Anderson Business Advisors Podcast
Anderson Business Advisors Podcast
Which Business Structure is Best for Real Estate Agents
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Toby Mathis and Jeff Webb of Anderson Advisors answer your tax questions, including which business structure is best for real estate agents. Submit your tax question to taxtuesday@andersonadvisors.

Highlights/Topics:

  • What is the 1031 exchange? How is it used and is there any concern that it may go away? Section 1031 allows you to sell an investment property through a qualified intermediary (QI) and then replace that property; there’s no logical reason for the 1031 exchange to go away because it is a tax deferral not a tax avoidance technique
  • As a new wholesaler, what is the best way to set up my business structure? Through a corporation because a wholesaler is somebody that gets a property under contract and then sells the contract with a right to close on that property
  • How does the tax work on rent-to-own? The non-refundable deposit, monthly cash flow, and the backend? IRS views non-refundable deposit as a lease-purchase option or sale

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Resources:

Infinity Investing Workshop (Free virtual event on September 11)

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

1031 Exchange

Step-Up in Basis

Entity Formation

Bonus Depreciation

Depreciation Recapture

Capital Gains and Losses

Section 121 – Capital Gains Exclusion

Real Estate Professional Requirements

Full Episode Transcript:

Toby: All right, guys. Welcome to Tax Tuesday. Hopefully everybody’s out there alive and kicking. This is Toby Mathis and I got Jeff Webb there on a different cam.

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