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

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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/