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!
09:53 – What happens when you donate a business vehicle that you used Section 179 on in 2019 and 2020 and then you donate it to a nonprofit organization in 2021?
15:30 – I have a rental in Phoenix, AZ that I am installing solar on. I’ve seen that I would qualify for the 26% federal tax credit as well as can take the depreciation for the remaining amount that is being financed. Is this accurate?
24:20 – If I invested in an Opportunity Zone last year with capital gains, I understand the taxes are deferred until 2026. Are those taxed at 2020 rates or 2026 tax rates?
27:00 – I set up my medical LLC in late December. My current job had been paying me personally since April (direct deposit to my personal checking account). My latest paycheck for December’s work was direct deposited to my LLC business bank account in first week of January 2021. I just found out my current employer reported my earnings for 2020 (April to present) under my LLC. What do I need to do?
38:28 – I own a 501(c)(3) and I pay my daughter with W2 to do some of the work. This 501(c)3( )is tax exempt. Do I need to file Form 941 Employer’s Quarterly Federal Tax Return and Form 940 Employer’s Annual Unemployment Federal Tax Return? Or should my daughter simply file her personal tax return by using the W2 I created?
41:41 – I’m selling a house that I inherited. I’m on Social Security disability. Will the sale of the house affect my status?
58:51 – How does a partner report outside basis on a tax return? For example, a surviving spouse gets the stepped-up basis of her deceased spouse’s partnership interest in a general partnership, the surviving spouse’s basis is higher (stepped up) than the other partners in the partnership.
1:06:51 – 401(K) CARES Act distribution reporting — I put the CARES Act request in on 12/28/20, received CARES Act check on 01/12/21, then deposited the check on 01/14/21. Do I report the CARES Act funds on my 2020 tax return or my 2021 tax return?
1:16:20 – I have a SFH I bought as a primary residence in 2019. In 2020 I rented it out. In 2019 there were legal fees (closing costs). Can I now claim these fees as improvements to raise my cost basis? I have other rentals that I’ve had for 6+ years and never claimed the closing costs. How/when can I ever claim to up my basis?
1:18:37 – I bought a house in 1998, lived in it for 2 years, then moved and turned the house into a rental (I wish I knew what I know now). I rented it out for 20 years and then moved back into it as a primary residence. What is my tax situation?
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.