In this episode of Tax Tuesday, Toby Mathis, Esq. brings tax knowledge to the masses and breaks down your tax questions LIVE! He’s joined by Jeff Webb, CPA and Tax Director at Anderson Business Advisors.

 

Updated October 20, 2020

Featured Questions

  • 12:55 – What is the most tax-efficient way to complete a 401(k) to Roth 401(k) conversion?
  • 22:03 – How do I start a real estate business with income from our current businesses? Is this possible?
  • 31:24 – How do I elect trader status?
  • 40:16 – If you are an active investor who invests for passive income (rental income), will FICA taxes ever be required on income?
  • 45:26 – How can I identify tax breaks at certain income levels?
  • 58:54 – I 1031-exchanged a rental house from CA to an NV quad-plex (cash). How can I get LLC protection without any 1031 tax consequences?
  • 1:11:35 – What is the easiest or best accounting software to keep up with your business expenses in order to get the best tax deductions?
  • 1:17:45 – My mom and her siblings quit-claimed my grandfather’s house to me. Once I get a loan, I will pay them out of the proceeds tax-free at a price that was agreed upon. Being that technically I didn’t buy it from them with a purchase sale agreement, how would depreciation work on this house?
  • 1:22:20 – I understand that the CARES Act allows me to borrow up to $100,000 or 100% of my vested interest in my 401(k) account through 180 days from the CARES Act enactment date of March 27, 2020, and that I won’t owe any penalties or interest if I pay back the loan within five years. Also, the loan repayment period can be longer than five years if the funds are used to buy a home that is used as my primary residence. Is this information correct? Is it possible to borrow more than $100,000 from an IRA by combining it with the $50,000 401(k) maximum loan limit that existed prior to the CARES Act (i.e. take out two loans, one of $100,000 and another of $50,000)?
  • 1:30:55 – I have a limited partnership. My C-corp is 1%. The partners have different shares and they all want to do a 1031 exchange into their own purchases. Is this allowed?
  • 1:38:57 – I am a new home builder with 15 homes built a year. Do I expense home by home after they sell, or can I do fiscal year expenses and income accounting all together?
  • 1:43:31 – I need to make a real estate business in CA. I formed a Wyoming LLC. Do I need to file another CA LLC, or is it okay to register a WY LLC in CA? What’s the difference?