Anderson Business Advisors Podcast

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. Resources: Schedule Your Free Consultation https://andersonadvisors.com/strategy-session/?utm_source=can-you-use-retirement-money-for-a-condo-without-the-penalty&utm_medium=podcast Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=can-you-use-retirement-money-for-a-condo-without-the-penalty&utm_medium=podcast Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons  

In this episode, Anderson Advisors Barley Bowler, CPA, and Eliot Thomas, Esq., tackle listener questions on critical tax strategies. They cover the differences between Section 179 expense deductions and bonus depreciation, including how to combine them effectively and avoid creating excessive losses. Barley and Eliot discuss the timing of equipment purchases for tax planning purposes and explain the complexities of equipment leasing investments, emphasizing the importance of material participation tests. They address the mark-to-market election for active traders and explain why Anderson doesn't recommend this strategy due to audit risks. The attorneys clarify that qualified charitable distributions can only be made from IRAs, not Solo 401(k)s, and explore strategies for using IRA withdrawals to purchase rental properties while offsetting taxes through cost segregation studies. They also explain excess business loss limitations, the interaction between cost segregation studies and qualified opportunity zone funds, and why 1031 exchanges cannot be used to avoid capital gains tax deferrals ending in December 2026. Tune in for expert guidance on these advanced tax topics! Submit your tax question to taxtuesday@andersonadvisors.com Highlights/Topics: "How can I take advantage of tax code 179, Section 179?" - Section 179 allows immediate deduction of qualifying business equipment expenses. "If I have more business items to buy like a desk, should I buy them before the end of the year? Or maybe I wait to the new year? When do I buy these things?" - Purchase timing depends on which year needs the deduction more. "If one invest in an equipment leasing investment in 2025, and it's active, and writes off 100% of the equipment cost in 2025, but then in 2026 no longer active, does the income revert to passive income or is it still active for 2026?" - Active losses remain locked in; only future income becomes passive. "Can I still take the IRS mark-to-market election for the tax year starting January 1st 2026?" - Election must be made on 2025 return by April 15th. "I have a Solo 401(k). First of all, how does this work? And can I make qualified charitable distributions from my Solo 401(k)? Plus do these tax-free distributions go on my 1040 as a deduction?" -QCDs only work from IRAs, not Solo 401(k) retirement plans. "Is there a cap on how much money I can withdraw per year from my traditional IRA to purchase an income-producing rental property? What are the things I need to consider before making this decision? I'm 55 years old and I am aware of the 10% penalty." - No cap exists; expect regular income tax plus 10% penalty. "Is there an annual cap on bonus depreciation? Is there a limit on how much bonus depreciation we can take?" - Excess business loss limitation caps deductions at $313,000 single, $626,000 married. (44:44) Title question "Can I do a cost segregation study on a property that's in a qualified opportunity zone fund? How does this impact the capital gains tax deferral that ends in December of 2026?" - Yes; cost seg helps operations but doesn't offset deferred gains. "Can I do a 1031 exchange and avoid the tax due when the deferred tax comes due in 2026?" - No; cannot use 1031 to avoid QOZ deferred capital gains. Resources: Schedule Your Free Consultation https://andersonadvisors.com/strategy-session/?utm_source=can-you-do-a-cost-segregation-study-on-property-in-a-qualified-opportunity-zone-fund&utm_medium=podcast Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=can-you-do-a-cost-segregation-study-on-property-in-a-qualified-opportunity-zone-fund&utm_medium=podcast Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons  

In this Tax Tuesday episode, Anderson attorneys Amanda Wynalda, Esq., and Eliot Thomas, Esq., tackle listener questions on choosing the right business structure and maximizing tax savings. They explore when to switch from sole proprietor to S-corporation status, explaining the sweet spot for making the transition and the significant tax benefits available through S-corps versus Schedule C filing. Amanda and Eliot dive deep into house flipping strategies using C-corporations to avoid dealer status and self-employment tax while maximizing deductions through accountable plans and bonus depreciation. They clarify the complexities of 1031 exchanges, especially when properties are held in partnerships, and introduce the "lazy 1031" strategy for offsetting capital gains using passive activity losses. The