Anderson Business Advisors Podcast

In this episode of Tax Tuesday, Anderson Advisors' Eliot Thomas, Esq., and Barley Bowler, CPA, answer listener questions covering a wide range of tax strategies for real estate investors, business owners, and individuals looking to minimize their tax liabilities. They discuss tax considerations for capital gains from options trading and dividend income, along with practical ways real estate investors can track their hours to qualify for valuable tax deductions. Eliot and Barley also explore whether reporting a business loss creates an opportunity for a Roth IRA conversion, how to determine the fair market value of vacant land before selling, and strategies for managing potential capital gains taxes. Other topics include the tax benefits of oil and gas investments, deductions associated with unsuccessful drilling projects, important tax considerations when incorporating a small business, and whether an RV or camper used for business travel and remote work can qualify for tax deductions. Tune in for valuable insights on these topics and more! Submit your tax question to [email protected] Highlights/Topics: 9:04 – What are your best tax recommendations for handling capital gains from options trading and dividend income? – Exploring tax strategies for managing investment income and understanding the different tax treatments of trading gains and dividends. 19:57 – What is the most efficient way to track my hours as a full-time real estate investor to be eligible for write-offs? – Discussing the importance of documenting hours, maintaining accurate records, and meeting the requirements for real estate professional tax treatment. 26:29 – As a small business owner expecting to report a loss this year, would that present a good opportunity to initiate a Roth conversion before year-end? – Examining how business losses may affect taxable income and potentially create opportunities for tax-efficient Roth conversions. 32:09 – My neighbor has made me an offer on the vacant lot I own in our D.C. neighborhood. How do I determine its value, and what is the best tax strategy for selling it? – Exploring property valuation methods and important tax considerations when selling vacant land. 40:42 – I would like to know about oil and gas investments. What are the tax benefits? – Reviewing potential tax advantages associated with oil and gas investments, including deductions for qualifying drilling expenses. 45:33 – My oil and gas investment was a dry hole and not profitable. Are there any additional deductions available beyond tangible and intangible drilling costs? – Discussing the potential tax treatment of unsuccessful drilling investments and whether additional losses may be deductible. 49:08 – I recently incorporated my small marketing firm and have no idea about taxes. How do I properly conduct business within the tax code? – Covering essential tax considerations for newly incorporated businesses, including compliance, recordkeeping, and understanding business tax obligations. 57:20 – Can I deduct a camper or RV with an office that we use for contract work travel, remote work, and investment property searches? – Exploring whether business use of an RV or camper may qualify for deductions and the importance of documenting legitimate business expenses. Resources: Schedule Your Free Consultation Tax and Asset Protection Events Register for Tax Tuesday

