Anderson Business Advisors Podcast
Tax Tuesday with Toni Covey 03-30-2021
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Don’t be a fool in April! Make sure to get your tax questions answered by Toni Covey and Jeff Webb of Anderson Advisors. Submit your tax question to taxtuesday@andersonadvisors.

Highlights/Topics:

  • Do wholesalers of land need to pay self-employment tax? If you are wholesaling that is going to be ordinary income, so if it’s reported on your personal tax return, it’s subject to self-employment tax; instead put it in a corporate entity
  • If I run my real estate business from home, can I deduct a portion of all home expenses (i.e. property tax, utilities, and insurance)? Yes, but there are a few rules that need to be followed such as for a home office deduction and Schedule C
  • Startup S-Corp has no revenue yet. If I file taxes jointly with my spouse, any concerns? No, but make sure to file a tax return to prove profit motive
  • What is the best way to pay my children (teenagers) when they work in my business? Payroll? Cash at time of service? Year-ending 1099? To pay your children, consider what they are capable of doing and what they are going to be paid, which can be done via W-2 or 1099

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

Schedule K-1 Form 1065

Self-Employment Tax

Real Estate Professional Requirements

Charitable Organizations

Form 1099

26 U.S. Code Section 168K

Section 179

Entity Formation

Cost Segregation

Bonus Depreciation

Depreciation Recapture

Wills and Trusts

CARES Act

Home Office Deduction

Tax Cuts and Jobs Act (TCJA)

Schedule A

Schedule C

Schedule E

Form 1040

Form 8829

26 U.S. Code Section 280A

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Full Episode Transcript:

Toni: All right. We’re just giving it a second to let everybody get settled in. Welcome to Tax Tuesday. My name is Toni Covey. I am an EA and Director of Professional Services here with Anderson. I am so sorry, but I am taking the place of the infamous Mr. Toby Mathis today, so you’re going to have to deal with me instead. Also got Jeff here. Everybody knows you, but go ahead.

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