Tax Tuesday with Toby Mathis 09-01-2020

Besides guidance from the Internal Revenue Service (IRS) regarding U.S. President Donald Trump’s executive order to allow deferral of the employee portion of Social Security payroll tax, Toby Mathis and Jeff Webb of Anderson Advisors provide further clarification. Do you have a tax question? Submit it to taxtuesday@andersonadvisors.

 

Highlights/Topics: 

• If I sell a piece of land and keep the primary house, what is the 1031 valued at? Is it a $0 or 150k purchase price in 2012? Get each parcel of land appraised to identify value for the basis
• Can I write off an RV, if I use it for business travel? It is possible to write off the RV by using it 100% for business, not personal use as a second home
• How does a trust work in relationship to LLC in real estate? Provides anonymity for beneficiary and LLC
• Can you take depreciation on a rental condo? What do you use for the basis? Yes, you can take depreciation on a rental condo, if you own the condo, not as a renter
• Is there an option to give employees a bonus without being charged a luxury tax? You can give employees bonuses, but bonuses are subject to regular payroll taxes  

 

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Resources:

 

The Tax Toolbox (only $495; regularly $1,500)

http://aba.link/ttb920

Memorandum on Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster

https://www.whitehouse.gov/presidential-actions/memorandum-deferring-payroll-tax-obligations-light-ongoing-covid-19-disaster/

Internal Revenue Service (IRS)

https://www.irs.gov/

IRS: Notice 2020-65

https://www.irs.gov/pub/irs-drop/n-20-65.pdf

1031 Exchange

https://www.irs.gov/pub/irs-news/fs-08-18.pdf

Wills and Trusts

https://andersonadvisors.com/living_trusts/

Self-Employment Tax

https://www.irs.gov/taxtopics/tc554

Airbnb

https://www.airbnb.com/

Real Estate Professional Requirements

https://www.irs.gov/pub/irs-utl/33-Real%20Estate%20Professionals.pdf

Form W-2

https://www.irs.gov/forms-pubs/about-form-w-2

Form 1065: Schedule K-1

https://www.irs.gov/pub/irs-pdf/f1065sk1.pdf

Bonus Depreciation

https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act

Depreciation Recapture

https://www.investopedia.com/terms/d/depreciationrecapture.asp

CARES Act

https://www.sbc.senate.gov/public/index.cfm/guide-to-the-cares-act

Small Business Administration (SBA)

https://www.sba.gov/

Cost Segregation

https://www.irs.gov/businesses/cost-segregation-audit-techniques-guide-chapter-1-introduction

Tax Cuts and Jobs Act (TCJA)

https://www.irs.gov/tax-reform

Healthcare Reform (Affordable Care Act) 

https://www.healthcare.gov/

Individual Retirement Arrangements (IRAs) 

https://www.irs.gov/retirement-plans/individual-retirement-arrangements-iras

Traditional and Roth IRAs

https://www.irs.gov/retirement-plans/traditional-and-roth-iras

Capital Gains Exclusion/Section 121

https://www.irs.gov/taxtopics/tc701

Schedule A

https://www.irs.gov/forms-pubs/about-schedule-a-form-1040

Schedule C

https://www.irs.gov/forms-pubs/about-schedule-c-form-1040

Schedule E

https://www.irs.gov/forms-pubs/about-schedule-e-form-1040

Hobby Loss/Safe Harbor Provision 

https://www.irs.gov/pub/irs-utl/irc183activitiesnotengagedinforprofit.pdf

Earned Income Tax Credit

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit

MileIQ

https://www.mileiq.com/

Charitable Organizations

https://www.irs.gov/charities-non-profits/charitable-organizations

26 U.S. Code Section 280A

https://www.law.cornell.edu/uscode/text/26/280A

California Assembly Bill 5 (AB5)

https://www.investopedia.com/california-assembly-bill-5-ab5-4773201

Franchise Tax Board (FTB)

https://www.ftb.ca.gov/

QuickBooks

https://quickbooks.intuit.com/

ADP

https://www.adp.com/

Unrelated Business Income Tax (UBIT)

https://www.irs.gov/charities-non-profits/unrelated-business-income-tax

Unrelated Debt-Financed Income (UDFI) 

https://www.irs.gov/pub/irs-tege/eotopicn86.pdf

Toby Mathis

http://tobymathis.com/about-toby-mathis/

Anderson Advisors

https://andersonadvisors.com/

Anderson Advisors Events

https://andersonadvisors.com/all-events/

Events@andersonadvisors.com

Events@andersonadvisors.com

Anderson Advisors Tax and Asset Protection Event

https://andersonadvisors.com/asset-protection/

Tax-Wise Workshop

https://andersonadvisors.com/tax-wise-workshop/

Anderson Advisors on YouTube

https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ

Anderson Advisors on Facebook

https://www.facebook.com/AndersonBusinessAdvisors/

Anderson Advisors Podcast

https://andersonadvisors.com/podcast/