Anderson Business Advisors Podcast

ode of Tax Tuesday, Anderson attorneys Amanda Wynalda, Esq., and Eliot Thomas, Esq., tackle a diverse range of tax questions from viewers. They explore the differences between PadSplit/co-living models and short-term rentals, explaining why PadSplit typically doesn't qualify for the same tax advantages as short-term rental activities. The duo covers entity formation costs and how they're treated for disregarded LLCs, the importance of proper documentation for independent contractor payments including W-9 forms and 1099 requirements, and cryptocurrency taxation for long-term holders. They also discuss offsetting bond interest with stock losses, wash sale rules for options trading, 1031 exchange strategies including improvement exchanges to minimize boot taxation, and comprehensive guidance on real estate professional status requirements. The episode concludes with settling a marital dispute about whether primary residence maintenance counts toward real estate professional status hours. Submit your tax question to taxtuesday@andersonadvisors.com Highlights/Topics: "Are the fees for disregarded LLCs taxable on the business return or the personal return?" - Fees follow the entity's disregarded destination and activity type. "Will the PadSplit/co-living model give you the same tax advantage as a short-term rental?" - No, PadSplit typically doesn't qualify for short-term rental benefits. "Last year I purchased a three-level eight-bedroom house with one kitchen and one bathroom on each floor. I rent the floors as separate apartments except for one level where I have two rooms rented separately. I put the house in service on January 25. I listed it as my primary residence. I never actually lived there. Can I perform a cost segregation, take advantage of bonus depreciation, et cetera?" - Yes for cost seg, but homestead fraud concerns exist. "I paid freelancers to put up a fence last year. I didn't get a receipt. Can I write off any of the costs of this fence? I used my company credit card or bank checks to conduct business with vendors and stores. I am bad at keeping receipts. But I print my bank statements. Can I use my statements as proof of purchase for tax purposes?" - Bank statements help but proper W-9s and 1099s are required. "I will be receiving profits from the sale of cryptocurrency investments that I've had for five years. I'm retired and receive social security as my only income. How will this crypto be gained from an IRS perspective?" - Taxed as capital gains, likely at fifteen percent rate. "Can interest gained on a US savings bond be offset with the loss on a stock sale for tax purposes?" - Yes, up to three thousand annually against ordinary income. "If I sell a stock at a loss and purchase calls instead, do I lose my loss benefit as if I had repurchased more stock within the 30 day period? Or in simpler terms, are calls treated the same as stock?" - Yes, calls typically trigger wash sale rule provisions. "We did a 1031 exchange with the building we own, but the place that we bought the replacement property was 250,000 cheaper. How do we minimize our capital gains on the leftover money? I know we can use capital improvements that we've made, but what are the rules and how must we document the improvements? Likewise, can we use depreciation schedules from the prior returns for the new tax returns?" - improvement exchanges must occur during exchange. "I wanna know more about the tests for real estate professional status as a way to deduct expenses from other passive income. I understand that I need 750 hours, but this is very loose and I'm not sure how it is audited exactly." - 750 hours plus fifty percent test, requires detailed documentation. "Please settle this one thing that my husband and I disagree on, I say that maintenance on our primary residence cannot be used towards rep status. He says certain things you could count towards reps would be pool maintenance, HVAC service, et cetera. I say no because it's a primary residence and reps is strictly for time you spend on rentals only. I'd like him to not have to sleep on the couch any longer." - No, personal residence maintenance doesn't count toward business hours. Resources: Schedule Your Free Consultation https://andersonadvisors.com/strategy-session Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/ Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons

In this Tax Tuesday episode, Anderson Advisors’ Barley Bowler, CPA, and Eliot Thomas, Esq., tackle ten listener questions covering essential tax strategies for business owners and real estate investors. They break down the enhanced contribution limits for solo 401(k)s, including the new employer Roth contributions and age-based catch-up provisions. The attorneys explain proper loan structures between shareholders and corporations, emphasizing documentation requirements and interest rate compliance. They cover installment payment reporting for private money loans, clarify the Augusta Rule (280A) for tax-free rental income from home meetings, and distinguish between deductible business expenses versus personal costs. Investment structuring strategies for AI and energy stocks are explored, along with C-corporation real estate ownership considerations. The episode concludes with discussions on the expanded SALT deduction limits, pass-through entity tax workarounds for high-tax states, and the new research and development tax benefits under recent legislation. Submit your tax question to taxtuesday@andersonadvisors.com Highlights/Topics: "What is the maximum that can be contributed to a solo 401k Roth as the employee and employer of my own business, what do I need to do to handle payroll for myself?" - Employee limits: $23,500 (under 50), $31,000 (50-59), $34,750 (60-63). Employer: 25% of compensation. Use professional payroll services. "I want to loan cash for my business to myself, since my spouse and I have regular W2 jobs that push our incomes into high, the highest tax brackets. Other than loaning money to myself to pay for rental property. Are there any other uses for those loan funds? What are the issues on the backend for repayment rights?" - Must have written documentation, regular payments, and applicable federal rate interest (4.22% for 2025). "I'm receiving installment payments on a private money loan from my borrower. Are these payments listed as income, even though the entire principal balance and interest haven't been paid yet? How do you show this on a tax return?" - Interest portion is taxable income as received. Principal repayment is not taxable. Report on Schedule B. "I have a C Corp and two LLCs. Can you clarify the tax allowance on Augusta meetings, please? Also known as 280A. I believe I was informed that I can deduct up to $1000 per month on these monthly meetings when held, is this still the case for 2024 and 2025?" - Fourteen days maximum per year regardless of entity count. Get three local quotes for reasonable rates. "Are the paid fees for business essentials and the Living Trust deductible as startup costs or operating costs?" - Business essentials are deductible (startup vs operating depends on timing). Living trust is personal expense, not deductible. “What strategies should I set to invest in AI or energy stocks?" - Wyoming LLC for passive investing. Trading partnership with C-corp for active trading and tax benefits. "A C corporation owns a disregarded LLC, which in turn owns real estate. The real estate is sold for capital gains that is incurred by the C Corp. Is this the best way to be structured?" - Never put appreciable real estate in C-corp unless flipping. For buy-and-hold, use Wyoming holding company structure. "Does the SALT (state and local tax) deduction of $40,000 apply to a joint tax return?" - Yes, $40,000 limit applies to joint returns. Phases out at $500,000 AGI but maintains $10,000 floor. "How does the new PTET (pass through entity tax) SALT (state and local tax) deduction work around policy work for high tax states like California? Are certain entities included like SSTBs (specialized service trader businesses)?" - Pass-through entities can pay state tax for federal deduction. Complex structures and publicly traded partnerships excluded. "How might the research and development (R&D) tax credit that's been affected by the big beautiful bill help me as a small business owner?" - Domestic R&D expenses can be deducted immediately (100%) or over five years. Foreign expenses still 15 years. Resources: Schedule Your Free Consultation https://andersonadvisors.com/ss/?utm_source=5-reasons-restructure-sole-proprietorships&utm_medium=podcast Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/ Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons  

In this Tax Tuesday episode, Anderson tax attorneys Amanda Wynalda, Esq., and Eliot Thomas, Esq., tackle a diverse range of tax questions covering rental property strategies, depreciation rules, and business structure optimization. They explain the tax implications of renting property to family members below market rates, including income reporting requirements and limited deduction capabilities. The attorneys discuss gifting rental properties to children and the associated gift tax filing requirements, while exploring sophisticated property management company structures for generating earned income and maximizing retirement contributions. They provide detailed guidance on utilizing IRS sections 168 and 179 for depreciation and bonus depreciation, clarifying the current 100% bonus depreciation rules and debunking outdated 80% figures. Other topics include S-corp benefits for 1099 contractors, holistic health business taxation, accountable plan cell phone deductions backed by IRS Notice 2011-72, vehicle deduction methods and limitations, and even professional gambling expense deductions for Vegas visitors. Throughout the episode, they emphasize proper entity structuring, asset protection, and tax planning strategies. Submit your tax question to taxtuesday@andersonadvisors.com Highlights/Topics: "I have a question about tax implications of renting my property to my parents. If I rent it to them for less than fair market value, are there any tax incentives or exemptions in this situation? I'm trying to understand whether I would still need to report the income and if I would lose the ability to deduct expenses associated with the property." - Must report income; IRS treats below-market family rentals as not-for-profit activities. "In 2024, I deeded some rental properties to my children about $250,000 each. Is there a way to write this off?" - No deduction available; must file Form 709 for gift tax reporting. "I have four rental properties. I personally manage them through an LLC. Can I use my company as a management company and charge a 20% fee for managing it to be able to show I have earned income and then contribute to an IRA? Also, would I be able to establish a Roth IRA?" - Yes, with reasonable fees and proper structure; enables IRA contributions. "How do I utilize IRS code section 168 and 179 for depreciation and bonus depreciation? How do I buy cars and furniture right off up to 80% of the value of the property every time I buy a house rental or asset? Can I utilize AI or any AI software with these to automate and hands off anything?" - Use 179 first, then 168 bonus depreciation; now 100% not 80%. "I'm a 1099 independent contractor. I own two pieces of property, one is my primary residence, the other has a home and a small apartment on it that I rent out long term under the table. My thoughts are that I need to create an LLC for my business, possibly an S corp. As I understand the tax laws, there will be no way to use any of the rental properties to reduce the tax burden of my 1099 income. Am I on the right track here?" - Report all income; S-corp saves self-employment tax; passive losses don't offset. "I'm going to start a consulting business that focuses on holistic health. What should I be looking for in the next six months or so when I launch? Is taxation different from real estate and in what way?" - Consider S-corp for self-employment tax savings; business expenses differ significantly. "With an accountable plan, can I deduct a hundred percent of a cell phone? Is there some documentation that backs this up? Prove it." - Yes, 100% deductible with S/C-corp; IRS Notice 2011-72 provides documentation. "I have a question about vehicle deductions. There are two methods available, the standard mileage deduction and the actual expense method. Can I use the actual method to claim all the depreciation in one year, then switch to the standard mileage deduction in subsequent years. If this is possible, how does it work? Assume the vehicle is used a hundred percent for business purposes." - Three methods exist; business-owned vehicles allow 100% bonus depreciation benefits. "Since you're in Vegas, you might know the answer to this one. My friend won a reportable jackpot, mid five figures, and he was wondering if he could deduct the travel lodging expenses just as he might do if he made this money as a business deal or future excursions to Sin City to try and extend his winnings." - Only if professional gambler with business intent and meticulous records. Resources: Schedule Your Free Consultation https://andersonadvisors.com/ss/?utm_source=5-reasons-restructure-sole-proprietorships&utm_medium=podcast Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/ Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons

Today on Tax Tuesday, Anderson Advisors Barley Bowler, CPA, and Eliot Thomas, Esq., focus on capital gains, cryptocurrency, stock trading structures, and real estate strategies. They explain how capital losses are deducted and the $3,000 annual limit that hasn't been adjusted for inflation since the 1950s. You’ll hear about Bitcoin's tax treatment as a personal asset with favorable capital gains rates but note the lack of wash sale rule protections. They demonstrate how a trading partnership with a C corporation can provide significant tax advantages through accountable plan reimbursements. The episode extensively covers real estate topics including the distinction between repairs and capital improvements, the inability to deduct lost rent from deadbeat tenants, and home office deductions for primary residences. They explain 1031 exchanges in detail and explore strategies for managing large capital gains from personal residence sales, including converting to rental properties and the Section 121 exclusion benefits. Submit your tax question to taxtuesday@andersonadvisors.com Highlights/Topics: "I have a large capital loss. How are capital losses deducted? When should I consider taking a tax write off by closing the position, unrealized versus realized gains?" - Capital losses offset gains first, then $3,000 annually against ordinary income. "My wife and I are considering investing in Bitcoin. What are the tax advantages or disadvantages of doing so investing crypto for crypto for that type of investment?" - Bitcoin treated as capital asset with favorable rates, no wash sale rules. "I do a lot of stock buying and selling. Is it tax efficient to set up a business entity?" - Trading partnerships with C corporations provide excellent accountable plan reimbursement opportunities. "Can you explain what differentiates whether a real estate rental deduction would be categorized as a maintenance repair deduction versus a capital expense deduction? And provide examples. Please explain how these are treated differently from a tax perspective as well." - Repairs maintain property condition; capital improvements add value, extend life, or change use. "Can I deduct lost rent from a deadbeat tenant?" - No deduction available; you simply don't report income you never received. "I've heard you talk about renovations major to rental property and tax advantages, but what about for my primary residence? I need to finish the basement. Upgrade the house. This is also the address of my C corp business is registered to, and I operate a home office out of it. When I complete taxes next year, is there anything specific that I can take advantage of due to this large expense?" - Primary residence improvements add to basis; home office allows business-related deductions. "Can I do a 1031 exchange on real property?" - Yes, but not on primary residences or inventory properties like flips. "I bought a rental property in California in 2019 for 700,000 as replacement property from a 1031 exchange. 400,000 was from the sale of rental property in Seattle, Washington. 300,000 from my savings. I took a loan, also a 600,000 for expansion, uh, in repairs in January of 25. How much of the money I invested from my personal savings, the 300,000, can I get back without having to pay tax? I listed my rental property for 935,000." - Any cash taken from 1031 exchange creates taxable boot; consider real estate professional strategies. "I'm selling my personal residence next year. We currently have an anticipated capital gain of a million. I'll be paying taxes on 500,000 of the capital gain above the capital gain exclusion for married filing joint. What tax strategy would you suggest that I may plan to use in order to mitigate paying federal taxes against the 500K capital gains? Could I do a 1031 exchange or of a personal residence? Can we convert the personal residence to a rental and then sell it in one to two years?" - Use Section 121 exclusion first, consider converting to rental within five-year window for 1031. Resources: Schedule Your Free Consultation https://andersonadvisors.com/strategy-session Tax and Asset Protection Events https://andersonadvisors.com/ss/?utm_source=5-reasons-restructure-sole-proprietorships&utm_medium=podcast Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq

In this special Tax Tuesday episode, Anderson attorneys Amanda Wynalda, Esq., and Eliot Thomas, Esq., break down the major provisions of the "One Big Beautiful Bill" - nearly 1,000 pages of new tax legislation. They cover significant changes to child tax credits (increased to $2,200), expanded 529 plan qualifications now covering trade schools and licensing exams, and modifications to personal casualty loss deductions. The attorneys explain the updated salt (state and local tax) limitations increasing from $10,000 to $40,000, new charitable deduction rules for both itemizers and non-itemizers, and the elimination of clean energy tax credits after 2025. They also discuss the extension of lifetime estate and gift tax exemptions to $15 million, the return of 100% bonus depreciation for real estate investors, revamped opportunity zone investments starting in 2027, and enhanced qualified small business stock (1202) exclusions with reduced holding periods and increased limits. Tune in for expert analysis on these game-changing tax strategies! Submit your tax question to taxtuesday@andersonadvisors.com Highlights/Topics: Child Tax Credit Changes - Increased to $2,200 with $1,700 refundable portion for qualifying children. 529 Plan Expansion - Now covers trade schools, licensing exams, and K-12 up to $20,000. SALT Deduction Limits - Increased from $10,000 to $40,000 for state and local taxes. Charitable Deduction Rules - Non-itemizers get $1,000 single/$2,000 married; itemizers face 0.5% floor starting 2026. Clean Energy Tax Credits - Electric vehicle and solar credits eliminated after September 30, 2025. 100% Bonus Depreciation - Applies to property with 20-year or less lifespan; requires cost segregation study. Opportunity Zone Investments - 10% stepped-up basis after 5 years; tax-free appreciation after 10 years. 1202 Stock Exclusions - Reduced holding periods: 50% at 3 years, 75% at 4 years, 100% at 5 years. Resources: Schedule Your Free Consultation https://andersonadvisors.com/strategy-session Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/ Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons

In this episode, Toby Mathis, Esq., of Anderson Business Advisors, sits down with Ryan Gibson from Spartan Investment Group to discuss the current housing market and the unique opportunities in self-storage investing. They explore how the housing market has changed with low transaction volumes due to homeowners holding onto low-interest-rate mortgages, creating opportunities in alternative real estate sectors. Ryan explains how self-storage offers advantages over traditional rental properties, including no evictions, automated operations, and steady cash flow. The discussion covers Spartan's approach to acquiring mom-and-pop storage facilities and professionalizing their operations, the different investment strategies in self-storage, and how millennials have become the largest demographic using storage facilities. With over 800 million dollars in assets under management and a track record of 16 successful exits, Ryan shares insights on market consolidation, value-add opportunities, and why self-storage has been the best-performing commercial real estate asset class. Highlights/Topics: (00:00) Intro (00:58) Current Housing Market Update (05:20) Self Storage Investing Benefits (08:33) How to Consider Investing in Self-Storage (12:39) Different Types of Strategies (15:40) Big Opportunities (19:23) Millennials are Using Self-Storage the Most (21:33) Self Storage is a Great Asset (22:44) Outro Share this with business owners you know Resources: Learn more about Ryan Gibson and Spartan-Investors https://spartan-investors.com/ https://spartan-investors.com/ Schedule Your FREE Consultation https://andersonadvisors.com/strategy-session/?utm_source=this-boring-real-estate-asset-is-crushing-it-in-2025&utm_medium=podcast Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=this-boring-real-estate-asset-is-crushing-it-in-2025&utm_medium=podcast Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons  

In this Tax Tuesday episode, Barley Bowler, CPA, and Eliot Thomas, Esq., tackle a diverse range of tax questions covering business structures, real estate investments, and tax optimization strategies. They demonstrate significant tax savings by comparing Schedule C sole proprietorship versus S Corporation structures, showing how proper business formation can save approximately $6,000 annually on just $50,000 of income. The hosts address healthcare deductions for S Corporation owners, explain the complexities of the self-employed limited partner exception, and dive deep into capital gains calculations and 1031 exchanges. They also cover tax lien investments, charitable boat donations, and probate avoidance strategies. With practical examples and real calculations, this episode provides actionable advice for entrepreneurs and real estate investors looking to minimize their tax burden while staying compliant with IRS regulations. Submit your tax question to taxtuesday@andersonadvisors.com Highlights/Topics: "What is the best way to reduce my income and my self-employment taxes? I'm single, a handyman/contractor with no dependents. I work solo, no employees." - Form S Corporation, pay reasonable wage, save on employment taxes. "I have an S-Corp LLC for my property management and business consulting activities. I'd like to provide my me and my spouse's healthcare through the LLC. What's the best way to go about this?" - S Corporation pays premiums, adds to W2, deducts on Schedule 1. "Self-employed limited partner exception. Please talk about this topic." - Very risky strategy; IRS cracking down; use S-Corporation instead. "How can one start a business, LLC or C-corp, and an ideal state of incorporation and hold those shares in a Roth IRA?" - Cannot own an operating business in Roth IRA; consider ROBS instead. "What types of taxes and tax reporting will be involved if I begin investing in tax liens?" - Interest income or property ownership; depending on the redemption outcome. "What are the rules for capital gains taxes on the sale of a house when the profits are used to pay cash on the next property?" - Sales price minus adjusted basis equals gain; cash use is irrelevant. "I am taking my primary home and turning it into a rental for one to two years. How do taxes work if you wanted to 1031 a portion of the gains?" - Take Section 121 exclusion first, then 1031 the remaining gain. "Under a 1031, taxpayers must select three possible real estate properties within 45 days. Can these selected properties be changed before the 180-day deadline?" - No changes allowed after 45 days; very strict timeline rules. "I have a boat to donate to charity. Is it true that I can make a $5,000 donation without having a certified appraiser?" - Yes, under $5,000 needs written acknowledgment, not certified appraisal. "What are the ways we can avoid probate?" - Living trust, joint ownership, beneficiary designations, lifetime gifting strategies Resources: Schedule Your Free Consultation https://andersonadvisors.com/strategy-session/?utm_source=capital-gains-rules-when-you-sell-a-home-and-buy-another&utm_medium=podcast Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=capital-gains-rules-when-you-sell-a-home-and-buy-another&utm_medium=podcast Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons  

In this episode, Anderson Business Advisors host Clint Coons, Esq., sits down with long-time client and real estate investor Tarl Yarber to discuss whether now is the right time to invest in real estate. Tarl, a "recovering house flipper" who has completed over 650 flips, shares his journey from wholesaling in 2005 to becoming a full-time investor focused on the BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat). They explore the current market disruption, why people should be buying when others are running away, the importance of understanding construction and value-add opportunities, and how to properly evaluate cap rates beyond surface numbers. As Tarl explains, "Will my future self thank me on this deal or not?" - a question every investor should ask themselves. Tarl also explains the power of 1031 exchanges for building wealth, including a detailed breakdown of reverse 1031 exchanges. The conversation covers market fundamentals, the benefits of forcing appreciation through construction, and why investing is about mitigating risk first, profit second. Tune in for expert insights on navigating today's real estate market with confidence! Tarl Yarber is a "Recovering House Flipper" with over 650+ single-family residential properties purchased, rehabbed, and resold over the last 13 years. Tarl is considered an expert in the single-family residential investment industry and specializes in scalable, duplicable systems for real estate investing. In the last few years, Tarl has been fighting his addiction of Fix and Flip, and focusing on a new passion, BRRRR investing. As a recovering house flipper, Tarl has taken his years of experience in rehabbing houses and applied that experience in mastering the buy, rehab, rent, refinance, repeat investment model. In addition to his real estate success, Tarl has teamed up with Ken McElroy to create The Limitless Financial Freedom Expo, where they focus on real no BS education, as well as bringing some of the world's top financial minds to one event. Highlights/Topics: (00:00) - Intro (01:35) - Tarl Yarber Introduction (05:45) - Lesson Learned from Flipping (07:09) - Limitless Expo (17:32) - Is Now a Good Time to Buy Rentals? (19:51) - Why People Should Buy Real Estate Now (28:24) - Evaluate Cap Rates (37:27) - Reverse 1031 Exchange Explained (42:38) - Summary, closing comments, final words of advice Resources: Instagram: @tarlyarber Limitless Expo (July 31- Aug 2 in Dallas) Site: go.LimitlessExpo.com  http://go.limitlessexpo.com/  Schedule Your FREE Consultation https://andersonadvisors.com/strategy-session/?utm_source=is-now-a-good-time-to-buy-rental-property&utm_medium=podcast Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=is-now-a-good-time-to-buy-rental-property&utm_medium=podcast Anderson Advisors https://andersonadvisors.com/ Anderson Advisors Podcast https://andersonadvisors.com/podcast/ Clint Coons YouTube https://www.youtube.com/channel/UC5GX-U6VbvMkhSM1ONBiW8w Anderson Advisors Tax Planning Appointment https://andersonadvisors.com/ss/

In this comprehensive Tax Tuesday episode, Anderson attorneys Amanda Wynalda, Esq., and Eliot Thomas, Esq., tackle complex tax strategies focusing heavily on 1031 exchanges and business deductions. They explain why fix-and-flip properties cannot use 1031 exchanges since they're considered inventory rather than investments, and suggest using C-corps or S-corps for tax savings instead. The attorneys dive deep into 1031 exchange mechanics, covering depreciation carryover basis, cost segregation complications, and state clawback rules in California, Oregon, Montana, and Massachusetts. In other topics, they discuss the heavy SUV deduction for vehicles over 6,000 pounds, explaining how to maximize depreciation through Section 179, bonus depreciation, and MACRS while requiring material participation. Other tips include strategic use of management C-corps for rental property mileage deductions through accountable plans, qualifying for 0% capital gains rates, handling Ponzi scheme losses through IRS safe harbor provisions, tax implications of timeshare deed-in-lieu transactions, and expatriation exit taxes for high-net-worth individuals renouncing US citizenship. Submit your tax question to taxtuesday@andersonadvisors.com   Highlights/Topics: "I own an LLC that I use to purchase a single-family house to fix and flip. Can I use a 1031 exchange to save on taxes while I look for my next property?" - No, fix-and-flip properties are inventory, not qualifying investments. "I have five years left of depreciation on rental property. I was looking into a 1031 exchange but didn't realize that the depreciation schedule remains. Can I do a 1031 to defer some capital gains but no longer depreciate and/or buy another property and get new depreciation schedule for that one?" - You get carryover basis plus new excess basis depreciation. "What are some of the rules regarding a 1031 exchange when selling a rental home in one state, but purchasing the replacement property in another state?" - Allowed, but watch for clawback rules in four states. "If I buy a car with a weight more than 6,000 pounds for my newly incorporated business and have not earned any income in the first year of business, can I use it to reduce taxes against my spouse's W2 income?" - Yes, through S-corp with material participation and 50% business use. "I own a rental house and a management corporation, which is a C corp. How do I deduct mileage for my rental activity?" - Use accountable plan reimbursements from C-corp for tax-free money. "How does one qualify for 0% capital gains?" - Single filers need taxable income of $48,350 or less. "I invested in an ATM syndication. It was a Ponzi scheme and all investment was lost. The K-1s I received for previous years were fraudulent. How do I file my taxes for those years that I received a fraudulent K-1?" - Use IRS safe harbor provision for 75-95% ordinary loss deduction. "What are the tax implications of doing a deed in lieu for a timeshare?" - Creates cancellation of debt income taxed at ordinary rates. "What happens to your real estate if when you move outside of the country, is it deemed disposition?" - Only if expatriating citizenship, then exit tax applies. Resources: Schedule Your Free Consultation https://andersonadvisors.com/strategy-session/?utm_source=1031-exchange-rules-when-buying-in-a-different-state&utm_medium=podcast Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=1031-exchange-rules-when-buying-in-a-different-state&utm_medium=podcast Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons

In this Tax Tuesday episode, Anderson Business Advisors’ Barley Bowler and Eliot Thomas, Esq., tackle complex listener questions covering bonus depreciation regulations, short-term to long-term rental property transitions, and the intricate tax ordering rules for combining stock losses with real estate gains. They explore nonprofit structures for foster care services, explain 1031 exchange debt requirements for orthodontic practice sales, and provide guidance on entity selection between partnerships and S-corporations for different business types. You’ll hear how and when to handle Ponzi scheme theft loss deductions, corporate trading structures for stock income reduction, and the critical tax implications of providing company cars to family employees for personal use. Tune in for expert insights on these advanced tax strategies and planning considerations! Submit your tax question to taxtuesday@andersonadvisors.com Highlights/Topics: "Regarding section 168 bonus depreciation, it says to qualify for 100% the property must have been purchased after January 20th, 2025. Does that mean property purchased in 24 but not put into use till 2025 would not qualify?" –This is proposed legislation, not current law yet. "What are the tax implications of shifting properties from short-term rental to long-term rental after leveraging cost segregation reports to accelerate depreciation to offset some W2 income?" – Cannot do both in same year; changes passive loss treatment. "Can you use short-term stock loss carryover to offset real estate depreciation recapture and capital gains?" – Yes, but only after specific tax code ordering rules. "In the state of Florida, could parent fostering be conducted as a nonprofit business entity?" – Cannot earmark nonprofit funds for specific individuals or children. "My husband's selling his orthodontic practice using a 1031 option. Can he pay off the existing loan before reinvesting the profit?" – Yes, QI will pay off debt; need equal/greater replacement debt. "My S corporation business doesn't have cash flow to reimburse me for all benefits. Can I add unpaid reimbursements to my balance sheet like an owner loan?" – Need specific analysis of cash flow and reimbursement timing. "My wife and I have a holding company LLC and multiple subsidiary LLCs currently taxed as partnerships. Should they be changed to S-corp?" – Real estate stays partnership; operating businesses - consider S-corp election. "In a Ponzi scheme, does the discovery year have to be the year charges are filed?" – Discovery year when you become aware through government notification. "Would establishing an LLC help me reduce tax on income from stock trading?" – Consider corporate trading partner structure for meaningful capital gains. "Our C corp employs our son part-time. What are the tax implications of buying him a car for personal use only?" – Buy in his name, increase salary; avoid corporate ownership. Resources: Schedule Your Free Consultation https://andersonadvisors.com/strategy-session/?utm_source=why-you-should-trade-stocks-through-an-llc&utm_medium=podcast Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=why-you-should-trade-stocks-through-an-llc&utm_medium=podcast Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons  

In this Tax Tuesday episode, Anderson attorneys Amanda Wynalda, Esq., and Eliot Thomas, Esq., explore the limitations of renting home office space to yourself as a sole proprietor and explain superior alternatives through S and C corporations that unlock better deductions and reimbursement opportunities. The attorneys provide detailed guidance on properly paying children through family businesses to maximize tax benefits while avoiding employment taxes, and discuss the complexities of transferring real estate to children through gift strategies. They dive deep into syndication investments, explaining passive income treatment, cost segregation benefits, and how real estate professional status can transform passive losses into active deductions. Other key topics include the master lease strategy for short-term rental owners seeking to optimize tax benefits, the mechanics and restrictions of 1031 exchanges, medical expense reimbursements through C corporations (including controversial deductions for specialty foods and safety equipment), and the proper setup timeline for nonprofit organizations. Tune in for expert insights on these advanced tax strategies and more! Submit your tax question to taxtuesday@andersonadvisors.com Highlights/Topics: "Can I rent my home office to myself as a sole proprietor?" - No, use home office deduction instead. "I know an owner of a small business can pay their kids to work for their company. I've heard several different facts about how exactly to do that, which contradict one another. Can you please explain the proper steps?" - Pay kids W-2 from sole prop, avoid taxes. "We were advised to transfer real estate to our children up to a certain limit using the parent-child transfer provision form 709. Can you please discuss the advantages and disadvantages? Any limitations on the amount of equity transfer and any IRS requirements, etc.?" - Not recommended, complex bookkeeping, lose stepped-up basis. "I want to join a syndication as a limited partner. What tax implications do I face at the time of distribution of profits and how does it change if they do a cost segregation and bonus depreciation while I'm still part of this syndication? An additional fact is that this person has their own long-term rental." - Passive income, and cost segregation create offsetting losses. "Are you entitled to cost segregation benefits if you invest in a syndication with your IRA/401k funds?" - Yes allocated, but no tax benefit in retirement. "Please explain the C Corporation Master Lease strategy for short-term rental owners. I own a short-term rental but was unable to capitalize on the short-term rental loophole because I had used professional property management. Does this strategy provide any advantage to somebody in my situation or allow me to take advantage of the loophole in a different way? How would the tax breakdown work in this case if I created a management C corporation?" - C corp manages property, shifts income, enables reimbursements. "What is the downside of using a 1031 exchange to avoid taxes in a profit transaction? Are there any benefits?" - Strict deadlines, higher debt required, but defers taxes. "What are the medical expenses aside from doctor visits and out-of-pocket medications allowed as reimbursable from the C corp? A doctor has recommended including antioxidant foods in our diet to improve my spouse's diet due to a specific condition. Is it reimbursable if we buy foods that are not really on our regular grocery list? Only because our doctor suggested it. Additionally, the other day, my spouse slipped on one of the floor mats, so I had to buy rug grippers. Is this also reimbursable?" - Doctor's note rule applies, antioxidants questionable, grippers no. "I would like to know if I can start a business as a nonprofit before I begin doing the work. Or do I have to already be up and running?" - Set up a nonprofit entity first for protection. Resources: Schedule Your Free Consultation https://andersonadvisors.com/strategy-session/?utm_source=how-to-legally-pay-your-kids-through-your-business&utm_medium=podcast Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=how-to-legally-pay-your-kids-through-your-business&utm_medium=podcast Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons  

