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

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Toby Mathis and Jeff Webb of Anderson Advisors are here to answer all sorts of tax-related questions that focus on everything from applications to forms and QuickBooks. Do you have a tax question? Submit it to Webinar@andersonadvisors.com.

Highlights/Topics:

  • Will income earned by lending money to real estate investors reduce Social Security benefits or increase taxes on them? Income vs. earned income; until full retirement age, benefits are reduced; when full retirement age, it doesn’t matter what you make
  • How do I get the 20% deduction from Trump’s Tax Plan? The 199A Deduction is a 20% deduction on qualified business income, but you need a pass-through entity; QBI 20% deduction vs. 20% of taxable income are compared, and you get whichever is less
  • When you make a contribution out of your own account to your LLC as a member, are you taxed on contributions? No. It’s a contribution to an entity that becomes your capital and money you can take back out tax-free, if you haven’t used it to recognize losses
  • What is the best business structure recommended against asset, structure, and personal protection? With any passive activity, use a passive entity – LLC taxed as a partnership/limited partner; whomever has control of entity decides what’s distributed
  • What is the best way to set up QuickBooks when I have a Wyoming Holding LLC and several other LLCs holding real estate in other states? Create one set of books with Wyoming LLC as the primary; do a classified income statement for other states
  • What are the tax forms for 501c3? Use Form 1023 to apply to be an exempt charitable organization; yearly recording forms include 990-N
  • If someone has rentals in their self-directed IRA, how are they impacted as UBIT – does it make a difference on the number/dollar amount? No UBIT, if it’s a rental; UBIT is for an active business inside an IRA; passive income is almost always exempt
  • Can I have recourse debt in a 401K or IRA? Can I have non-recourse debt? You can’t have recourse debt, but you can have recourse debt
  • What are my options to re-distribute funds from one LLC in several entities to separate investments? You can always move it from one to another with no tax implication
  • Can I write off costs for rehabbing out of the country? Yes. Worldwide profits; if it’s income-producing property, you report it to the United States
  • I lent money to a real estate flipper. She gave me a promissory note, but it wasn’t recorded with the deed of trust. Now, she is in default. Can I foreclose? Document it because you can’t foreclose until you file your secured interest
  • Is there anything I can do to reduce my taxable income? Yes. There are lots of things you can do – make contributions to qualified retirement plans, charities, and C Corp
  • I purchased a new computer that cost less than $2,500. Is that a straight expense in the current tax year or some weird depreciation thing? Section 179 deduction; you can buy up to $1 million and write it all off

Resources

U.S. Social Security Administration

Trump’s Tax Plan

199A Deduction

QuickBooks

Tax-Wise Workshop

501c3

Unrelated Business Income Tax (UBIT)

990-T

990-N

Section 179 Deduction

1244 Election

Kiddie Tax

Anderson Advisors Tax and Asset Prevention Event

Toby Mathis

Anderson Advisors

Full Episode Transcript:

Toby: Hey, guys. This is Toby Mathis with Jeff Webb again.

... Read Full Transcript