Do you want to be the next Elon Musk of Tesla Motors? Do you have stocks that you want to buy, sell, or borrow against? Find out first if they have tax benefits or consequences by asking Toby Mathis and Jeff Webb of Anderson Advisors your tax questions. Submit your tax question to taxtuesday@andersonadvisors.

Highlights/Topics:

Can we defer capital gains tax or spread it across multiple years? Use the 1031 exchange with real estate only to defer the capital gains; or the qualified opportunity fund/zone for any other capital gains installments over multiple years

Can I do a 1031 exchange from a single house rental into a percentage group rental? Or to a partial interest in multiple rentals? Only if you are a tenant in common (TIC), but not in a partnership

How does an LLC that’s a disregarded entity differ from a living trust in terms of estate planning? What if you have both? How do I use both in estate planning? An LLC is for liability protection, so the recommendation is to have both - LLC owned by the living trust

Are the gains in a traditional self-directed IRA taxed the same as the rest of the money in the SDIRA when doing a conversion to a Roth SDIRA? There is no such thing as capital gains in IRAs

For all questions/answers discussed, sign up to be a Platinum member to view the replay!

Go to iTunes to leave a review of the Tax Tuesday podcast.

Resources:

Anderson Advisors Tax and Asset Protection Workshop (July 17)

http://aba.link/TAP17

Infinity Investing: How The Rich Get Richer And How You Can Do The Same by Toby Mathis

http://aba.link/infinitybook

Entity Formation

https://andersonadvisors.com/entity_formation/

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) Tax

https://www.ssa.gov/policy/docs/progdesc/sspus/oasdi.pdf

Real Estate Professional Requirements

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

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

Schedule K-1 (Form 1065)

https://www.irs.gov/forms-pubs/about-schedule-k-1-form-1065

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

1031 Exchange

https://www.irs.gov/pub/irs-news/fs-08-18.pdf

Schedule C

https://www.irs.gov/forms-pubs/about-schedule-c-form-1040

Schedule D

https://www.irs.gov/forms-pubs/about-schedule-d-form-1040

Schedule E

https://www.irs.gov/forms-pubs/about-schedule-e-form-1040

Airbnb

https://www.airbnb.com/

Retirement Plans

https://andersonadvisors.com/retirement_plan/

Wills and Trusts

https://andersonadvisors.com/living_trusts/

Section 1244 Stock

https://www.investopedia.com/terms/s/section-1244-stock.asp

Cryptocurrency

https://www.investopedia.com/terms/c/cryptocurrency.asp

Cost Segregation Authority

https://costsegauthority.com/

Qualified Opportunity Fund/Zone

https://www.irs.gov/credits-deductions/businesses/invest-in-a-qualified-opportunity-fund

Charitable Organizations

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

Paycheck Protection Program (PPP)

https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program

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://anders