Anderson Business Advisors Podcast

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 

Thinking about turning your primary residence into a rental property? Before you hand over the keys to a tenant, there are important tax rules every homeowner and real estate investor should understand. In this episode of Tax Tuesday, Anderson Advisors attorneys Eliot Thomas, Esq. and Amanda Wynalda, Esq. answer listener questions about converting a personal residence into a rental, including one of the biggest areas of confusion: What happens to your property's tax basis when you start renting it? If you bought your home years ago for $300,000 and it's now worth $1 million, can you depreciate the property based on its current value—or does the IRS look at something else? Eliot and Amanda break down how basis and depreciation work when converting a home to a rental and why understanding these rules can make a major difference in your tax strategy. They also cover selling a former rental after converting it into a primary residence, Section 121 capital gains exclusions, 1031 exchanges across state lines, installment sales, oil and gas deductions, business expenses, and IRMAA income thresholds. Whether you're a homeowner considering becoming a landlord or an experienced real estate investor looking for smarter ways to manage taxes, this episode covers important tax concepts to understand before making your next move. Would you like to learn more about passing down your estate? Schedule a free consultation here: https://aba.link/5b425e Register for the next Tax Tuesday webinar to get your questions answered Live: https://aba.link/rapa  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/e4ab1e  What You'll Learn What happens to your tax basis when you convert your home into a rental How depreciation works when a home's value has increased significantly Tax considerations when selling a rental that later became your primary residence How the Section 121 capital gains exclusion applies to converted rental properties Whether a 1031 exchange replacement property needs to stay in the same LLC How installment sale treatment works under IRC §453 Tax considerations for oil and gas working interest investments How to handle personal purchases accidentally charged to a business credit card When a new business is considered a legitimate business for tax purposes How income can affect IRMAA Medicare premiums Show Notes & Chapters 0:00 – Intro Eliot Thomas, Esq. and Amanda Wynalda, Esq. introduce today's Tax Tuesday and the listener tax questions they'll be answering. 9:24 – Oil & Gas Working Interest Tax Deductions How do first-year deductions for tangible and intangible drilling costs work with an oil and gas working interest, and does holding the investment through a disregarded LLC affect the tax treatment? 17:39 – Can a Lump-Sum Payment Qualify as an Installment Sale? Under IRC §453, can a property sale qualify for installment sale treatment when the transaction closes in one year but the seller receives the entire payment the following year without seller financing or a promissory note? 24:25 – Turning Your Home Into a Rental: What Happens to Your Tax Basis? A homeowner purchased a house for $300,000 approximately 20 years ago, but today the property is worth roughly $1 million. If the homeowner converts the property into a rental in 2026, what basis should be used for tax and depreciation purposes? 28:05 – Selling a Former Rental After Making It Your Primary Residence What happens when you convert a long-term rental property into your primary residence and later sell it? Eliot and Amanda discuss the potential capital gains consequences and how the Section 121 exclusion can come into play. 38:46 – Using an LLC for a 1031 Exchange Across State Lines If a Washington LLC sells California investment property and completes a 1031 exchange into an Alaska property, does the replacement property have to remain in the same LLC—or can the investor create a new entity? 46:04 – Does Your Business Have to Make a Profit to Be a Business? Can a newly launched consulting business still qualify as a legitimate business if it has generated very little revenue? Learn what business owners should understand about profitability and operating a new venture. 51:45 – Accidentally Using Your Business Credit Card for Personal Expenses What happens if you accidentally—or intentionally for the rewards points—put a personal purchase on your business credit card? Can your accountant simply exclude the purchase from deductible business expenses? 57:35 – IRMAA Income Limits & Social Security How does a higher adjusted gross income affect IRMAA for a married couple receiving Social Security? Eliot and Amanda discuss how income levels can influence Medicare-related costs. About Tax Tuesday Tax Tuesday helps real estate investors, business owners, and taxpayers better understand complex tax rules and strategies through real-world questions answered by Anderson Advisors professionals. In this episode, Eliot Thomas, Esq. and Amanda Wynalda, Esq. break down practical tax questions involving rental real estate, capital gains, 1031 exchanges, business deductions, investment strategies, and retirement-related tax considerations.

