In this episode, Anderson attorneys Amanda Wynalda, Esq., and Eliot Thomas, Esq., answer listener questions on a wide range of real estate and tax topics. They cover tax benefits available for raw land purchases, including property tax deductions under SALT and investment interest expense on Schedule A. They explain the IRS tax code reference for short-term rentals — IRC Section 469 and Treasury Regulation 1.469-1T — and address special considerations for Airbnb-type rentals in foreign countries, including the mandatory alternative depreciation system (MADS) and foreign tax credits. Amanda and Eliot discuss minimum purchase prices for cost segregation studies and highlight property types like RV parks, car washes, and convenience stores that offer strong bonus depreciation benefits. They tackle the vacation home standard deduction question, clarifying how Schedule E rental properties interact with itemized deductions. The episode dives deep into multiple 1031 exchange questions, including timelines for entering a second 1031, California’s clawback provisions on out-of-state replacement properties, and the drop-and-swap strategy for LLC partnerships. They also explain how to navigate delayed IRS refunds using the Taxpayer Advocate Service, and break down the time limits and rules for changing LLC tax status, including Form 8832 and the five-year rule. Tune in for expert advice on these topics and more!

Submit your tax question to taxtuesday@andersonadvisors.com

Highlights/Topics:

• 00:00 — Intro
• 07:06 — “We recently made a large land purchase. Are there any tax benefits we can claim against our income?” — Deduct property taxes under SALT and investment interest expense on Schedule A.
• 14:27 — “Is there an IRS tax code reference I can look at for short-term rentals?” — Yes: IRC Section 469 and Treasury Regulation 1.469-1T define short-term rental rules.
• 18:20 — “Any special considerations for short-term Airbnb-type rentals in foreign countries?” — Use mandatory ADS depreciation; claim foreign tax credits to avoid double taxation.
• 22:55 — “Is there a minimum purchase price you recommend for STRs? Also, what type of property is ideal?” — A building value of $150,000–$300,000 is an ideal cost segregation starting point.
• 28:21 — “With today’s Individual Standard Income Tax Deduction now so high, how can a Schedule E Vacation Home still be a tax advantage when write-offs no longer exceed the Standard Deduction?” — Schedule E rental deductions are entirely separate from your standard deduction benefit.
• 35:46 — “I sold one investment property and bought two under a §1031 exchange. When can I sell the two §1031 exchange replacement properties and enter a new §1031 exchange without a tax penalty?” — Hold replacement properties at least two years and thoroughly document your rental intent.
• 41:15 — “If a property is sold in California in a §1031 exchange and the replacement property in Tennessee is later sold through a second §1031, does California have capital gains taxes that need to be paid?” — Yes; California tracks deferred gains annually on Form 3840 until the tax is due.
• 44:34 — “If you have an LLC partnership with 3 members that recognized a sale, can each member make their own election with respect to a 1031 exchange? Or must the entire entity participate in the replacement property?” — Use the drop-and-swap strategy carefully; the IRS watches closely for step transactions.
• 49:15 — “In June of last year, the IRS asked me to submit my previous taxes before receiving my current tax refund. I did so. When I check the IRS website periodically, it says my refund is delayed. I have attempted to call, but no answer from the IRS. How do I expedite receiving my tax refund? Thank you in advance.” — Contact the Taxpayer Advocate Service and review your IRS tax transcripts online.
• 53:18 — “What’s the time limit on changing LLC tax status?” — File Form 8832 with an election date up to 75 days back or 12 months forward.

Resources:

Tax and Asset Protection Events

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Anderson Advisors

Toby Mathis YouTube

Toby Mathis TikTok

Clint Coons YouTube

Full Episode Transcript:

[00:00:00] Intro:

[00:00:11] Amanda: I’m Amanda Wynalda and this is 

[00:00:13] Eliot: Eliot Thomas, manager tax advisors here at Anderson.

[00:00:16] Amanda: I’m Amanda Wynalda executive attorney. I didn’t know we’re doing our titles. Fancy pants. We are going to be answering some tax questions. Las Vegas, Utah, Las Vegas just come hang out with us in studio 210.

[00:00:34] Eliot: Land of no sound.

[00:00:36] Amanda: No sound somebody’s from no sound just kidding. If you have any audio issues please check your settings, sounds like most people can hear us. It’s probably on your end, New York, JFK, oh Ruben, you’re like at JFK at the airport. That’s sad for you.

[00:00:53] Eliot: I have Todd in town.

[00:00:55] Amanda: Oh, hey Todd’s going to be coming in from Pismo Beach for our live event. Awesome, Florida Terry from Florida. Well, welcome in, we’ve got a lot in store for you. These are the rules for Tax Tuesday. This is a live Q&A feature in Zoom. If you’ve got a question whether it’s related to what we’re talking about or not. Got a lot of people who just come in for the free tax advice free guidance. Eliot has some pre set questions for us which we’ll be talking about if you would like one of your questions featured on a future episode of Tax Tuesday.

[00:01:29] Go ahead and email us at Tax Tuesday at andersonadvisors.com You know what? We just had this idea earlier today. If you want to put in your YouTube Handle then we’ll be able to give you a little shout out for your question in the future. If you do need a detailed response, then consider becoming a platinum or a tax client for us here at Anderson advisors. We can get you all set up. Who do we got in the back helping us?

[00:01:55] Eliot: What I can tell is we have, we’ve got Troy and Rachel.

[00:02:06] Amanda: But it doesn’t show right here participants.

[00:02:12] Eliot: We got Jay tax advisor join us Jeffrey, Ashley, Dutch, Harry, Marie, Cheryl, Cheryl’s a new tax advisor as well, but [inaudible:00:02:24] and Troy.

[00:02:27] Amanda: Looks like we got the A team, only the best for you all. Questions we are doing, we recently made a large land purchase. Are there any tax benefits we can claim against our income?

[00:02:39] Eliot: Is there an IRS tax code reference that I can look at for short-term rentals? 

[00:02:44] Amanda: Yes, there is. We’ll let you know what that is. Any special considerations for short-term Airbnb type rentals in foreign countries? We actually get this a lot. 

[00:02:54] Eliot: Yes, we do. Is there a minimum purchase price you recommend for a short-term rental? Also, what type of property is ideal?

[00:03:00] Amanda: One that someone wants to stay in. We’ll get into the tax ramifications of that. With today’s individual standard income tax deduction now so high, how can a Schedule E vacation home still be a tax advantage when write-offs no longer exceed the standard deduction? We’ll get to where the rubber hits the road in terms of itemizing versus taking the standard.

