In this episode of Tax Tuesday, Anderson Advisors’ Eliot Thomas, Esq., and Barley Bowler, CPA, answer listener questions covering a wide range of tax strategies for real estate investors, business owners, and individuals looking to minimize their tax liabilities. They discuss tax considerations for capital gains from options trading and dividend income, along with practical ways real estate investors can track their hours to qualify for valuable tax deductions. Eliot and Barley also explore whether reporting a business loss creates an opportunity for a Roth IRA conversion, how to determine the fair market value of vacant land before selling, and strategies for managing potential capital gains taxes. Other topics include the tax benefits of oil and gas investments, deductions associated with unsuccessful drilling projects, important tax considerations when incorporating a small business, and whether an RV or camper used for business travel and remote work can qualify for tax deductions. Tune in for valuable insights on these topics and more!
Submit your tax question to taxtuesday@andersonadvisors.com
Highlights/Topics:
- 9:04 – What are your best tax recommendations for handling capital gains from options trading and dividend income? – Exploring tax strategies for managing investment income and understanding the different tax treatments of trading gains and dividends.
- 19:57 – What is the most efficient way to track my hours as a full-time real estate investor to be eligible for write-offs? – Discussing the importance of documenting hours, maintaining accurate records, and meeting the requirements for real estate professional tax treatment.
- 26:29 – As a small business owner expecting to report a loss this year, would that present a good opportunity to initiate a Roth conversion before year-end? – Examining how business losses may affect taxable income and potentially create opportunities for tax-efficient Roth conversions.
- 32:09 – My neighbor has made me an offer on the vacant lot I own in our D.C. neighborhood. How do I determine its value, and what is the best tax strategy for selling it? – Exploring property valuation methods and important tax considerations when selling vacant land.
- 40:42 – I would like to know about oil and gas investments. What are the tax benefits? – Reviewing potential tax advantages associated with oil and gas investments, including deductions for qualifying drilling expenses.
- 45:33 – My oil and gas investment was a dry hole and not profitable. Are there any additional deductions available beyond tangible and intangible drilling costs? – Discussing the potential tax treatment of unsuccessful drilling investments and whether additional losses may be deductible.
- 49:08 – I recently incorporated my small marketing firm and have no idea about taxes. How do I properly conduct business within the tax code? – Covering essential tax considerations for newly incorporated businesses, including compliance, recordkeeping, and understanding business tax obligations.
- 57:20 – Can I deduct a camper or RV with an office that we use for contract work travel, remote work, and investment property searches? – Exploring whether business use of an RV or camper may qualify for deductions and the importance of documenting legitimate business expenses.
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