Alternative Real Estate Financing Strategies for Investors In this episode, Clint Coons sits down with Randy Zimnoch of Optimus Capital to break down alternative real estate financing strategies for investors looking to access capital, scale their portfolios, and keep investment properties inside LLCs and other appropriate business structures. Whether you're running into conventional lending limits or looking for more flexible ways to fund your next acquisition, this discussion covers financing options designed specifically for real estate investors. Get Real Estate Financing With Optimus Capital Ready to explore financing options for your next real estate investment? Connect with Optimus Capital and get funded today: https://optimuscapitalaa.lovable.app/ Alternative Financing Options for Real Estate Investors Traditional Fannie Mae and Freddie Mac financing can work well for many investors, but it may become more difficult to rely on conventional mortgages as your real estate portfolio grows. Clint and Randy discuss how investors can move beyond traditional financing, become more fundable, and identify alternative real estate financing options that better align with their investment strategy and portfolio goals. How to Finance Investment Properties Held in an LLC Financing real estate through an LLC can present challenges that investors may not encounter with a traditional personal mortgage. In this episode, you'll learn about financing paths that may allow you to keep your investment property inside an LLC or appropriate entity structure while continuing to acquire and finance real estate. They also explain important differences between commercial real estate loans, investor loans, and personal mortgages so you can better understand which financing approach may make sense for your next property.   Would you like to learn more about protecting your assets? Schedule a free strategy session here 👉 https://aba.link/qvwq    Register for an upcoming workshop today to protect your business and personal assets from snoopy lawyers, creditors, or even greedy people out to make a quick buck who want to take advantage of YOU. 👉 Save Your Seat: https://aba.link/bsek    Chapters: 0:00 Intro 1:17 How to Become Fundable 5:16 Using Financing to Scale Your Portfolio 9:33 What Properties Qualify for Investor Loans? 14:36 Financing for New Real Estate Investors 18:42 Fix-and-Flip & Multifamily Financing 23:08 Why You Should Talk to a Lender Before Making Offers 28:05 LLCs, Personal Guarantees & Asset Protection 33:40 DSCR Rates, Series LLCs & Creative Financing 38:51 Financing Property Held in a Trust 45:12 Final Thoughts & How to Connect

Ready to start your nonprofit? Schedule a FREE consultation 👉 https://aba.link/3bnk  How can artificial intelligence help grow your 501(c)(3) nonprofit? Toby Mathis sits down with nonprofit attorney and former IRS Exempt Organizations expert Karim Hanafy to share six practical ways nonprofits can use AI for fundraising, donor outreach, grant research, marketing, social media, and daily operations. Whether you're starting a nonprofit or managing an established organization, AI can help your team save time, improve efficiency, and increase its impact without adding staff. You'll learn how to use AI to strengthen your nonprofit mission statement, create website content, improve fundraising emails, research grants, develop social media campaigns, and streamline board meetings and internal operations. How Nonprofits Can Use AI to Save Time and Grow Nonprofit organizations often operate with limited staff, budgets, and resources. AI can help teams complete time-consuming tasks faster while generating ideas for fundraising, marketing, donor communications, and operations. The key is knowing where AI can help—and where human judgment and professional guidance are still essential. AI for Nonprofit Marketing and Donor Fundraising AI can help nonprofits create website content, content calendars, donor emails, fundraising campaigns, newsletters, social media posts, and donation appeals. Instead of starting from scratch, nonprofit leaders can use AI to generate ideas and drafts that can then be customized to match their organization's mission and voice. Using AI for Grant Research and Grant Applications Finding nonprofit grants and preparing applications can take hours of research. AI can help identify potential grant opportunities, funding sources, foundations, and application requirements while assisting with early drafts and research. However, AI-generated grant information should always be verified directly with the funding organization. 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/62nr Chapters 0:00 – Intro 4:12 – AI Limitations & Important Warnings 5:23 – #1 Sharpen Your Nonprofit Mission Statement 10:29 – #2 Create Website Content & Content Calendars 18:11 – #3 Improve Donor Communications & Fundraising Emails 24:40 – #4 Use AI for Grant Research & Grant Applications 37:04 – #5 Social Media Campaigns & Fundraising Ideas 40:16 – #6 Internal Operations, Board Meetings & Governance 41:53 – Best AI Tools for Nonprofits 46:11 – Using AI to Summarize Videos & Research Faster 47:58 – Final AI Takeaways for Nonprofits 49:00 – How Anderson Advisors Can Help Nonprofits