[00:03:24] Eliot: I sold one investment property and bought two under a 1031 exchange. When can I sell the two 1031 exchange replacement property is an enter into a new 1031 exchange without a tax penalty or tax liability?

[00:03:39] Amanda: We’ve got quite a few 1031 exchange questions including this next one. If a property is sold in California in a 1031 exchange, and the replacement property is in Tennessee, and then that is later sold in a second 1031 does California have any capital gains taxes that need to be paid?

[00:03:59] Eliot: I’ll be a good bet or something. 

[00:04:01] Amanda: California is going to tax you. 

[00:04:04] Eliot: If we have an LLC partnership with three members that recognize the sale, can each member make their own election with respect to a 1031 exchange or must the entire entity participate in the replacement property?

[00:04:16] Amanda: Those partnerships. In June of last year the IRS asked me to submit my previous taxes before receiving my current tax refund. I did so, when I checked the IRS website periodically. It says my refund is delayed, I’ve attempted to call but not surprisingly no answer from the IRS. How do I expedite receiving my tax refund? We’re going to help you out there

[00:04:40] Eliot: We have a few pointers and lastly, what’s the time moment on changing LLC tax statuses? Something we talked about quite a bit.

[00:04:48] Amanda: That is. Want to get you the best tax deductions and such. This is one of our fearless leaders, Clint Coons, Esquire. He is a leading authority in real estate asset protection. Go ahead and smash that subscribe button. You will get an alert for any new videos that he’s uploaded, almost, this says 857. I think he’s closer to 900 now, him and our other founding partner Toby Mathis you’re on his channel now. There should be no reason you’re not subscribed.

[00:05:21] They are a little competitive with each other, you got to bump up Clint a little bit if you already follow Toby. There’s lots of great videos including this featured one right here, right here on the screen over 300,000 views. We’re famous guys. We’re famous and if you would like to come see us like our friend coming from Pismo Beach. We have our live event in Las Vegas, March 19th through 21st. Tickets are only $49 if you use this QR code and put in the code invest all capital letters. There’s limited availability and it’s always a super fun time. It’s Vegas, baby.

[00:06:03] Eliot:It’s Vegas. It’s a value.

[00:06:06] Amanda: If you can’t make it for a three-day event. We do have our one-day drink from a fire hose tax and asset protection events every Saturday. The next one coming up on March 6th then following on March 14th and then of course our live event. If you need a little more, it’s a lot to cover. I’ve done many of the Saturday webinars, they start around 9 a.m. They go till about 4 p.m. With an hour lunch break. It is a lot to digest so come frequently, these are completely free and then once you’ve got a good foundation come on out to our three-day event

[00:06:30] Eliot: Absolutely, 

[00:06:40] Amanda: If you’re ready to move forward you can also schedule a free strategy session with this QR code. You’ll sit with one of our strategists, business advisors, senior strategists within this company. We probably have over 2,000 years worth of experience in this industry both on tax and asset protection. This is a free 45-minute consult where we can take your concerns, your goals, what assets you have, what you plan to get and come up with a comprehensive plan just for you. Alright, let’s get into it. You ready? 

[00:07:09] Eliot: I’m ready. 

[00:07:011] Amanda: Alright, we’ve recently made a large land purchase. Are there any tax benefits we can claim against our income? Before we get there. I have a note right here, Dutch and Meredith who are our two managers on our tax side did want us to go over the deadlines.

[00:07:30] Eliot: Yeah, we have something coming up, March 15th. That’s a deadline for your pass-through entities. We have a S corporation or partnership need to make sure we get those returns done or we can do an extension. We highly recommend you always do an extension. Even if you don’t think you’re going to need it. Just never know. It’s always good to get it out there. You’re not penalized at all, the IRS automatically grants it. We do highly recommend you get those extensions out there and 

[00:07:56] Then a month later, we have the April 15th deadline. Again, we recommend having extensions for your personal 1040 that also happens to be the tax deadline, If you have a calendar you’re in C Corporation. Get those extensions out there, now, the extension it’s important to remember. It does not extend the time to make your estimated payments. If you have an idea of what your income was or approximations throughout 2025.

[00:08:21] You can get together with a tax professional and maybe come up with an estimated payment that needs to be in by April 15th, But you can also do the extension and take more time to get the return done properly. That’s what we highly recommend. Again, even if you don’t think you’re going to need it, always do an extension because you just never know.

[00:08:39] Amanda: Yeah, that’s for sure, extension of the time to file, not the time to pay. Alright back to the question, we recently made a large land purchase. Are there any tax benefits we can claim against our income? Large land I’m thinking that’s going to be raw land like no structure on it. Nothing like that. 

[00:08:57] Eliot: We’re going to kind of take that angle on it, barren land, sitting out there. While there are some deductions one can take, we do kind of become a little bit limited. This is going to hit an area of our personal 1040 and we have to itemize. We’re going to have a schedule A as we call it. That means that we have certain deductions in certain areas that exceed whatever the standard deduction is. 

[00:09:20] Which just so happens to be we’re talking about 2025 returns being done right now. That was 15,750 for a standard deduction for an individual or 31, 500 for married filing joint. That means that you have to have deductions in certain areas that exceed those amounts, could be from state and local property taxes. It could be mortgage interest on your personal residence. Maybe you have some medical expenses.

[00:09:45] Those are common ones, but if we don’t have that going on and we don’t itemize. Well, then we really fall into a tough situation where a lot of this the expenses related to this barren land. If we’re not really having it in a trader business yet, it’s just sitting there. We may not be able to deduct it. But if we are itemizing some things that we can do it is a property tax.

[00:10:08] We can throw that into schedule A under our state and local taxes, which incidentally, called salt for short. It was for a long time limited to $10,000 but in 2025, we now get to take up to $40,000. We had quite a nice increase there. Nothing like it used to be where we’d see maybe a couple 100,000 on there, but 40,000 we’ll take it over 10,000.

[00:10:32] However, if we go over 500,000 of adjustable income, then it starts to phase out. That’s for single or married filing joint over half a million and it starts to slowly phase out. Assuming we’re under that we can go ahead and to take at least the property tax on this particular property as a state salt tax state and local.

[00:10:55] Amanda: What about mortgage interest expense because on schedule A for your primary residence and even a vacation home you can deduct up the interest that you’ve borrowed on a loan up to a $750,000 loan. But this raw land doesn’t fall within that same category. It’s a completely different category. Explain that.

