Free Tax Tips & Strategies

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

Featured Questions

  • 5:45 – If I have a small business, do I need to make it an LLC to hire my children, or can I just be an independent contractor and hire them? Is the limit that I can write off $12,000 per child?
  • 12:31 – Just bought a house in cash for $30k and spent about $15k in rehab. What expenses of this deal can I write off, besides the rehab costs?
  • 21:15 – I have a real estate business in Texas and was thinking of establishing a series LLC for my properties. How does this affect my ability to sell or do a 1031 exchange? Do I need to have separate holding and management/operations LLCs? Where does having a land trust come into play in a series LLC?
  • 25:53 – If I am a real estate professional in 2020, can I offset previous years’ passive losses in this year?
  • 33:39 – We are looking to purchase a used RV from a private party in CA for $100k for business use. If we register the vehicle with our Wyoming holding company (LLC), can we avoid paying CA 8.75% sales tax, or $8,750?
  • 44:29 – Suppose one purchased a home in an Opportunity Zone and the funds for the renovation came from the sale of some stock options and earnings from an employee stock option program. If the person’s accountant filed the taxes with no Form 8996 filed and the taxes were paid on the capital gain instead of deferring, what can that person do? The only reason that the stock was sold was to fund the renovation and to improve the neighborhood.
  • 53:01 – Can you put a primary residence into a land trust and/or LLC to maintain anonymity if you have a commercial bank loan? If not, are there other options available?
  • 54:46 – I have a question with regard to taking some money from my 401(k) without penalty due to the CARES Act. Is it possible to use it to invest in real estate or are there restrictions on how you can use the money?
  • 1:00:23 – What are other ways to avoid capital gains taxes aside from the 1031 exchange? Can a house be put in a non-profit and then sold so no taxes are owed?
  • 1:04:46 – I have a lot of passive losses carried forward from the 2019 tax year to 2020. If I elect to be a real estate professional in 2020 for the first time ever, can I use these passive losses from previous years as a deduction against ordinary income earned in 2020?

As always, take advantage of our free educational content and every other Tuesday we have Toby’s Tax Tuesday, another great educational series. Our Structure Implementation Series answers your questions about how to structure your business entities to protect you and your assets. One of my favorites as well is our Infinity Investing Workshop.

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