How To Turn Stock Market Gains Into Tax-Smart Investments In Your Business
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In this episode, Anderson attorneys Amanda Wynalda, Esq., and Eliot Thomas, Esq., tackle a wide range of listener questions on tax strategy for real estate investors, business owners, and stock market traders. They dig into whether Section 187 depreciation on heavy equipment can offset capital gains from a property sale, and why material participation is critical for bonus depreciation to work. They clarify that real estate professional status is an individual designation — not an entity filing status — and explain how it can convert passive rental losses into active deductions.
Amanda and Eliot also address how stock market gains can be offset through actively managed farms and rentals, the benefits of a C-Corp property manager in Washington state despite the Business & Occupation tax, and why you cannot deduct life insurance policy loan interest under Section 264. They cover the tax impact of converting a rental property to a primary residence, how the Section 121 exclusion applies proportionally to a mixed-use apartment building, the mechanics and timing rules of a 1031 exchange, and why transferring a fully depreciated property into a land trust generally has no income tax impact. Tune in for expert advice on these and more!
09:50 — “I’m starting a Heavy Equipment Rental Business, which will be active income. Can I use the Section 187 Depreciation expense on Heavy Equipment to offset the Capital Gains tax that I will incur on an investment property that I am selling in 2026?” Section 187 is obsolete (was for mining safety); bonus depreciation requires active material participation.
18:50 — “I am a homebuilder with an LLC structured as a C-Corp. I self-manage/own a new 36-unit rental property in a passthrough LLC. I have my real estate license (inactive). Should I change my filing status to real estate professional from a C-corp?” Real estate professional is an individual status, not an entity’s filing designation.
25:02 — “I am consistently making profits in the stock market. I have a farm and some rental properties owned as pass through LLC’s. Can I invest in my business and the rentals to reduce tax consequences from stock market gains?” Active material participation in farm and rentals can offset stock gains.
33:44 — “We set up a C-corp property manager to manage a rental portfolio via rental LLCs. Unfortunately, in WA state prop. mgrs. are required to pay a 1.5% Business & Occupation tax, while rental owner LLCs are not. High-level question: is it still worth using a C-corp property manager?” Yes — the management fee income stays below the $100K B&O exemption threshold.
38:45 — “How can I borrow money from a life insurance policy, use it to invest in lending like private lending or a mortgage note, and be able to write off the policy loan interest as expenses to lower overall tax liabilities from interest earned from lending activities?” Tax code Section 264 prohibits deducting life insurance policy loan interest.
41:42 — “What are the tax implications if I purchase a property in an LLC for rental purposes, renovate it, and take all applicable write-offs, but then change my mind and decide to live in it and transfer it into a living trust?” Depreciation deductions lower your basis, reducing your Section 121 exclusion later.
46:04 — “I live in Arizona and owner-occupy (live-in) in 6% (1 unit) of a 17-unit apartment building square footage (9,645ft²). Would the $250,000 capital gains tax exclusion rule apply to the sale of the building?” Only the 6% owner-occupied portion qualifies for the capital gains exclusion.
49:49 — “Please review the benefits of 1031 exchanges.” A 1031 exchange defers all capital gains tax by rolling into replacement property.
55:10 — “What is the tax impact of placing my fully depreciated property in a land trust?” Transferring to a land trust typically creates no income tax event whatsoever.
[00:00.00] Intro:
[00:13.68] Amanda: Hi everyone. Welcome to Tax Tuesday, it is another gorgeous Tuesday here in Las Vegas. My name is Amanda Wynalda, I’m an executive attorney here at Anderson advisors and this is.
[00:23.86] Eliot: Eliot Thomas, manager the tax advisors here at Anderson.
[00:25.68] Amanda: All right, and you are here. Let’s start off with throwing up in the chat where you’re from. We always like to see where everyone is, someone we’re already giving a shout out to miss Patty in the background. We’ve got a crack team.
[00:39.40] Eliot: Yeah, we got Patty. We got Dutch, Jeffrey, Marie, Rachel, and Troy answering questions in the back.
[00:44.58] Amanda: Yep, and if you’re following us live on YouTube, we also have Troy managing the questions coming through there.
[00:51.12] Eliot: We got Jacob / Jason back there.
[00:55.80] Amanda: In our control room. Brea, California, that’s where my family’s from Oregon, Salt Lake, West Virginia, New York, I’ve lived there Laguna Beach. I wish I lived there.
[01:08.90] Eliot: North Carolina, Tampa.
[01:13.16] Amanda: Miss Patty just knows everyone, we must have a lot of frequent flyers here today. Well, we are glad to have you back with us. Briefly, let’s go in over the rules here and my slide things not going to slide it up. going to have to go old-fashioned style. This is a live Q&A. If you have a question, please drop that into the Q&A. Not the chat if you’re having any sort of technical difficulties, then you can put that in the chat and the team will help you out.
[01:41.04] But if you have a question, whether pertaining to the topics that we have pre-selected and by we I mean Eliot has pre-selected, great. Or if you just come here to get some free tax advice then you can go ahead and put that into the Q&A. Like we said our team in the background we’ll be answering those. If you’d like to contribute a question to a future episode of Tax Tuesday, then you can do so by emailing taxtuesday@andersonadvisors.com. If you need a more detailed response than what we’re able to do through the Q&A interface then you can become a platinum or a tax client. What’s the benefit there Eliot?
[02:18.56] Eliot: Well, if you get to be such a client you get to talk to great tax professionals and get tax advising and projections and things like that.
[02:27.28] Amanda: And save money. This forum is designed to be fast, fun, and educational. We’d love giving back. We love helping educate, educated clients are the best kind to work with. Alright, so we’ll go over the questions before we dive down into them. These are kind of long ones.
[02:47.72] Our first submission is I’m starting a heavy equipment rental business, which will be active income. Can I use the section 187 depreciation expense on heavy equipment to offset the capital gains tax that I will incur on an investment property that I’m selling, also this year in 2026? I’ll be putting 50k down and financing $400,000 in heavy equipment. Can that $400,000 purchase in 2026 offset the $380,000 capital gains profit that I expect to make on my 2026 tax return?
[03:23.02] I don’t have to do a 1031. A lot to dig into there, a lot of capitalization, unnecessary capitalization as well, but we don’t judge around here you go on and you send it in however you like. What’s up next?
[03:36.88] Eliot: I am a builder with an LLC structured as a C-corp. I self-manage and own my own 36 unit rental property in a pass-through LLC. I have a real estate license, which is inactive. Should I change my filing status to real estate professional from a C-corp? Keep the C-corp for a construction company and make the passive LLC filed on my personal return the real estate professional.