[00:11:16] Eliot: Yeah, exactly, right because we have the the primary it’s easy to get these confused. Primary residents have interest, we’re probably somewhat familiar with that one and indeed as Amanda points out even having maybe a second home. Vacation over something like that up to debt of 750,000. She’s exactly right, as always. We can take that interest deduction. 

[00:11:36] However, what if we took a loan out to get this investment property? This is a little bit different. Here we have to go down still on schedule A still have to be itemizing but a little bit lower and we have what’s called a net investment income and that comes from varied, a lot of different sources and I’ll list a few of them here in a second. But we take these special types of investment income and we’re allowed to deduct investment expense interest expense up to that amount. 

[00:12:02] That’s exactly what we would have here if we took out a loan to get this barren land .We have investment expense interest expense. Now we got to find some investment interest income and we do have quite a few sources that one would be. What if you had a CD out there collecting interest interest income? That would be an investment type of investment income. We also have non qualified dividends,  those are dividends that are paid out where you don’t get special lower tax treatment like a qualified dividend.

[00:12:32] Annuities on non rental type investments. Royalties from investment properties have a unique area there. Rental income if it’s not a trader business, I want to be real careful with that because most of our clients have rental income. They do use it in trader business so that would not be included. But maybe you had some kind of rental activity that you are very very much hands-off and don’t have anything to do it. It might fall on there.

[00:12:54] Amanda: Like a syndication

 [00:12:56] Eliot: Correct very much, unless that has been tied in somehow, you know through other parts of your return to be pulled into that. Short-term capital gains. This is a unique one why we can pull that in there because they’re taxed at ordinary rates anyway. We’re allowed to use that and one that most people don’t ever hear about long-term capital gains.

[00:13:12] You can actually make a special election if you had long-term capital gains. Elect them cannot be taxed at the lower capital gains rate of say zero, 15% or 20% to have them treated as ordinary income rates and that would pulled into this pile of net investment income. Why would we want to do that? Well, maybe we have a lot of investment interest expense and therefore we would be able to write off against those various categories of investment.

[00:13:39] Amanda: Yeah, that’s really where tax planning comes into play because you really have to measure and run the scenarios to see if you’ll actually get a tax benefit with that special election. There’s also the section 212 deduction talk about that for a second. 

[00:13:55] Eliot: Section 212 is actually where we get the right under the code to take these deductions. It just says if you have ordinary, necessary, expenses related to the upkeep the maintenance of property using an investment to our business that’s what allows us to actually make this deduction.

[00:14:15] Amanda: Thanks, Eliot. 

[00:14:17] Eliot: Yeah, great question. Thank you to the public for asking. 

[00:14:20] Amanda: Yeah. Thanks for asking. Is there an IRS tax code reference I can look for for short-term rentals? and yes

[00:14:28] Eliot: Yes, there is

[00:14:29] Amanda: We didn’t  just make this up guys, we’re looking at IRC, Internal Revenue Code section 469 and more specifically, Eliot just rattled this Treasury reg off the top of his head regulation 1 dot 469 – 1T. 

[00:14:55] Eliot: We got more specific. Little e-3, little double I, capital A. This Treasury reg is dense. I’ll give it that, they went over time putting that. We did not have AI back then.

[00:15:18] Amanda: No, well they do say with the code plus all the regulations, a private letter rulings if you stacked it all together it would be 27,000 pages that’s about 15 feet high. So we’re well into.

[00:15:30] Eliot: This is in the middle of the pile.

[00:15:31] Amanda: Yeah, the middle of the pile. Okay. So what does it really say, it’s a fine short-term rental. Short-term rentals are when we say the average length of stay is seven days or

less or 30 days plus substantial services. If you qualify under that, what happens? 

[00:15:58] Eliot: Just a couple little adjustments here. This is actually what the code says. This is for the rental of any tangible property. We always jump to the short-term alone indeed that’s what we’re asking about but I just want to say that this is actually broader than just a short-term rental. For this particular part, it’s actually the significant personal services. Substantial is what we’re going to use to determine if we actually go schedule E or schedule C, but it’s in the same ballpark.

[00:16:24] You’re doing more, no question about it. And that’s what this part of the code says, is it starts really hammering out these details of how much do I have to do in order to meet this quite this category or that category and things of that nature. It is just as a man that says seven days or less what we’ve done is now it’s no longer rental activity. And that’s critical and understanding how our code this code section how it all plays out because once we say it’s not rental activity. It’s just a regular job. It’s a regular business.

[00:16:56] Amanda: Business trader. 

[00:16:58] Eliot: That’s it. Yeah trader business and now all we have to do, to make it not passive. We just have to materially participate. That’s when Amanda and I, Barley’s up here when we’re all talking about in all these various programs, Toby’s doing videos etc. And we’re starting to talk about these material participation tests. This is where we drive it from.

[00:17:19] This is what pulls it in and says we got a materially participate and there’s seven different types of tests. But the most primary ones that we use over a hundred hours, I mean more a hundred hours and more than anybody else and if you’re married you can include your spouse’s time as well or over 500 hours and you don’t really care what anybody else did don’t care

[00:17:38] Amanda: You want me to change this substantial to significant don’t you?

[00:17:48] Eliot: That’s a phrase we use all the time at that 30 day. But really it’s moving it from schedule C to schedule E. \

[00:17:54] Amanda: Significant, if you are going to go to the reg be prepared to dig deep deep down into it. 

[00:18:05] Eliot: We at least told you where to go.

[00:18:08] Amanda: There you go. Any special considerations for short-term Airbnb type rentals in foreign countries? The answer from the previous section rolls over if you’re going to consider it a short-term rental. Those are the rules here, do the rules we have here apply everywhere else?

[00:18:27] Eliot: Sort of. They want to say it depends, they also sort of. First of all, our depreciation, that’s one of the real, it’s payload of our depreciation rocket ship is. That’s where we’re going to look at the whatever type of depreciation system we can use. Here we have to use MADS, the mandatory alternative depreciation system, for international property. 

[00:18:51] What that says is that if it’s residential it’s going to be a flat 30 years that we use, 27 and a half are you accustomed to here in the states. Commercial, it’s going to be 40 years, four- zero as opposed to 39.

[00:19:07] Amanda: Mads just means you’re mad because you have to spread your depreciation out longer.

[00:19:12] Eliot: Another key topic here. You can’t use bonus depreciation and that’s one of the biggest strategies that makes you super mad. That is significantly mad, no question about it. No bonus depreciation. 

[00:19:30] Amanda: What about deductions? Because you don’t get to take the same deductions against rental income everywhere else that you can hear. Were looking into property in Europe and found that Spain in particular, gives you almost no deductions. 

[00:19:46] Eliot: There’s a lot of deductions one typically can’t do in Spain that we would take for granted here stateside. Of course, I often say the phrase, here in the US 50 different states 50 different rules sometimes. Now we’re talking about multiple different countries when we get over to Europe and of course, there’s many other international destinations as well.

[00:20:07] They all have a different way of looking at things. But basically what will happen is you will run it through their system if you will. The Spanish, let’s say return or Italian, or French wherever if that property is and they will let you take whatever deductions they let you have and they won’t allow you to take what you can’t. Maybe you pay some tax over there. Now when it comes stateside and you’re having to do your 1040, remember the US is somewhat unique and says you have to declare all the income that you’ve incurred around the world. 

[00:20:37] We’re going to get that property, typically we’re going to see it on your schedule E the rental property and you’re going to take US deductions against it. Just like you would be allowed to here typically it’s what’s going to happen. Sometimes maybe the depreciation won’t be there for some reason you can’t take it.  Basically, that’s what’s going to happen. Now if you’ve paid tax overseas, say you had to pay the Italian government a hundred euros or something like that.

[00:21:02] All these numbers when they come over to stateside have to be what we call translated. That means change from whatever that foreign currency the EU to the US dollar. Even within that you’re going to have certain gains and losses per head potentially. Before we even get to the activity itself. You got to keep that in mind, you got to really be working with people who understand this.

[00:21:23] But if you did pay taxes over in a country that has a treaty you always got to look to the treaties. Typically the IRS or excuse me the US government’s going to say we’re going to recognize whatever tax you paid over there, we’re going to give you a credit for it. If our tax is higher than that, well, you didn’t have to pay that portion, you’re not going to get hit with double tax. That’s what we’re looking for. That goes both ways if you actually got tax, far more in Europe than you would on your US return.Then the US isn’t going to allow you or make you pay more tax because they’re going to recognize that

[00:21:53] Amanda: A foreign tax credit you can actually carry back for a year. Then if you have excess you can carry it forward for up to 10 years.

[00:22:00] Eliot: One of the unique areas still in our tax system where you can do that carry back and carry forward. A lot of good stuff there.

[00:22:08] Amanda: The main consideration is number one the country where you will actually be investing. It will be a good idea to check what is deductible under that tax regime. Then secondarily if there’s a US tax treaty that allows you that foreign income tax credit .

[00:22:24] Eliot: We don’t do international tax here.

[00:22:28] Amanda: Wow, Eliot,  when they open up a office in Italy will be the first to volunteer to move right? Is there a minimum purchase price you recommend for short-term rentals? Also, what type of property is ideal? Initially I said on the type of property that people would want to stay at but this but looking at more of the tax considerations. I think what they’re asking is if we were to do a cost segregation and take bonus depreciation, what’s kind of where people are getting the most bang for their buck?

[00:23:06] Eliot: We see anywhere in talking with groups that we work with for cost segregation studies like cost segregation authority, anywhere from 150 maybe maybe up to 300,000 it’s kind of a nice spot to start looking at these type of things. But it doesn’t mean a property couldn’t be cost less and still have a value to a cost segregation. It truly does depend and the good thing about that group.

[00:23:29] Amanda: Question is this 150 to 300 total purchase price or is this when you back out the land because we..

[00:23:36] Eliot: Very good point. Yeah, we’re not appreciating land. I would typically use this number after we backed out. However, let’s just say you happen to have after you back out the land. It’s a building worth a hundred thousand still might be worth checking out again a group like cost sake authority. You handle so many of our clients because they will give you a free estimate. They will look at it, This is what we think and it doesn’t cost you anything and they will be the first to tell you, hey, maybe this property is not up for this type of this.

[00:24:04] Amanda: Yeah, and if you’re going into sort of a short-term rental looking to leverage the short-term rental loophole strategy, specifically for the tax deduction. Maybe you’ve got a large capital event in a particular year then getting that estimated cost seg benefit. They will run the number so you could see almost exactly what you most likely would be saving in tax.

[00:24:26] It’s really really helpful when they can do that for you. What about not single-family homes or not short-term rentals because cost sake says about 20% to 30% you can deduct in that first year for like a rental.  But what other types of property if you’re really going into something for the tax deduction. There are other things that could be even more beneficial with a cost seg t

[00:24:52] Eliot: That’s correct and an excellent point. But just real quick if we did want to say short-term rental, I’m thinking condos because typically so very little land goes towards the value of the house.

[00:25:02] Amanda: That’s a good point. 

[00:25:04] Eliot: Yeah, even in my own townhouse. I have very little land it’s actually owned by the bigger group and I own very little land most of my purchase price went into the unit itself, that’s kind of a unique one. But to your point, there’s a lot of other areas RV parks are fantastic because so many improvements go into that, all the roads you have to put in and all the other whatever.

[00:25:26] Amanda: The buggy things. All the things that when we go camping in RV. My dad does because ew, gross.

[00:25:34] Eliot: Exactly all that improvement property that means after you’ve done a cost seg It’s typically going to be a 15 year property. You can deduct a hundred percent of that right now with bonus depreciation.  RV parks are huge hit something very special called the 7-eleven rule. I’ve actually called that in the code but convenience stores if they have a smaller size and I believe it’s under I’ll say it’s under 1200 square feet.

[00:26:00] If they have a certain percentage of only so much an oil product that’s sold.

[00:26:06] Then they qualify under what’s called the 7-eleven rule and you can basically, the whole building everything there’s 15 year property. My whole neighborhood, I have a convenience store pop-up and another poppin when I have two or three

[00:26:20] Different car washes are phenomenal so much of that goes to improvements as well. You’re seeing a lot of your immediate outlay being a deduction for you in that first year, also have a storage unit. That’s another popular one all this popped up in my neighborhood because I know taxes. It’s all tax deduction. 

[00:26:40] Amanda: You just drive around, go tax deduction, tax deduction, tax bonus depreciation.

[00:26:48] Eliot: Yeah before they build it. I already know what it is.

[00:26:49] Amanda: If you haven’t already please subscribe to Toby Mathis’s YouTube channel. He’s got over a thousand videos mostly focused on tax but also some asset protection. He’s tax-wise Toby on the ticky-tock as well. We’re in all the socials and then Clint Coons our other founding partner. He focuses on real estate asset protection, these guys.I don’t know how they just create so much content out there for you and it’s all free.

[00:27:19] Subscribe so you get a notification any time a new video is posted and they’re always up to date on the most recent regulatory changes and things that are most relevant to to you guys as taxpayers, which we all are but also as investors. If you’re ready to schedule a free strategy session, you can do so through this QR code. It is 45 free minutes with a strategist who will take into account your current assets your future plans and build tax saving asset protection structure specifically for you.

