Anderson Business Advisors Podcast AndersonAdvisors.com
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- Business
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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.
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The Top 10 Types of Nonprofits You Can Set Up
Today Toby Mathis, Esq. speaks with Karim Hanafy, Esq., Anderson’s non-profit expert, about the top ten types of non-profits you can form to access tax benefits for your charitable activities. These range from familiar causes like humanitarian aid (both domestic and international) to education (including scholarships) and even combating social issues through activities and therapy animals. Research, veteran/elderly assistance, and various housing needs rank high, as well as animal welfare, environmental causes, and empowering communities. Finally, the importance of supporting other nonprofits, regardless of their specific cause, is also an option.
Highlights/Topics:
Karim’s background/expertise in non-profits
Top ten types of nonprofits
Humanitarian relief - domestic/international - food, clothing, shelter, medical care, housing
Education and scholarships- trade schools etc.
Activities to combat obesity, depression, and isolation - social and outdoor activities, therapeutic animals
Research - medical and financial support
Assistance for veterans and the elderly- medical, counseling, jobs, housing
Housing - this used to be number one - recovery from abuse, elderly, vets, under-resourced
Animals - sanctuaries, animal therapy programs
Miscellaneous - pollution, ministries, waste reduction, empowering the underserved, disaster relief
International giving - orphanages, food, clothing, shelter, animal sanctuaries, clean water
Supporting any of the above activities, or supporting other organizations that provide the previous support
Resources:
Email Our Team To Get Your Nonprofit Started
Schedule Your Free Strategy Session
Tax and Asset Protection Events
Anderson Advisors
Anderson Advisors Podcast
Toby Mathis YouTube
Clint Coons YouTube -
How To Write Off Travel Expenses
Welcome to episode #214 of the Anderson Business Advisors podcast. Today, experts Toby Mathis, Esq., and Eliot Thomas, Esq., explain tax strategies for common questions concerning how to write off business travel that includes personal days (hint: business days have to be more than 50% of your trip), how and when you can qualify as a real estate professional, investing in real estate from your investment accounts, and some of the helpful tax benefits of creating and using a Health Savings Account. Submit your tax question to taxtuesday@andersonadvisors.Highlights/Topics:
"Can I deduct travel expenses to rehab rent rentals that are in other states than my primary residence?" - Yes, but you have to spend more days doing work (more than 50%) than personal days.
"If we convert our traditional IRA to a Roth IRA with the same provider, do we have to file any forms with the tax return or otherwise? If so, what forms?" - You’ll receive a 1099R - the converted amount is taxable.
"Do we have to make the REPS election every year? And how do we make the election?" – That's real estate professional status. Does one spouse qualify? Is he/she spending 750+ hours on the business?
"Last year we neglected to register as real estate professionals. We ended up owing a substantial amount in taxes. Can we register as real estate professionals this year and carry over the expenses that were disallowed for 2022 and 2023?" –in '23, if we make the status and we, the real estate professional status and we aggregated, we got everything done properly in return, it's not gonna help us. for those prior losses.
"For Augusta rule payments, what documentation is required beyond meeting minutes? Do I just write myself a check? Should Augusta rule go in the memo? Do I need to send myself an invoice? I am the owner and employee of an S-corporation?" – You always want to send an invoice. I would recommend it. You want to have that paper trail.
"Can investment income be used to fund a health savings account? The deductibles are so high. We are always paying out of pocket." - So you don't need any type of specific income to fund an HSA health savings account. Limits for 2023 are 7750 for a family, 3850 for an individual.
"I plan to buy a rental property using my 401(k). I'm 65 and set up my solo 401(k) for rollover. My question is, if I convert to a Roth 401(k) and purchase the rental, does the rental income and future equity gain become tax-free?" – Yes, it does, that's a quick answer.
"Should I have my rental income funneled into an LLC, business, or corporation to save money in taxes?" - how is it taxed? And it can be what we call disregarded, which means it's taxed. Could be a partnership, could be an S corp, could be a C corporation, and all those have different answers.
"What are the tax and legal benefits of making an owner loan to my LLC rather than capital contributions?" - just like the last question, how is that LLC taxed? We would do something different, perhaps if it was a disregarded entity or partnership versus an S -corp or a C -corp. They can all have different outcomes depending on how we do it.
"Can you write off 100% of your trip to Las Vegas all expenses? I'm a realtor licensed in both Nevada and California. Any other tax deductions?" - You're going to have to qualify it as business travel. That means more days of business than anything else…
Resources:
Tax and Asset Protection Events
https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=aba&utm_medium=podcast&utm_content=write-off-travel-expenses
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 -
How to Form a Nevada Asset Protection Trust
In this episode, Toby Mathis, Esq. chats with fellow attorney John Anderson, Esq. of Anderson Business Advisors about the pros and cons of establishing trusts in Nevada. The discussion digs into Nevada trusts' specific functions and benefits, including the "seasoning period" and the role of trustees. Toby and John explore how a third-party trustee can offer protection, methods for withdrawing funds, and the power of appointment in Nevada trusts. Additionally, they touch upon safeguarding your home with a trust, using a trust for essential expenses, and the potential risks of insolvency and bankruptcy. The conversation highlights the likelihood of lawsuits settling against a Nevada trust while acknowledging the absence of tax advantages.
Highlights/Topics:
Trusts - to revocable or irrevocable?
Advantages to setting up trusts in Nevada and South Dakota
The “seasoning” period
Trustees and their functions in these states
Protection through a third-party trustee
Filing taxes and withdrawing money - Nevada trusts
Power of appointment
Protecting your home with a Nevada trust
Using an asset protection trust to pay for essentials
Risks of voluntary insolvency and bankruptcy
Most lawsuits will choose to settle against a Nevada trust
Tax advantages - there aren’t many
Pro-rata vs. non-pro-rata
A high-profile divorce case with a Nevada trust, and the outcome
Not subject to the Corporate Transparency Act
Setting up a Nevada trust, statute of limitations
Resources:
Email John Anderson for a consult
estateplanning@andersonadvisors.com
Anderson Advisors
https://andersonadvisors.com/
Anderson Advisors on YouTube
https://www.youtube.com/channel/UCaL-wApuVYi2Va5dWzyTYVw
Tax and Asset Protection Events
https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=aba&utm_medium=podcast&utm_content=how-to-form-a-nevada-asset-protection-trust
Toby Mathis on YouTube
https://www.youtube.com/c/tobymathisesq
Anderson Advisors
https://andersonadvisors.com/
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How To Wholesale Real Estate (Best Structure & Asset Protection!)
Clint Coons, Esq. and Greg Helbeck from Velocity Home Buyers tear down the facade that wholesaling is a no-risk investment, exposing the legal snares and fiscal sinkholes that might just catch you off-guard. Hear about Greg's near-miss disaster when a contracted property burned to the ground, a story that underscores the need for bulletproof business strategies to safeguard your ventures against the unpredictable foibles of real estate.Lastly, we traverse the digital landscape of virtual real estate, covering the essentials for managing sales and renovations without once stepping foot on the property. There's a treasure trove of insights on direct mail marketing too, proving the worth of printed marketing in a world enamored with digital solutions. Whether you're looking to hone your marketing tactics or fine-tune your remote investment strategies, this episode is a vault of expertise for any wholesaler eager to secure a fortune in the ever-evolving real estate market.
Highlights/Topics:
What is wholesaling and why is it so appealing?
Greg’s hair-raising wholesale tale of woe
Structuring deals through an LLC
Other risks in real estate contracts
Wholesaling across state lines
Motivation behind seller's decision
Direct mail marketing strategies for success
Success through uncomfortable actions
Resources:
Greg on IG
https://www.instagram.com/grego_37/
Velocity House Buyers
https://www.velocityhousebuyers.com/
Tax and Asset Protection Events
https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=aba&utm_medium=podcast&utm_content=how-to-wholesale-real-estate
Anderson Advisors
https://andersonadvisors.com/
Anderson Advisors Podcast
https://andersonadvisors.com/podcast/
Clint Coons YouTube
https://www.youtube.com/channel/UC5GX-U6VbvMkhSM1ONBiW8w
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Investing In CASHFLOWING RENTALS (How To Get Started)
Clint Coons, Esq. speaks with Kenji and Letizia Alto, who are both MDs and founders of Semi-Retired MD. They share their journey from being high-income physicians to achieving financial freedom through real estate investing. The episode delves into the mindset shifts required to excel in the property market, overcoming common obstacles, and utilizing strategic tax benefits. The couple also introduces their new fable-like book, contrasting the financial paths of two couples. You’ll hear about building a strong investment team, identifying hidden equity, and leveraging techniques like cash-out refinancing and 1031 exchanges to maximize returns and accelerate the journey toward financial independence.
Highlights/Topics:
Kenji and Leti's journey from physicians to real estate investors
Mindset shifts essential for real estate success and tax reduction
Introduction to Kenji and Leti's book
Overcoming fears and hurdles in out-of-state multifamily investments
Building a strong team for informed decision-making in real estate
Hidden equity and trusting instincts for better returns
Real estate for significant tax benefits and wealth growth
Profiting from real estate through various streams like cash flow
“Lazy equity” via cash-out refinancing and 1031 exchanges
Fast FIRE concept for accelerated financial independence
Resources for high-income earners
Resources:
Book: Life on Your Terms
https://www.amazon.com/Life-Your-Terms-Investments-Themselves/dp/154453096X
Podcast - Rich Doc Poor Doc
https://podcasts.apple.com/us/podcast/rich-doc-poor-doc/id1506849313
Semi Retired MD FB
https://www.facebook.com/semiretiredmd/
Semi Retired YT
https://www.youtube.com/channel/UCibjmeDUNn568Egl5TppnPg
Semi Retired IG
https://www.instagram.com/semiretiredmd/?hl=en
Semi Retired Website
https://semiretiredmd.com/
Semi-Retired MD LinkedIn
https://www.linkedin.com/company/semi-retired-md/
Tax and Asset Protection Events
https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=aba&utm_medium=podcast&utm_content=investing-in-cashflowing-rentals
Anderson Advisors
https://andersonadvisors.com/
Anderson Advisors Podcast
https://andersonadvisors.com/podcast/
Clint Coons YouTube
https://www.youtube.com/channel/UC5GX-U6VbvMkhSM1ONBiW8w
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How To Report Income From A Short-Term Rental Property
Today, experts Toby Mathis, Esq., and Elliot Thomas, Esq., explain valuable tax strategies for real estate investors, traders, and various income earners. You’ll hear about the optimal tax classifications for short-term rentals, using retirement funds for real estate investment, and the transition from W-2 to 1099 income for tax benefits. Additionally, Eliot and Toby discuss maximizing deductions through trading partnerships, the benefits of Health Savings Accounts, vehicle write-offs, and home office deductions. Submit your tax question to taxtuesday@andersonadvisors.
Highlights/Topics:
Is short -term Airbnb and VRBO (short term rentals) under Schedule C or Schedule E? - if it’s just bare oversight management, etc. That might put it on Schedule E. Schedule C is if you have more substantive activity you're putting into it.
I was told I could use my company assets of 401k to loan money to buy real estate investment. Is that true? If so, how? - its true, one is allowed to take a loan out by law, if your plan allows for it. If you don’t pay it back it becomes taxable income.
How how can I position my child's college tuition as a business expense? - let's say your child's handling the bookkeeping for your corporation, and they're taking accounting classes, then you can deduct the classes related to what that child's already doing in the corporation.
What percentage of gains do I need to pay tax on if I trade for it, if I trade forex and if I put money into a holding LLC? Can I minimize it? - often it's gonna be section 1256, and You get a treat 60% as a long-term capital gain, and the other 40% is gonna be short-term capital gains, which means you're at your ordinary tax bracket rates.
How do I deduct expenses if I have a W2 and a 1099? - generally speaking, on a W-2, there's nothing you can deduct business-wise against. If you had expenses that you incurred in order to get your W-2 income, they took that section away with the Tax Cut and Jobs Act back in 17.
I just started my small business of being a mortgage broker. I own a single family rental about an hour from my house. Can I take a tax deduction for mileage expenses if I use my vehicle for both businesses? What about taking deduction on one car for mortgage and take deductions on the other car for the rental property? - We're going to recommend your vehicles be titled in your personal name. Usually we're going to deduct that mileage.
If I purchased a property to rent it and I have it as an Airbnb and I did a lot of work in 2023, can I claim all the expenses for 2023 tax year, even if the house was not rented at all in 2023 because of work is estimated to be complete in quarter one of 2024. - You can in 2024, but we can't go back to ‘23, when the expenses were incurred, because it wasn't placed in service yet.
Can I make charitable contributions from my business LLC income and take it as a business tax deduction? Due to the standard deduction, I can't deduct them from my personal return. - If it's a C corporation, then the C corporation can deduct up to 10% of its net income. Used to be 25% during the CARES Act but they've moved it back to the traditional 10% of your net income
Started regular 15-year depreciation for capital improvement of rental property in 2021, didn't know any better. I switched to bonus depreciation and claimed the remaining amount in 2023. Are any home improvement projects tax deductible? - At its base level, no. But if you happen to have a home office, and you have a C corporation or an S corporation, then any your home improvement projects, yes, they will be deductible in the sense that if it's directly related to the office
Resources:
Free Emergency Estate Planning Kit
https://aba.link/nzj
Tax and Asset Protection Events
https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=aba&utm_medium=podcast&utm_content=how-to-report-income-from-a-short-term-rental-property
Anderson Advisors
https://anderson
Customer Reviews
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
Great podcast
Great podcast ! I have learned a lot from taxation to real estate and many more! Excited to listen more episodes!
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.