[04:01.84] Amanda: Some misconceptions there, but we’re going to clear that up. I love how the submissions are so high level. They’re already talking about active income passive income. We’ll dig into those differences. I’m consistently making profits in the stock market, humble brag. I love it for you, queen or king. I have a farm and some rental properties owned and passed through LLCs.
[04:23.80] Can I invest in my business and the rentals to reduce tax consequences from stock market? I’m assuming that means gains not games. I mean some sounds like it’s a game to this submitter, just a game, they like to win. Is there a certain number of dollars per year when it might make sense to create a separate entity, possibly a C-corp for the trading company?
[04:47.44] Eliot: We set up a C-corp property manager to manage your rental portfolio via rental LLCs. Unfortunately in Washington the state property managers are required to pay 1.5% business and occupation tax. While render owner LLCs are not, high level question. Is it still worth having a C-corp for a property manager? Total annual rent is approximately $500,000 so 1.5% if additional tax costs of $500,000 times 1.5% equals $7,500.
[05:21.48] Amanda: Is that math correct? So far? We shall see. How can I borrow money from a life insurance policy, use it to invest in lending like private lending or mortgage notes and be able to write off the policy loan interest as expenses to lower overall tax liabilities from interest earned from lending activities? How can I have my cake and eat it too is what I’m hearing from this and we’re going to let them know how they can. Well, maybe can’t, maybe no cake you’re going to have to stick around and find out.
[05:54.00] Eliot: What are the tax implications if I purchase a property in an LLC for rental purposes,renovate it and take all its applicable write-offs, but then change my mind, decide to live in it and transfer it into a living trust?
[06:18.68] Amanda: Alright, I live in Arizona and owner occupy live in a six percent one unit of a 17 unit apartment. Basically this person owns a 17 unit apartment lives in one unit. Which sounds like it comes out to six percent or to be more specific 9,645 square feet. Oh, that’s what the two is for. That’s not proper. With the 250,000 capital gains tax exclusion rule applied to the sale of the building. That sounds like the 121 exclusion to me and we will get into whether or not that will apply.
[06:57.36] Eliot: Please review the benefits of a 1031 exchange.
[07:03.16] Amanda: That’s the question and what is the tax impact of placing my fully depreciative property in land trust. Someone said tomato, tomato. Those aren’t spelled differently. I say it like Amanda. That’s it.
[07:19.80] Eliot: It sounds fancier. Oh, sorry
[07:20.72] Amanda: Okay, so if this is your first time here, this is one of three plugs we will be making for our YouTube channels. This is Clint Coons, he is an expert in the real estate asset protection field. He is a best-selling author, he is a lawyer. He is a real estate investor and he is one of our two fearless leaders. Check out his channel subscribe as well as to this channel if you’re here, hopefully you are subscribed. We feature a lot of excellent speakers on this channel.
[07:54.90] Toby and I actually just recorded earlier today talking about land trust, which is part of our final question for today. Subscribe and it’s an environment tax and asset protection under one roof. Subscribe to those channels when we go live for Tax Tuesday, you will get a notification to your devices.
[08:20.44] And if you are ready to join us at three if you thought joining tax Tuesday once every two weeks was fun. Come out to Phoenix, Arizona and join us for tax and asset protection for three full days. It’s going to be a fun time. Which you’re going to have to tell me about because I won’t be there. But Eliot will be there if you like to ask your questions in person. It’s always great tickets are only $99, bring a friend. It’s fun for everyone.
[08:46.60] And then if you can’t commit to three whole days head on over and join our one-day workshop. It’s asset protection in the morning, usually tax planning in the afternoon. We hit on some major tax strategies that you can use and then there’s some estate planning in there. That’s a piece of the tax and asset protection puzzle. That so many people forget, but it really is the foundation.
[09:09.48] There’s no point in accumulating assets, saving on taxes, building your wealth if you don’t have a plan in place to pass it on. If you’re ready to schedule a free strategy session that you can top you can use this QR code here. It’s 45 minutes of just sitting down one on one with a senior strategist. Where you can tell them exactly what assets you have, what your plans are and they can build a structure out that works for you. Not every structure works for everyone, right?
[09:41.12] Eliot: That’s correct, we make it tailor-made.
[09:43.92] Amanda: Sherry here says live events are the best. They are the best Sherry. Hope to see you.
[09:48.92] Eliot: Sherry is the best.
[09:50.00] Amanda: Sherry is the best. That’s a quote, direct quote from Patty. I’m starting a heavy equipment rental business, which will be active income. Can I use the section 187 depreciation expense on heavy equipment to offset the capital gains tax that I will incur on an investment property that I’m selling in 2026? I will be putting 50k down and financing about 400,000 in heavy equipment.
[10:17.28] Can that 400k purchase in 2026 offset the 380k capital gains profit on my 2026 tax return so they don’t have to do a 1031 exchange. Initially a tax professional may look at this and say, yeah heavy equipment if you’re running a business. Sure, but you looked at this and because you see stuff like this all the time. You looked at this and immediately thought of a four-letter word. Not that four-letter word you guys, it starts with an S and it ends with a cam.
[10:52.28] Eliot: I don’t want to say scam, there are out there. They’re out there. First of all just to kind of set the table here. Because there’s a lot going on in this question. We’re going to buy some equipment, go to a company and say here’s $50,000.They’re going to lend you the extra amount the other 350 so you are entitled to ownership of 400,000 worth of equipment. Now normally you can go ahead and deduct that, depending on what’s going on your business.
[11:20.44] We’re going to look at that a little bit more. But that’s what they’re trying to do because they have this other event going on. Completely unrelated to where they’ve sold, maybe it’s real estate, we know it’s real estate because we’re talking 1031 which has to be real estate. They’ve sold that and they’ve recognized they calculate about 380,000 again capital gains coming in. They’re trying to offset that by doing this other play through this heavy equipment.
[11:44.44] Lot going on there, but first of all, I just want to hit this 187, 187 is in the tax code but it’s now extinct if you will. It was precisely for mining equipment back, maybe a couple decades ago, I think and mining safety equipment wasn’t just any mining equipment. That is long gone. I think what we’re probably talking about here is a combination of section 179 and or 168K. 179 it’s a special deduction that you can take with heavy equipment like this. You can take up to the amount of profitability that you have after you subtract everything else. You take your net profit then you can start taking 179 deductions against that but you can’t create a loss.
[12:34.04] Amanda: That’s not going to do me any good. I love to not pay tax on income, but we’re looking to offset.