[00:27:54] All right with today’s individual standard income tax deduction now so high. How can a schedule E-vacation home still be a tax advantage when write-offs no longer exceed the standard deduction? That must have been nice to live in a world where you’re like, let’s just get a vacation home for the tax deduction. When we’re talking about we had this in an earlier question But just for those of people who may have just been logging on, what are the standard deductions now? These were essentially doubled with the tax cuts and jobs act and then those were extended with the Big Beautiful Bill.

[00:28:31] Eliot: Exactly got rid of the the famous personal exemption, I remember back to those days, but that’s why they doubled the standard, 2017.

[00:28:38] Amanda: That’s not even 10 years, Eliot.

[00:28:43] Eliot: But the 2025 our standard deduction individual again is 15,750 double that for married fine joint 31,500, 2026 will be 16,100 individual, 32,200 we’re just doubling that for married fine joint. What we’re really getting that here is, okay, Eliot if I have these automatic deductions and remember these are the numbers you have to get above in certain areas if you’re going to itemize.

[00:29:14] We didn’t talk about itemized deductions donations to a charity. What if you donate let’s say here $30,000 and that’s the only thing that you have that would go on a schedule A. [00:29:27] You’re not going to see that on your return because you’re going to take the standard deduction of thirty two thousand two and assuming you’re married filing joint is 2026. 

[00:29:36] Amanda: The point is that, if you’re itemizing it’s not just the vacation home that you’re looking at. There’s a lot of other things that you can use to bump your number over that. Charitable deductions those are limited to 60% for cash in. I was writing AGI for a property Eliot for property, 30% for property. I mean 60% cash of your AGI. That’s a big chunk of change that you could be donated and would be much higher than this standard deduction. We’ve also got medical schedule on your medical.

[00:30:17] You can deduct your out-of-pocket medical that’s subject to a seven and a half percent floor. Which means that if your AGI is a hundred thousand dollars the first $7500 is not deductible. But if you pay $7501 you get one dollar deduction. If keeping track of those medical expenses anything out-of-pocket and that if you’re thinking about which things are covered. 

[00:30:47] Typically the things that are covered on a schedule A are also the things that you would be covered if you were paying with an HSA. It’s sort of the same list that you’ve got then includes medical, orthodontist, vision. I got six kids and they all had braces. What else do we have we got? 

[00:31:06] Eliot: Then we have the SALT, the state and local taxes, property taxes. That’d be property taxes and personal taxes like say your car registration if it’s based on the value. We have a little bit of a unique situation here in Clark County where we live at least in my town area. Part of my car registration is based on value and part of it’s not. In reality, I’m only able to deduct here under salt the portion that’s based on the value of the vehicle. I don’t know anybody who actually breaks it out. I just don’t put it on mine, know your area, in that certain deduction there

[00:31:44] Amanda: You could take up to 40 there.

[00:31:46] Eliot: You can, we can now deduct up to 40,000. It was 10,000. But as long as we’re under a half a million of income single or married filing joint. Then we can get up to 40,000 if we go above that half million that starts to slowly phase out. But it does hit a ultimate bottom of 10,000. You always get at least 10,000.

[00:32:05] Amanda: Yeah, and then the mortgage interest 

[00:32:10] Eliot: Exactly right, in personal residence, mortgage interest as Amanda had pointed out earlier up to 750,000 of debt that could be on two houses or one. Whatever it is, whatever the mortgage interest is on a three-quarters of a million dollars worth of debt. You’d be able to put into this pile of schedule A deductions.

[00:32:25] Amanda: And then you can add off to our earlier question if you were holding just raw land, you can take the additional this is a completely different mortgage interest deduction to the one associated with your primary residence. There you go there.

[00:32:36] Eliot: But in this situation, on the question, what if I have it and I can no longer. They’re talking about a schedule E-vacation home here as opposed for tax advantage and can’t exceed the standard deduction. If it’s actually going on schedule E-vacation home, then you’re not going to have this limit.

[00:32:57] But if this is a vacation home that’s following under the personal residence of up to 750,000.  It’s going to get drawn over there. It’s not going to go on schedule E. So that’s why I picked this question because we have kind of a disconnect here. Maybe what we’re thinking happens on the return, if it’s strictly just a regular family second home, it’s going to go on schedule E. It’s not going to go on schedule E.

[00:33:23] Amanda: Schedule E is for rental real estate. You’re thinking long-term rentals. Let’s talk about if you even partially rented this property out. Most likely that’s not even showing up on schedule E either if you were doing short-term rentals like most people do with vacation homes.

[00:33:39] Eliot: If we stay too much one of the primary things that we look at here is if you stayed the greater of 14 days or 10% of the fair market rental days. Then we run into a situation where basically it’s called a vacation home,] that means you can only take deductions up to the amount of rental income you have. 

[00:33:59] That could be a factor here as well, if we’re staying at a lot. And there because you are renting it, you probably would be on schedule E. The standard deduction really wouldn’t be at play here because those are two areas of the return separate. 

[00:34:12] Amanda: You would get both. You would get to take the standard deduction and instead of or alternatively you could itemize. But if you had a true schedule E vacation home, then you would just get to take regular rental expenses. Potentially zero out that income if you stayed under the limitations. Which is the 10% of fair market days or 14 days total.

[00:34:34] Eliot: At least you’d be able to wipe out the amount of income if we’re on schedule E. Now if we had overall losses. Well, then we get into that old argument. First of all, is it a short-term rental or long-term. If it’s long term, did you materially participate? Excuse me. Did you have real estate professional status or if it’s a short-term rental? Did you do that material participation we talked about? Not going to really dive too much into those. But at the very least, you’d be able to take deductions no matter what up to the amount of income. You’re not recognizing any more income.

[00:35:01] Amanda: Yeah, get you down to zero.  Alright, I sold one investment property and bought two under a 1031 exchange. We’re headed into our 1031 section. When can I sell the two 1031 exchange replacement properties and enter a new 1031 exchange without a tax penalty? For those viewers who don’t know what a 1031 exchange is. Let’s just quickly go over what that means.

[00:35:26] So it’s essentially you are swapping out like kind property and it’s a tax deferment strategy where you sort of kick the tax capital gains tax can down the road. There are some very specific requirements one of which being that you have to work with a qualified intermediary and you have to do things on a certain timeline.  You have 45 days to identify a property and then you have 180  days to close and there can get into some very detailed rules that will not go into. That do not speak to this call of the question.

