In this episode of Tax Tuesday, Anderson advisors Barley Bowler, CPA, and Eliot Thomas, Esq., tackle listener questions covering essential tax strategies for real estate investors and business owners. They explain how LLCs holding investments should be taxed, breaking down the differences between disregarded entities, partnerships, and corporations. They walk through complex scenarios including calculating capital gains on homes with mixed personal and rental use, including non-conforming use periods and depreciation recapture. Barley and Eliot discuss strategic tax planning for cryptocurrency gains, maintaining disability benefits while generating passive income, and the mechanics of cost segregation studies for accelerating depreciation deductions. They also cover creative strategies like the daughter’s stock trading scenario using the 0% capital gains bracket, finding passive income to offset accumulated passive losses, and using nonprofits for tax savings. Throughout the episode, they emphasize the importance of proper structure and timing to maximize deductions while staying compliant.
Submit your tax question to taxtuesday@andersonadvisors.com
Highlights/Topics:
- “Should my LLC holding investments file as a C or an S corporation or with my individual 1040?” – Disregarded LLC on personal return; corporations for active business only.
- “We are selling our personal home with acreage for considerable gain. How do I figure out which percentage of capital gains we will owe? Zero 15. 20. And how can we decrease the amount of capital gains we will owe?” – 0%, 15%, or 20% based on taxable income brackets after exclusions.
- “My daughter trades stocks and has low earned income. If she closes positions at a profit that were held over a year, the capital gains remain untaxed provided her net taxable income is below the threshold. Can she close in a profit and reopen the same position year after year? Can that be ongoing to avoid any tax?” – Yes, if total taxable income stays below threshold annually.
- “What is the best asset protection entity structure to be in that will save on taxes with gains in cryptocurrencies?” – Trading partnership with 90/10 split and C corporation for efficiency.
- “I’m a disabled nurse collecting social security disability. I’m considering an LLC as an asset holding company. How can I make it so the distribution and salary are passive so that I don’t lose my benefits?” – Use disregarded LLC; dividends and capital gains typically don’t affect disability.
- “Can you please explain a cost segregation study?” – Accelerates depreciation by reclassifying building components into shorter-life assets for upfront deductions.
- “I have a house I lived in for three years, rented for five years, moved back in two years ago. How does the rental depreciation and recapture gain work on my tax return if I sell it?” – Apply Section 121 exclusion; 50% non-conforming use affects gain calculations.
- “What types of passive income could I invest in to offset my accumulating passive losses?” – Limited partnership interests in businesses generating profits, not portfolio income like stocks.
“Would you please explain how nonprofits are used to save on taxes?” – Itemized charitable donations create deductions; funds must serve nonprofit purposes only.
Resources:
Schedule Your Free Consultation
Tax and Asset Protection Events
Full Episode Transcript:
Barley: Hey, everybody. Welcome back to Tax Tuesday, bringing tax knowledge to the masses. We are live. Welcome to your live stream. We are live from Anderson Business Advisor Studios here in Las Vegas. We’re going to give everybody a minute to trickle on into the live stream. We got a lot of ground to cover going over your tax questions of course. Welcome to Tax Tuesday, every other Tuesday, answering your questions. Bringing tax knowledge to the masses is what we claim to do here.
Eliot: We try.
Barley: We’ve been doing that on a pretty consistent basis. We talked about this a month or so ago. This has been one of the longest consistent live things that we’ve offered here at Anderson. It’s been going on for a long time now. Welcome everyone to the Tax Tuesday live stream, live every other week. My name is Barley Bowler. I’m a CPA here at Anderson Tax Advisors here, one of the tax advisors, joined by the manager of our tax advisory department, Mr. Eliot Thomas.
Eliot: Hello. Good to be here.
Barley: My applause button didn’t work. You guys might be hearing it live. Yeah. Welcome back. You guys know the drill. We got the Q&A, and we got a chat. This is your time. We’ve got your questions that we’ve gone over in advance. We’re going to be looking at those. Please post where you’re coming from in the chat. Give us a shout out. Tell us if you’re having any sound or video problems there. Post any questions in the Q&A and we’ll go from there.
Eliot: Yeah, we got Patty manning the chat. Again, put anything in there. Let us know where you’re coming in from. We have quite a crew of our colleagues sitting here answering the questions in the Q&A section. We have Dutch, we got Patty of course in there as well, Jeffrey, Marie, Rachel, Tanya, and Troy. Probably Troy is on our YouTube.
Barley: Yup. Fast and Furious on YouTube. This is fast paced usually, but again, we like to try and keep it somewhat entertaining and useful to you of course. We’re trying to focus on topics that are going to be usable to you. We’ve got a whole team in the background, not just Eliot and I here. We’ve got a whole team answering your questions.
Live Q&A feature in the Zoom, post your questions there. Here’s the email address again. Two weeks from now, we’ll be doing the exact same thing, so email your questions in. Eliot, goes through all the questions, sums them all up, puts them in a nice order so we can get some good value out of this.
Eliot: We got some Washington all the way to the East Coast in North Carolina. I saw a Denver in there. I used to live in AZ as well.
Barley: We got East Coast, West, and right in the middle. I love it.
Eliot: A little bit of everything.
Barley: Just about our services, guys, post any questions you have in the Q&A here, but just to remind you that you can submit a question to the platinum portal, a written question. Let us know if it’s tax, legal, bookkeeping. We’ll get you to the right place there. Of course, we also have the Platinum Knowledge Room. That’s five days a week, five hours a day. It’s a zoom meeting. Whether people like the Zoom meeting or not, once you get used to it, I think it’s a great format.
The bottom line, guys, five days a week, five hours a day, staffed by a CPA and an attorney the whole time. You guys have heard me say this. Brag to your friends that you have that service. You have people on call waiting to take your questions, and then use that service. Put that to work. These tax answers sometimes just generate more tax questions, so come on in there and pick our brains.
Eliot: We got a lot of specialties in there as well. We have our nonprofit hours and things like that. A lot of good programming.
Barley: Yeah, absolutely. Fast, fun, and educational. We want to give back and help educate. I don’t know. Some of you may have remember the early days of Anderson Advisors. This is when Clint and Toby were pretty much just putting out constant content for free, just trying to get people educated. Of course, when you get down to the finer details, you got to cross the Ts, dot the Is, and hire someone to do the service.
A lot of this stuff is designed to just help you get up to speed with a lot of these tax and legal concepts. Goodness gracious, you hear this stuff a lot. It takes a lot of repetition. That’s the goal. We want to keep it fun and educational. Of course, the bottom line here is to deliver as much value as we can to you as a client, of course. All right. Should we read through the questions here? Skimm through them?
