Tax Tuesday with Toby Mathis 09-04-18
Tax Tuesdays

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It’s time for Toby Mathis and Jeff Webb of Anderson Advisors to answer your questions about taxes, the IRS, and much more. Do you have a tax question for them? Submit it to Webinar@andersonadvisors.com.

Highlights/Topics:

  • What is Nexus? Why do I care? Nexus is a state’s right to tax your income; different types (tax and physical), state laws, and throwback rule – how they affect you
  • Does IRS reimburse me for corporate expenses? Misconception about reimbursement from the client’s company or IRS; IRS doesn’t give you money, but let’s you write it off
  • How do I qualify for a real estate professional status? Requires 750 hours as #1 use of personal professional time; know importance of passive activity loss and logging time
  • What are self-dealing rules for non-profits, IRAs, QRPs? Particular entities can’t interact with a disqualified person – can’t sell them anything; but self-dealing exceptions exist
  • Am I dealer or investor? What’s the difference? Investor is passively involved, dealer is actively buying/selling real estate; can depend on the intent and timeframe
  • Why set up an LLC that does flipping as a C or S Corp instead of a partnership? Because it’s taxed as ordinary income and subject to self-employment tax
  • What is UBIT? Unrelated business income tax is when a plan/non-profit isn’t doing what it’s set up to do; can have passive activity until it competes with active businesses
  • I hold rental property in a self-directed IRA. What can I do? There’s things you can/can’t do, especially add value to a property, so find a property manager and IRA custodian
  • My wife’s previous employer’s stock options were exercised and have peaked. If we cash in, what’ll be the tax consequences/burden? Long-term capital gain and opportunity zone
  • I’m helping a friend with a crowdfunding project. What are tax consequences with no deductions? Does he pay tax on donated money? No tax for less than $15,000 per donor
  • How to aggregate all properties? Disadvantages? Election form that your print with your tax return to identify properties; doesn’t free up large losses tied up
  • If real estate investing part time, are you considered a part-time investor? You’d be a part-time investor, not real estate professional; determining factor is to document time
  • How do I get the 501(c)(3) tax-exempt? Use the 1023 application
  • How do you create an LLC in an IRA? IRA custodian enters into a contract with a company to create an LLC, or set up a 401(k) to roll the IRA into it without a custodian
  • Investing in LLC for holding rental property. How do you avail to a 1031 exchange? Need a 1031 exchange facilitator and LLC must buy or sell the next property within 180 days
  • If I receive social security benefits at 62 and not currently employed, but do receive interest income. Will it affect my SS benefits? Can be isolated into its own taxable entity
  • My wife and I are the only shareholders and both take a ⅓ salary. Is that the right amount? You should take a ⅓ of the net profit as salary instead
  • How do you put an LLC on hold? Do nothing with it or pay the state; file non-activity return
  • Will real estate holding LLC taxes partnership qualify for 20% pass-through deduction? Yes, if not triple net property

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

Resources

Anderson Advisors Tax and Asset Prevention Event

Toby Mathis

Anderson Advisors

U.S. Supreme Court Reverses Long Standing Law On Collection Of Sales Taxes

Northwest Energetic Services LLC vs. California Franchise Tax Board

Throwback Rule

SALT Limit

After 24 years, wealthy inventor gets his day in tax court – and wins

10 Tax Deductions That Will Disappear Next Year

Passive Activity Losses – Real Estate Tax Tips

Real Estate Professional Status – Becoming More Important – Very Hard To Prove

Acts of self-dealing by private foundation

Unrelated Business Income Tax

Opportunity Zones Frequently Asked Questions

About Form 1099-INT | Internal Revenue Service

Exemption Requirements – 501(c)(3) Organizations

Form 1023

Taxbot

MileIQ

Tax Cuts and Jobs Act, Provision 11

011 Section 199A – Qualified Business Income Deduction FAQs

Full Episode Transcript

Toby: Alright, welcome to Tax Tuesday, this is Toby Mathis joined by our tax manager Jeff Webb.

... Read Full Transcript