[00:36:12] So let’s just draw they had one property and then they 1031 into two different properties which you can do you don’t have to go one for one. You don’t have to go single family to single family, you don’t have to go from apartment building to apartment building. Then they want to go into a new 1031 exchange and then what’s that timeline there?

[00:36:37] Eliot: A 180 days total from the time you sold the first property you have 45 days to name. If we sold that property on the left0:36:44] You have 45 days to list those properties in the middle that you’re picking up the replacement properties. We got close the whole deal with on 180 days of the sell of the first property. To the the numbers of properties you can get unlimited properties that you’re getting this replacements that you’re picking up. 

[00:37:04] But it just can’t exceed twice the value of the property the firm market value the property you gave up or called a relinquish property or alternatively you can do three properties a maximum of three and have unlimited value to. Those are two kind of limits there within the code on that 

[00:37:21] Amanda: Now for the second 1031, we’re looking at this time. How much time has to pass before we go into the second 1030?

[00:37:28] Eliot: It is a fantastic question, there are so many official answers for so many time related things in the 1031. Why wouldn’t there be well, it’s not and this is one area where you just have to be able to show the intent that the properties you picked up that you actually used them intended and did use them in a trader business.

[00:37:49] What’s that look like? You look the court cases and they’re going to look at facts and circumstances. You’re going to look at probably a year or two of holding on to these and running them as that’s an actual trader business. I have written them out. It’s probably what we’re going to recommend.

[00:38:07] Amanda: Just Google that will say 24 months. But what I like to default to is let it hit at least two tax returns. Let it hit at at least two of your tax returns before you do that second 1031. Then if it does for some reason they do have to sell or do it before that two-year, 24-month mark and it does fall into an argument where you’re arguing my intent was to do XYZ. How do we document that intent?

[00:38:37] Eliot: You keep your receipts as much as possible, you show that maybe there was rental activity or at least that you had a lease available that you’re trying to rent it. Anything and everything is really what comes down to there, try and show your intent that you had that you were going to use it as a trader business. Which means that you weren’t trying to flip, that’s really what the IRS is worried about /

[00:38:58] Amanda: If you lose that argument, what happens? Well, you can be tagged as what’s called a dealer. Which is essentially a flipper that you’ve bought and sold so frequently within such a short period of time that the IRS is treating you as if you flipped the property. Even if you didn’t do any real improvements on it that we think of as a traditional flip. The downside of that is that it completely disqualifies the 1031.

[00:39:24] All of that deferred tax, it is going to be due. Even beyond that they can treat the sale as ordinary income because if you’re a dealer. You don’t get the more beneficial capital gains rate, you pay ordinary income tax on the sale of what is considered inventory now.

[00:39:44] Eliot: Exactly, somebody show employment tax

[00:39:46] Amanda: He just says it casually subject to employment tax. That’s subject to additional 15.3%  additional tax on top of that. That’s big. That’s big. If you can wait that two years, wait that 24 months if you just made a bad call in 1031 into a property. That’s just simply not renting out. It’s just a money pit and you just got to get out. You can still do that 1031. But again document, document, document, you had tried your best to get it rented out.

[00:40:17] And it just simply didn’t work out and you were making a better financial decision by letting it go. If a property is sold in California in a 1031 exchange and the replacement property in Tennessee is sold through a second 1031 exchange. Does California have capital gains taxes that need to be paid? Let’s try out the scenario. We’ve got a house in California, and I’m going to assume. We could talk about that later. Where this person is living and then they do a 1031 into another house and in this question, Tennessee. And then if we’re doing another 1031 and to let’s say where do you want to live?

[00:41:01] Eliot: Missouri.

[00:41:02] Amanda: Missouri. That’s why you gotta pick one. That’s MO right? At what point does California claw back the tax because we know California it wants what it wants when it wants it. When do we need to be paying that California capital gains tax?

[00:41:23] Eliot: It’s going to be when we got rid of what we call the replacement, probably that’s our Tennessee property, the first 1031. When you sell the Tennessee either sell it or you did a second 1031. That’s where we’re going to have to pay the piper so to speak back in California. How do we have an idea what that is?

[00:41:46] California requires that you do a form every year. Once you did that first 1031 into Tennessee, every year we got to fill out the 3840 form telling them hey, I haven’t sold it yet. But here’s the gain that I had back when I originally went into the 1031. Everybody really knows what that gain was, we get to that second situation. Amanda is putting the gold or yellow box here once we do that. Now, California says we’re not able to do that 3840 saying that we haven’t sold yet. I’m going to say we did and now the time comes to pay the tax yeah, 

[00:42:25] Amanda: This it’s not just California, it’s not Oregon. Oregon is similar to California and that it requires an annual form to be filed as well. And then Massachusetts, MA and Montana, MT, right? They have a similar clog rack for claw back provision except they give you a little break. You don’t have to file the form until the actual year in which you the taxes do. This applies even if you don’t live in California.

[00:42:55] Eliot: Yes, because it’s the sourced income in California. You sold a piece of property in California, that’s California taxable income. Especially people like to argue, well, I didn’t live there, I didn’t really operate there. When you have actual property in a particular state, oh, you’ve made you’ve availed yourself of that state. Okay, you got footprints there in the fact that you have you own land and so California very much is entitled to that and they’re going to get it .

[00:43:20] Amanda: yeah, and they’re going to get it at closings. Especially if you are not a California resident the closing agent will withhold the taxes from the sale. You will never see them, but I will send that straight over to the franchise tax board. So fun being a non-resident with California source income.

[00:43:38] If you have an LLC partnership with three members that recognize the sale. Can each member make their own election with respect to a 1031 exchange or must the entire entity participate in the replacement property? Now first off, Eliot, you did point out one word in this question that made it sort of a bad situation for this person and what is that?

[00:44:05] Eliot: Recognized, that means this has already happened. We’ve already done something, we already sold the property. If we go back even if we were trying to do a 1031 which we saw earlier. Those times are clicking the 45 days 180 days. Highly unlikely that we’re going to be able to do anything to begin with because we already did it.

[00:44:30] Amanda: You got to get in. You got to make friends with Dr. Who. You got to get in the TARDIS and you got to go back in time to do a true 1031 with a qualified intermediary. Let’s just assume we did that, the sale hasn’t been recognized. We’re just looking at a three-member LLC partnership, that’s looking to do a 1031 exchange.

[00:44:53] Eliot: We have to do that, why? Because otherwise man I have nothing to talk about in this question. What could be done is, we could do what we call drop and swap. That means that we take the property out of the partnership and we give it to the partners, distribute. Now they’re going to receive it in what we call tenants in common, right?