Eliot: Please do.
Barley: Here’s what we’re going over today, guys. “Should my limited liability company (LLC) holding investments file as a C or an S corporation or with my individual 1040?” Great question. Basic tax forms there.
Eliot: “We are selling our personal home with acreage for considerable gain. How do I figure out which percentage of capital gains we will owe? 0%, 15%, 20%?” Yeah, we like the zero. We’ll try and angle that way if we could. “How can we decrease the amount of capital gains we will owe?”
Barley: “My daughter trades stocks and has low earned income.” We’ve got these different income categories. “If she closes positions at a profit that were held over a year, talking long-term capital gains, the capital gains remain untaxed, provided her net taxable income is below the threshold.” Exactly. We’re talking about taxable income here. “Can she close at a profit and reopen the same position year after year?” Can that be ongoing to avoid any tax?
Eliot: That’s sneaky down. We have to look at them.
Barley: We’ll definitely talk about that.
Eliot: “What is the best asset protection entity structure to be in that will save on taxes with gains in cryptocurrencies?”
Barley: Yup. Great question. Couple of options there. “I’m a disabled nurse collecting social security disability. I’m considering an LLC as an asset holding company. How can I make it so the distribution and salary are passive so that I don’t lose my benefits?” Great. I’m so happy you asked that question because this is very common. We’re going to dive into that as well.
Eliot: Yeah. We’ve been seeing that come up quite a bit. “Can you please explain a cost segregation study?” It’s something near and dear to our hearts, so we’ll certainly go through that.
Barley: Yeah. We love to talk about that. Make sure you turn into the YouTube pages, of course. Clint, focusing on the asset protection side, Toby on the tax planning side. Tons of good interviews as you guys are aware. Make sure you subscribe. Great way to just keep tabs on the industry. Lots of good content on there.
Next question. “I have a house I lived in for three years, rented for five years, and moved back two years ago.” As your primary residence. “How does the rental depreciation and recapture gain work on my tax return if I sell it?” Great question.
Eliot: “What types of passive income could I invest in to offset my accumulating passive losses?” Popular question as well.
Barley: Would you please explain how nonprofits are used to save on taxes?” I think that’s our last one.
Eliot: That’s our last one.
Barley: Toby’s page, don’t forget. We’re up to a thousand videos, guys, 500,000 subscribers. We got to get that up.
Eliot: Yeah, half a million.
Barley: We got a thousand videos on there. Great content as usual. What do we got coming up? Let’s talk about some events here.
Eliot: This thing?
Barley: What’s this thing?
Eliot: TAP event, Tax and Asset Protection live.
Barley: This is the virtual, right?
Eliot: This is the live one.
Barley: This is the live one? Okay, great. In Dallas?
Eliot: Yup.
Barley: Right.
Eliot: December 4th through the 6th, $99 only. Scan the box, get all the information you need, and join us down there. It’s a great event. We just had our Las Vegas event. Barley and I got to meet a lot of you. We appreciate so much for you coming out. We had a great time. Hopefully you did too. This one’s going to be in Dallas, a little bit south and east.
Barley: Hopefully the humidity will have lessened up a little bit there.
Eliot: Yeah, December.
Barley: Yeah. It was great to see all you guys at the event two weeks ago. Boy, time flies, but great to see you guys. That was a great session. I think we got a lot done there.
Here’s where we have the virtual ones, a couple of virtual and live. Lots of tax and asset protection workshop. If you don’t want to hop on the plane and if you don’t have time to, I understand you guys are entrepreneurs, you got a lot going on, but join us live. We have virtual events as well. This is for the Tax and Asset Protection Workshop. Again, you can scan that QR code, get more information.
Similarly, you can scan this code right now. If you have any of these questions, if they pertain to you directly, and you want to set up a call, an advising session, you can do that right now. Scan that code. Again, just high level, what are we doing here? This is meant to just bring as much information and knowledge to you as you can, but as soon as you hit something that’s specific to you, let us know a question. Submit a question here to the Platinum portal. Set up a call to go into more detail. We’ll go into the weeds a little bit, but mostly stay high level.
Eliot: To that, a lot of the questions I read, every question that comes in and I pick them, there’s a lot of questions often about what should I do as far as this structure, that structure. If you don’t see your question being picked, this is exactly what this is for. You can talk to one of us and get a free session to see what kind of structure would be needed. This is a great opportunity, so take advantage of it if you’re not one of our clients already.
Barley: Yup. All right. Should we hop right in? Any let’s announcements you want to make? Anything we got to check on there?
Eliot: I think Patty’s got taken care of it.
Barley: Good to go. Thank you, Patty. All right, let’s kick it off, guys. Speaking of structure, we’re going to start off on some basics here, basic structural questions. Structure, that’s quite the word, legal structure. We’re talking about your wealth planning blueprint. It’s just a nebulous term, but when we have a holding company that holds a bunch of rental properties, maybe we have an S corp set up for business, maybe we have a C corp set up to manage it, maybe we’ve got a solo 401(k), a living trust, this is where we got to focus in on the blueprint here. For now, we’re going to focus on these taxation entities.
“Should my limited liability company (LLC),” Not a limited liability corporation. It’s not an incorporated entity, just regular limited liability company. “Holding investments file as” I love how you’re stating that. We get that a lot. What should I do with this LLC, or how is this LLC taxed? We got to know how it’s taxed as stated there. “Taxed as a C or S corporation, or should I just put this right on my 1040 as we’d call it disregarded LLC?” No tax repercussion, just disregarded to you personally. A ton of angles we could hit this from. Where do you want to start?
Eliot: First of all, yes, thank you for pointing that out. They can be taxed in so many different ways because we bring that up all the time. I really love this question because this individual already understood that. Yes, it can be disregarded, an LLC, which just means it goes on to the return of the person or entity that’s disregarded to the owner. Certainly can be an S or a C corporation like we see here, or it could even be a partnership if we had more than one member.
Barley: That’s what we see common with that Wyoming holding structure typically.
Eliot: Absolutely. What we got going on here, investments, first let’s walk away from the investments because we’re talking about corporations. Where do we do corporations? That’s going to be more of our active business, maybe earned income, if you got a second job, a side gig, that thing. You’re typically going to see earned income being hit with not just income taxes but employment taxes. Now we’re thinking corporation, but we don’t see that going on here in the question. We’re talking about investments. Probably stocks. What do you think? Stuff like that. Houses?
Barley: Yeah, brokerage account. A lot of people use this safe asset LLC. The terminology is not so important. It’s limited. It limits your liability, but we’ll see maybe collectibles, maybe got a fancy car, a bank account, a brokerage account, maybe gold, silver, that thing.
Eliot: You’re going to put that in a corp?
Barley: No.
Eliot: Yeah. Where do you think you’d put that? Where would you put it?
Barley: I hate to use this terminology. We could put it in what we call the safe asset holding LLC for our safe assets, essentially things that aren’t going to cause lawsuits.
Eliot: How are we going to tax that?
Barley: It’s just disregarded to you. There’s no business activity. That’s the key. That gets into the legal realm a little bit, but essentially, yes. It’s just a disregarded entity to you. What did we do? We put a fence around the assets to protect it. That’s it. There’s no additional tax filer. There’s no tax forms required. It might be some state level. If you’re in California, you’re very familiar. If you have an LLC, you got to pay an extra fee there, but it just gives us liability protection.
Eliot: A lot of our clients, maybe they live in a non-community property state, maybe both spouses are on it. That could be a partnership. Not to be troubled by that. Disregard partner, pretty much either way, we’re good to go there with these investments. The key is we just don’t want to put appreciable investments such as what you’re probably referring to here into a corporation that’s very difficult to get them back out and just not the place for them. Those, again, are more earned activities. It’s not what we’re talking about here. We got those investments. Let’s put it in just that little box, Wyoming holding. Maybe it’s disregarded, maybe it’s a partnership between spouses, either way.
Barley: Yeah, this could be like a basic Wyoming holding company, your LLCs held in the rentals. Over here, we could have an S-corp set up for active business, a C-corp for management. Point is, we have this line down the middle here. These are our personal investments, typically passive. This is our active business over here. If that helps, keep it. Separate it in your mind, your personal investments. You get your K-1s, your rental properties, such like that, from passive investments. Then on the other side, your active management company, if that helps, keep it straight in your mind there. All right. What do we got next?
Eliot: Next, actually we’re going to skip over.
Barley: You want to go more on that one before we get there? Let’s see.
Eliot: Yeah. I think we’re good here. We can go to number seven next.
Barley: Yeah. Limited liability holding investments typically is just going to be an LLC. It’s not going to have any income a lot of times, so it wouldn’t even be reported anywhere unless it’s generating interest income or whatnot, but that would just be reported right on your personal tax return. S-corp, C-corp, active business only. You don’t want to put appreciating real assets in there.
Eliot: All right, now we’re going to skip to that number seven, the have the house three, five, two.
Barley: Okay, great. Guys, we’re going to skip around a little bit to try and keep this congruent here. We’re just sticking on structure and capital gains here, so we’re jumping around a little bit if you guys have this in a different order. I apologize here, but let’s skip ahead.
“I have a house I’ve lived in for three years, rent it for five, moved back in two years ago. How does the rental depreciation of recapture gain work on my tax return if I sell it?” Great question.
Eliot: We got a lot of activities here. First of all, it was a rental. It was a personal, we rented it for five years, and then we moved back. If we’re going to sell it right now, currently it is a personal residence. We always think of that section 121 when we’re doing that. That’s that big exclusion of quarter million if you’re single, half a million dollars if you’re married filing joint. That’s certainly going to come into play, our 121.
Also, we have depreciation going on here because we did rent it for five years. When we have depreciation, whenever we sell something, we got to consider that depreciation recapture. We’re going to walk through that. How would we play this out? It’s really a game of adding up the total number of years we’ve had it. Three, five, and two, that’s 10 years, but we have to see what time period it wasn’t being used as a primary residence because for our 121 purposes, we can only account that portion of time that it was being used for our home before we meet our two years of rental activity.
In 121, one of the requirements is that you live in it two of the last five years. You live in it, use it as your personal residence that you own it two the last five years, then you can be entitled to that exclusion of, again, quarter million, single, half a million, married filing joint. In this case, we do have a total of 10 years that we had it, three, five, and two, but we had five years where it was a rental before we went back to it for the two years that are going to qualify us for our 121. That first three years is really an outlier. I love that because it looks like, hey, I got that three years, what’s going on? No, we can’t use that.
Barley: Because it’s outside of that five-year window.
Eliot: Exactly right. The last two years we’re moving back in, that’s going to qualify. We see five years of rental, which we call non-conforming property. Out of the 10 years, 5% or 50% of it, half the time, it wasn’t qualifying time, non-conforming time, that means that that ratio, 50%, whatever gain we have, 50% of that capital gain is not eligible for the exclusion.
We have an example here to walk us through it. If we could type up some drawing here, let’s say we originally bought at $500,000. This is when we first bought the house, we were living in it for a while, $500,000, but then we rented it maybe not accurately, but we took $50,000 of deduction for depreciation during that rental time. That left us with what we call adjusted basis of $450,000. That would be our status at that point. Now we have to determine how much gain there’s going to be.
I just used an example. What if we sold it today for 750,000? That would be the check that you get, but it’s not all gain. To determine the gain, we’re going to subtract out the adjusted basis that Barley just calculated, and that’s going to come up to $300,000. Remember, we had that nonconforming use of half the time. We had to take that $300,000 capital gain, divide it in half. We have $150,000 that’s not eligible to be excluded under 121 and unfortunately another $150,000 that is eligible.
We would take our $300,000 gain minus $150,000. That’s the part that cannot be excluded. Leaving us with $150,000, which would get excluded under our 121 because we can exclude up to a quarter million or $500,000. We wipe off $150,000. That’s going to leave us with another $150,000 of capital gain, but we have depreciation recapture of $50,000. That first $50,000 is going to get hit with depreciation recapture.
Out of our $150,000 gain, $50,000 depreciation recapture. Why do we care about depreciation recapture? It’s going to be taxed at our ordinary rates, typically, not the capital gain rate. We got $50,000 at ordinary rates, then we got the other $100,000, and our capital gain rates. That’s how it would work on this question, again, with the nonconforming use, still applying our 121.
Just an aside, something else that we could maybe do here since we moved back into it, but if you did move back out and use it as a rental, you might be able to throw in a 1031 exchange too. That’s not what we had going on here. We left it as a current primary residence, so this would be the flow of how everything is done. It would just be a hundred thousand on the cap gain there instead of $150,000.
Barley: Thank you.
Eliot: Yeah. We’re good there. That cap gain, we’re going to roll over to our next question and we’ll see what the percentages will look like.
Barley: Okay, sounds good.
Eliot: Yeah. Again, just 50% of that gain is not eligible because we had five years of non-conforming use out of 10 years. We had $50,000 of depreciation in this example, so $50,000 is going to be immediately recaptured. The rest will be at capital gains, a hundred thousand left over at capital gains. Now we want to go all the way back to question number two.