In this episode of Tax Tuesday, Eliot Thomas, Esq. is joined by Anderson CPA Barley Bowler. They explain how transfer-on-death titles still provide beneficiaries with stepped-up basis advantages and clarify that short-term rentals don't qualify for real estate professional status. You’ll hear proper entity structures for rental properties, recommending against holding appreciating real estate in C corporations. They thoroughly explain the 280A "Augusta Rule" that allows tax-free rental income from personal residences to your business for up to 14 days annually. With input from bookkeeping expert Troy Butler, they recommend QuickBooks Online for tracking rental property finances. Additionally, they cover Roth IRA conversions, tax withholding strategies, and 1031 exchange rules for deferring capital gains.   Submit your tax question to taxtuesday@andersonadvisors.com Highlights/Topics: "When a house is under a transfer on death title, does the beneficiary still get a step-up in basis?" - Yes, they still get a stepped-up basis. "If I already qualify as a real estate professional rep status via short-term rentals and add long-term rentals to the mix. Can I lump the two kinds together? And does having an S corporation that manages everything affect my rep status?" - Short-term rentals don't qualify for REP status. S-corps generally don't affect REP status. "Where real estate properties are in individual LLCs, disregarded and owned by my C corporation, does the C corporation maintain one bank account and collect rent for all individual properties?" - Not recommended. Use a management company instead. "If you get started in wholesaling, should you file as an S corporation?" - Yes, use S or C corp. "What kind of bookkeeping is needed for rental real estate? Do you have any bookkeeping software to suggest?" - QuickBooks Online is recommended. Track properties separately. "When doing an IRA to Roth conversion, are there any limits? Are pre-tax conversions always treated as ordinary income? Is it true that the IRS does not know or care when the conversions were done during the year?" - No limits. Yes, ordinary income. IRS treats as earned throughout year. "How does tax work if a business owner is paying himself as an employee, do we have to tax twice? Once for the business income and once as an employee?" - No, payroll is deductible business expense. "How do I do a 1031 exchange? And how do I maximize real estate property depreciation after I do a 1031 exchange? Am I stuck with the previous depreciation rate and amount of the previous property?" - Use a qualified intermediary. Trade up for more depreciation. Resources: Schedule Your Free Consultation https://andersonadvisors.com/strategy-session/?utm_source=can-you-boost-depreciation-after-a-1031-exchange&utm_medium=podcast Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=can-you-boost-depreciation-after-a-1031-exchange&utm_medium=podcast Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons  

Clint Coons, Esq., interviews Kathy Fettke, founder of Real Wealth Network and a seasoned real estate expert with over 20 years of experience. They discuss current market conditions, with Kathy explaining how real estate's slow-moving nature provides stability compared to the volatile stock market. She shares that recent decreases in mortgage rates have already increased pending sales and mortgage applications. Kathy reveals her top investment markets, emphasizing the Southeast (particularly Texas and Florida) for growth and appreciation, while the Midwest (parts of Ohio and Indianapolis) offers better cash flow. She explains the importance of property type selection, market dynamics, and long-term strategy, highlighting how newer properties in growth markets typically outperform older properties in stagnant markets, even if the latter initially show better cash flow. Kathy also discusses the current opportunity with builders offering rate buy-downs on new construction, property management considerations, and the importance of avoiding markets with unfavorable landlord laws. This episode provides valuable insights for both new and experienced real estate investors looking to build wealth through strategic property acquisition. Kathy Fettke is Co-Founder of RealWealth.com, helping busy professionals acquire turnkey rental properties in fast-growing U.S. markets. She also leads RealWealthDevelopments.com, offering passive build-to-rent syndication opportunities. Kathy hosts The Real Wealth Show and Real Estate News for Investors podcasts, and co-hosts BiggerPockets: On the Market. She authored the bestsellers Retire Rich with Rentals and Scaling Smart with her husband, Rich Fettke. A frequent speaker and media guest, Kathy has appeared on CNN, CNBC, Fox News, NPR, and CBS MarketWatch. Highlights/Topics: Current real estate market conditions and mortgage rate sensitivity Top investment markets: Southeast for growth vs. Midwest for cash flow Importance of property condition in investment returns (newer vs. older properties) The danger of focusing solely on cash flow without considering long-term appreciation Current opportunity with builders offering interest rate buy-downs Millennial demographic demand driving rental housing needs The importance of proper property management selection Avoiding markets with unfavorable landlord-tenant laws Long-term vs. short-term real estate investment strategies Closing comments, final words of advice Resources: Real Wealth   Real Wealth Developments https://realwealth.com/real-estate-syndications/ https://www.instagram.com/realwealth/  https://www.instagram.com/kathyfettke/  Schedule Your FREE Consultation https://aba.link/RWN42025SS Tax and Asset Protection Events https://aba.link/RWN42025TAP Anderson Advisors https://andersonadvisors.com/ Anderson Advisors Podcast https://andersonadvisors.com/podcast/ Clint Coons YouTube https://www.youtube.com/channel/UC5GX-U6VbvMkhSM1ONBiW8w

In this episode, Anderson attorneys Amanda Wynalda, Esq., and Eliot Thomas, Esq., address several listener questions on a variety of tax topics. They cover the tax implications of selling stocks to purchase rental properties, explaining capital gains strategies and depreciation options. The duo discusses using LLCs and management corporations for rental properties, including how property management fees can generate tax-free income. They explore inheritance tax considerations for 401(k)s, the benefits of short-term rentals for generating tax losses, and the implications of moving back into a rental property. Other topics include setting reasonable salaries for S-Corporation owners, maximizing depreciation to offset W2 income, claiming natural disaster losses, depreciating remodel costs for rental properties, and properly implementing the 280A/Augusta Rule for tax-free home rentals. Submit your tax question to taxtuesday@andersonadvisors.com Highlights/Topics: "I would like to sell my stocks and use the money to help purchase a rental property. Is there a strategy to minimize or avoid paying taxes on capital gains or any other tax-saving advice?" - Loss harvesting and short-term rental tax benefits. "Would a rental property not in an LLC also be reported under the Management Corporation or a 1040?" - Report rental on 1040, management fee on 1120. "What would the tax implication be when a spouse passes and the surviving spouse inherits a 401k?" - Lump sum, continue distributions, or rollover options. "What would be the tax consequences concerning W2 income, depreciation, etc., of purchasing a rental property, using it as a short-term rental with material participation in the tax year that it was purchased, then selling it the following tax year?" - First-year losses, later depreciation recapture on sale. "What are the tax implications if I've moved back into my rental and use it as my primary residence? I'm not planning on selling anytime soon." - Reduced Section 121 exclusion, depreciation recapture later. "What is a reasonable salary range we should set for ourselves to remain compliant but still maximize our S Corporation Tax savings?" - 30-60% of net business income typically. "If a person is a W2 wage earner and wants to start real estate as a side job, what needs to be true when picking real estate options to maximize asset depreciation to help offset my W2 taxes owed?" - Short-term rentals with material participation (100+ hours). "If I experienced a loss from a flood that was declared a natural disaster in 2024, how do I take that credit on my taxes?" - Personal: federal declaration required. Business: none needed. "How do you depreciate remodel costs for an income property? So, a rental property. You purchased the property, for example, 10 years ago for 100k, and began depreciating it. This year, you put 30K into a remodel that included floors, paint, kitchen cabinets, and appliances." - Separate depreciation schedules for each improvement type. "I'm interested in using the 280A/Augusta rule rental of my home for an upcoming seminar that I'll be attending online. Am I allowed to use this strategy since I'm the only one attending? Also, I reviewed the document that Anderson put together for the 280A. It mentions getting three quotes. If I call a hotel and ask for a conference room quote for one person, I imagine I won't be taken seriously. Do you just request a small conference room for five people or less?" - One-person meetings allowed; request quotes for small groups. Resources: Schedule Your Free Consultation https://andersonadvisors.com/strategy-session/?utm_source=how-to-sell-stocks-tax-efficiently-to-buy-rental-property&utm_medium=podcast Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=how-to-sell-stocks-tax-efficiently-to-buy-rental-property&utm_medium=podcast Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons

In this episode, Toby Mathis, Esq., of Anderson Business Advisors, welcomes David Pelligrinelli, a professional asset recovery expert from ActiveIntel. They dive deep into the alarming reality of employee theft and embezzlement in businesses of all sizes. David explains the "fraud triangle" concept—opportunity, pressure, and justification—that enables employee theft, sharing real-world examples of trusted employees who stole hundreds of thousands of dollars from their employers. They discuss essential prevention strategies like having owners open all financial mail, requiring employees to take vacations so others can review their work, and implementing proper checks and balances. The conversation reveals sophisticated theft techniques, including ghost vendor schemes and credit card fraud, while emphasizing that even trusted employees can succumb to temptation when proper controls aren't in place. David also shares fascinating stories about asset recovery investigations and explains how counter-investigation tactics can help those being investigated unfairly. Highlights/Topics: Introduction to employee theft and embezzlement as a common business problem The "fraud triangle" concept: opportunity, pressure, and justification Best practices for preventing employee theft (opening mail, mandatory vacations) Ghost vendor schemes and sophisticated theft techniques Long-term financial impact of embezzlement on business profitability Examples of elaborate asset concealment by debtors Employee dishonesty insurance coverage options Counter-investigation tactics and illegal investigation methods Share this with business owners you know Resources: Email: dave@activeintel.com https://actualhuman.com/ https://riskcoverage.com/ https://telemediator.com/ https://www.activeintel.com/ Schedule Your FREE Consultation Tax and Asset Protection Events Anderson Advisors Toby Mathis YouTube Toby Mathis TikTok Clint Coons YouTube