duo also addresses managing multiple LLCs without creating excessive tax filing burdens, deductions available for nonprofit volunteer work, and creative ways to fund retirement accounts through trading partnerships. Whether you're a truck driver looking to reduce your tax burden or an investor navigating 1031 exchange rules, this episode delivers expert guidance on structuring your business for maximum tax efficiency! Submit your tax question to taxtuesday@andersonadvisors.com Highlights/Topics: "I have a trading partnership with 40% C-corporation and 60% myself for ownership. The partnership makes around $20,000 in ordinary staking income." We're going to be talking about Bitcoin. "Can the C-corp use its $8000 in income to fund a 401(k) owned by the corporation since this is ordinary income?" - Yes, use solo 401(k) or tax-free reimbursement strategies instead. "What kind of deductions can I use as a C-corporation to offset capital gains from a house flipping?" - House flipping creates ordinary income, not capital gains, offset accordingly. "If I have multiple LLCs, do I have to file multiple tax returns?" - It depends on entity type and how they're connected. "I am a sole proprietor, independent truck driver, and I feel I'm paying very high taxes. What can I do?" - Consider switching to S-corp for self-employment tax savings at scale. "My tax preparer says, don't switch to an S-corp. Make an S-election until your revenue hits a hundred thousand dollars. Why is that? And how will an S-corp help me?" - S-corps save self-employment tax but add compliance costs and complexity. "If a property purchased via 1031 exchange is held in an LLC partnership, can it be converted to personal use like a personal residence after two years? If so, what are the tax implications?" - Extremely complicated; partnership ownership creates significant tax issues and barriers. "How may I pay no capital gain without a 1031 exchange?" - Use the lazy 1031 strategy releasing suspended passive losses. "If I volunteer my work or my time at a nonprofit agency, are there any tax deductions that I can take?" - Personal time isn't deductible, but mileage and expenses are. Resources: Schedule Your Free Consultation https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=s-corp-vs-sole-proprietor-when-should-you-switch-to-an-s-corp&utm_medium=podcast Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=s-corp-vs-sole-proprietor-when-should-you-switch-to-an-s-corp&utm_medium=podcast Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube  

In this special episode, tax attorney Toby Mathis, Esq., shifts focus from financial health to physical health by welcoming William Donovan from the Pritikin Longevity Center to discuss America's number one killer: cardiovascular disease. William shares his personal story of reversing heart disease and eliminating the need for bypass surgery through lifestyle changes at Pritikin, explaining how their medically supervised program has helped thousands achieve remarkable health transformations. The conversation covers the alarming statistics showing that 50% of heart attack victims had normal cholesterol levels, the critical role of endothelial function and arterial plaque, and why traditional risk factors don't tell the whole story. William explains the Pritikin Program's three-pillar approach, combining a whole-food, plant-based diet low in calorie density, daily exercise routines including resistance training, and comprehensive lifestyle education. They discuss how participants typically see dramatic improvements in just two weeks - lowering cholesterol by 23%, reducing blood pressure, eliminating medications, and reversing diabetes. With insights on inflammation, the dangers of processed foods and added oils, and the importance of getting professional medical guidance, this episode provides actionable strategies for anyone concerned about heart health, especially business owners and investors who need to protect their most valuable asset: their health. Highlights/Topics: 0:00 Heart Disease Statistics and Personal Story 3:40 What Pritikin Does and Nathan Pritikin's Story 12:45 Opening the Center and 60 Minutes Validation 19:40 What Happens in One to Two Weeks at Pritikin 30:20 The Challenge of Getting Healthy in Modern Society 36:45 Inspiring Success Stories 39:20 GLP-1s vs Lifestyle Change 42:50 Three Big Myths About Heart Disease Share this with business owners you know Resources: Schedule Your FREE Consultation https://andersonadvisors.com/strategy-session/?utm_source=the-number-1-killer-in-america&utm_medium=podcast Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=the-number-1-killer-in-america&utm_medium=podcast  Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons

In this episode of Tax Tuesday, Anderson advisors Barley Bowler, CPA, and Eliot Thomas, Esq., address listener questions on tax topics ranging from basic bookkeeping to advanced ESOP strategies. They cover essential bookkeeping practices for first-time rental property owners and the tax implications of transferring a fully depreciated truck from an S corporation to personal use. Barley and Eliot explain how to catch up on missed depreciation from prior years, the tax benefits of inheriting property versus receiving it as a gift, and how independent contractors should handle federal income and employment taxes. Other topics include choosing the best filing structure for single-member LLCs, tax reduction strategies for Schedule C solopreneurs earning over $100K, deferring traditional IRA distributions using Qualified Longevity Annuity Contracts (QLACs), and the little-known 1042 fund strategy for deferring taxes on ESOP distributions. Tune in for practical tax advice and strategies to keep more of what you earn! Submit your tax question to taxtuesday@andersonadvisors.com Highlights/Topics: "What's the most efficient way to get my books ready for filing taxes? I'm filing taxes for my first time rental business. I just acquired them this year. I'm a first time landlord without bookkeeping experience." A: Use bookkeeping software and categorize expenses properly throughout the year. "My S corporation owns a fully depreciated truck. Can I transfer the truck to my personal name and start taking mileage reimbursement instead? What are the tax implications?" A: Yes, but you'll recognize income equal to fair market value. "For the eight years now, my prior taxpayer never took depreciation for any of my rental properties or my property assets for the building, along with the components like the water heater. What do I do now?" A: File Form 3115 for a change in accounting method. "I'm considering moving into my parents' home while they're still living there. I'm curious about the best way to either transfer the house into my name or should I stay there and wait until they pass because they intend to leave the house to me anyway." A: Wait for inheritance to receive stepped-up basis and avoid gift taxes. "How do I pay federal income and employment taxes working as an independent contractor receiving a 1099?" A: Pay quarterly estimated taxes using Form 1040-ES throughout the year. "What tax filing structure do you recommend for a single-owner LLC wanting to not be a disregarded entity? Why? Pros and cons of the options." A: Consider S corporation for self-employment tax savings if income supports it. "I'm a Schedule C solopreneur looking for ways to avoid being overtaxed. I made over $100K this year and I'm the only breadwinner in my family of four with two kids under 18. We're in Florida. What do you recommend for ways to lower my taxable income?" A: Establish S corp, maximize retirement contributions, and utilize business deductions. "Is there any way to defer for tax reporting a distribution from my traditional IRA? I recently heard someone talking about this and was not sure if they were referring to a Qualified Longevity Annuity Contract (QLAC)." A: Yes, QLACs allow deferring up to $200K until age 85. "How does a 1042 fund work? I've never heard of that." A: It defers ESOP distribution taxes by reinvesting in qualified replacement stock. Resources: Live Event in Dallas Dec 4-6 2025 Schedule Your Free Consultation Tax and Asset Protection Events Anderson Advisors Toby Mathis YouTube Toby Mathis TikTok Clint Coons YouTube

In this episode, tax attorney Toby Mathis, Esq., welcomes Tom Chittum, former ATF Deputy Director and firearms law expert, to discuss the critical intersection of firearms ownership and estate planning. They explore what families need to know when inheriting firearms, from identifying contraband weapons to navigating complex federal regulations. Tom explains the biggest mistakes executors make, including informal transfers and failing to determine whether firearms, such as machine guns, are properly registered under the National Firearms Act of 1934. The conversation covers the distinction between regular firearms and NFA weapons (machine guns, silencers, short-barreled shotguns), the severe criminal penalties for unlawful possession, and the importance of working with federal firearms licensees for transfers. Tom provides practical guidance on securing firearms, maintaining proper inventories, using gun trusts to simplify inheritance, and understanding both actual and constructive possession. With insights from decades of ATF experience, Tom offers actionable steps gun owners can take today to protect their families from legal headaches and ensure valuable firearms or family heirlooms don't become government-destroyed contraband due to simple mistakes. Highlights/Topics: 0:00 Why Listen to Tom Chittum 2:58 Biggest Mistakes with Firearm Inheritance 6:20 History of Federal Gun Laws 8:36 Legal Possession and Registration Requirements 11:30 Prohibited Persons and Transfer Restrictions 12:59 How to Transfer Firearms to Heirs 15:30 NFA Firearms and Special Requirements 18:35 Gun Trusts and Estate Planning 22:29 Executor Rights and Possession 24:31 Securing Firearms in Estates 25:51 Handling Contraband Firearms 28:50 Weekend Action Steps for Gun Owners 31:00 Outro Share this with business owners you know Resources: Schedule Your FREE Consultation https://andersonadvisors.com/strategy-session/?utm_source=guns-and-estate-planning-what-every-family-needs-to-know&utm_medium=podcast Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=guns-and-estate-planning-what-every-family-needs-to-know&utm_medium=podcast  Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons

In this episode, tax attorney Toby Mathis sits down with Chris Streit, CEO of CSA Partners, to dive deep into cost segregation studies and how they can dramatically improve cash flow for real estate investors. They explore the biggest mistakes investors make with depreciation, explaining how the IRS treats properties as single assets when they're actually composed of multiple components that depreciate at different rates. Chris breaks down the mechanics of cost segregation studies, revealing how even a $200,000 rental property can generate $40,000 in year-one deductions instead of just $5,000-$6,000 annually. The conversation covers the impact of the One Big Beautiful Bill's reinstatement of 100% bonus depreciation, the differences between engineered studies versus software-generated reports, and strategies for minimizing depreciation recapture through 1245 exchanges. With over 20,000 studies completed and minimal audit issues, Chris provides expert guidance on audit-proofing returns, maximizing tax savings throughout the property lifecycle from acquisition to sale, and debunks common myths about depreciation timing and syndication eligibility. Highlights/Topics: 0:00 Biggest Mistake Real Estate Investors Make 5:15 Why Regular Investors Should Care About Cost Segregation 8:45 What is a Cost Segregation Study 12:20 Real Life Cash Flow Examples 15:30 Engineering Studies vs Software Studies 20:45 Audit Concerns and IRS Statistics 25:10 One Big Beautiful Bill and Bonus Depreciation 30:15 Depreciation Recapture and 1245 Exchanges 35:40 Cost Segregation and 1031 Exchanges 38:20 Advice for Investors 40:50 Cost Segregation on Syndications 42:30 Biggest Myths About Depreciation 44:15 Closing Thoughts Share this with business owners you know Resources: Learn more about Ryan Gibson and Spartan-Investors https://spartan-investors.com/ Schedule Your FREE Consultation https://andersonadvisors.com/strategy-session/?utm_source=real-estates-biggest-tax-loophole-cost-seg-1245-exchange-explained&utm_medium=podcast Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=real-estates-biggest-tax-loophole-cost-seg-1245-exchange-explained&utm_medium=podcast  Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons

In this episode of Tax Tuesday, Anderson attorneys Amanda Wynalda, Esq., and Eliot Thomas, Esq., tackle a diverse range of tax questions from listeners. They discuss oil and gas investments used to offset Roth conversion income and explain excess business loss limitations. Amanda and Eliot clarify filing requirements for C-corporations with losses, emphasizing that corporations must file regardless of activity. The team explores multiple scenarios involving converting short-term rentals to primary residences or vacation properties, covering Section 121 exclusions, depreciation recapture, and the strategic use of S-corporations to step up basis. They present creative alternatives to 529 plans, including paying children through family businesses to fund education tax-free. Eliot and Amanda also review key provisions of the One Big Beautiful Bill Act affecting small business owners, including permanent QBID, enhanced bonus depreciation, and the SALT workaround. Finally, they demystify passive loss limitations, explaining the hurdles of basis, at-risk rules, and passive activity loss restrictions that syndication investors commonly face. Submit your tax question to taxtuesday@andersonadvisors.com Highlights/Topics: "I've made a Roth conversion earlier this year and am currently in the process of doing another conversion. We have invested in oil and gas to help offset taxes due. Is there a concern that we've invested too much?" - Excess business loss limits apply but unused losses carry forward. "I have not had any activity in my C-corporation and it had $26,000 of loss, and had some expenses. Do I still need to file an 1120 corporate return?" - Yes, corporations must file tax returns regardless of activity level. "We're thinking of taking our short-term rental out of service and moving into it as our primary residence. What are the tax implications if we sell our existing primary residence?" - Section 121 excludes up to $500,000 gain on primary residence sale. "Same scenario with short-term rental and primary residence, but we're turning our existing primary into a short-term rental instead of selling it. What are the implications?" - Basis transfers to rental, depreciate building over 27.5 years going forward. "Same scenario with short-term rental and primary residence, but we're converting one property into a vacation home with no rental activity. What happens?" - Personal vacation homes lose business deductions, only Schedule A applies. "We do not have any education savings set up for our son who is now a junior in high school. Is there any other option to pay for college pre-tax? Most of our income is from rentals." - Pay child W-2 wages through rental LLC under standard deduction amount. "Would you please go over some of the benefits of the Big Beautiful Bill for small business owners?" - Permanent QBID, 100% bonus depreciation, SALT workaround, enhanced Section 179 available. "A lot of time you talk about taking passive losses from syndications to offset passive income. However, I've encountered passive loss limitations where about two-thirds of losses have been disallowed due to basis, at-risk limitations, or excess business loss. Would you please explain how and why losses are being limited?" - Three hurdles exist: basis, at-risk, and passive activity loss rules. "What expenses are incurred for rental properties that are tax deductible and what is the best way to stay organized when keeping records?" - Reference IRS Schedule E page one for complete deduction list. "How do we properly track and maximize deductions across multiple rental properties while maintaining compliance?" - Maintain separate books per property, use accounting software regularly.RetryClaude can make mistakes. Please double-check responses. Resources: Schedule Your Free Consultation https://andersonadvisors.com/strategy-session/?utm_source=the-big-beautiful-bill-benefits-every-small-business-should-know&utm_medium=podcast Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=the-big-beautiful-bill-benefits-every-small-business-should-know&utm_medium=podcast  Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons

In this episode of Tax Tuesday, Anderson advisors Barley Bowler, CPA, and Eliot Thomas, Esq., tackle listener questions covering essential tax strategies for real estate investors and business owners. They explain how LLCs holding investments should be taxed, breaking down the differences between disregarded entities, partnerships, and corporations. They walk through complex scenarios including calculating capital gains on homes with mixed personal and rental use, including non-conforming use periods and depreciation recapture. Barley and Eliot discuss strategic tax planning for cryptocurrency gains, maintaining disability benefits while generating passive income, and the mechanics of cost segregation studies for accelerating depreciation deductions. They also cover creative strategies like the daughter's stock trading scenario using the 0% capital gains bracket, finding passive income to offset accumulated passive losses, and using nonprofits for tax savings. Throughout the episode, they emphasize the importance of proper structure and timing to maximize deductions while staying compliant.   Submit your tax question to taxtuesday@andersonadvisors.com Highlights/Topics:   "Should my LLC holding investments file as a C or an S corporation or with my individual 1040?" - Disregarded LLC on personal return; corporations for active business only. "We are selling our personal home with acreage for considerable gain. How do I figure out which percentage of capital gains we will owe? Zero 15. 20. And how can we decrease the amount of capital gains we will owe?" - 0%, 15%, or 20% based on taxable income brackets after exclusions. "My daughter trades stocks and has low earned income. If she closes positions at a profit that were held over a year, the capital gains remain untaxed provided her net taxable income is below the threshold. Can she close in a profit and reopen the same position year after year? Can that be ongoing to avoid any tax?" - Yes, if total taxable income stays below threshold annually. "What is the best asset protection entity structure to be in that will save on taxes with gains in cryptocurrencies?" - Trading partnership with 90/10 split and C corporation for efficiency. "I'm a disabled nurse collecting social security disability. I'm considering an LLC as an asset holding company. How can I make it so the distribution and salary are passive so that I don't lose my benefits?" - Use disregarded LLC; dividends and capital gains typically don't affect disability. "Can you please explain a cost segregation study?" - Accelerates depreciation by reclassifying building components into shorter-life assets for upfront deductions. "I have a house I lived in for three years, rented for five years, moved back in two years ago. How does the rental depreciation and recapture gain work on my tax return if I sell it?" - Apply Section 121 exclusion; 50% non-conforming use affects gain calculations. "What types of passive income could I invest in to offset my accumulating passive losses?" - Limited partnership interests in businesses generating profits, not portfolio income like stocks. "Would you please explain how nonprofits are used to save on taxes?" - Itemized charitable donations create deductions; funds must serve nonprofit purposes only. Resources: Schedule Your Free Consultation https://andersonadvisors.com/strategy-session Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/ Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons

ode of Tax Tuesday, Anderson attorneys Amanda Wynalda, Esq., and Eliot Thomas, Esq., tackle a diverse range of tax questions from viewers. They explore the differences between PadSplit/co-living models and short-term rentals, explaining why PadSplit typically doesn't qualify for the same tax advantages as short-term rental activities. The duo covers entity formation costs and how they're treated for disregarded LLCs, the importance of proper documentation for independent contractor payments including W-9 forms and 1099 requirements, and cryptocurrency taxation for long-term holders. They also discuss offsetting bond interest with stock losses, wash sale rules for options trading, 1031 exchange strategies including improvement exchanges to minimize boot taxation, and comprehensive guidance on real estate professional status requirements. The episode concludes with settling a marital dispute about whether primary residence maintenance counts toward real estate professional status hours. Submit your tax question to taxtuesday@andersonadvisors.com Highlights/Topics: "Are the fees for disregarded LLCs taxable on the business return or the personal return?" - Fees follow the entity's disregarded destination and activity type. "Will the PadSplit/co-living model give you the same tax advantage as a short-term rental?" - No, PadSplit typically doesn't qualify for short-term rental benefits. "Last year I purchased a three-level eight-bedroom house with one kitchen and one bathroom on each floor. I rent the floors as separate apartments except for one level where I have two rooms rented separately. I put the house in service on January 25. I listed it as my primary residence. I never actually lived there. Can I perform a cost segregation, take advantage of bonus depreciation, et cetera?" - Yes for cost seg, but homestead fraud concerns exist. "I paid freelancers to put up a fence last year. I didn't get a receipt. Can I write off any of the costs of this fence? I used my company credit card or bank checks to conduct business with vendors and stores. I am bad at keeping receipts. But I print my bank statements. Can I use my statements as proof of purchase for tax purposes?" - Bank statements help but proper W-9s and 1099s are required. "I will be receiving profits from the sale of cryptocurrency investments that I've had for five years. I'm retired and receive social security as my only income. How will this crypto be gained from an IRS perspective?" - Taxed as capital gains, likely at fifteen percent rate. "Can interest gained on a US savings bond be offset with the loss on a stock sale for tax purposes?" - Yes, up to three thousand annually against ordinary income. "If I sell a stock at a loss and purchase calls instead, do I lose my loss benefit as if I had repurchased more stock within the 30 day period? Or in simpler terms, are calls treated the same as stock?" - Yes, calls typically trigger wash sale rule provisions. "We did a 1031 exchange with the building we own, but the place that we bought the replacement property was 250,000 cheaper. How do we minimize our capital gains on the leftover money? I know we can use capital improvements that we've made, but what are the rules and how must we document the improvements? Likewise, can we use depreciation schedules from the prior returns for the new tax returns?" - improvement exchanges must occur during exchange. "I wanna know more about the tests for real estate professional status as a way to deduct expenses from other passive income. I understand that I need 750 hours, but this is very loose and I'm not sure how it is audited exactly." - 750 hours plus fifty percent test, requires detailed documentation. "Please settle this one thing that my husband and I disagree on, I say that maintenance on our primary residence cannot be used towards rep status. He says certain things you could count towards reps would be pool maintenance, HVAC service, et cetera. I say no because it's a primary residence and reps is strictly for time you spend on rentals only. I'd like him to not have to sleep on the couch any longer." - No, personal residence maintenance doesn't count toward business hours. Resources: Schedule Your Free Consultation https://andersonadvisors.com/strategy-session Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/ Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons