100 episodes

Real Estate Investors, Stock Traders, and Business Owners
guide to preserve their wealth, protect their assets, and prosper in the
future. Anderson Business Advisors' Attorneys and Professional Advisors
share tax reduction strategies and asset protection techniques to protect
and build your wealth.

Anderson Business Advisors Podcast AndersonAdvisors.com

    • Business
    • 4.8 • 78 Ratings

Real Estate Investors, Stock Traders, and Business Owners
guide to preserve their wealth, protect their assets, and prosper in the
future. Anderson Business Advisors' Attorneys and Professional Advisors
share tax reduction strategies and asset protection techniques to protect
and build your wealth.

    How To Choose The Best Entity For Flipping Real Estate

    How To Choose The Best Entity For Flipping Real Estate

    Welcome to another Tax Tuesday episode of the Anderson Business Advisors podcast. Today, attorneys Toby Mathis, Esq., and Eliot Thomas, Esq., delve into listener questions around how real estate investors can maximize their returns and navigate the often-overlooked tax benefits associated with oil and gas investments within retirement accounts. They also share valuable tactics for employing family members in a business to shift income and save on taxes. A significant portion of the discussion is dedicated to flipping properties, as they clarify the tax implications of this active income, debate the benefits of cost segregation studies for flips, and advise on the best entity structures to minimize tax burdens. Additionally, the episode covers charitable giving, exploring the differences between donor-advised funds and family foundations, and offering strategic insights for philanthropic tax deductions.Submit your tax question to taxtuesday@andersonadvisors.com
    "After seeing one of Toby's videos on five overlooked deductions, my interest in oil and gas investments was piqued. I am wondering if you can use your 401 (k) or a Roth to participate in a partnership. If so, would you get the tax benefits on the front end in year one? If you can do this in a tax advantage account, how is the 15 % depletion credit treated? - Oil and Gas and a retirement account - depreciation wouldn’t really be a factor. Loan the money to yourself.
    “Are US notes bought at a discount in an aftermarket offering exempt from California income taxes?” - Yes they are
    What is the best way to pay your children for a small business owner?“- Pay them from a disregarded entity.
    What are the tax implications when flipping a property, is it? There's three. Is it active income taxed at the ordinary income tax bracket? Another old company Took a while and is there? Stop it. And is there self-employment tax? Where is it? is it beneficial to do a cost segregation study for bonus depreciation for a flip? What is the best entity structure for flips? - Generally, flipping is active/non-passive income. It depends on your material participation.
    How can we offset a W-2 income and lower AGI through real estate investing in rental properties that are potentially fixer-uppers? Can we claim property repair expenses, investments, mortgage interest taxes, et cetera, against W-2 income to lower and offset taxable income?-
    I did a cost segregation study on a fixer property I purchased and rehabbed in 2023, but haven't used it yet because I heard 100 % bonus depreciation might be reinstated. How long is the cost seg study good for since I had it completed in December of 2023? - The cost seg is based on 2023 never expires, you’d be eligible for at least 80%.
    Can I do cost segregation study on Airbnb in a foreign country? - Different countries have different tax rules, but for US tax purposes, it may not benefit you the way you think.
    I want to utilize rental property depreciation to the maximum. However, I held a property for five years and then did a 1031 exchange. I barely get any depreciation to use now. Please explain why what occurs to depreciation when I do a 1031 exchange. Will the original basis carry over to the replacement property? If so, is it accurate to say I get the most depreciation benefit when I buy straight up, not doing a 1031? - the original basis doesn’t carry, but the adjusted basis does.
    What's the best way to transfer the ownership of my investment property to my son before my death? - You can gift it, but we don’t recommend it because they won’t get the stepped up basis to the fair market value. Put it in a living trust.
    How does a donor advice fund differ from a family foundation? - Both are great tools if used for the right purpose. You can invest up to 60% of your AGI in a DAF, or 30% AGI for a family foundation.
    Schedule Your Free Consultation

    • 1 hr 6 min
    Why Landlord Insurance Is Vital for Real Estate Investors

    Why Landlord Insurance Is Vital for Real Estate Investors

    Have you ever been caught off guard by the fine print in an insurance policy? Clint Coons, Esq. and Shawn Woedl of National Real Estate Insurance Group uncover the often overlooked details of property insurance that could spell disaster or salvation for your investment portfolio. We dig into the labyrinth of insuring your LLCs and land trusts, as we scrutinize landlord insurance and why it's a whole different ballgame from your typical homeowner's policy. From accidents on vacant lots, fentanyl-related incidents, dog bites, and even snakes in the rafters, Shawn's expertise sheds light on some wild scenarios where the tailored solutions offered by National Real Estate Insurance Group will have you covered.
    Shawn Woedl is the President of National Real Estate Insurance Group. He is an industry-recognized speaker and educator with an emphasis on Commercial Property and Premises Liability. He brings over 12 years of professional and personal experience in real estate, business, and insurance to NREIG’s unique, investor-oriented brand.
    How is landlord insurance different than a homeowner policy?
    Some common policy exclusions you may not know about
    Fentanyl-related claims, toxic mold may be excluded
    Dog bite coverages, breed exclusions, snakes in the rafters!
    Injuries/coverage on vacant land lots
    Beyond primary liability - umbrellas and additional liability coverage
    Coverage for LLCs and land trusts
    “Subject to” property transactions
    Don’t go in ‘blind’ - do your due diligence, or have NREIG do it for you!
    Request a coverage estimate from NREIG with the link below
    Request a coverage proposal NREIG
    Shawn Woedl LinkedIn
    Tax and Asset Protection Events
    Anderson Advisors
    Anderson Advisors Podcast
    Clint Coons YouTube

    • 41 min
    How Can A 1099 Contractor Reduce Taxable Income?

    How Can A 1099 Contractor Reduce Taxable Income?

    On today’s Tax Tuesday episode of the Anderson Business Advisors podcast, Eliot Thomas, Esq., is joined by Anderson CPA Barley Bowler. Barley and Eliot will cover some listener questions including strategies around deducting startup costs and choosing a business structure for loan eligibility, tax breaks like depreciation and claiming real estate professional status, paying taxes as a contractor on 1099 NEC forms, and when capital loss carryover deductions can be taken.Submit your tax question to taxtuesday@andersonadvisors.
    "I joined Anderson and Infinity Investing in 2023, I established my first real estate investment, C-corporation, in December of 2023 for an official 2024 start date. What, if any expenses, membership, fees, et cetera, do I submit for 2023? ”We started to form the company in 2023. Do I hold out to list everything including the courses, business cards, opening expenses after the fact, or do I add these expenses to 2024?" - After the date of incorporation, everything's expensed as usual. “Pre-incorporation or pre-startup” costs are allowed to be deducted as long as they don't exceed $50,000
    "I've heard we want a pass through real estate holding company that produces a K-1." That'd be a partnership. To enable easier lending on properties in the future. We talk about lendability. How do we get the most favorable lending criteria? Of course, it comes down to the bank, but we're certainly going to be covering that as well about bonus depreciation. We're trying to get a loan on a property. Depreciation is one of these expenses we have to pay attention to.” - in a partnership, as they mentioned here, You're allowed on the federal lending guidelines to have up to 70% of value.
    "We got cost seg and bonus depreciation to offset. Can it offset 1099 income and your social security income?" - If we're talking about a traditional long-term rental, we first need the real estate professional status, then material participation.
    "Hey, my tax is so high. What can I do? How can I reduce it?" - We potentially want to incorporate the business if the numbers are right, then we just look for all available deductions.
    "Why did I have to pay employment taxes when receiving a 1099 NEC?" "I knew I'd have to pay, but it wasn't taken out during the year. I don't have a business, so why do I have to pay taxes?" - an independent contractor form, 1099 NEC, is subject to ordinary income and employment taxes.
    "When selling an investment house like a rental property with some gains, what's the best way to protect our gain without sharing a good part of the check with the IRS?" - This is going to be your 1031 exchange, like-kind exchange.
    "Can capital loss carryovers be chosen when to use?" "Can we pick and choose when we do our losses?" - With capital losses, you can use them up to the amount of capital gains you had plus $3000 that will go against ordinary income.
    "Can I reduce my income tax from capital gains from selling stocks by using a loss in a real estate income or loss business? - If you have your real estate going on, some losses from there perhaps and expenses from that, there are some times where we can use that and times where we can't.
    I just created a business at the end of March." When is it a preferred time to contact a tax specialist and set up a meeting to ask questions, have things explained, and see if we were a good fit for this individual? - If you need some specific guidance or calculations, that's when we may push you to do a billable tax consult or tax planning. In the meantime, hop right into the Platinum knowledge room.
    Tax and Asset Protection Events
    Anderson Advisors
    Toby Mathis YouTube
    Toby Mathis TikTok

    • 50 min
    What Is The Best Tax Efficient Way To Purchase An Existing Business?

    What Is The Best Tax Efficient Way To Purchase An Existing Business?

    Welcome to another Tax Tuesday episode of the Anderson Business Advisors podcast. Today, attorneys Toby Mathis, Esq., and Eliot Thomas, Esq., explain tax strategies for listener-submitted questions. The conversation digs into S-Corp vs. C-Corp for property management, understanding Unrelated Business Income Tax (UBIT) for non-profits, qualifying for Real Estate Professional status, and cost segregation and bonus depreciation for rentals.Submit your tax question to taxtuesday@andersonadvisors. 
    "Is it better to have an S-corporation or C-corporation as your property management company managing your land trust and property held in your disregarded LLC? Are you required to have payroll with the S-corporation?" - With the management corporation, S or C, I personally like the C-corporation better.
    “Where and when does UBIT apply to real estate investing and generally to alternative investments? - You're going to run into this when you have exempt groups or we'll call them entities, nonprofits are also exempt.
    Does an accountable plan have identical benefits when comparing a C-corporation versus an S-corporation for a new business?" - being a new business or not shouldn't change too much. It's just a C Corp versus S Corp.
    "How do you know how much you can convert into a Roth IRA from a traditional one without getting pushed into a higher tax bracket when you don't know what your investment gains will be?" - we don't look at the taxable gains - whatever your tax bracket is, that's what’s going to determine.
    “Augusta rule. I am my own real estate broker office scene out of my home. I just hosted a large client appreciation party at my house using rooms in a garden that are not my office. Can I apply an Augusta rule to it? If yes, could applying the Augusta rule increase my chances for an audit and to what percentage? - Augusta rule is 288. You can rent out your home up to 14 times a calendar year. This is entertainment, you could maybe deduct 50%, I wouldn’t use Augusta for anything entertainment.
    “My question is I've never been able to take real estate professional status due to full-time employment as a W-2 employee. I took early retirement on January 2nd of 2024 of this year. I am still being paid the remainder of 2024 biweekly, but not actually working. I'm a licensed real estate broker and spend a lot and most of my time on real estate rentals, subdivision development, et cetera. With this payout biweekly for the remainder of the year, can I qualify as REP (real estate professional) status for 2024?" - The prohibition to having W2 income is if you are actually working at your W2 job. Here, we're not doing any work for that check. You're just getting paid free money for 2024. You can go out and put your time into real estate.
    “Given the time of the year that we're getting into with taxes being due especially in the fall, what are the first three steps in the tax planning process, and how does one approach the process differently for clients that earn less?" – Start with having excellent bookkeeping, identify where you are today, and plan where you are going in the future.
    "What is the best way to purchase an existing business for tax purposes?" - You're going to buy the assets, you want to buy the assets because now you're going to be able to get those at your fair market value that you pay for them. We call it stepped-up basis in your assets…
    "If I buy a short-term rental and do a cost seg the next year, I bought it, and listed it on Airbnb, can I rent it long-term for the following year or would that interfere with the cost seg done the prior year?" –This is a common strategy, there's nothing wrong with that - you want to at least rent it once in year one as a STR.
    "If I claim bonus depreciation on my rental property, do I need to return or reverse it when I sell the property? What happens with bonus depreciation when I sell a rental property, or I necessarily have it in current?” - It

    • 1 hr 8 min
    How to Structure Your Real Estate Flipping

    How to Structure Your Real Estate Flipping

    In this episode, Toby Mathis, Esq. chats with Jeffrey Cottle, Esq., Senior Attorney at Anderson Business Advisors, about the world of house flipping, with a focus on how to handle the tax implications. It emphasizes the importance of avoiding "dealer" status with the IRS and explores strategies like asset protection. Toby and Jeff discuss limitations placed on frequent flippers and analyze the pros and cons of different business structures like LLCs, C-Corps, and S-Corps. It concludes by examining the most common scenarios Jeff encounters at Anderson Advisors when working with house flippers.
    Jeff Cottle intro
    Flipping all comes down to ‘intent’ with the IRS
    Avoid “dealer” status, and consider asset protection when flipping
    1031 exchanges, installment sales are not available to dealers
    Flipping risks increase with each new property you purchase
    Pros and cons to LLCs, C-Corps, S-Corps
    What is the “typical” scenario Jeff sees for flippers?
    Send us your questions and ideas for future show topics!
    Schedule Your FREE Strategy Session
    Jeffrey Cottle LinkedIn
    Anderson Advisors
    Toby Mathis on YouTube

    • 23 min
    Can I Contribute To My Health Savings Account After Leaving My Employer?

