Anderson Business Advisors Podcast Can You Use Retirement Money for a Condo Without the Penalty?
In this episode, Anderson CPA Barley Bowler and attorney Eliot Thomas, Esq., tackle year-end tax planning strategies and answer listener questions on a variety of critical topics. They explain the new rules for research and development cost deductions following recent legislation, including the choice between immediate 100% deduction or five-year amortization for domestic R&D. Barley and Eliot cover the 72T procedure for penalty-free early IRA withdrawals, the strategic benefits of qualified opportunity zone investments for deferring capital gains, and how to use IRA funds without penalty for first-time home purchases. They discuss the complex rules for deducting expenses on mixed-use vacation homes, calculating tax-free administrative office reimbursements, and essential year-end action items including payroll, bonus depreciation, solo 401K contributions, and charitable giving strategies. Tune in for expert advice on maximizing deductions before December 31st!
Submit your tax question to taxtuesday@andersonadvisors.com
Highlights/Topics:- "What are research and development costs? How are they deducted?" - Domestic R&D costs can now be 100% deducted immediately.
- "What expenses that I incur on behalf of my employer can I deduct on my personal 1040 tax return?" - Very limited options exist; reimbursement from employer is best approach.
- "Can you please explain what a 72T procedure is?" - Take equal IRA distributions before 59.5 without 10% penalty.
- "I am considering investing in an opportunity zone fund to defer capital gains. What are some top items I should be thinking about?" - Consider fund structure, compliance requirements, and ten-year holding period benefits.
- [33:35] Title Question "How can I be exempt from paying the IRS the penalty of using my retirement money to buy a condo?" - First-time homebuyers can withdraw $10,000 from IRA penalty-free.
- "Are expenses such as real estate property taxes and home improvements deductible on vacation homes that are used both for personal and rental purposes?" - Personal use over 14 days limits deductions to rental income.
- "I'm attempting to calculate the reimbursements for our administrative office. How do I calculate, how much can I reimburse myself for tax-free every year?" - Calculate square footage percentage times home expenses for reimbursement amount.
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