Are you ready for the debates and upcoming election? In the meantime, Toby Mathis and Jeff Webb of Anderson Advisors answer your tax questions about Donald Trump’s and Joe Biden’s tax returns. Maybe you, too, can become a multimillionaire. William H. Rehnquist once stated, “There is nothing wrong with a strategy to avoid the payment of taxes. The Internal Revenue Code doesn’t prevent that.” Do you have a tax question? Submit it to taxtuesday@andersonadvisors.

Highlights/Topics:

Can you withdraw some earnings from a Roth IRA, if you held it for five years or more and you are not older than 59.5 years old? Yes, you can take out earnings without being penalized or forced with required distributions

If I live in one state and use my home office for a tax deduction, but have rented an apartment in another state for business purposes, can I use the apartment and utilities for a business deduction? Apartment in other state probably needs to be rented by entity or business; don’t do a home office, but an administrative office in your home

What are the laws for purchasing a vehicle for business to use as a deduction? If business buys vehicle, track mileage and don’t fall below 50%; if you buy it, track miles and get reimbursement (55 to 58 cents per mile)

Is there a way to get around being taxed from the gains/profit from doing flips? Find other expenses to run against that income

If you rent out a condo and take depreciation on it, and then the following year, decide to live in the condo yourself, what do you do about the depreciation? Depreciation stays where it’s at until you decide to sell the property

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:

Infinity Investing Workshop

http://aba.link/iiw

Tax-Wise by Toby Mathis

https://andersonadvisors.com/tax-wise/

Donald Trump’s Taxes (New York Times)

https://www.nytimes.com/interactive/2020/09/27/us/donald-trump-taxes.html

Mar-a-Lago

https://www.maralagoclub.com/

William H. Rehnquist

https://www.oyez.org/justices/william_h_rehnquist

26 U.S. Code Section 7213

https://www.law.cornell.edu/uscode/text/26/7213A

26 U.S. Code Section 469(c)(7)

https://www.law.cornell.edu/uscode/text/26/469

26 U.S. Code Section 480A

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

26 U.S. Code Section 280A

https://www.law.cornell.edu/uscode/text/26/280A

26 U.S. Code Section 121

http://www.irs.gov/pub/irs-drop/rr-14-02.pdf

Wills and Trusts

https://andersonadvisors.com/living_trusts/

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

Tax Cuts and Jobs Act (TCJA)

https://www.irs.gov/tax-reform

Capital Gains Exclusion/Section 121

https://www.irs.gov/taxtopics/tc701

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

MileIQ

https://www.mileiq.com/

Real Estate Professional Requirements

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

Credits and Deductions

https://www.irs.gov/credits-deductions-for-individuals

Charitable Organizations

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

CARES Act

https://www.sbc.senate.gov/public/index.cfm/guide-to-the-cares-act

Healthcare Reform (Affordable Care Act)

https://www.healthcare.gov/

Schedule A

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

Schedule E

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

Schedule K-1/Form 1065

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

Self-Employment Tax

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

Form W-2

https://www.irs.gov/forms-pubs/about-form-w-2

1031 Exchange

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

Toby Mathis

http://tobymathis.