Barley: To simplify or summarize that, if you rent it before it’s your primary, you may have that period of unqualified use. If it’s your primary residence, and then you rent it out for a couple years maybe while you’re trying to sell it, that’s generally okay. They’re not going to call that non-qualified use, but you got to be careful to stay in that five-year window. Let us know if you have any questions on that, guys. What’s the number? What am I looking for?
Eliot: Four, right there. There we go.
Barley: All right, what do we got here?
Eliot: Now we’ve become a similar situation. “Selling our personal home with acreage for considerable gain. How do I figure out which percentage of capital gains we will owe, 0%, 15%, or 20%? How can we decrease the amount of capital gains we will owe? This is already jumping ahead and telling us how are those capital gains dealt with as far as percentages. It does have three brackets, 0%, 15%, and 20%. That’s going to be the real trick. We have another example there for that one.
Barley: That 15%, I think, goes north of $500,000 or so taxable income. It’s pretty high. The vast majority of us will be in that 15% range.
Eliot: Correct. Yeah. Some of our brackets here, first of all, again, with the capital gain, whatever we had for an adjusted basis, what we originally purchased it for, we’re going to subtract that from the sales price. That’s going to determine how much gain. We don’t have any rental going on here, so we don’t have any of that non-conforming use or anything like that. We would then take the 121 exclusion against sales price minus adjusted basis is our current gain.
Now we’re going to subtract out whatever that gain is, our 121 exclusion, quarter million if we’re single, half a million, married filing joint. Whatever’s left over becomes capital gain. Capital gain, if we had no other income on our return, would be taxed at 0% up till, if we were single, it’d be $48,000. If you’re married filing joint, $96,000. You could have $96,000 of capital gain taxed at zero. Next bracket’s really large, $96,000 to $600,000. About $500,000 there married filing joint. That’d be at 15%. Anything above that $626,000 is going to be at 20%. That’s how we figure out the capital gains.
Barley: It’s gradient just like everything else. Even if you’re up in that $600,000 level, you still get that first chunk at 0%, the next chunk at 10%.
Eliot: Exactly. Again, what we originally purchased the house for, that’s our basis. We’re going to subtract that from the sales price. That’s going to give us our gain. Subtract out the 121, quarter million if you’re single, half a million, married filing joint. If there’s anything left over, it’s capital gain. If we had no other income on the return, for married filing joint, the first $96,000 is taxed at zero. Anything above that 15% up to $600,000, anything above that, $20,000. That’s how we would calculate the capital gain.
Barley: What if this was like, I bought this in California in the 80s or something. I have a million dollars worth of gain. What are we looking at there?
Eliot: If we have all kinds of crazy capital gains left over, how are we going to mitigate?
Barley: That’s a whole session of tax planning and maybe a couple depending on what we have going on there. Some quick answers, it’s capital gains, so we’re still in a Tax Cut and Jobs Act, so you could actually put that capital gains into an opportunity zone. It’s going to defer it. If you did it right away within six months, 180 days, put it into an opportunity zone fund, and then that would push it off until the end of 26th, which isn’t too terribly far. It’s just the end of next year. Nonetheless, it’s something you could do at that time. You would have to pay capital gains.
The one thing that’s nice about those opportunity zones, you pay the capital gains at that point on the amount you deferred. If you hold onto that investment in additional 10 years, you don’t have to pay any tax at all. At the end of 26, though, the new rules for opportunity zones take an effect under the big, beautiful bill that we got signed in July 4th this year.
On January 1st, 2027, a whole new set of rules come in for this. Unfortunately, you can’t take your old opportunity zone investment enrolled into the new one. You’d had to pay the taxes then at that point, find some other capital gains, and invest in the new one. Currently that would be one thing that we could do to decrease. It really doesn’t decrease, but it allows us a deferral at least.
Some other things we could do there, it’s capital gains again. If we had any stocks, we often talk about maybe you don’t have any losses if you’ve listened to some of Barley’s picks, but if you listen to some of mine, you’ll have capital losses. There are plenty. We can sell those, capture those capital losses.
Barley: Eliot incorporated.
Eliot: Right, exactly. That’s going to offset any capital gains we have here. That’s another quick method. We always talk about real estate and things like that, maybe short term rental.
Barley: Yup. Active losses from active business. We can throw real estate in there, as you guys know. Real estate professional status, material participation, I think you guys might have heard those terms once or twice. That’s how we could take potentially large depreciation losses and have them offset ordinary income, including, remember, ordinary income. We could just say generally taxable income here, capital gains.
Once we report those capital gains, we’d look to offset them in the same way we’d offset any other income. We’d first look to offset with capital losses, but then we can look to, like we said, defer the income through a qualified opportunity zone or look to reduce the income through depreciation losses through an active business.
Eliot: Very good. That leads us into our next question.
Barley: My daughter trade stocks. Yeah, that’s related here. “My daughter trade stocks and has low earned income. If she closes positions at a profit that were held over a year, the capital gains remain untaxed, provided her net taxable income is below the threshold. Can she close at a profit and reopen the same position year after year to avoid the tax?” Short answer, yes. I don’t see any reason why not. Maybe you might want to avoid transfer fees if there’s any fees for your brokerage account, but from a tax perspective, there’s no limitation to that.
Eliot: No, that works. Just as we were talking about with the last question, they’re referring to that 0% tax bracket. Just assuming she’s single again, that would be up to $48,000. If you have a youngster out there who’s doing some stock trading and making a little bit of income on the side, as long as the total taxable income is under that $48,000, this is a different element. Last question, we just had capital gains, here we have some earned income. You add them together, and then we’ll put the earned income first.
Let’s just say we had $10,000. They’re working at Starbucks or something like that, where they’re going to school and they’re doing some trading on the side, $10,000 is our base. We start that with our earned income. As long as the additional capital gains for this individual is under the $48,000, there’d be zero on just the capital gains. Mind you, they’re still paying tax. potentially on the earned income. That’s another story. If they had the standard deduction, if they’re below that, still going to pay employment taxes but maybe no income tax. This could be a real win for this particular young lady depending on how we played our cards here.
You could essentially if we want to draw this up. I did a little example here. Let’s say just in year one that this individual bought stock at $10 and then sells it towards the end of the year. It’s just after a year, but we’ll call it one year. Sells it for a hundred. Again, she bought it at $10. That’s her basis. Subtract it from our sales price of a hundred dollars. That would give us a net of $90, and that’s our gain.
What we’re saying here, if we’re underneath that total income, taxable income under $48,000, which $90 clearly is, there’d be zero tax on this capital gain. Still tax, potentially on that earned income, unless it’s under the standard deduction. Here, just talking about the capital gains, that’d be zero. In year two, we sell it, we get the $90, paid no tax. Year two, we go out, and buy it again. Probably want to wait 30 days, wash sale rules.
Barley: It went up, right?
Eliot: Yeah. You’re right, exactly. No wash sale rules. Exactly right.
Barley: You’re buying it at a hundred, now your basis is a hundred.
Eliot: Theoretically, we just put the $90 back in, the same cash that we just got from selling. We buy stock at $90, and now let’s say we sold it at $200. This stock is just going crazy. Now we have $110 gain going on at the end of the year two. Again, same story. If we’re underneath the total taxable income of $48,000 by year two, it’s probably changed, but that will be taxed at zero. We can just rinse and repeat, take the 110, go in and buy for another $110 on that stock, same thing over and over again. We are exactly right. This is a beautiful question. Loved it. That’s why we picked it.
Barley: Of course, the wash sale rule does apply. If the stock has a loss, you can’t sell it and then buy it back at the current price within 30 days. Either way.
Eliot: Exactly right. Very good point.
Barley: What do I want to add to that?
Eliot: Trading. We’re going to talk later.
Barley: Yeah, we’re going to talk more about trading here in a minute, for sure. Yup. All right, we’ll keep it moving here.
Eliot: One thing we can go over, just that taxable income, I guess we did hit it, but remember their earned income comes in first. All the capital gains up to, income in our example, $10,000 earned income, and then if we had the balance, $38,350 is capital gains, that’d be all zero. What if we had capital gains above that? Only that portion above the $48,350 would be taxed at 15%.
Barley: I know what I was going to say. I can hear some of the gears turning out there. We’ll just put the brokerage account in my kids’ name. Why the heck not? We’re running into some kiddie tax issues there. I could tell some of you are out there being like, that just sounds pretty easy, doesn’t it? Of course, the IRS thought of that one, they call that the kiddie tax. It goes up quick like the trust rates. It pretty much maxes out really quickly.
Eliot: Yeah. Therefore they shall take the fun away.
Barley: Any questions on that, be sure to let us know. What’s next?
Eliot: We got number four.
Barley: Perfect. “What’s the best asset protection entity structure to be and that will save on taxes with gains in cryptocurrencies?” Crypto, we treat it very generally speaking the same as a stock. Of course there’s mining and staking in an active side of that that’s a little bit different. Generally, we’re going to look at the same corporate benefits. We could potentially use a trade structure here, right?
Eliot: We certainly could. Asset protection speaking, we’re going to certainly going to get into that part of it here, but this goes all the way back to our first question. Safe asset is not really doing anything. We could just put it in a disregard Wyoming holding if we’re not doing a lot. If we’re a little bit more active doing some trading, maybe even some mining or something like that, some staking, which we’re going to address here in a second, we could probably put that into a trading partnership.
The difference there is that because we have now some activity going on, let’s say it’s a hundred dollars brokerage account we put into a partnership where maybe 90% is still owned by the individual, 10% by a C-corporation, maybe we can draw that up.
Barley: Sure. Yeah.
Eliot: A lot of you have heard this before. We’ve talked about this several times on the show. We get this partnership again, 90/10 is a common. We just use that because it’s nice and easy. Our C-corp there, put the 10% over there and the 90% on the other. Before we get to this stage, again, if we had a hundred dollars of gain and we’d want the asset protection, we put it in just that safe assets, all a hundred would just come on disregard onto our return. We pay tax on a hundred bucks.
If we put it in this partnership, right away, Barley split off $10 of it, 10% to go into the C-corporation, so we only have $90 hitting our personal return to be taxed, again, 10% of the C-corporation. At that point, that $10 in the C-corp doesn’t get taxed on our return. It would, if we didn’t do anything else, get taxed at a flat 21% on the C-corp, but we got all those goodies.
How many times do we talk about all the goodies? We got corporate meetings, Augusta rule, accountable plan, medical reimbursement. Underneath the accountable plan, we have of course administrative office. All those reimbursements that get that $10 out of that C-corp into your pocket tax free and a deduction to C-corporation at the same time. We have no tax on that $10 anywhere on here. You have the theoretical savings by not paying tax, and you got $10 in your pocket. Spend it on whatever you want.
Now, $10 may not seem much, but now all a sudden, let’s make this a hundred thousand. All of a sudden the numbers become very real, very fast. This gives us the asset protection because we have the brokerage in an LLC. It’s a partnership. We got some asset protection, and of course we have all the tax savings as well.
We were going to talk a little bit about mining and things like that. That’s a little bit different. Barley was talking earlier about earned income. Since that’s earned income, it is not just in a sense, it is earned income, so that’s taxed at ordinary rates and it’s subject to employment tax. We would love to put that in a C or S corporation, but we can’t really do that because it’s tied on to the investment we have. There, we’re going to have some earned income. If we were doing some staking and mining in that partnership, it’s going to get stuck there. We can’t really shift that out all to a C corporation or anything like that if it’s part of the brokerage account. Just some thoughts on that. That would be a really good way to save on taxes. Of course, we’ve got our asset protection. Any other thoughts on that?
Barley: Just to simplify, what we’re proposing here is say you have a thousand dollars in capital gains. We’re just proposing setting up an additional entity, pushing 10% over to that entity, and then reimbursing it into your pocket tax free. It’s really saying, okay, right now I have a thousand dollars of capital gains. What we’re proposing is you take $900 capital gains and a hundred dollars as a non-reportable tax free reimbursement. Like Eliot said, the more zeros you add onto that, the better.
When you have capital gains, if your 10% is getting up to $10,000, $20,000, $30,000, that’s when we really want to push this method because we can pull that cash out of the C-corp tax free pretty easy, 280A, home office, meals, miles travel, cell phone, internet, all the things you guys have heard of. This is a great strategy. Like Eliot said, it provides the asset protection too.
Further, if you phase into just full-time trading and out of maybe your W-2 employment, you could put yourself on payroll. Set up a qualified retirement plan. There’s a lot of options, tax planning options when we have an incorporated entity that you own and control. Any questions on that? For sure, let us know.
Eliot: Very flexible.
Barley: All right, guys, must be about halfway through here. Make sure you subscribe to Toby’s YouTube page, of course Clint’s. So much great information on here. Like we said, you can scan this QR code right now. I don’t know why we have a little red mark there. Set up a session right now. If you want to learn more about a qualified opportunity zone bond, you got a big chunk of capital gains you don’t know what to do with, you can just scan this QR code right now and set that up. Of course, the live events coming up. That one already happened. Sorry, guys.
Eliot: It was that great. It was that phenomenal.
Barley: It was that good. We just want to let you guys know, we had a blast.
Eliot: It was what you missed.
