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