Tax Tuesday with Toby Mathis 09-15-2020
Tax Tuesdays

 
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Give your children a purpose, not money. Toby Mathis and Jeff Webb of Anderson Advisors answer tax questions related to passive versus active income reported on payroll for people of all ages to flipping properties and real estate investments. Do you have a tax question? Submit it to taxtuesday@andersonadvisors.

Highlights/Topics: 

  • 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? LLC is not required for small businesses, but it is recommended for liability protection; your children’s wages should be run through payroll, even if they don’t have social security numbers
  • I just bought a house, paid 30k in cash, and spent about $15k in rehab. What expenses of this deal can I write off, besides the rehab cost? Depends on whether you are flipping the property or using it as an investment property; capitalize all of it because you can’t write off the expenses as repairs
  • If I am a real estate professional in 2020, can I offset previous years’ passive losses in this year? No, only for 2020 and only for years you were a real estate professional
  • 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? LLC or land trust is possible, but it’s not the best idea because it could impact homestead  

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Resources:

The Tax Toolbox (only $595; regularly $1,500)

Tax-Wise Workshop

1031 Exchange

Real Estate Professional Requirements

Wills and Trusts

Opportunity Zones

Qualified Opportunity Fund

Form 8996

Capital Gains Exclusion/Section 121

CARES Act

Individual Retirement Arrangements (IRAs) 

Traditional and Roth IRAs

Small Business Administration (SBA)

1099 Form

Form W-2

Self-Employment Tax

Bonus Depreciation

Depreciation Recapture

Cost Segregation

Tax Cuts and Jobs Act (TCJA)

Healthcare Reform (Affordable Care Act)

26 U.S. Code Section 469(c)(7) 

26 U.S. Code Section 280A

MileIQ

Mar-a-Lago

Schedule A

Schedule C

Federal Reserve Economic Data

Memorandum on Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster

Economic Injury Disaster Loan (EIDL)

Paycheck Protection Program (PPP)

Paycheck Protection Program (PPP) Flexibility Act

Credits and Deductions

Charitable Organizations

The Private Vault by Greg Boots

Toby Mathis

Anderson Advisors

Anderson Advisors Events

Events@andersonadvisors.com

Anderson Advisors Tax and Asset Protection Event

Anderson Advisors on YouTube

Anderson Advisors on Facebook

Anderson Advisors Podcast

Full Episode Transcript:

Toby: Hey, guys. This is Toby Mathis. 

... Read Full Transcript