Tax Tuesday with Toby Mathis Episode 146

The IRS is 35-million tax returns behind by their own admission, and they managed to answer 3% of the calls that were placed last year. If you need an answer to your tax question, don’t call the IRS. Toby Mathis and Jeff Webb of Anderson Advisors are here to help and answer your tax questions sooner than later. Submit your tax question to taxtuesday@andersonadvisors.

Highlights/Topics:

• What is the process for a non-profit to invest in syndication? Depends on whether you are required to be an accredited investor or not
• What are the pros and cons of moving a company to Puerto Rico for tax planning purposes? You have to be a bonafide resident in Puerto Rico to get any benefit at all
• Are life insurance proceeds taxable if a revocable living trust is the beneficiary? No, life insurance proceeds, in general, if you did not deduct the premiums, are not taxable
• Is tuition for professional learning deductible? CPE, CME, and CLE credits/courses are deductible when something new for your career, but not when starting a new career
• Can I buy an Airbnb with money inside and outside of an IRA? Yes, but form a partnership between yourself and your IRA, so it does not become a prohibited transaction or if you are a disqualified party

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Resources:

Infinity Investing: How The Rich Get Richer And How You Can Do The Same by Toby Mathis

http://aba.link/infinitybook

Infinity Investing

https://infinityinvesting.com/

Charitable Organizations

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

Entity Formation

https://andersonadvisors.com/entity_formation/

Capital Gains and Losses

https://www.irs.gov/newsroom/capital-gains-and-losses-10-helpful-facts-to-know-0

Section 121 - Capital Gains Exclusion

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

Real Estate Professional Requirements

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

IRC 469(c)7

https://www.law.cornell.edu/uscode/text/26/469

Wills and Trusts

https://andersonadvisors.com/living_trusts/

Retirement Plans

https://andersonadvisors.com/retirement_plan/

Airbnb

https://www.airbnb.com/

Tax Cuts and Jobs Act (TCJA)

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

Schedule E

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

Cost Segregation Authority

https://costsegauthority.com/

Franchise Tax

https://www.investopedia.com/terms/f/franchise_tax.asp

Form 568

https://www.ftb.ca.gov/forms/2020/2020-568.pdf

Continuing Professional Education (CPE)

https://www.aicpa.org/cpe-learning/cperequirements.html

Continuing Medical Education (CME)

https://www.accme.org/

Continuing Legal Education (CLE)

https://www.americanbar.org/events-cle/mcle/

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

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

Qualified Opportunity Fund/Zone

https://www.irs.gov/credits-deductions/businesses/invest-in-a-qualified-opportunity-fund

Step-Up in Basis

https://www.investopedia.com/terms/s/stepupinbasis.asp#:~:text=A%20step%2Dup%20in%20basis%20is%20the%20readjustment%20of%20the,for%20tax%20purposes%20upon%20inheritance.&text=The%20asset%20receives%20a%20step,of%20property%20transferred%20at%20death.

Toby Mathis

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

Anderson Advisors

https://andersonadvisors.com/

Anderson Advisors Events

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

Events@andersonadvisors.com

Anderson Advisors Tax and Asset Protection Workshop

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

Anderson Advisors Tax-Wise Workshop

https://andersonadvisors.com/tax-wise-workshop-for-businesses-investors/

Anderson Advisors Infinity Investing Workshop

https://andersonadvisors.com/investing-workshop-passive-income-generating-machine/

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/