In this episode of Tax Tuesday, tax attorney Toby Mathis, Esq. brings tax knowledge to the masses and answers your tax questions LIVE! He’s joined by Jeff Webb, CPA and Tax Director at Anderson Business Advisors.
5:45 – If I have a small business, do I need to make it an LLC to hire my children, or can I just be an independent contractor and hire them? Is the limit that I can write off $12,000 per child?
12:31 – Just bought a house in cash for $30k and spent about $15k in rehab. What expenses of this deal can I write off, besides the rehab costs?
21:15 – I have a real estate business in Texas and was thinking of establishing a series LLC for my properties. How does this affect my ability to sell or do a 1031 exchange? Do I need to have separate holding and management/operations LLCs? Where does having a land trust come into play in a series LLC?
25:53 – If I am a real estate professional in 2020, can I offset previous years’ passive losses in this year?
33:39 – We are looking to purchase a used RV from a private party in CA for $100k for business use. If we register the vehicle with our Wyoming holding company (LLC), can we avoid paying CA 8.75% sales tax, or $8,750?
44:29 – Suppose one purchased a home in an Opportunity Zone and the funds for the renovation came from the sale of some stock options and earnings from an employee stock option program. If the person’s accountant filed the taxes with no Form 8996 filed and the taxes were paid on the capital gain instead of deferring, what can that person do? The only reason that the stock was sold was to fund the renovation and to improve the neighborhood.
53:01 – Can you put a primary residence into a land trust and/or LLC to maintain anonymity if you have a commercial bank loan? If not, are there other options available?
54:46 – I have a question with regard to taking some money from my 401(k) without penalty due to the CARES Act. Is it possible to use it to invest in real estate or are there restrictions on how you can use the money?
1:00:23 – What are other ways to avoid capital gains taxes aside from the 1031 exchange? Can a house be put in a non-profit and then sold so no taxes are owed?
1:04:46 – I have a lot of passive losses carried forward from the 2019 tax year to 2020. If I elect to be a real estate professional in 2020 for the first time ever, can I use these passive losses from previous years as a deduction against ordinary income earned in 2020?
Toby MathisToby Mathis, is a founding partner of Anderson Law Group and current manager of Anderson's Las Vegas office. He has helped Anderson grow its practice from one of business and estate planning to a thriving tax practice and national registered agent service with more than 18,000 clients. In his work as an attorney, he has focused exclusively in areas of small business, taxation, and trusts. In addition, Toby was the past director and host of the longest-running local business radio program on KNUU in Las Vegas "The BOSS Business Brief". He sits on the board of directors for several companies and was recently appointed to the local board of Entrepreneurs’ Organization, a worldwide association of owners of successful businesses. He has authored more than 100 articles on small business topics and has written several books on good business practices, including first and second editions of Tax-Wise Business Ownership and 12 Steps to Running a Successful Business.