Tax Tuesday with Toby Mathis 03-05-2019

Ready to join Toby Mathis and Jeff Webb of Anderson Advisors for a fun Tax Tuesday in the middle of tax season? Do you have a tax question? Submit it to taxtuesday@andersonadvisors.

Highlights/Topics:

• Do I have to 1099 a hard money lender for interest payments? No, hard money is for a property mortgage, so use Form 1098
• How do I list a shareholder on my 1120, if I am a C Corp? Ignore the LLC and remove it; list yourself as a shareholder because you’re the owner
• If 501(c)(3) provides housing for veterans, can I hold homes in separate LLCs under the non-profit? Even if your 501(c)(3) provides housing, it doesn’t need to own the property; you could own houses in a for-profit LLC and rent or give them to the 501(c)(3)
• What is an RMD? Required minimum distribution for deferred retirement account; you put money in tax deferred and write it off against your taxes
• Are RMDs added to adjusted gross income? Yes, they are taxable as retirement income; give RMD directly to charity to not make your social security more taxable
• Who can open up an HSA account that allows us to invest proceeds into alternative investments in real estate notes? You can go to almost any bank, including Mellon
• What things can be listed as a liability for business? Any loans - anything you owe to a third party or shareholder
• How do I file my C Corp with 50/50 partnership? C Corp files Form 1120; if you haven’t made money yet, it'll all be expenses - offset losses to not pay tax in the future
• With the new Schedule A rules, I’ve heard that since mortgage interest probably isn't usable for most of us, is HELOC interest deductible elsewhere? Mortgage interest is still deductible up to $750,000, if used for acquisition indebtedness
• Any changes in how donations to charities are handled in 2019 compared to 2018? Same rules apply; 60% of adjusted gross income can be offset on Schedule A
• I don't want to take profit from a house. Can I transfer the house to another LLC, and the other house can do the lending or funding? Yes, you can always borrow money on a piece of property without having to trigger a tax
• Where do I write fees for LLC state renewal and registration fees on my tax form? There's a couple places; on the taxes and licenses line, or in other deductions
• Are there opportunity zone funds to invest in with similar tax deferral? Absolutely, that’s what big brokerage houses are doing; defer your money
• I hold a recreational property in LLC. Can I claim special assessments for the property as a loss against sources of income outside the LLC? It depends on how that LLC is taxed
• On Form 5500, do you not need to file it if it’s less than $250,000? If you have a retirement plan less than $250,000, married and filing jointly, don’t worry about it
• Formed an LLC in Wyoming, taxed as a partnership, I have no activities or expenses besides formation cost. Do I need to file the tax as a partnership? Yes, but you don’t have to file a partnership return, if there was no income or expenses to report
• If Airplane A leaves New York, heading west at 11 a.m. EST and Plane B leaves San Francisco at 6 a.m. PST, can I get an extension on filing for my corporation until Oct. 15? No, but if it’s an S Corp, you get until Sept. 15; if it’s a C Corp, it depends on its tax years

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Resources

1031 Exchange

Form 1098

501(c)(3)

Opportunity Zones

Schedule K-1

Mellon Financial

Theresa Fette

Schedule E

Schedule A

Home Equity Line of Credit (HELOC)

Form 1120

Form 5500

1099-R

529 Plans

MileIQ

TD Ameritrade

Tragedy Assistance Program for Survivors (TAPS)

Infinity Investing Workshop

Toby Mathis

Anderson Advisors

Anderson Advisors Tax and Asset Protection Event

Tax-Wise Workshop

Anderson Advisors on YouTube