Barley: December, was it fourth till sixth I think?
Eliot: Fourth, yup. Dallas.
Barley: In Dallas. Join us there. Very happy to see you guys. There we go. Sorry guys. I have OCD a little bit. That was driving me crazy, a little red mark. All right. Yes, great question here.
“I’m a disabled nurse collecting social security disability. I’m considering an LLC as an asset holding company. How can I make it so the distribution salary is passive so I don’t lose my benefits?” This is a great question. We get this a lot. It’s very important to me because we’re talking about typically people on fixed income. This is a really big deal.
When we’re talking about fixed income benefits, this is oftentimes an entire source of income for someone’s life. It’s very understandable that you want to treat those as something holy as far as income goes. Set it aside, we don’t want to touch that. Then we just look at how do we generate passive income essentially, and that’s a great question. Skipping right to the end. You want to double check the exact benefits plan you have, how that’s all set up, but we’re going to go over some general information here first.
Eliot: Yeah. To Barley’s point at the end there, this was Social Security disability. We’re not talking just about social security payments, this is a disability portion of a type of payment. Why is that so important? Because all these different programs have different rules of what income, levels, or a type and things like that. Strictly speaking to Social Security disability, again, we’re not experts in this area, so by all means, call the government. Talk to them. They’re very good. They’ll tell you about some of the types of incomes and things like that that you can have.
Generally speaking here, your disability isn’t going to be impacted if you have passive income. That’s non earned income. Usually a good key if it’s earned income is that it’s going to be, again, subject to of course, income tax but also employment tax, but there’s certainly earned income that doesn’t get hit with the employment tax, so that’s not perfect. Usually it’s some business that you’ve been involved in, things that are typically not going to be like stocks, capital gains from selling stock.
We talked a lot about capital gains so far in this show. Those wouldn’t typically impact your social security disability. Again, you want to check and confirm that with them. Anything like interest, capital gains, rental income. Rental income is often passive as long as you’re not the one managing it or anything like that. All that stuff is typically going to be acceptable income.
One thing that I kept coming across on some of the research is not to confuse this with supplemental security income, SSI, but that can be reduced and eliminated with just about any income. That’s just a hazard zone there. Maybe you have different kinds of income coming in, not just disability. All things you have to take into consideration. Again, check with them first. But usually your capital gains and things like that, not going to hurt with your disability, they certainly would take away and cause a lot of tax issues with supplemental security income.
Barley: This is a great question in another way too because you’re saying you have an LLC holding assets. How can I make the distribution or salary passive? You won’t really have a distribution or a salary necessarily. If your LLC’s holding a brokerage account, it creates some dividend income, that’s just going to report right on your personal tax return on Schedule D or Schedule B, where interest and dividends are reported there. It’s just going to report right on your personal tax return. The LLC is just going to provide liability protection.
Again, like Eliot said, unless you’re setting up an active business here, that’d be the only thing I’d want to take a second look at. Generally, having these passive income streams, interest dividends, that’s going to be fine.
Eliot: That is assuming, again, that you’re following Anderson’s way of doing things, which wherever you have that safe assets. We talked again all the way at the very first question, it’s typically going to be disregarded, which means it just flows onto your personal return. Maybe it’s a partnership. That’s okay if it’s with your spouse. That still flows through.
What we don’t want is I went out and had my asset holding company set up before I met Anderson, so I made it a C-corp. Now getting it out, you could still maybe get some dividends perhaps, but if you wanted to get large chunks, you may be tempted to pay yourself a wage or something like that. That could be a problem. That’s earned income. Again, following our simple structures that we always do with these safe assets, with our investment accounts, would pretty much steer you from all of that, just like Barley was pointing out.
Barley: Great question. Yeah, we certainly can explain a cost segregation study.
Eliot: Do tell.
Barley: “Can you please explain the cost segregation study?” Yeah, for sure. We’re talking about a real estate asset that we’re breaking, segregating, separating out the various assets, applying accelerated depreciation, maybe bonus depreciation. A lot of ways we can go there, but you guys have heard this term as related to real estate. The very first thing we could do, take a look at the asset we’re looking at, depending if it’s maybe $200,000 or more, just throwing out a ballpark figure. The cost of the study does come into play. Where should we start here?
Eliot: Again, as you pointed out, we’re talking usually rental activity going on here.
Barley: Right, not your personal residence.
Eliot: It got two kinds of categories there. We have residential, we have commercial. If it’s residential, if we didn’t do any of this fund cost segregation study stuff, we still have to depreciate. We of course subtract out the land, and we just have the building left over. That building component, divide it by 27½ in the case of residential, divide it by 39 years straight line depreciation if it’s commercial. That gives us the same amount of depreciation each year, straight line. Not very exciting. Same amount over time, boring like tax.
What we could do is go into a cost segregation study because you’re an Anderson client, and we’ve told you and you know that a building’s made of a lot of different components. Right here in our studio, we got carpet and boy, do we have lights? We have all the wires and everything else in here that Kenny’s put together. All kinds of goodness going on here. All those on their own would be depreciated at different lives, not 27½, not 39.
Imagine our carpet here, five-year, guarantee it could be replaced. We get rid of that, at five years, we’ve sped up. We do a study and break the building into those pieces. Now all of a sudden the carpet, five-year property, instead of being depreciated over 39 years, it’s five. You’ve sped all that up. You get a massive amount of deduction just on that cost seg amount, typically causing a loss. That’s what’s going on.
The study will come in and break that building into these pieces, if you will. Five-year property, seven 15, and some of it will still be 39. Your windows, your walls, your floor, and things like that. All these different components, cost seg breaks it up, speeds it up, five, 15-year type property. We didn’t talk about it, but you could also add on bonus depreciation here. If you just got the building this year, what’s our bonus depreciation look like?
Barley: Back up to a hundred percent.
Eliot: A hundred percent. There you go.
Barley: Yeah. A way to look at this, say we have a hundred thousand dollar house, is depreciated over 30 years, so we’d have 3000 a year, or did I do the math right? Whatever the math is there. It’s 39 for a commercial, 27½ for residential. Putting that aside, we take the total life divided into the purchase price of the asset, that’s going to give us our annual depreciation.
Say it’s three grand a year for 30 years just for illustrated purposes, but what we’re looking at here is the time value of money. I get a $3000 deduction this year, another one next year, another one next year, another one next year. If we apply a cost segregation study and accelerate the depreciation, now we’re talking about a much larger, maybe we have a $20,000 or $30,000 depreciation deduction this year. Next year it’s a little less, next year a little less. After five, seven years, then we’re going to go right back to that normal straight line depreciation.
