Tax Tuesday with Toby Mathis 06-23-2020

Confusion continues with the CARES Act and related tax relief programs due to COVID-19. Toby Mathis and Jeff Webb of Anderson Advisors provide clarity by answering tax questions. Do you have a tax question? Submit it to taxtuesday@andersonadvisors.

Highlights/Topics: 

• I’ve had my work hours cut due to COVID. Under the CARES Act, can I access my 401(k) from work or solo 401(k)? You can access the solo 401(k) through a distribution or loan, but access to a work 401(k) must be approved by the plan administrator 
• How should I handle sales tax within my eCommerce store? Do I follow my state use tax or do I need to get the buyer’s? Depends on various factors, but sales tax is tax on things you sell, and use tax is tax on things you buy
• Do we have to pay taxes on an SBA loan? No, unless loan is not repaid
• Can you accept the EIDL, if you’ve already accepted the PPP loan? Yes
• Will there be any issues with PPP forgiveness, if you accept EIDL? Depends on whether you received the emergency cash grant
• Am I able to purchase real estate with my solo 401(k) account and rent the house to my brother? Yes, your brother isn’t a disqualified party, but you must charge him a fair rent
• Did the deadline for Roth conversions get extended? No, it’s still Dec. 31 

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Resources:

Infinity Investing Workshop

Tax-Wise Business Ownership by Toby Mathis

1-day Online Tax-Wise Class

CARES Act

Paycheck Protection Program (PPP)

Paycheck Protection Program (PPP) Flexibility Act

Economic Injury Disaster Loan (EIDL)

501(c)(3)

Wills and Trusts

Form W-9

Form 6252

Form 1120

Schedule C

Schedule E

1099-C

457 Plan

Capital Gains Exclusion/Section 121

Certificate of Need

Applicable Federal Rates (AFR) 

Bonus Depreciation

Depreciation Recapture

Real Estate Professional Requirements

SECURE Act

Self-Employment Tax

Hobby Loss Rules

Individual Retirement Arrangements (IRAs) 

Traditional and Roth IRAs

Internal Revenue Service (IRS)

Small Business Administration (SBA)

U.S. Department of the Treasury

Toby Mathis

Anderson Advisors

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