How Will You Be Taxed on Flips?

by Toby Mathis

October 6, 2020

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

24:06 – Can you withdraw some earnings from a Roth IRA if you have held it for 5 years or more and you are under 59.5 years old? Do you know the IRS Code that supports your answer?
38:06 -Toby mentioned someone who made $3M in income and saved in taxes by routing $1M to a C-corp. that acted as a lending arm. How did he structure this? Wasn’t there an issue with accumulated earnings tax or personal holding company tax?
47:47 – If I live in one state and use my home office for a tax deduction, but have rented an apartment in another state for business purposes, can I use the apartment for a business deduction? Utilities as well?
52:15 – What are the laws for purchasing a vehicle for business in order to capture it as a deduction?
56:14 – Is there a way to get around being taxed on the gains/profit from doing flips?
58:00 – If you are renting out a condo and taking depreciation on it then, the following year, decide to live in the condo yourself, what do you do about the depreciation?
1:00:41 – I’m selling my house in Mexico, and I’m being charged 35% capital gains tax. 1) I am being charged on the currency, which has doubled 10-1 to 20-1. Can I avoid that? My home has not increased in value, only the currency decreased in value. 2) Do I also need to pay capital gains tax or anything of the sort in the US?
1:06:35 – My cousin and I are looking to purchase a flip property. Can we both use our separate LLCs for the transaction, or is it better to create a new partnership LLC?

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.

Additional Resources:

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.