[12:42.64] Eliot: This is going to just stick us at zero with that particular heavy equipment business but not going to create that loss that a man is talking about to offset that capital gain. We’re going to get more into this 170 requires that you being an active trader business. We’re just going to hang that right there for a second.
[13:02.66] Now we move over to the other choice, the other option, which is more commonly used nowadays, 168K that’s bonus depreciation. It says if you have qualifying assets there under 20 years depreciation life, you can go ahead and deduct a hundred percent of it right away. And yes, and it can create a loss. We like that now, we’re Amanda has something maybe she can use.
[13:24.00] Amanda: We want the L.
[13:25.00] Eliot: We want a lot of it. We want 400,000, at least 380,000 of loss if we can. However, the problem with that is that you have to still go through the analysis if it’s a passive or active business. Like we’re talking about with 179 it has to be an active business. There you get into something we’ve talked about numerous times, but we usually talk about in the real estate zone.
[13:49.04] We don’t have that going on. This is just a regular business, same test. We always talk about you have to materially participate. Seven different types of tests for material participation the most common we always talk about. You put in over a hundred hours and more than anyone else or you put over 500 hours and you don’t care what anybody else does. If you meet one of those criteria or one of the other tests, you’re materially participating. That means it’s not a passive business, it’s now active.
[14:18.08] We go back to our 179, now you could do 179, if it is active. But still not going to create the loss. Again, we focus back on the bonus depreciation, 168 and here if it is indeed whether it’s active or passive you can “take the deduction” for 400,000 of equipment. We got bonus depreciation, but the real question is,fine I got a $400,000 loss. Let’s just say we broke even on operations in that business, so we have a $400,000 loss.
[14:47.32] Do we get to take that against an error capital gains? Well, not if it’s passive because passive losses can only offset passive income. What we have going on with capital gains. That’s a whole different type of income called portfolio income. Basically, the only thing that you can take against, you’re going to take capital losses against capital gains the alarm or an active ordinary loss.
[15:09.92] Only way we’re going to get that is 168k bonus depreciation and we have to materially participate. Which means that this heavy equipment business is an active business and that’s the catch because a lot of these people come in, we hear this. I’m not going so far as say scam but orange jumpsuits might be in the play here if we aren’t too careful because the IRS does like to shoot these down. You have to show that you are operating that heavy equipment business. Significantly continuously on a regular basis throughout that tax year.
[15:51.92] Amanda: You have to materially participate. This is a situation where a third-party company has come to you, said, hey give us 50k, we’re going to loan you was it 350k which by the way, we’re loaning it to you. Now you’re paying us that funds back, but you’re just standing over here as an investor you’re not materially participating. You need to get behind the desk and I guess you’re standing on the desk in this drawing.
[16:20.48] Whether you’re sitting behind it or standing on the desk, you need to be working in that business. You need to be taking the calls, you need to be renting the trucks, you need to be delivering them. Whatever that heavy equipment is in order to hit this material occupation requirement which is what is needed to then take that 168K.
[16:40.44] Eliot: A lot of the times what we hear from the clients is like, well, I’m going to fly in there and I’m going to have a bunch of meetings about how to run this type of business. Or once a month I go in there and I, or maybe once a week I go on there and I check my “inventory online” and I say yes, go ahead and send it out. That’s not really controlling a business. You have to be more hands-on, that is very superficial. Very low activity in that business, even if that collectively came up to over 500 hours or a hundred hours more than anybody else. The IRS typically is just not going to allow that.
[17:12.28] I don’t know how you would do a hundred hours and more than anyone else if you’re not actually running the business.
[17:18.00] Eliot: It’s very challenging. Someone’s doing more work.
[17:26.94] Amanda: You’ve seen it before with heavy equipment rentals specifically. But I’ve seen it before with investment through a trust involving an offshore LLC with Forex. But the concept is still the same, if you’re not materially participating that’s not going to work to offset or create any bonus depreciation that is usable to you.
[17:45.22] Eliot: Exactly, right? We get back pulling us all together. We’re not going to use 187, I think is what it was, we know that unless we’re mining.
[17:55.62] Amanda: Unless your heavy equipment is mining safety equipment, which maybe it is.
[17:58.62] Eliot: But that section is gone 179 again can only be if it’s active and it’s only going to cut you down to zero in that business. Any other additional loss will carry over to next year, but it’s not going to save your 380,000 of capital gains, That leaves our only pathway here is we must really be involved in this for 168 purposes so we can take that bonus depreciation and I would typically and probably I think on this one. We could almost speak for the IRS. We probably be skeptical that you will be able to do that. As we normally hear these type of things.
[18:30.00] Amanda: Simply saying I have a heavy equipment rental business and it will be active income doesn’t make it true. You have to really look at the rules in the code if it can transform into active income might be doing a 1031 exchange. Which is good because we’ve got that on the docket, so stay tuned.
[18:49.08] Alright, I’m a home builder with an LLC structured as a C-corp. I self-manage own a 36 unit rental property in a pass-through LLC. I have my real estate license although inactive and should I change my filing status to real estate professional from a C-corp? Or keep the c-corp for the construction company and make the passive LLC filed on my personal to return the real estate professionals?
[19:15.56] Right off the bat. We have to clear up not even tomato- tomato, but not even semantics. Some fundamental misunderstanding of what being a real estate professional is. Being a real estate professional is a Boy Scout badge that you get, it is not something that your C-corp is able to claim as a filing status. It’s not something that a passive LLC claims it’s you as an individual can qualify as a real estate professional and that’s going to be the test that we talk about.
[19:48.70] If you want to search real estate professional on this channel you probably see 50 videos explaining what it is and different applications of it. But it’s you as an individual it’s not going to be your entities. Does your work as home builder through a C-corp and your self-management of your own rental, your 36 unit rental. Or even if you were an active real estate realtor would those hours that you’re working in those businesses count towards meeting that real estate professional status? Yes 100%. We’re going to go into the nuances of each of those, but it is a status for you not for any of your companies.
[20:30.18] Eliot: Exactly, right. Stepping back from that, what we want to do is if we’re trying to get the real estate professional status. Again, that makes it just like we talked in the previous question. That is going to help us a long way towards making our rental, 36 unit building an active business, it’s not passive. If we want to do that, if we want to get that badge that men is talking about we got to put over 750 hours in real estate professions.
[21:00.32] Trades or businesses that we materially participate in, has to be over half of our work week, over 50% of our work week and that will get you the badge. But if we want to make the actual rental building as being non-passive we also have to materially participate in the management of it. We got all the components to do that. We’re in really good shape here.
