In this episode of Tax Tuesday, tax attorney Toby Mathis, Esq. and CPA & Tax Director at Anderson Business Advisors, Jeff Webb, bring tax knowledge to the masses and answer your tax questions LIVE!
19:05 – I’m a computer engineer in California with a $350k salary. This year, I got an extra bonus of about $100k and received $70k short-term capital gains from an investment. Under these circumstances, is there anything I can do by the end of this year to still save on tax?
33:05 – Our beneficiary IRAs became SDIRAs to purchase rental properties. We are of retirement age but don’t have to take RMD yet. Can we convert the SDIRAs to Roths? Our goal for this year is to pay 12% taxes on AGI. That percentage might increase in future years.
43:10 – I am a high-income earner and we have a short-term rental in service for 12/2020 in order to take advantage of tax benefits. Would you recommend cost segregation this year and use losses towards active income?
53:37 – I have a residential property that I will lose next year. Can I write it off this year instead to minimize my owed taxes? The property is a small lot that I bought it for $65k cash 15 years ago. Now, the property is encumbered by property tax liens and lot cleaning liens.
1:05:08 – What are your thoughts about the tax incentives given in Act 20 and 22 in Puerto Rico? The caveat, I understand, is that you must be a bonafide resident of PR in order to get the tax incentive. It almost sounds too good to be true. Can the US federal government stop this at any time?
1:13:31 – How can I take a deduction on my taxes for working from home? I use a portion of my bedroom to work online. I had to upgrade my computer and internet speed.
1:24:40 – If we are part of several syndications, can we deduct the requirements to be a partner of the syndications and other expenses for being part of the syndications? Deductions/expenses such as meetings, seminars, publications on syndications, etc. as ordinary and necessary?
1:27:40 – What is the difference between short-term and long-term capital gains, and the difference between owning property in one’s personal name or an LLC with regard to capital gains tax? Is it always going to be like ordinary income?
1:34:51 – What are the warnings and limitations of investing in real estate through the use of an SDIRA or a solo 401(k)? There is a limitation if the deal is leveraged, correct?
1:45:41 – I am sitting on about $250k of equity in a rental property that is paid in full. What are my options to get the money out and in an active investment such as an LP in a syndication or something to unlock the growth potential?
1:49:52 – What would you recommend as a business entity for a private music studio for instrumental education for maximizing tax benefits to allow deductions for home office studio, mileage, instrument care and maintenance, etc.?
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.