    Can I Contribute To My Health Savings Account After Leaving My Employer?

    In this episode, Toby Mathis, Esq., and Eliot Thomas, Esq., bring more of their tax knowledge to the masses, answering questions on HSA contributions, employing your children in your business, and keeping your assets in a self-directed IRA. Be sure to check out our FREE virtual events happening this month. Submit your tax question to taxtuesday@andersonadvisors.
    "For an LLC that opted to be taxed as an escort is it better to not just. the profits and let retained earnings grow on the balance sheet and invest retained earnings in stocks or other investments in the name of the LLC? - the profits are automatically going to come down to hit your return. You're going to have to pay tax on those
    "I am considering signing up with Anderson and contemplating having you amend the last three years as I don't think my CPAs or TurboTax gave me all the write-offs that I was eligible for as a real estate investor.I think I may qualify for a greater return, but also don't want to automatically trigger an audit. - the “triggering an audit” that's, I think, a really common scare tactic that's out there…amending is not going to create an audit.
    "Can I continue funding an HSA account if I am no longer employed by the company that offered it but still have the account? Does it make sense to place it into a HSA investment account? - You certainly can continue with that HSA. Even if it's an employer-sponsored HSA, it is the employee's property, should they choose to leave.
    "I have a K1 that will be late from the sale of an apartment complex in Georgia. I am a married filing separately tax payer. I will do an extension but still have to pay tax in April How do I know how much to pay without the K1? I Went through a similar sale last tax season and had to pay a late fee due to the late K-1. I'd like to avoid that again.- There is a safe harbor. If you've paid in at least 90 % of what will be due during your time period before April 15th,
    "What are the benefits of having children as employees? Are there education expenses eligible for payment by the company? - if kids are paid underneath the standard deduction for that particular year, then there's no federal income tax on it. There are many benefits to shifting income to your children.
    "If we live in our rental house for two of the prior five years to avoid full taxation on capital gain, take advantage of the $500,000 exemption for married joint-filing, can the remaining amount that we, remaining amount we will pay in taxes be offset? Can the remaining amount we will pay in taxes be offset by losses in our other rental properties? Capital if we qualify as real estate professionals during the year for filing. For example, if we purchase another property, and cost seg it, can those potential deductions be used to offset the taxes paid on the primary residence sale? - As long as they're in there for two of the last five years, they are eligible for ownership and use.
    "How long do I need to have a property in service to rent to be able to deduct bonus depreciation from a cost segregation study? - you want to be reasonable, probably a reasonable amount of time, but if it was available for rent. That's it!
    "My asset is in a self-directed IRA, so when you see SDR at IRA, that means self-directed. I am assuming if I sell it, the money is considered income and I'm taxed on it like any other income. Also, if I use the money from the sale of that property for the purchase of a different property, not kept in the self-directed IRA, can I avoid taxes? What is your suggestion in this type of situation? - there's a whole lot of misconception going on in this question. So no, we are not taxed on it like any other income. It's quite the opposite.
    "Just started an ink taxes as C Corp What is an accountable plan? Is it something I need to join before I can get the benefit of it? Can any reimbursement be an expense with my personal name and get reimbursement like health dental vision cell p

    • 1 hr 20 min

Customer Reviews

4.8 out of 5
78 Ratings

78 Ratings

Cmeiselman1997 ,

Extremely informative, high quality podcast

This is a podcast like no other when it comes to asset protection, tax planning and business planning. Highly recommend! It will make you a smarter person guaranteed

Multifamily University ,

Great podcast

Great podcast ! I have learned a lot from taxation to real estate and many more! Excited to listen more episodes!

wfreedomnexus ,

Great and timely legal education

I have learned a TON from Anderson advisors over the last two years between their webinars and podcast. Clint, Toby and Don do a great job simplifying legalese.

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