This is a tricky concept to understand guys, but once you get it, it’s really just about time value of money. Do you want a $3000 deduction every year for the next 30 years, or do you want a $30,000 deduction this year and it tapers off a little bit as it goes? We want the money now so we can reinvest it, deploy it, and make more money off of it.
Purely just a time value of money calculation. At the end of the 27½ or 39 years, it’s all going to wash out to be the same amount, but we want as much deduction upfront as we can. Now just to add to that, of course, if you’re managing the property yourself, that can offset your active income. That’s not part of the question, but that’s obviously a big component here.
You call up CSA partners, Cost Segregation Authority. They’ll come out and do a study on the property, give you an idea of what it would cost and how much you can save. They’re very comprehensive in their service.
Eliot: The actual report itself, quite thick.
Barley: Yeah, it’s serious.
Eliot: Yeah. It’s a PDF actually, but if you were to print it out, make sure you have the toner because it’s going to be long. They put a lot in there, all kinds of court cases and backing up, which is what the IRS wants to see. They specifically went down the checklist. The IRS says, hey, this is what we want to see in one of these studies. They have it all in there, they’re fantastic, do a really good job.
Barley: They were just in Vegas here in the presentation. I’m not sure if they’re going to be in Dallas, but great presentation there.
Eliot: Absolutely. Fan favorites of our clients.
Barley: What else? Cost segregation study is automatically going to create what we call accelerated depreciation, just by the nature of what we’re doing. We’re splitting out the assets. They’re shorter life assets, so we get more deduction upfront. It’s that time value of money calculation.
Bonus accelerated depreciation is the result of doing a cost segregation study. You’re actually just correcting the depreciation of the way it’s supposed to be. You don’t have to amend to do this either use a Form 3115. It’s a change of accounting method. That accelerated depreciation, automatic result of a cost seg study, now we talk about bonus depreciation. Code Section 168(k) allows us to apply bonus. This year it’s a hundred percent. You can’t really beat that. We take whatever our normal accelerated depreciation was, and then we can tack on for the five, seven, and 15-year assets.
I know this stuff’s a little heady, but for assets that have that life applied to them by the IRS, we can a hundred percent depreciate those and take the deduction in the current period. That’s the power of accelerated depreciation, which is the result of a cost segment study, and then we add the additional bonus depreciation on top of that. Very powerful one two for real estate.
Eliot: It is. A lot of our clients are having that. We just had to pick this question.
Barley: Right, absolutely.
Eliot: That’s the one we already handled.
Barley: Yeah, handled that one. Great question. “What types of passive income could I invest to offset my accumulating passive losses?”
Eliot: All right. This is a very popular question because normally with real estate, its status in the code is going to be a passive activity, which means if we get a lot of these losses that Barley was just talking about, we do a cost seg appreciation.
Barley: Yeah. What if we did a cost seg study and it’s passive that’ll just create passive losses?
Eliot: All kinds of passive losses. It’s not a problem yet necessarily. You can only use those passive losses against other passive income until you actually sell that investment. We’re assuming you’re not going to sell everything right away. You’re holding on to this asset. It keeps creating passive losses because that means there’s more expenses than income coming in on your tax return, so it’s a loss. That loss is passive. If it builds up, if you don’t have other passive gains to set it against, then you’re stuck. What we’re looking for is things that we can do here.
There isn’t necessarily any one thing, but you’re looking for passive income. If you invested in maybe a business, Toby talks all the time about the pizza shop. If he invests in a pizza shop and he hires us, and we run the place, manage it, et cetera, he’s just a passive investor. At least on days where I’m there, it’s probably going to run at a loss. If he creates losses, that’d be passive losses.
Let’s say Barley takes over and now it starts creating income. That’s going to be passive income generator, PIG. We put that, we take that passive income, we set it, and marry it up with these passive losses that we have from our real estate. Now he pays no tax on that passive income. That’s what we’re looking for.
Again, it’s just going to be a matter of you finding a business investment or something like that, where you’re a limited partner. Typically if you’re a limited partner, you automatically receive passive activity, be it loss or gain income. That’s what you’re looking for, all kinds of investments out there.
One thing we always run into and understandably so, people start hearing, if we google on right now into the internet about what can I do for passive investments, you’re going to get things like interest income, stocks, things like that. In our tax world, those aren’t passive, they’re portfolio. That’s a really important thing to grasp because a lot of times I’ll get clients saying, I have all this interest income, or I got these capital gains. I got all these passive investments, and I got these passive losses I want to offset. It doesn’t offset.
Barley: Yeah, earned income, passive income portfolio.
Eliot: What is our status? How do we determine if it’s passive or non-passive? What is that? What is that test? Have we ever talked about that?
Barley: I think we’ve mentioned that a couple times. What Eliot’s referring to here is obviously material participation, but it doesn’t just apply to real estate. This applies to Toby’s pizzeria, to your real estate activities, to your own business that you’re running. It’s across the board. That’s just how we measure whether you can take losses from a business against other active income.
Eliot: We got to get the lack of material participation. We have someone else doing all of that. We invest in it. As long as it’s profitable, it gives you income, passive income, it will offset against your passive losses that you have. What is that investment? That I can’t tell you, but it’s going to typically be an ordinary business or something like that. What I can tell you, it’s not capital gains. It’s not interest income. Believe me, we’ve seen all kinds of research to try and turn interest income into passive if it doesn’t work for our purposes. That’s one thing that I know a lot of people get lost.
Toby has a fantastic video talking about investments, but he’s doing it from a different standpoint. He’s not talking about Section 469, material participation, passive loss. If you google out there about passive businesses, be careful to make sure you’re not looking at investments.
Barley: Yeah. It’s right. We got the taxable income categories and then just general income categories, earned portfolio, passive. Any questions on that? Certainly let us know. That’s a great point. If you just google passive investments, you’ll get all kinds of ways to generate money without having to go to a nine to five job. That doesn’t necessarily mean it’s passive income. If you get a K-1 from some investment, just make sure it’s marked as passive if you’re a not a material participant. It will offset here. It’ll absorb those passive losses, which is your goal there.
Eliot: I think we’re good there.
Barley: All right. “Would you please explain how nonprofits are used to save on taxes?” Absolutely. What do we got on this?
Eliot: First of all, I went to the source himself, Karim. I got some input here. He’s the head of our nonprofit department. They do over 300 nonprofits here at Anderson a year. They have an impressive track record because they’re very thorough at all those forms and this or that. I think it’s a 1045, but I don’t know. It doesn’t matter the form number. He does it all.
Barley: He used to work for the IRS doing this too.
Eliot: Yeah, on that.
Barley: Yeah, that part.
