)

https://www.sba.gov/

Labor Laws

https://www.dol.gov/general/aboutdol/majorlaws#:~:text=The%20Fair%20Labor%20Standards%20Act,most%20private%20and%20public%20employment.&text=It%20requires%20employers%20to%20pay,the%20regular%20rate%20of%20pay.

Self-Employment Tax

https://www.irs.gov/taxtopics/tc554

Capital Gains and Losses

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

Hobby Loss Rule

https://www.irs.gov/newsroom/hobby-or-business-irs-offers-tips-to-decide

26 U.S. Code Section 121 Exclusion

https://www.law.cornell.edu/uscode/text/26/121

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

Opportunity Zones

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

1244 Election

https://www.law.cornell.edu/uscode/text/26/1244

Economic Injury Disaster Loan (EIDL)

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

Old-Age, Sur