[00:45:20] That’s a specific way of holding property and it’s kind of unique, the IRS has its own rules of what that looks like and they’re pretty strict. Basically means, let’s say, if Amanda and I had a rental property and she’s just like, boy I hate that Eliot, Let’s do a distribution because I don’t want to deal with him anymore. I know we all intents in common. We really do nothing on that property together other than strictly what’s needed, bare minimum to run that property and get it done. But we can’t be doing any other kind of business or anything like that. It’s really limited on attendance in common, kind of how you operate. 

[00:46:00] But if we got there, then each partner who has these tenants in common interest would be able to exchange that particular tenant’s in common interest into their own individual 1031 if they wanted to. We have some flexibility. The problem with this is that the IRS looks out for this and they say if you did a drop and swap in anticipation of doing a 1031. Maybe we’re going to call foul. We’re going to say that’s a step transaction.

[00:46:24] We’re trying to get to something to subvert get around these rules with the partnership being not able to typically get into it the partners that is but into a 1031. We have to be real careful with that and show that we had other methods or reasons for doing it. It might be that maybe the partners aren’t getting along. That’s a good reason to distribute and then just kind of run as independently as possible as tenants in common, that might be a good reason.

[00:46:47] Amanda: You’d have to document your intent. All of the nasty text messages you send to each other, you screenshot those baby, you put them in that folder of evidence.

[00:46:57] Eliot: We do not like that. 

[00:47:00] Amanda: You can’t drop and swap with the intent is not easily defined, but it is highly relied on in interpreting the IRS code. Without, you can do it, can distribute to the partners but it has to be not with the intent of doing a 1031 exchange. Drop and swap not to be confused with swap till you drop which is a different strategy.

[00:47:23] Where you are essentially going back to our previous question where you are doing 1031 exchange, after 1031 exchange. Pushing off that deferred tax taxes until you drop, until you pass away. Your heirs get to inherit at the step-up basis and then they can sell it. No tax, baby. 

[00:47:47] Eliot: If we hadn’t done any of this and let’s say we didn’t distribute the property

 Oh gosh, the texts aren’t mean we get along and we have a working partnership on this rental property. Well, then you could do a 1031 at the partnership level. Partnership A could get rid of the property and pick up a new replacement property, B into the other property. and so that would be something if we could get into that TARDIS and go back in time another way to handle this as well.

[00:48:19] Amanda: In June of last year the IRS asked me to submit my previous taxes before receiving my current tax refund, I’m assuming he means his previous tax return. I did so when I checked the IRS website periodically it says my refund is delayed. I have attempted to call but not surprisingly no answer from the IRS. How do I expedite receiving my tax refund?

[00:48:44] I first want to thank this submitter because one of my small pet peeves is when people call their refund their return. They say something like I can’t wait to get my tax return because I’m going to buy a TV or I’m going to put a down payment on a car. You don’t get back your tax return, you get a tax refund. That’s the money you send your tax return to the IRS. Thank you for knowing the difference. Is there anything that we can help this person with to get through to the IRS?

[00:49:19] Eliot: Yes, there is and not to go too deep into it. But I really love this question because it shows sometimes the difficulty one has working with the IRS. It’s not just this situation, but what this taxpayer can do, is reach out the IRS has its own department to help taxpayers. The taxpayer advocate service, TASKS is what we call for short. It’s a fantastic group of people. Yeah, they work for the IRS, but they’re not like the IRS.

[00:49:48] They’re there to help you and they do a very good job. This taxpayer if they’re having problems could go to TASKS, say, hey, I’m not getting my refund or don’t understand what’s going on incidentally if they had a previous liability that might be why they’re not seeing the refund because that’s always going to get paid first the government’s going to get paid first before it gives you any of that refund check.

[00:50:08] If there’s an amount already outstanding or something like that. That’s common or also sometimes when people do a return they they mark those funds will go to next year’s taxes and sometimes that’s a reason why we’ve seen in the past that they weren’t getting a refund that they anticipated. Nonetheless, so if we’re not hearing anything from the IRS go to this task group. They are fantastic, they work very hard to try and help taxpayers. I understand people could be jaded. 

[00:50:36] They’re still under the IRS, they are wonderful to work with though they work very hard and they are there to help the taxpayer and they take their job seriously. It’s just easier for them because they deal with us every day. And so when you have issues with the IRS. It’s a very good group or if you have a tax preparer that can walk you through but then certainly that’s great as well. But if you don’t, looks like maybe here we kind of did our returns ourselves then the TASKS is where you want to go.

[00:51:03] Amanda: Yeah, and we’re just kidding. There are lovely people that work at the IRS. I’ve worked at the IRS cream Hannah fee the head of our nonprofit department has worked at the IRS. We have a former employee who works at the IRS and it’s probably we’ve been trying to get him back. This group tasks is really great to work with if you did want to do a little more of your own troubleshooting. I know there’s a page on the IRS website that says check the status of my return if you click on that you may not get the full answer. It will simply say we’re still waiting for you’re still waiting for it, right?

[00:51:36] You can actually log into your account and look at your tax transcripts and that’s going to show you for every year what your income was and what your tax liability was.  So to Eliot’s point if you had previous year tax liabilities that you hadn’t fully paid off or if there was some sort of penalty or fee that they audited you for that you simply weren’t aware of. They’re going to take that refund check and they’re going to use that to pay off previous tax liabilities

[00:52:03] You can kind of troubleshoot or sleuth it out for yourself if you go take a look at your tax transcripts. Last question. What’s the time limit on changing LLC tax status? You call it LLC, the chameleon of entities because it can change, have a lot of options in terms of tax status, so let’s start with disregarded I call the disregarded, regarded entity. The John Cena of a lot of entities because the IRS can’t see it. They treated it as if it’s not there. All of the tax income liability flows on to your personal return so we can have an LLC tax is a disregarded entity as long as there’s just one member. 

[00:52:55] Eliot: Exactly, right.

[00:52:57] Amanda:  What if we have two members?

[00:52:58] Eliot: It defaults automatically to a partnership if we have two or more members

[00:53:02] Amanda: What if we have three members?

[00:53:05] Eliot: Still a partnership.

[00:53:09] Amanda: What if we have a hundred and three? I’m just kidding. Then beyond that you can have an LLC taxed as an S corporation, an S corp, which means again, it’s going to be passed through. It’s going to file a 1120S but it will issue a K-1 and then you as the member will pay all of the tax liability there. And what’s the fourth option? 