Today on Tax Tuesday, Anderson Advisors Barley Bowler, CPA, and Eliot Thomas, Esq., tackle important tax questions involving capital gains, opportunity zones, 1031 exchanges, bonus depreciation, and business tax planning. They discuss whether living in an opportunity zone can help investors avoid capital gains taxes on stock sales and explain how 1031 build-to-suit exchanges may qualify for bonus depreciation. You'll hear strategies for selling land and reinvesting in real estate while deferring taxes, along with important considerations for business owners planning multimillion-dollar sales in high-tax states like California. Barley and Eliot also break down how to calculate home office deductions without a mortgage, required minimum distributions (RMDs) for minors who inherit IRAs, and whether business expenses incurred before forming an LLC or C corporation may be deductible. They also explain how converting property held in a disregarded LLC into a rental affects its tax treatment and what property owners should understand about IRS reporting requirements. Tune in to discover tax planning strategies that could help you minimize your tax burden, protect your investments, and make smarter financial decisions! Submit your tax question to [email protected] Highlights/Topics: 8:28 "I have some stock that I am selling with a gain. I heard you can live in an opportunity zone as a tax-free resident. Would I have to sell my house to avoid paying tax or can I rent an apartment in the opportunity zone?" - Simply living in an opportunity zone does not eliminate capital gains taxes. Learn how qualified opportunity zone investments work and what requirements must be met to receive tax benefits. 17:16 "I recently sold an investment property, and I’m currently completing a 1031 build-to-suit exchange. When completed, will the property qualify for bonus depreciation?" - Explore how bonus depreciation applies to 1031 exchanges, the role of cost segregation, and which portions of a replacement property may qualify for additional deductions. 23:47 "I need to know how to sell land and buy a condo with the proceeds without the tax burden upfront. I want to delay the tax burden or eliminate it." - A 1031 exchange may allow investors to defer capital gains taxes when exchanging qualifying investment real estate for another investment property, provided IRS requirements are satisfied. 29:12 "I plan on selling my business in 2027. I live in California, and the anticipated payout will be between $3 million and $4 million. What is the best tax structure to have in place before the sale? Do I need to relocate out of California?" - Business sale planning, entity structure, and state residency can significantly affect taxes. Understand why planning before a sale is essential and how California's tax rules may impact your proceeds. 39:07 "If you use a home office, how do you calculate the deduction when there is no mortgage payment to consider?" - Home office deductions can still be available without a mortgage. Learn how qualifying expenses, square footage, and deduction methods affect the amount you may claim. 43:26 "In 2025, my granddaughter became a beneficiary of an inherited IRA. She is subject to RMDs. How do I calculate the required distributions, and do her parents have to include them on their tax return?" - Inherited IRA distribution rules depend on the beneficiary's circumstances and the applicable IRS requirements. Learn how account balances, beneficiary age, and taxation of a minor's inherited IRA distributions are addressed. 46:58 "I'm in the process of setting up an LLC and C-Corp for trading. How far back can I look for expenses related to the business to write off? Can I deduct training completed before the business was formed?" - Discover how startup expenses, business formation dates, and educational costs affect potential deductions when establishing a trading business. 54:44 "If I buy property in a disregarded LLC and then convert it to a rental, how do I let the IRS know it's now not disregarded, and do I need to change the operating agreement?" - Converting property into a rental does not automatically change an LLC's disregarded tax status. Learn how rental activity is reported and when changes to an LLC's operating agreement or tax classification may be necessary. Podcast Chapters: 0:00 Intro 8:28 Can You Avoid Capital Gains Taxes by Living in an Opportunity Zone? 17:16 Does a 1031 Build-to-Suit Exchange Qualify for Bonus Depreciation? 23:47 How to Sell Land and Buy a Condo Without Paying Taxes Upfront 29:12 How to Minimize Taxes When Selling a Business for $3M–$4M 39:07 How to Calculate the Home Office Deduction Without a Mortgage 43:26 How Do RMDs Work for a Minor Who Inherits an IRA? 46:58 Can You Deduct Business Expenses Before Forming an LLC or C-Corp? 54:44 How to Convert Property Held in an LLC Into a Rental Resources: Schedule Your Free Consultation https://aba.link/194ea0 Tax and Asset Protection Events https://aba.link/lzyy Join the next Tax Tuesday Live Stream https://aba.link/jkcz Anderson Advisors https://andersonadvisors.com/

Why do wealthy investors put money into oil and gas, even when energy prices are unpredictable? In this episode, Anderson attorney and tax expert Toby Mathis sits down with Steve Blackwell, CEO of Invito Energy Partners, to explore how oil and gas investments can provide significant tax advantages, potentially offset W-2 income, and generate long-term cash flow. Steve breaks down how intangible drilling costs, bonus depreciation, and depletion allowances work, and why these tax incentives attract high-income earners and accredited investors. They discuss the risks of oil and gas investing, how to evaluate potential opportunities, and what investors should understand about tax deductions, cash flow, and exit strategies. Toby and Steve also explain how oil and gas investments fit into a broader tax planning strategy and why understanding the structure of an investment is essential before committing capital. Tune in to discover how oil and gas investing could help you diversify your portfolio, potentially reduce your tax burden, and build long-term wealth! Steve Blackwell is the CEO of Invito Energy Partners, a company focused on oil and gas investment opportunities. Through his work in the energy industry, Steve helps investors better understand the potential financial and tax benefits of investing in oil and gas projects. He provides insights into evaluating drilling opportunities, managing investment risks, and understanding the tax incentives available to qualifying investors. Steve is passionate about educating investors on how energy investments can complement their wealth-building and tax planning strategies. Highlights/Topics: (00:00) - Introduction to Oil and Gas Investing (00:10) - Why the Wealthy Invest in Oil and Gas (04:07) - How Oil and Gas Tax Deductions Work (07:24) - How to Offset W-2 Income With Oil and Gas (12:28) - The Risks of Oil and Gas Investing (16:00) - Who Should Invest in Oil and Gas? (19:24) - How Oil and Gas Investments Generate Cash Flow (22:35) - How Oil and Gas Income Is Taxed (28:38) - Tax Deduction Limits and Investment Strategies (33:21) - What Happens When You Exit an Oil and Gas Investment? Resources: Connect with Steve Blackwell & Invito Energy Partners 👇 Schedule a Consultation https://invitointroduction.webflow.io/  Invito Energy Partners Website https://www.invitoep.com/  Invito Energy Partners YouTube Channel https://www.youtube.com/@invitoep9004  Schedule Your FREE Consultation https://aba.link/sr6h  Tax and Asset Protection Events https://aba.link/ams2 

In this episode of Tax Tuesday, Anderson Advisors’ Barley Bowler, CPA, and Eliot Thomas, Esq., answer listener questions covering real estate taxation, depreciation, capital gains, Real Estate Professional Status, R&D tax credits, and retirement planning. They discuss whether a loss from deeding a timeshare back to the developer may be deductible, and break down which activities can count toward the 750-hour requirement for qualifying as a Real Estate Professional. Real Estate Tax Strategies, Bonus Depreciation, and Capital Gains Barley and Eliot also explore tax strategies for 30-day rentals, including how concierge services may affect the tax treatment of rental activity, and review rental property expenses that may qualify for first-year bonus depreciation. They discuss strategies to consider before selling a second home or commercial rental property, as well as ways to potentially reduce corporate and individual income taxes following the sale of a corporation. Additional topics include the tax treatment of long-term appreciated assets under current tax law, how R&D tax credits may apply to S corporation owners and employees, and the potential tax advantages and disadvantages of cash balance plans. Tune in for practical tax strategies, real estate insights, and answers to listener questions from Barley and Eliot. Submit your tax question to [email protected] Highlights/Topics: [00:00] Intro to Tax Tuesday with Eliot and Barley [10:38] “I had a timeshare which I rented for a few years. This year, I deeded it back to the developer. Can I deduct the loss for tax return purposes? The cost will be my entire investment, for which I received zero return from the developer.” [20:50] “Could you review a list of potential activities that would qualify toward the 750-hour requirement when filing as a Real Estate Professional?” [33:12] “What concierge services for a 30-day rental satisfy the criteria for short-term tax reduction? Our township does not allow rentals shorter than 30 days.” [41:30] “Can you review specific rental expense categories that qualify for first-year bonus depreciation?” [50:16] “I have a second home and a commercial rental property that I plan to sell. What do I need to do now to minimize capital gains on both?” [1:05:15] “How can I lower my 2025 corporate income tax after selling a corporation, and how can I lower my individual income tax resulting from the sale?” [1:10:18] “Based on the new tax laws, if my wife and I sell appreciated assets held for more than 12 months, can we claim zero federal tax on up to $98K (married couple) plus a $47,500 general exemption for a total of $145,500 tax-free?” [1:15:13] “I have a new S corporation that didn't make money in 2025, but had my partnership assigned to it (the corporation is a holding company now) for 2026. How do R&D credits work for myself and my business partner, who are both employees of the S corporation, for our 2026 taxes being filed in 2027?” [1:22:36] “What are the advantages and disadvantages of a cash balance plan regarding taxes?” Resources: 🔗 Tax and Asset Protection Events https://aba.link/mwm7  🔗 Schedule Your FREE Consultation https://aba.link/5eca87  🔗 Register for Tax Tuesday at no COST https://aba.link/70ad4f   

In this Tax Tuesday replay, Barley Bowler, CPA, and Eliot Thomas, Esq. answer real-world questions on selling rental property, reducing capital gains taxes, 1031 exchanges, depreciation recapture, and real estate tax strategies. Can carrying the mortgage on a rental property sale help spread capital gains over multiple years, and what happens to depreciation recapture when using an installment sale? What strategies can help reduce the tax burden when selling an investment property without a 1031 exchange? And if you are completing a 1031 exchange, how should you approach financing when the replacement property needs significant upgrades after closing? The team also discusses whether a foreign property can qualify for a 1031 exchange, how to report capital gains, depreciation recapture, and suspended passive losses from an international real estate sale, and whether investing sale proceeds into an annuity or indexed universal life (IUL) policy can defer taxes. Plus, learn how cost segregation affects depreciation recapture when you sell a property and how dividend income received through a single-member Wyoming holding company should be reported for tax purposes. Would you like to learn more about passing down your estate? Schedule a free consultation here: https://aba.link/b74g  Register for the next Tax Tuesday webinar to get your questions answered Live: https://aba.link/135w  Register for an upcoming workshop today if you want to protect your business and personal assets from snoopy lawyers and creditors. Save Your Seat: https://aba.link/9aki