Eliot: He is very good. He explained some of this to us. We knew some of the tax stuff, but he gave us some background on really how our system works here. The nonprofit, if you make a contribution, and we will always take the easy, let’s say we donate a thousand dollars, that doesn’t necessarily become a deduction. If you itemize, it does. We did have a change in the new bill where you can deduct some if you’re not itemizing. The idea is cash goes to a nonprofit, you can get a deduction.
The most common is where you’re going to be itemizing because you can put extensive amounts into it. If you’re itemizing already, that is that you have expenses in certain areas like medical, state and local taxes, amounts you donate. If they’re over the standard deduction, you’re itemizing. At that point, anything you donate, you’re going to get a deduction for.
Here, if you put a hundred thousand dollars in, you get a hundred thousand dollars deduction typically on your return. That won’t depend on everything going on in your return, but that’s the idea. How do they use to save on taxes? It’s that shifting, that deduction on your 1040. Once we have the money in there, do remember, it’s not yours. It belongs to the nonprofit. Nonprofit now is to use that money for its nonprofit purposes. This is not an area for just park money and then you take it back later on for your own personal endearment or benefit. We do want to use it for those.
It doesn’t mean that there are things that can’t be done in the nonprofit, but the majority of those funds really need to be used for the nonprofit purpose. That’s one way of how we see them on the taxes. We do have events coming up in November and December again with the nonprofit. Karim will be back out on the road doing that. Also, we have an hour in a week, I believe.
Barley: I just looked that up too. What was it? Wednesday I think. I think it’s Wednesday. We have the nonprofit open office hour. Savannah’s in there almost every week. She’s just great to work with. So much knowledge and passion for about what we here at Anderson are doing. I think it’s Wednesdays from 1:00-2:00 PM in the Platinum Knowledge room, guys. Double check, but it’s a great open office hour. Tons of good information there.
Eliot: Yup. Just a place to get all your questions answered. Again, if you really want to learn a lot, sign up, do the scan, scan the code, get a session, put together with one of our associates, and they can help get you on the path to getting your own nonprofit.
Barley: Yeah, I love Karim too, Kareem. I was like, who’s shouting Karim, oh, it’s Kareem.
Eliot: Okay, yeah. This is what I was talking about. These are the things that need to be kicked out. I remember Patty was sleeping at the wheel on that one.
Barley: Just to reiterate, guys, this is when we come to the end of the year. Maybe you had a great year and you’re thinking about writing a six figure check or a high five figure check as a charitable donation. This is where you maybe want to use it, donor advised fund or set up your own non-profit. Like Eliot said, it’s like putting money into a C-corp. You can’t just take it back. It’s now a separate entity.
Lots of benefits for that. Legacy planning, put yourself on payroll down the line if the fund is doing well, obviously a lot of community benefits, and every time you write that check to a charity, it’s to your own nonprofit. Some element of control there.
Eliot: You brought up that donor-advised fund. I’m just going to touch on that a little bit more. Let’s say that you reach out to Karim at the end of December or something like that. You want to set up a nonprofit. Can I get a donation in? The nonprofit’s not set up yet. We do have donor-advised funds. You can put the money into there, your donation, before December 31st. It’s going to count as a deduction for this tax year on your return, and then later on, when your nonprofit is set up maybe six months, it can vary a couple of weeks or something like that, six weeks or so, and get that set up, then that money will flow into your nonprofit. You got the benefit of the deduction back on your previous return, and now we’re able to go ahead and put it on our nonprofit that Karim and the company set up.
Barley: Nice. I was right about that.
Eliot: There we go. Thank you, Tanya.
Barley: 1:00 PM Wednesdays, 1:00 PM Pacific Time every Wednesday, nonprofit open office hour. Come and ask any questions you have, build your knowledge, learn more about when and why this works.
Eliot: That’s with Savannah. If you really want to be bored, you could go at 10:00 and see Karim.
Barley: Right. That might just be a recording though.
Eliot: Yeah. He was knowledgeable, funny, and handsome.
Barley: For our platinum members. That’s right.
Eliot: He’s a self-promoter. Did we tell you about Karim?
Barley: Funny, handsome, and humble self-promoter. We’re very lucky to have the IRS experience. I’ve already mentioned this, but Karim and Savannah are just very passionate about what they do. They’re not just good at it, but they really have an interest in your success like we all do here. This is more than just a job to us. Yeah, very cool option.
Just to reiterate, the nonprofit thing, it’s not necessarily a high net worth thing. You don’t have to have hundreds of thousands or millions of dollars. Some of these nonprofits run at a very low budget. The most important thing is that you actually have a vision that you want to fulfill in your community. I think the reverse, you don’t want to do the reverse order of operations of, oh, I just get a tax donation. What should I set up for a nonprofit? You certainly could do that, but I would start somewhere you’re already actively involved with your community donating money and time and just structured as your own nonprofit.
Eliot: There’s a lot of things maybe we’d like to change. This is your opportunity. Set up a nonprofit, go out there, and be a positive. Speaking of that, just our whole team, that was our last question, I just want to point out, again, our team answering all the questions. Thank you so much, Dutch, Patty of course running the show, Harry, Jared, Jeffrey, Marie, Rachel, Tanya, and Troy.
Barley: You guys got some smart answers today.
Eliot: We got over 118 questions. That’s a lot. They continue to get the rest of them. Of course we got Kenny and Zion in the back running the techs here. We just appreciate everybody’s efforts on this show and of course, you folks for joining.
Barley: Absolutely.
Eliot: We tie out here.
Barley: All right, I think we have the right event here, Dallas, four through six. Scan the QR codes. Any of us can give you information on that. Reach out to anyone here at Anderson about the live events. Plus, again, you can scan this QR code right now. If we went over something that pertains to you, set up a session right now. We can talk about it in more detail, talk about next steps, and go from there.
Eliot: All right.
Barley: Another Tax Tuesday on the books, guys. Two weeks from today, we’re doing the exact same thing again. Email your questions into taxtuesday@anderson.com. As we say, Eliot really does read them all, puts them in order. We definitely look forward to going it over again next time.
Eliot: Some days are better than others.
Barley: Right. That’s all good. Consistency is important. Every two weeks, tax knowledge to the masses. Great work again today, guys. Remember, you’ve heard Toby say this, we got a whole bunch of stuff in the tax code that just doesn’t apply. Pick two or three things that are relevant to you and your business. Focus on those. Next year we’ll pick two or three more or in two weeks when we come back. We’ll pick two or three more.
Eliot: Yeah, exactly, every two weeks.
Barley: Yup. Great work, guys. We’ll see you next time. Thanks again for joining us here on Tax Tuesday.