How the IRS Is Using AI to Audit Cost Segregation Studies Request a FREE Cost Segregation Benefit Analysis 👉 https://aba.link/154828 Is the IRS using artificial intelligence to audit cost segregation studies and real estate investors? Toby Mathis sits down with Chris Streit of CSA Partners to explain how AI is changing IRS audits, why cost segregation studies are receiving increased scrutiny, and what real estate investors should know before claiming large bonus depreciation deductions. If you've already completed a cost segregation study—or you're considering one—understanding what the IRS looks for is increasingly important. This discussion covers how AI may help the IRS identify potential audit targets, what documentation auditors may request, and why some low-cost cost segregation studies may not withstand IRS scrutiny. You'll also learn about common cost segregation mistakes that can increase audit risk, how to evaluate the quality of an existing study, and what you can do if you're concerned about a cost segregation report you've already received. Learn more about CSA Partners 👉 https://csap.com/ How Cost Segregation Creates Large Real Estate Tax Deductions Cost segregation can allow real estate investors to accelerate depreciation by identifying building components that qualify for shorter depreciation schedules. When combined with bonus depreciation, a cost segregation study can potentially create significant upfront tax deductions. However, large deductions can also attract additional scrutiny. Investors should understand how their study was prepared, whether the classifications are properly supported, and what documentation is available if the IRS questions the deduction. Why the IRS Is Increasing Scrutiny of Cost Segregation Studies Cost segregation has become increasingly popular among real estate investors looking to maximize depreciation deductions. But not every cost segregation report is prepared to the same standard. Toby and Chris discuss why the IRS may scrutinize aggressive depreciation claims and what separates a well-supported cost segregation study from one that could create problems during an examination. The goal shouldn't simply be to generate the biggest tax deduction possible. The deduction should also be supported by a properly prepared and defensible cost segregation study. Questions to Ask Before Hiring a Cost Segregation Firm Before moving forward with a provider, ask questions about its experience, methodology, documentation, and support. Understanding exactly what you're paying for can help you compare providers based on the quality of their work rather than simply choosing the cheapest cost segregation study or the company promising the largest deduction. Get a Free Cost Segregation Benefit Analysis Not sure whether cost segregation makes sense for your property? Request a FREE Cost Segregation Benefit Analysis 👉 https://aba.link/154828 A benefit analysis can help you better understand the potential tax savings before deciding whether to move forward with a full cost segregation study. Watch Next: Learn More About Cost Segregation How To Do A Cost Segregation Study: When It Saves You Money And When It Doesn’t Watch here 👉 https://youtu.be/beMOZDrXOJ8 Would you like to learn more about protecting your assets and minimizing taxes? Schedule a FREE strategy session 👉 https://aba.link/tv5r Chapters 0:00 – Intro 2:12 – How Cost Segregation Creates Large Tax Deductions 3:48 – Why the IRS Is Cracking Down 4:11 – The AI Technology the IRS Is Using 5:40 – How AI Flags Tax Returns for Audit 7:20 – How Often Are Cost Segregation Studies Audited? 8:11 – What IRS Auditors Ask For First 9:33 – The Risk of Cheap Cost Segregation Studies 10:28 – Can You Fix a Bad Cost Segregation Study? 12:48 – Can the IRS Target Specific Cost Seg Firms? 14:17 – What Should You Do If You're Concerned? 16:20 – How to Evaluate an Existing Cost Segregation Study 17:27 – Common Mistakes That Cost Investors Money 18:57 – How to Choose the Right Cost Segregation Company 20:38 – Questions Every Investor Should Ask Before Hiring a Firm 21:45 – Free Cost Segregation Analysis & Final Thoughts Attend a Free Tax & Asset Protection Workshop Want to learn how to protect your business and personal assets while implementing tax strategies designed for investors and business owners? Register for an upcoming FREE Tax & Asset Protection Workshop to learn strategies for protecting your wealth from lawsuits and creditors. Save your seat 👉 https://aba.link/272cfe Join Tax Tuesday Live Have tax questions? Join us every other Tax Tuesday, where our tax professionals answer questions live—completely FREE. Register for Tax Tuesday 👉 https://aba.link/tobytaxtues 🔔 Subscribe for more insights on real estate investing, cost segregation, tax planning, asset protection, and business strategies.