[21:25.80] Starting with I have a C corporation. That’s a construction business, if you own over 5% of that C-corp, your hours are going to go towards your 750 hour. Three different things we talked about there is different jobs if you will in this question. We have our construction business. We have the rental that we self-manage, management activity and we have what’s the third one? Being a realtor.
[21:57.68] All three of those count towards your 750 hours as long as you own over 5% of that respective business and you materially participate in it. Being the construction business that’s going to certainly help. We manage, we self-manage that’s one of managing properties being a real estate management property manager that counts towards our hours. Whether or not you know if we have the real estate agency if we activate that license if you actually sell something, go out there and work in that business.
[22:22.48] Well, that’s going to count too. All those are going to add to that 750 hours and it sounds like you’re not going to have time for anything else. But if you did and you walk dogs on the side. You have to make sure these three businesses that you put more time into those than you do the dog walking business or any other business that you have. Then you have to manage your own property, can have a third-party property manager, which we already established you self-manage. What’s that all going to do?
[22:47.40] It’s going to turn that LLC there that we have in the bottom right corner and it’s going to turn the losses from there. If we have losses from things like bonus depreciation. That’s going to offset any income including our construction C-corp, if we had stocks, portfolio income. Any income on the return we can offset. That’s kind of a big picture of what’s going on here.
[23:08.56] Amanda: Yeah, the other income, maybe your C-corp is paying you a W-2 salary. Any bonus depreciation or additional what would normally be passive losses. Now that you qualify as the real estate professional, become non-passive losses and they’d offset the salary that your construction company is paying.
[23:28.56] Eliot: All kinds of goodies here, if we get that. Now you may want to step back and talk to somebody. Your own tax professional or something like that to see if you really want to go through all this. Okay, it may or may not be beneficial. It just depends on the numbers and how we calculate.
[23:43.44] One thing though, it’s interesting in this area as far as real estate professional status. You really don’t have an option. If you check all the boxes most people don’t know this the IRS automatically considers you real estate professional.
[23:56.88] Amanda: How are they going to know Eliot? How are they going to know if you’re a real estate professional unless you tell them? Most people aren’t hiding it right, but they don’t let me take extra losses.
[24:08.28] Eliot: There could be situations and I have run across them. They’re few and far between. There can’t be times where you’d really like to have it be passive activity from your rentals if you just happen to have a lot of passive losses that have been suspended. Might benefit you somewhere down the line depending on what your investments look like to not be a real estate professional. But you actually don’t get a choice. How’s the IRS going to know? Well, I yell if they audit you there. They’re probably going to figure it out and you just have to all those careful logs you kept up your times. You need to kind of start shredding like yours.
[24:43.16] Amanda: You’re a lawyer, Eliot. You can’t tell people to do that. Don’t listen to him guys.
[24:45.78] Eliot: Yeah, we’re not advocating anything like that. But it is one of those things that most people don’t know is that you’re automatically become a real estate professional if you check all the boxes.
[24:56.00] Amanda: I am consistently, this is our humble bragger. I am consistently making profits in the stock market, I have a farm and some rental properties owned as pass-through LLCs. Can I invest in my business and the rentals to reduce tax consequences from stock market gains? Is there a certain number of dollars per year when it might make sense to create a separate entity, possibly a C-corp for the trading company?
[25:25.96] I see this as two completely separate questions. Let’s just hit the first one first, which is really of course the first one first, wow makes sense. We do things in order here, but I really see that first question is asking, can I invest in my rentals and my farm in a way that it would offset my trading income? We come back to material participation.
[25:55.88] Eliot: We really do, so can you do it? Yes, you can’t invest certain amounts in this. You could buy equipment for your farm, heavy equipment. But now it’s in a farm that you’re hopefully materially participating and we get back to that same rule. You’re putting more time than anybody else over 100 hours or you’re putting over 500 hours. You’re running it, you’re not paying some cash rent to do it or anything like that or you have a farm manager.
[26:15.84] Amanda: That doesn’t mean you don’t have employees, maybe on the farm.
[26:19.04] Eliot: Correct, you can have employees but you’ve got to be the one really hands-on man.
[26:22.04] But if you do at least 500 hours, which, man, you grew up in Iowa.
[26:27.00] Eliot: Yeah, that’s a lot. That’s nothing. They do that, that’s like three weeks. Especially at an harvest time and all that. It’s very possible that that is a material. What you have material participation. If you do go out and buy a bunch of equipment, put it into there and it’s eligible for bonus depreciation. Yeah, that’s going to create, if it wipes out all the income in that business first anything else will wipe out any other income on your turn including your very successful stock picking.
[26:53.04] Amanda: With the rental properties can you do that? We’re looking at the same real estate professional material participation rules for that. If I’m working on the farm and I’m working on my rentals or self-managing, how am I in the 50% services rule is there. How do I choose which one to do it in?
[27:15.24] Eliot: If the goal is to have that non passive activity in both the farm and in the rental activity. You’re going to first focus on your real estate professional status. Got to have over 750 hours managing that real estate. It’s got to be over 50% of your work week. So you put 41 hours a week into that and you are self managing those rentals.
[27:38.96] Amanda: Well 21 hours.
[27:39.96] Eliot: Yes, 21.
[27:41.50] Amanda: I’m not trying to work 80 hours a week, Eliot.
[27:44.40] Eliot: But then on the farm, you got a materially pretend you just have to materially participate which might be only 20 hours a week. You put more, you’ve made your 50% test as far as real estate professional, you’re okay. It is conceivable that you could have non passive activity on both of those businesses and if you incurred losses through depreciation and things of that nature. Yes, it would offset your stocks.
[28:09.68] Amanda: Second question is, there a certain number of dollars per year when it might make sense to create that separate entity, possibly a C-corp for a trading company? The short answer is that’s going to depend there’s no set amount. We’re not going to be able to say once you make x number of dollars trading then do a C-corp. It’s really is the cost or the expense of creating the corp, maintaining the corp, doing corporate formalities, filing an additional tax return. Is that offset by the amount of tax that you’re saving?
[28:48.12] Eliot: Often when we talk about trading with a c-corp duration? We’re not really doing it just with the C-corp. C-corp is actually probably going to be part of a partnership or a limited partnership where your c-corporation as Amanda’s drawing here. It’s going to be the general partner. Limited partner is going to be the individual, C-corp is going to be a general partner. In that scenario a C-corporation is going to take maybe 10% of the gains or your stock gains and that’s fine.
[29:16.88] C-corporation can only have so much of that kind of income though. It maybe has some dividend stocks in there, so there is something you have to watch out, PHC tax. I don’t want to get too much into it, but there is poisonous income to a C-corporation if it makes too much of it. How do we counter that? We can pay a guaranteed payment to the C-corporation and that’s good
[29:36.36] That’s healthy income to the C-corp, gets more money in the C-corp. Why do we like that? Because we get to do those things we talked about all the time, 280A, Augusta rule, meetings, have that C-corporation accountable plan, reimbursements, including your administrative office, mileage reimbursements things like that. Medical reimbursement plan might be in the cards on your C-corp all those things to help get all that money out of C-corporation back to your tax-free. But when does it make sense exactly as Amanda pointed out earlier?
[30:03.76] Well, you now have a c-corporation return, you got a partnership return, so you’ve added two returns. A little more complexity in your day Where is that breakpoint? It’s when you have enough tax savings to justify the cost and your own time, value of money for time. The value of your time in trying to run that.
[30:23.82] Amanda: Yeah, and we were talking about this, I mean. Where is the benefit for you? Is it your time? Is it keeping track of the corporate formalities, the bookkeeping, the tax savings? If you’re consistently making profits in the stock market, maybe saving a thousand bucks is no big deal to you, but maybe it is to somebody else?
[30:43.76] Maybe paying an additional five hundred dollars to prepare two additional fairly simple tax returns, and don’t get me. It’s not overly complicated to set up these entities or even to manage them or even to do bookkeeping for them. The tax returns are fairly simple, so they’re not super expensive. But where is that breakpoint for you? We usually are looking at when we’re looking at a tax strategy we want seven to ten times the return on what it’s going to cost us to implement that strategy.
[31:14.86] Where’s that point for you and that point is where you would want to do it. Setting up a C corporation, too. We talked about this, Eliot. It doesn’t have to be associated with your trading structure, right? You can set up the same type of C corp and do 280A. Transfer payments over to it through your property, through your rental properties. Typically these are state specific LLCs, held by a Wyoming LLC, and we’re simply setting up a management.
[31:44.68] Retreating it as our own management company, right? It’s charging a fee that’s usually eight to twelve percent depending on the market you’re in. That’s a way to shift the income over to the corp, pull it out using these tax-free strategies and lower the overall taxable income hitting your personal 1040 down here. It doesn’t necessarily a C corp management company is something that we use very frequently with our clients.
[32:09.64] But because you’re both doing trading, you’re doing real estate. Let’s do some tax planning and figure out where you’re going to get the biggest bang for your buck there. Alright, please if you haven’t already log into while you’re logged into YouTube if well, not everyone’s watching on YouTube.Some people are on zoom, head over to your other computer screen, your phone, and subscribe to Clint Coons’s YouTube channel.
[32:38.76] I can’t even see this, how three almost 350,000 subscribers. I know he’s trying. Him and Toby have a little competition going there. We don’t have to, we’re on Toby’s channel, of course, he’s winning of course. Let’s do Toby’s channel as well. That’s where you are. If you’re watching on YouTube subscribe there, anytime we do tax Tuesday, you will get a notification as well. If you’d like to get in for a free strategy session.
[33:10.54] You can take a picture use the QR code with your phone, sign up for that free strategy session. It’s free guys, there’s no better deal and we can build out a plan for you. Then it’s totally up to you if you want to move forward with that plan there. On to our questions. We set up a c-corp property manager to manage a rental portfolio. I wonder where they got that idea. We’re just talking about that.
[33:37.32] Unfortunately, though in Washington State, there is a property manager, specifically are required to pay a 1.5% business and occupation tax while rental owners LLCs are not just managing your own rentals. Don’t have to pay this tax now, high-level question. Is it still worth using that C-corp property manager? And then we’ve got a calculation here, if our total annual rent is approximately 500,000, 1.5% of that additional tax is $7500 is that work?
[34:12.04] Eliot: First of all, let’s step back and see what this business and occupation tax at the state of Washington has. It’s a unique tax not every state has this type of taxes what we call gross receipts. Which just means you don’t get take any deductions. That’s how I remember it. It’s gross. You get no deductions, you have to take all your income before you take deductions and you get taxed on that one point five percent.
[34:36.20] It just so happens in the state of Washington that, varies depending on what your actual business is. In this case though, if you’re a property manager is about 1.5% of those gross amounts.
[34:49.20] Amanda: What else is exempt from this?
[34:51.66] Eliot: We got, there are some exemptions. Yes, agricultural products, some of those are exempt from having to pay this tax. Which I thought was kind of cool and then certain food processing so you can get your nitrates and your corn syrup in there.
[35:04.72] Amanda: That’s a farming joke.
[35:06.72] Eliot: Get that, that’s excluded in certain areas. Also, which I thought was really neat. You do get to take certain deductions if you’re working with bees. I love bees. I think bees are really cool.
[35:17.96] Amanda: Like beekeepers? What about the people you see on social media who come in and extract bees?
[35:21.96] Eliot: That’s not it’s the equipment that you get to take as an induction against their gross receipts. The business itself is still subject to it. It’s not as gross attacks with the bees
[35:34.36] Amanda: Slightly less gross. But we don’t need an exemption here.
[35:38.32] Eliot: Well, there’s another part to this that says first of all, what we’re calculating here is 500,000 gross rental income. But Amanda who owns the rental buildings?
[35:48.56] Amanda: Yeah, so let’s draw this structure out. Assuming we set these lovely people up. They’ve got their Washington LLCs here with the properties in them, right? And then they’ve got their C Corp property management company. Now what are we putting in place? We’re putting in a property management agreement, can be with the Wyoming LLC, it can be with the individual LLCs. However, you want to structure it.
[36:24.88] They are paying the money into the Corp. The Corp is charging a management fee as property management companies do, let’s call it a 10% fee. But then it’s passing the rest of that rental income back to the actual landlords, the 500 total that’s collected is not income to the Corp. Only that 10% is income to the Corp.
[36:40.04] Eliot: We take 10% of 500,000 we get a nice even 50,000. It just so happens if you have under a hundred thousand of gross income, you don’t have to pay the tax.
[37:01.66] Amanda: That tax does not apply.
[37:02.00] Eliot: Worth the price of admission for this.
[37:09.48] Amanda: Yes, in my opinion is still well worth it to have that C Corp because you’re not even paying that business.
[37:16.06] Eliot: As we talked about in the previous question, well, what are they doing with that C Corp? Well, hopefully that 50,000 you’re getting back to you tax-free for 280, Augusta rule, meetings, accountable plan, reimbursements including the office mileage, and maybe medical reimbursement. You’re still getting 50,000 back to you tax-free.
