Free Tax Tips & Strategies

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!

Featured Questions

  • 18:42 – Can a corporation managing real estate qualify for Section 1202? What is Section 1202?
  • 22:17 – The investment property held title as an LLC and was kept in the deceased father’s living trust. The heir is a minor child. If I transfer it out to the child’s name, will it affect the property taxes?
  • 29:54 – The recently-passed California Proposition 19 will allow California to re-access any non-primary residence properties transferred to heirs at market rate starting Feb 21, 2021?
  • 35:01 – I am trying to meet my goal of $50K for Infinity Investing. Let’s say I have $30K that I could use to buy stocks/ETFs, etc. Could I use all $30K to purchase stocks without violating the annual $6,000 IRA contributions or am I bound to the $6,000 contribution limit?
  • 47:19 – My elderly mother has her house in a trust/living will with the fair market value today at approximately $700K and a cost basis for property taxes of $289K. The current tax assessment is $341K (protected under CA Proposition 13). Is there a federal tax liability if the property is deeded/transferred as a gift to a child (to avoid California Proposition 19 implications for property taxes, assuming the mother is living after February 16, 2021)?
  • 51:21 – I have a single-member LLC that owns an SFH with a tenant and also is used to book my real estate bookkeeping side hustle. How do I segregate the reporting in the tax return (between Schedule C and E)? Also, I am assuming, only the service revenue is subject to self-employment tax. Can you please confirm?
  • 56:06 – I have two self-directed IRAs for real estate. One property is a single-family residence that produces IRA income and incurs IRA expenses. The other property is some land where apartments will be built with a partner. Hence only expenses incurred in 2020. Question: What kind of tax reporting needs to be done on these properties?
  • 59:05 – Outside of retirement contributions and charitable donations, are there any other vehicles to reduce a six-figure tax liability?
  • 1:12:15 – What words of wisdom do you have? (I own the properties personally — they are not yet in land trusts — and my management company runs the AirBNBs).
  • 1:18:30 – Can you explain how passive activity losses from depreciation are used against the tax liability on the sale of the same passive income asset?
  • 1:23:29 – I did a 1031 exchange to buy a condo, which I rented out for two years. This March, I moved into it due to COVID (easier to rent the SFH we were in than the condo). It’s now my primary residence and I want to put it in a revocable living trust. What are the tax implications of doing this? When I go to sell, will it still be treated as a rental and I’ll pay cap gains, or will my years of living there impact the ratio (2 out of the last 5 yrs for primary residence)?
  • 1:27:01 – My employer sent back a portion of the previous year’s 401(k) contributions to comply with IRS rules for highly-compensated employees. Can the returned balance be applied to a separate QRP against last year’s tax-deferred contribution limits?
  • 1:31:36 – Home sells for a profit of 500K after 2 yrs. I’m splitting the profits 50/50. How do I avoid paying taxes on the entire profit?