What are Your LLC Tax Questions?

by Toby Mathis

June 16, 2020

In this episode of Tax Tuesday, Toby Mathis, Esq. brings tax knowledge to the masses and breaks down your tax questions LIVE! He’s joined by Jeff Webb, CPA and Tax Director at Anderson Business Advisors.

Updated October 13, 2020

Featured Questions

19:37 – We received money from the sale of property not in an LLC. We have LLCs and a corporation. Can we put these funds in our corporation?
25:04 – If you lend money to your business, can it be interest-free? If there must be interest, then how much is required?
29:45 – What questions should be asked when interviewing a bookkeeper for a syndicated apartment investment?
36:39 – Is it possible to sell a piece of raw land to our real estate entity in order to have the entity pay taxes upon sale instead of personally paying?
41:31 – Toby, when should I create an LLC: just before starting to invest, or after?
47:12 – My husband and I use our self-directed IRAs to loan hard money to real estate investors. We hold the note on the property and interest is paid back directly into the IRA at closing, when the note is paid off. What tax documents do we have to provide the borrower each year?
54:38 – If I transfer my rental property that has a mortgage to a land trust that’s under an LLC, what happens to the depreciation that I’ve been using for the past years when I do my taxes? It seems like a complete mess tax-wise.
59:10 – If my job has been furloughed and I want to take money out of my work 410(k) and move to a self-directed IRA, are there new rules to follow? Will it be counted as income?
1:02:17 – My CPA tells me that putting a California property into a Wyoming LLC will trigger California taxes and fees. Is this correct?
1:05:51 – What is the best entity to use as a real estate agent?
1:11:10 – How do we claim taxes on a property in a partnership while keeping it separate from our personal assets?
1:13:27 – If I use the new PPP loan for payroll, rents, and utilities, that it is forgivable. But since I can’t open my spa business now and all the employees are getting unemployment, can I hire contractors to do repairs and have that count towards the forgivable part of the loan? Do they have to be employees, or can I pay them as independent contractors?
1:22:43 – Is preferred stock (with a preferred return and equity participation) considered debt in the context of triggering UDFI for IRA deals?
1:24:48 – Do I have to pay taxes as a 501(c)(3) nonprofit employer on monetary or non-cash gifts given to employees, such as bonus checks?
1:28:05 – Since Arizona is the only state that requires the name and address of beneficiaries to show on deeds, how can one form a land trust in AZ with a beneficiary as an AZ LLC, which will be owned by a WY holding LLC? How can the trustee get around that?
1:34:29 – The SBA website is not very clear on what rental home costs I am allowed to spend SBA EIDL loan funds on. I understand that I can use the EIDL funds to make monthly mortgage payments for my rental homes. Can I use the EIDL funds for capital improvements on my rental homes, such as installing a new roof? Can I use the EIDL funds for all of the following expenses: maintenance, repairs, utilities, property management fees, leasing fees, HOA dues?
1:37:22 – Am I allowed to include EIDL loan interest payments on my Schedule E as an expense of my rental homes? If yes, what are the guidelines for how the EIDL interest is assigned (i.e., allocated) against my multiple rental homes?

Author Bio

Toby Mathis, Esq. ~ Founding Partner, Attorney, Author & Business Tax Expert.

Toby Mathis is a founding partner of Anderson Law Group and current manager of Anderson’s Las Vegas office.

He has helped Anderson grow its practice from one of business and estate planning to a thriving tax practice and national registered agent service with more than 18,000 clients.

In his work as an attorney, he has focused exclusively in areas of small business, taxation, and trusts. In addition, Toby was the past director and host of the longest-running local business radio program on KNUU in Las Vegas “The BOSS Business Brief”.

He sits on the board of directors for several companies and was recently appointed to the local board of Entrepreneurs’ Organization, a worldwide association of owners of successful businesses. He has authored more than 100 articles on small business topics and has written several books on good business practices, including first, second and third editions of Tax-Wise Business Ownership and 12 Steps to Running a Successful Business.