Anderson Business Advisors Podcast
Anderson Business Advisors Podcast
Tax Tuesday Episode 141: LLC for Real Estate Investing
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Did you happen to watch Saturday Night Live with Elon Musk? Was it a waste of time and money? Maybe you should ask Toby Mathis and Jeff Webb of Anderson Advisors to answer your questions about buying a Tesla, investing in bitcoins, and other cryptocurrencies. Submit your tax question to taxtuesday@andersonadvisors.

Highlights/Topics:

  • I would like to make my investment condo my primary residence for tax benefits upon its sale – without sleeping there 731 days over five years. Is that only a safe harbor measurement or a hard-and-fast rule? Refer to Section 121 – Capital Gains Exclusion because your primary residence is where you spend the most nights
  • How can I take profits out of an S Corp without paying a lot in taxes? If you are the 100% shareholder of the S Corp, whatever profit that S Corp has, that’s your income and you pay tax on that income, regardless of whether you take money out of that S Corp or not
  • How do you account for remodeling expenses versus maintenance expenses for a rental property? Maintenance expenses or repairs are expenses for keeping the asset at its current value; remodeling expenses are improvements such as renovations or a betterment to increase the value of the asset
  • Can an employer contribute to a profit-sharing retirement plan if there was no profit for the year? It has nothing to do with profit, but it does help to have profit to pay the contributions or create a loss
  • If my business and house are in my revocable living trust when I die, what kind of tax will my kids (the beneficiaries) have to pay on getting the business or the house? When you die, a portion of the assets in the revocable living trust go into an irrevocable trust, so your estate may pay tax, but beneficiaries will never pay tax on inheritance or gifts

For all questions/answers discussed, sign up to be a Platinum member to view the replay!

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Resources:

Infinity Investing: How The Rich Get Richer And How You Can Do The Same by Toby Mathis

Opportunity Zones FAQ

Entity Formation

Retirement Plans

Bitcoin

Wills and Trusts

Real Estate Professional Requirements

Capital Gains and Losses

Tax Cuts and Jobs Act (TCJA)

Section 26 U.S. Code 1400Z

Step-Up in Basis

Section 121 – Capital Gains Exclusion

Bonus Depreciation

Depreciation Recapture

1031 Exchange

Unrelated Business Income Tax (UBIT)

Unrelated Debt-Financed Income (UDFI)

Cost Segregation Authority

Nexo – Banking on Crypto

Section 168(k) Tax Deduction

Section 179 Tax Deduction

Form 1040

Form 3115

Form 1065

Form 1041

Self-Employment Tax

Renewable Energy Tax Credits

American Family Act

CARES Act

Section 26 U.S. Code 469

Toby Mathis

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Full Episode Transcript:

Toby: Hey guys, this is Toby Mathis.

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