Tax Tuesday with Toby Mathis 06-09-2020

With hundreds of tax questions to answer from thousands of people, Toby Mathis and Jeff Webb of Anderson Advisors requested backup. Additional team members include: Eliot Thomas, attorney and accountant; Piao Sam, tax supervisor, and Tavia Harter, bookkeeping services. Do you have a tax question? Submit it to taxtuesday@andersonadvisors.

Highlights/Topics: 

• If you lend money to your business, can it be interest-free? If there must be interest, then how much is required? Depends on loan amount; under $10,000, interest isn’t required
• What questions should be asked when interviewing a bookkeeper for a syndicated apartment investment? Ask for their real estate, multifamily syndication, and partnership experience to determine if they understand concept of accounting for such investments
• Is it possible to sell a piece of raw land to our real estate entity to have the entity pay taxes upon sale, instead of personally paying? Yes, but instead, consider contributing raw land to real estate entity rather than selling it to them
• My husband and I use our self-directed IRAs to loan hard money to real estate investors. We hold the note on the property and interest is paid back directly into the IRA at closing, when the note is paid off. What tax documents do we have to provide the borrower each year? Form 1098 and/or Form 1099-INT
• If I transfer my rental property that has a mortgage to a land trust that’s under an LLC, what happens to the depreciation that I’ve been using for the past years when I do my taxes? No difference; depreciation, basis, and more all stay the same
• If my job has been furloughed and I want to take money out of my work’s 401(k) and move it to a self-directed IRA, are there new rules to follow? Will it be counted as income? New laws allow you to do certain things, such as rollover money, but your 401(k) plan must also allow the transfer, but it won’t be considered income  
• What is the best entity to use as a real estate agent? S Corp, if state allows it 

 

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Resources:

Tax-Wise Business Ownership by Toby Mathis (Promo Code for free copy/shipping: TUESDAY) Infinity Investing Workshop 

1-day Online Tax-Wise Class

CARES Act

Paycheck Protection Program (PPP)

Paycheck Protection Program (PPP) Flexibility Act

https://andersonadvisors.com/shop/

Real Estate Professional Requirements

Applicable Federal Rates (AFR) 

Individual Retirement Arrangements (IRAs) 

Traditional and Roth IRAs

501(c)(3)

Wills and Trusts

Schedule E

Bonus Depreciation

Depreciation Recapture

Section 179

Cost Segregation

Schedule K-1/Form 1065

Unrelated Business Income Tax (UBIT) 

Unrelated Debt-Financed Income (UDFI)

1098 Form

1099 Forms for Sole Proprietors

1099-INT

1099-R

Self-Employment Tax

QuickBooks

26 U.S. Code 280A

Rich Dad Poor Dad

Capital Gains Exclusion/Section 121

The IRA Club

Tax Code 7702

Franchise Tax Board

U.S. Department of the Treasury

Internal Revenue Service (IRS)

Small Business Administration (SBA)

Taking your Real Estate Business to the Next Level

Healing Veterans Through Surfing – Operation Surf

1 Veteran Foundation

Toby Mathis

Anderson Advisors

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Anderson Advisors Tax and Asset Protection Event

Tax-Wise Workshop

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