[37:34.98] Amanda: Yeah, you can even pay yourself a small salary, set up a solo 401k. As you get more properties, maybe you double, you triple your portfolio, you triple your rental income, which is then pushing that 50k above that 100k threshold so many other ways to pull funds out of the corp and then even defer some of that income into a solo 401k. We can likely be avoiding this B&O tax for quite some time.
[38:03.24] Eliot: Of course, they’re now there they do have in the state of Washington’s. Those who live there know this they have a millionaire tax. That’s something different. That’s for another day.
[38:11.84] Amanda: Wow, what a teaser. The question coming in right now, Tax Tuesday @andersonadvisors.com. What’s the millionaire tax in Washington, Eliot? How could you leave us hanging? How can I borrow money from a life insurance policy, use it to invest in lending like private lending or a mortgage note and be able to write off the policy loan interests as expenses to lower overall tax liabilities from interests earned from lending activities? You kind of had a one-word answer to this which is very unusual Eliot.
[38:50.50] Eliot: It’s no.
[38:51.64] Amanda: Here we’ll even write it right here. No. Can I do this?No. But what about like an infinite banking situation? I set up a business it buys the policy, I borrow from that policy. Why can’t I do that? You can take the money out from the plan and that’s really great if you’re having problems with getting lending you don’t want to deal with all the hassles of lending.
[39:21.04] It works really well for that you can get the money out go buy another rental or in this case you’re investing go ahead and lend that money out. That’s fine. But unfortunately, there’s one specific part of the code 264 that says in this situation you can’t deduct the interest cost and that’s what we’re trying to do here. And that’s the real issue.
[39:42.60] It’s not that you took the loan out and went ahead and lend it out to other people and had income coming in. It’s just that you can’t deduct that initial interest that comes out that life insurance loan. We’re just not allowed through the IRS makes it, the code makes it very difficult in any situation that you could actually deduct that. Other things that you run into, certainly not against private lending. It’s it works very well for a lot of our clients.
[40:04.56] But you want to make sure you know your state that you’re working with because there could be state regulations. It doesn’t take too long to where you get into where you may even have federal oversight in some of those areas. Just on that there, but private lending does work very well in some states. We’re not going to be able to deduct that interest really in this situation.
[40:21.12] Unfortunately, it doesn’t matter what you do. Even if you went out and got a rental property, you may not be able to deduct it in this scenario, but it helps you get around the lending problems. They’re pretty good at going ahead and let you lend that they don’t care as much. They don’t that’s a very low threshold for my understanding. It is a good strategy. It’s a very good strategy. You have a lot of clients who do it and they swear by because it helped them get right in there and get that purchase.
[40:46.] They could buy for cash perhaps on rentals. When we get into those modes when it picks up when there’s an uptick in the real estate market or things like that. There’s not a lot of lending out there and it’s very difficult, you want to have that cash to make that purchase.
[40:59.04] Amanda: Yeah, and it may not be able to do it exactly this way. But can you get a benefit from it? Private lending? That’s not normal interest rates. Typically, hard money lending, you’re loaning on you’re getting balloon payments. You’re earning much higher interest. Is it still a great investment strategy most likely but you aren’t going to be able to deduct at that interest.
[41:18.76] What are the tax implications if I purchase a property in an LLC for rental purposes, renovate it and take all that applicable write-offs, but then change my mind and decide to live in it and transfer it into a living trust?
[41:37.04] Eliot: Yes, we got a lot of fun tax stuff here. First of all when we get it as a rental we talked about all that we set all this up for the last five questions. You can take bonus depreciation get some write-offs, if it could be an active write-off if you’re a real estate professional etc. All that the renovations, all these costs you’re going to be able to take. But let’s say we do all that and we we just really run the gamut of all the deductions.
[42:03.64] When you first buy the house, that’s your basis. As you add additions that increases your basis as you take depreciation that lowers your basis. We’re assuming that we’ve taken a lot of depreciation here. Our adjusted basis is very low.
[42:19.32] Amanda: Are you reading this question as they actually rented it for some time?
[42:22.92] Eliot: Yeah, purchase property and for rental purposes renovated.
[42:27.16] Amanda: And then rented it. I’m reading it as they immediately
[42:31.88] Eliot: Could be. Yeah, let’s go with that. We did a wonderful job and but it says we took all applicable write-offs. Which I assume is the depreciation if you did that, that means you had it probably placed in service. It doesn’t mean anybody actually rented it.
[42.49.28] Amanda: A place in service is an important marker. We see clients who will move out of their primary residence. They know they need to fix some things up, hey, let’s place it into service listed on Zillow listed on the MLS. Then suddenly fixing the window, or the sink, or replacing the shower. Head becomes a deductible expense for a rental property whereas rather than a non-deductible expense for if you were still living in it or a capital improvement.
[43:15.80] Eliot: Yeah, if you didn’t actually rent it out for over a year, there is a slight as I recall. There’s an area of the code where if you’ve had in the business lesson here, you may not be able to take depreciation. I think that’s if you sell though, but here I’d have to double-check on that. But if we have the situation we’re just moving into it, we take all the deductions that we can.
[43:32.96] Probably some of those are going to reduce our basis and that’s okay. It just means when we finally decide to move into it, that’s now going to be our basis. That’s going to impact our 121 which is down the line if you sell your primary residence, you live in it two of the last five years. You’ve owned it for two the last five years. Then you can get a deduction up to quarter million or $500,000 for a single married fine joint.
[43:58.84] That would offset your capital gains. If we took all these deductions lowered our basis, that just means there is a better chance that the 250 of the 500,000 exclusion when we finally move into it. Isn’t going to cover all the capital gain because our basis went lower. That would be I think the tax implications again when you start if you do rent it because it was a rental. I went with that assumption.
[44:21.00] Took bonus depreciation, you probably really lowered your basis in that property quite a bit and that’s okay. But when you move into it, that’s now your set basis as the home. When you later sell that means if it’s way down here the new basis and you sell a firm market value way up here. Only the first 250,000 or 500,000 is going to be excluded under 12.
[44:41.44] Amanda: I’m seeing another tax issue here. This is not a tax issue that we normally address here on tax Tuesday where we’re mostly focused on income taxes. Now there’s pressure for it to be the one you’re thinking of. What I’m thinking of is there’s potentially a property tax change in ownership and reassessment issue moving from an LLC into your living trust.
[45:05.72] you will want to work with a title company or a company like Anderson who does transfers like this through from business entities back and forth into your personal name. So that you’re avoiding any type of transfer tax stock stamp fee or a potential. Sometimes catastrophic reassessment of your property. Is that everything in the same one?
[45:25.88] Eliot: It is, but I’ve had it on the next quite one of the next questions. I hadn’t thought of it on this one, that’s excellent.
[45:30.20] Amanda: Issue spotting. you will get there some right?
[45:35.12] Eliot: Maybe, that’s why she got days in law school.
[45:37.12] Amanda: I live in Arizona and owner occupy a one unit in a 17 unit apartment building. Would the 250,000 capital gains tax exclusion rule apply to the sale of the entire building? That’s that 121 exclusion. We were just talking about, there’s a couple of things that you have to meet in order to be able to take that. What was it live own and occupy the property as your primary residence for two of the last five years.
[46:16.14] That’s 24 months. They don’t have to be consecutive, they could be non-consecutive. If you live somewhere and move out move back in just 24 months total you have to own it. Either directly on the deed or you can own it through a trust situation. Can you own it through an LLC Eliot?
[46:32.00] Eliot: Yes.
[46:32.44] Amanda: Can you own it through a partnership LLC Eliot?
[46:35.40] Eliot: No.
[46:36.00] Amanda: You have to live there as your primary residence. Sometimes these check boxes that you have to meet seem simple. But there are nuances to it living somewhere as your primary residence means actually living there. I had a client who lived in California in the Palisades and at the end of our at least an hour-long conversation was like, but my tax home is Arizona. I was like, whoa. Whoa, you don’t just get to choose sir.
[47:03.00] Where your primary residence is going to be where you’re at least 183 days out of the year and then also the IRS is going to look at other factors such as where your driver’s license is, where you’re registered to vote, where you work, where your kids go to school. If that’s not all aligning. They’re not going to let you just choose whatever state has the better tax here. Assuming all of those things are met. Can we break it up if they only live in? One, what is it? One six percent, one seventeen?
[47:35.68] Eliot: When I looked at the big book of regulations under 121- 1e1. Allocation, yes again, which I actually knew but I wanted to get the exact regulation on it. But yes, you’re allowed to allocate in this situation. It just means that of the overall gain 6% of it would be eligible for the 250,000, but certainly not the other 94% of gain. We can do it in two years out of the last five for owner ownership and use as a primary residence.
[48:10.90] This is perfectly fine. This happens quite a bit you allocate out the non personal primary residency use from the business use of it and that’s happens quite a bit.
[48:22.36] Amanda: Then you’re going to have on the other 16%, 17%, 94%. That’s a better way to say it. I need bonus or depreciation recapture, etc. That’s a pretty complicated.
[48:37.40] Eliot: It is a lot going on there. It might be with that kind of differential, maybe thinking about 1031 because a lot of it’s already in business service here. That might be a thought for you.
[48:48.40] Amanda: That’s interesting. If you 1031, do you have to still claim the six percent? Just so recognize the six percent at that time.
[48:57.88] Eliot: We’re going to have an allocation. You’re going to break it out. You got to separate those two pieces and so the six percent would go under 121 items and then the other would go towards the 1031 business purpose.
[49:07.72] Amanda: You can still get the 200 and took the section 121.
[49:09.72] Eliot: Yeah, which talk about the 1031 that’s going to be coming up here in a little bit as in next.
[49:17.00] Amanda: As in please review the benefits of a 1031.
[49:19.82] Eliot: Basically, all 1031 is just so people understand it. It’s a light kind of exchange. It’s only for real estate, okay, so it’s going to be barren land, a rental building, a commercial building, something that nature exchange for one of those others. Against change house, for house rental, house for rental, house commercial for rental. Whatever it be has to be real estate.
[49:41.04] Amanda: It doesn’t have to be exact.
[49:44.60] Eliot: Correct, but it has to be real estate in the 50 states. We can’t do international or anything like that. It’s got to be US property for US property. But what it does is it defers the tax? If you run the course of a business with bonus depreciation and things like that. You don’t have a lot of adjusted basis you can sell, you’re just going to recognize a lot of tax. Alternatively, you can go in and buy another piece of real estate preferably one that’s more expensive pick up a little more debt.
[50:11.48] Then you can defer all of that potential gain and you don’t have to pay tax on it. What that what’s that give us? Well, of course, you didn’t have to pay tax. But that gives you more money in that new investment that didn’t have to go to the government. That’s going to help you from a tax ways down the line.
[50:28.00] Should you ever sell again because you’re going to have more basis that carries over. When you finally pass you can leave it to your heirs and this is probably one of the biggest aspects is yet you get stepped up or they get stepped up basis. Which just means that if you’ve fully depreciated business a building down to zero adjusted basis and its fair market value at your time of your death is let’s say a million dollars. Your heirs receive it at a million dollars of fair market value. That means that they can go back and rent it again do a bonus depreciation on it on that whole one million. Or they could sell right away and not pay any tax.
[51:10.08] Amanda: Now there are some technique of 1031 people just throw that word around. I’ll just do a 1031, but it’s actually very technical. What do we need to do?
[51:22.44] Eliot: We got to work with somebody who understands it.
[51:26.68] Amanda: Qualified intermediary you have to use a qualified intermediary. They are going to receive the sales proceeds and then be the one to actually purchase the new property for you. If you constructively or actually receive the funds that’s not a 1031 exchange. I’ve seen clients who say oh, I sold the property several months ago. I’m going to do it. Should I do a 1031 exchange like excuse me, sir. It’s too late, you have to set it up that way from the beginning and there are very specific timing issues involved.
[51:56.36] Eliot: First of all a whole total of 180 days to have this all buttoned up. You need to the first 45 you have to list out which properties you’re going to buy to replace and they mean 45 days. I had to take some classes on, down to midnight in that time zone where the property is located. That’s how specific they get and so you got 45 days to show them which ID the properties.
[52:26.32] That you’re going to receive and then 180 days total to have it all cleared out. You haven’t purchased and whatnot. If you want full deferral, you have to pick up a property equal or more in fair market value than that which you gave up which is called the relinquished property. Replacement property is the one you bought, fair market value has to be the same or more.
[52:51.04] You want to have equal or more debt that you’re picking up. You meet those two criteria and there’s nothing else funny going on, another cash coming in or anything like that or any other objects or anything like that. Then you have full deferral of that gain.
[53:10.20] Amanda: If you do want to take funds out. If you do want to take some cash out, you can do that. That’s called boot. Do you know why it’s called boot?
[53:18.00] Eliot: It comes back from, I think it was Scottish way back and it comes from when you’re doing a deal. You may throw something else into the deal like a little extra
[53:28.20] Amanda: Like a dirty old boot.
[53:31.76] Eliot: I have a lot of different stories about where it comes from.
[53:37.86] Amanda: If you do pull cash out that’s called boot, that you’re just going to pay tax on that. It’s not a complete deferral. Maybe that’s worthwhile to you.
[53:50.96] Eliot: Some people do that because for whatever reason they got bills to pay or whatever there might be a reason why you pay boot.
[53:57.68] Amanda: They got bills to pay. That’s true. That’s why we need the cash, inflation and all. Got a pair of taxes.
[54:07.60] Eliot: Well, I actually have a client that did happen. They went to the 1031. They did take boot out, why? Because the asset they gave up was the operating income to them. When that asset went away, they took boot to cover that year’s expenses.
[54:22.00] Amanda: I didn’t have an income anymore.
[54:22.92] Eliot: Exactly, that’s one of the times we would.
[54:27.86] Amanda: That is why you need tax planning. It’s not we don’t exist in just a vacuum or tax decisions don’t exist in a vacuum. What is our final question? Eliot? This is it guys. What is the tax impact of placing my fully depreciated property in a land trust.
[54:42.52] Eliot: This is the one I was thinking about. First of all, generally speaking it has no asset protection or tax purpose. It is just a place to put it. This is our real resident expert on this.
[54:57.72] Amanda: A land trust is a revocable grantor trust that holds land, pure and simple. We often use land trust to give our clients privacy. It takes your name off the public record. Instead of Eliot owning a property the one two three main street, trust owns the property. Then Eliot doesn’t look like a wealthy guy, wealthy land owner that I want to sue.
[55:26.26] It gives you that anonymity that we’re always talking about with asset protection. The fact that the property is fully depreciated and you’re putting it into a land trust to me. That’s not a factor. That’s not a relevant factor because transferring into the land trust is typically not going to have any tax impact. From an income tax standpoint, no tax impact.
[55:45.80] It’s not sale, it’s transferring the property from your left hand to your right hand, from your personal ownership into your asset protection structure. Which is ultimately showing up on the same tax return if this is a rental your personal 1040 or if this is your primary residence, it’s not showing up on the tax return really at all. Unless you’re itemizing and taking the mortgages. See, it’s all gets complicated.
[56:07.82] Eliot: But having the fact that you’ve fully depreciated it. It probably means that it was a rental and now we get back to the previous question. What if I move into it? It’s the same thing just what Amanda was talking about there. Really, no tax implication but for possible transfer taxes and things like that.
[56:23.48] Amanda: Yeah, and so transfer taxes were actually using a land trust to avoid those in most cases. There are states that allow, that say hey, if you’re transferring from your name to your own LLC, that’s fine. We understand that you are still the ultimate owner. We’re not going to charge you anything different. We’re not going to reassess your property an additional time for the year other places say, you know what?
[56:46.22] You can’t do that. But you can transfer to a revocable trust and the reason these what we call exceptions to transfer tax exist is because generally as a society we want people to do estate planning. always say every law, every role is designed to encourage or discourage certain activity. I mean take the reenactment of the bonus depreciation rules that was designed to encourage investment into businesses.
[57:13.96] Eliot: I am really went to crimes.
[57:15.96] Amanda: Crimes are bad. We don’t want people doing them. They’re against the laws. Always minds always going to crimes but anything from criminal activity to tax statutes to even our road laws we don’t want people to speed because it’s dangerous. We make a law against that. Well the same is true for property ownership. We want people to estate plan. We make it easy and free for them to move their property into their living trust.
[57:44.64] Because at least the way that we draft land trust, they fall under that same umbrella category,a revocable grantor trust. They’re going to fall into those same exemptions. Probate’s not just expensive for the estate. It’s expensive for the community. You got to hire judges, run a courthouse, hire courthouse staff and so that gets expensive for everyone. Let’s just do proper estate planning and avoid it all.
[58:09.00] Eliot: Yeah, exactly right. There we have it. Not much, so I told you they’re going to get a lot easier we start out with some really tough ones.
[58:17.00] Amanda: They were, they got a lot shorter.
[58:17.92] Eliot: Yes, they did. I got tired typing.
[58:24.80] Amanda: Well, if you want more, please subscribe to Clint Coons’ YouTube channel. He focuses more on asset protection. But as you know tax and asset protection, under one roof. It’s really hard to separate them out when you’re trying to build your wealth and build your businesses and investments. They can also subscribe to Toby’s YouTube channel. Maybe watch this video right here.
[58:50.20] My husband does some YouTube stuff for soccer. We’re always trying to beat each other. That’s what makes the marriage work, guys, competition. If you’d like to come see us for our three-day event, Sherry has already put in the chat. Although you can’t see it. You’re just going to have to take my word for it. But she says these things are fun and they are. You’re going to be in Phoenix aren’t you?
[59:09.92] Eliot: I am. I think we’re in Scottsdale, actually.
[59:15.28] Amanda: Fancy, May 28th through 30th tickets are only $99 guys, 99 bucks. We’re talking about a 7 to 10 X return 99 bucks for you to potentially learn some tax strategies. Firsthand from this guy first hand from taxpayers Toby that can save you thousands of dollars every year. No better ROI for that. If you’re ready to schedule a free strategy session, you can use this QR code.
[59:37.52] We build the blueprint for your real estate investing business and we actually mean that you will walk away from this consult with a blueprint that shows exactly what types of business entities you need, how they’re going to be taxed and the strategies for saving tax. Implementing it and building your wealth, which is what it’s all about right? Rick’s going to be yes see you in Scottsdale.
[60:01.84] Eliot: One of my favorite piece of place is Oreganos. I used to live there a couple times in Phoenix.
[60:07.40] Amanda: Used to live at Oregano?
[60:08.40] Eliot: I did, my cholesterol count.
[60:13.80] Amanda: If you’ve got questions we didn’t answer don’t forget to send them into taxtuesday@andersonadvisors. Give us some more fun stuff to talk about. All right, everyone. We will see you in two weeks. Thanks, Eliot.
[60:27.40] Eliot: Thank you.
[60:28.00] Amanda: Bye.
[60:28.24] Outro
Author Bio
Amanda Wynalda ~Executive Attorney
Amanda is an attorney licensed in California. Prior to Anderson, she worked in tax, estate planning, family law, and sports/entertainment. As a student at Pepperdine Law, she worked at the IRS Chief Counsel’s office in the Small Business/Self-Employed and Tax Exempt and Government Entities divisions. She regularly presents at our Structure Implementation Series covering tax preparation and planning strategies.
