With all the lack of tax knowledge going around and politicians being pushed by their parties, get your tax questions answered by Toby Mathis and Jeff Webb of Anderson Advisors. Submit your tax question to taxtuesday@andersonadvisors.
Highlights/Topics:
When you have a PLLC, what do you put on a personal or business credit card? If you have a business credit card that’s great, but a lot of the credit card companies are not willing to issue credit cards to new small businesses; use a personal credit card and make sure to separate personal and business expenses
How do you claim the solar credit on your personal residence? Use Form 5695
Should I file a return with my kids as dependents or should they file their own return if they are paid from the family business? If they are dependents and not supporting themselves, they are still dependents on your return; however, the children can file their own return as well and claim the standard deduction up to the amount of their earned income plus $300
I have a rental property in California. When I go there to work on it, can I use per diem plus mileage rather than actual receipts for housing and meals? Depends if you are self-employed or you have the rentals owned personally, you cannot use the per diem for housing but can use it for meals
I haven’t done taxes for 2020 and I’d like to know how to write-off bills for my emotional support animal. Can that be done with business taxes? Maybe, depends on the IRS’ primarily for and but for tests
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Resources:
Infinity Investing: How The Rich Get Richer And How You Can Do The Same by Toby Mathis
http://aba.link/infinitybook
Anderson Advisors Tax and Asset Protection Workshop (April 24)
https://andersonadvisors.com/real-estate-asset-protection-workshop-training/
Charitable Organizations
https://www.irs.gov/charities-non-profits/charitable-organizations
Capital Gains and Losses
https://www.irs.gov/newsroom/capital-gains-and-losses-10-helpful-facts-to-know-0
Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics
https://www.energy.gov/sites/prod/files/2020/01/f70/Guide to Federal Tax Credit for Residential Solar PV.pdf
Form 5695 - Residential Energy Credits
https://www.irs.gov/forms-pubs/about-form-5695
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
MileIQ
https://www.mileiq.com/
Self-Employment Tax
https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes
Home Office Deduction
https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction
Old-Age, Survivors, and Disability Insurance (OASDI) Program
https://www.ssa.gov/policy/docs/progdesc/sspus/oasdi.pdf
Bonus Depreciation
https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act
Cost Segregation
https://andersonadvisors.com/using-cost-segregation-residential-real-estate/
Depreciation Recapture
https://www.investopedia.com/terms/d/depreciationrecapture.asp
Section 162 - Trade or Business Expenses
https://www.irs.gov/pub/irs-drop/rr-99-7.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.
26 U.S. Code Section 168K
https://www.law.cornell.edu/uscode/text/26/168
Kiddie Tax
https://www.irs.gov/taxtopics/tc553
Americans with Disabilities Act (ADA)
https://www.ada.gov/
HIPAA
https://www.hhs.gov/hipaa/index.html
Small Businesses Affected by Border Closures
https://andersonadvisors.com/podcast/small-bus