[00:53:31] Eliot: C Corp?

[00:53:34] Amanda: C Corp. What tax do form do we?

[00:53:36] Eliot: That’s going to be your 1120.

[00:53:40] Amanda:  And who pays the tax?

[00:53:42] Eliot: They’re the C corporation, it’s a separate taxpayer. It is completely unrelated to your personal 1040. Amanda had a C corporation, her return is her personal 1040 is much related to her C corporation turn, as my 1040 is to either of those returns. They have absolutely contributed as a whole different person because that’s the way the IRS treats. 

[00:54:05] Amanda: It’s going to flat 21% tax rate. Which if your individual tax rate is over 21% it opens up a lot of opportunities for us to do some planning and some income shifting now. How do we change the tax status?

[00:54:21] Eliot: They have a special form go figure 8832. This is where you’re making the entity election on how you want this tax. If you don’t do anything and there’s one member, it’s going to be disregarded. If you don’t do anything and there’s two or more members it’s going to default to a partner 

[00:54:39] Amanda: You will see that when you apply for your EIN, is a series of questions that you have to answer when applying for that EIN. That initial letter from the IRS will tell you you’re treated as partnership. You’re expected to file a 1065 and so you do have to do this form 8832 if you want to make a separate election. What are the dates where we can do that? 

[00:55:01] Eliot: The time limits getting down to the ready here. When we file a 8832 we’re going to pick a date, what we call the election date, when do we want that change to happen? You can send in the form you have up to 75 days prior, so in other words if we set it up we send it in today you go back 75 days. That’s the furthest the election date can be from the date you sent in the 8832.

[00:55:27] Let’s say it’s March 15th, that’s 75 days. We can still get it go back to January 1st and call it whatever election we want. But we can’t go back to December 31st outside of the 75 days. So that’s how far back we can do. Forward, we can go up to 12 months ahead. So it could be 12 months later on that we pick a date. Now within that, also on these elections, there’s what we call a five-year or 60-month rule. That says if you’ve picked it to be an S-corp or a C-corp or a partnership or something like that you can’t change again for at least five years.

[00:56:11] Amanda:  Frankly, it’s kind of messy. Imagine a scenario where you were an S-corporation and then you’ve changed to a C-corporation or vice versa. Your bookkeeping, like where your partnership basis goes it’s all just a mess. It is really good to get with a professional and plan this out when you’re setting up your entity. For a lot of people maybe you start out as disregarded if you have an active business.

[00:56:41] When you start making enough money when you’re making about oh, I don’t know 35 to 50 net income, that’s when we would start looking at hey, let’s maybe make an S- election. You can lower your payroll or lower your self-employment taxes. We really want to be thinking about these things ahead of time for a corporation a lot of times. We’re just looking at your personal tax rate. Is it higher or lower than the 21%?

[00:57:07] Maybe you have a lot of out-of-pocket medical that you can’t take on your personal tax return. You can do that under a 105 B plan in your C-corporation. Maybe you just want to bump up those deductions like an administrative office or a phone bill or an internet. There are different limitations at the disregarded entity level and at the partnership level that simply you don’t run into in an S or a C-corp. There’s a lot of different things that you want to be thinking about when making this election and changing your mind five years later seems like such a headache.

[00:57:41] Eliot: It does and you bring up a really good point with the S selection. That’s actually a different form of 2553 and that one, since we’re on the topic of changing tax statuses and time limits. That’s one where we can do what’s called late election if we’ve been running, let’s say in 2025 back in January 1st of 2025. You started a business and you’ve been really running it as kind of an S-corp you’ve been paying yourself wages, but maybe you haven’t but you’ve been running it as a corporation.

[00:58:11] But you realize oh my gosh. I never filed the formal 2053 to make that S election you can right now during this tax season for 2025 looking back make what’s called late election. Now you have to have very special language. You want to be working with someone who understands this but you put special language on the return. Make a late election and you more than likely the IRS is going to give you that status.

[00:58:33] They’re not required to but they’re very generous on it. One problem is that once you elect S election. First of all, they’re not going to know that you’re trying to do your return here in for 2025 here during 2026. You probably didn’t extend at the beginning of the show we talked about. We got to get those extensions out for March 15th or those S corps and partnerships. Well, you never did that if you’re doing late election and if you send an extension right now as an S corp.

[00:59:00] They’re going to reject it because they’re not expecting it. What’s going to happen in time when you finally get that 1120S filed in 2026 or the 2025 tax year, you’re probably going to get some nasty grams. IRS saying, oh you were late and et cetera, et cetera. You’re going to have to talk and work with the IRS, saying, hey, I did late election forms, they’re just waiting for the process. Once it processes you typically and then think can abate any penalties and fines and things like that. I just want to let you know that while you can do it. There’s a little bit of headache that you have to deal with.

 [00:59:35] Amanda: Requesting the abatement is a lot easier than it seems. You don’t have to just take a picture of your face looking sad like the Puss in Boots sad face from Shrek. You can just call and typically hey, I’d like a first year abatement for my late election. They know exactly what you’re asking for and they can get that taken care of right over the phone sometimes. 

[00:59:56] That is the end of our questions. Please don’t forget to subscribe to Clint Coons YouTube channel as well as this channel. If you’re here there’s no reason, just hit that subscribe button if you’re on YouTube. Thank you to our team for answering questions. I know Troy is on YouTube handling our friends there. And we’ve got Cheryl, Harry, Dutch, Jeff , Marie.

[01:00:27] Eliot: Ashley, Jalen’s out there. 

[01:00:32] Amanda: Jalen and Summer from our events team as well as Zion in a studio here in the back. If you’d like to come out and see us, our next live event is coming up quick.  Just in a couple of weeks March 19 through 21 you can get a discount on your tickets with this QR code and use the code Invest just 49 bucks to hang out with us for three days. Best deal on the internet right now, or you can schedule a free strategy. I guess this is the best deal since it’s free strategy session.

[01:01:03] We’ll create a plan that will help you save taxes keep more money in your pocket and also protect your assets and your businesses. If you’ve got a question that you’d like us to feature on the next tax Tuesday, please email us at taxtuesday@andersonadvisors.com or visit us at andersonadvisors.com. Thank you guys so much. 

[01:01:25] Eliot: One just real quick reminder. Let’s get those extensions please and remember the April 15 extension it’s not an extension to pay. We still want to get an estimated payment if it’s due on April 15th for your 1040.

[01:01:36] Amanda: Yeah, pay now, file later. That’s the plan. All right guys. We’ll see you in two weeks, take care.

[01:01:42] Outro: