In this special episode of Tax Tuesday, Toni Covey, enrolled agent (EA) & Anderson Director of Professional Services, brings tax knowledge to the masses and answers your tax questions LIVE! She’s joined by Jeff Webb, CPA and Tax Director at Anderson Business Advisors.

Updated November 3, 2020

Featured Questions

  • 7:13 – I’m wondering whether there is anything I should be aware of regarding my own tax liability or my son’s tax liability in the process of converting his UTMA (of which I am custodian) to an individual account in his name now that he is of age?
  • 9:23 – How do you switch from a regular IRA to a solo 401(k) to invest in real estate and forgo UBIT or UDFI? Do I set up a self-employment business to move funds?
  • 15:05 – Because of the AB5 law, my clients can no longer hire me as an independent contractor. Instead, they are hiring out-of-state contractors. Do I need to switch to an S-corp or move my company out of California?
  • 21:08 – We are a preschool and received a PPP loan and some grants. Will the PPP loan forgiveness amount, the grants, and the EIDL advance be taxable as income?
  • 22:18 – I own a second home in New York. I have owned it long-term and qualify for capital gains. Do I need to file taxes separately from my wage-earning wife to minimize my capital gains tax considering my present income is limited to Social Security?
  • 25:01 My wife and I own several rental properties (4) and manage them ourselves. Does setting up a corp. to manage the rental properties (each on their own LLC) make sense, from a tax standpoint?
  • 28:02 – If you are self-employed, are you able to deduct the purchase of a vehicle on your taxes? If so, how?
  • 31:25 – A relative of mine who is a non-resident alien resides overseas and invests in a US real estate syndication as a limited partner. He receives a K-1 from this investment. My question is: if there is too much withholding on Form 8805 and there is a refund amount shown on Form 1040NR due to over-withholding on Form 8805, will the IRS refund the money directly to the 1040NR filer or through the partnership?
  • 34:36 – If the passive activity losses (PALs) from a sold property are not large enough to completely offset the capital gain on the sold property, can the PALs from any other owned properties also be used to offset the capital gain on a sold property?
  • 39:25 – California has proposed a wealth tax that would affect current and past residents. As a previous CA resident, what can I do to minimize my potential liability for this tax?
  • 42:24 – I just started trading stocks, and am currently trading options. How are the stock options tax? Is there a process to reduce them?
  • 46:18 – I hear there are more tax benefits for LLCs. What steps do I need to take to change my business from a sole proprietor to an LLC?
  • 49:40 – What is the preferred method to be taxed in an LLC when starting an assisted living business (C-corp., S-corp.)?
  • 52:44 -I bought some dirt and am building a house for resale. Do I need to keep it for a year before selling for long-term capital gain tax treatment?
  • 55:20 – If there are no capital gains on selling a house in one state, but the former owners moved to a new state prior to the sale, are there taxes in the new state?

As always, take advantage of our free educational content and every other Tuesday we have Toby’s Tax Tuesday, a great educational series. Our Structure Implementation Series answers your questions about how to structure your business entities to protect you and your assets.

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