Anderson Business Advisors Podcast

In today’s Tax Tuesday episode, tax experts Toby Mathis, Esq., and returning guest Jeff Webb, CPA, CFO of Anderson Business Advisors, discuss the usual mix of complex and simple tax questions including questions around paying minor children through your LLC, gifting vs. inheriting property, structuring your stock trading business, and how and when to use cost segregation to get the biggest tax benefits. Submit your tax question to taxtuesday@andersonadvisors.

• “When dissolving a C-Corporation with a single share holder and having a net operating loss, does the loss go on the shareholder’s personal return and can the loss be offset against personal income?” No, because that C-Corporation is its own entity. However you probaby finance some of those losses. Anything that you invest in the company that you don’t get back will be a capital loss to you.
• “I jointly-own an inherited property that is currently on the market. Can the expenses that I have (utilities, staging, maintenance, repair, taxes) be added to the cost value?” It depends on how the property is being used once you inherit it.
• “Can I deduct expenses for working at home and what forms can I use?” That depends. If you’re an employee, then no deduction anymore for employee work expenses.
• “My wife’s father wants to sign his house over to us and her brother. What tax advantage is that to her dad? And what tax issues does it raise for us? Should we start an LLC or some other structure?” No tax advantages for Dad. When dad transfers the property over, it’s a gift. And when you give an appreciated asset you receive the basis of the gifter. If it is an investment, it is best to start an LLC.
• “When you have a C-Corp (no income at this point, a Wyoming LLC that owns two LLCs with rentals), which entity pays for general expenses like memberships, cell phones, internet, education, etc?” When you have an LLC with rental (C-Corp), then you pay the C-Corp and management fee. The C-Corp then covers all the expenses.
• “How does paying for your child (under 18) help with taxes, if any?” If under 18 through LLCs, there is no employment tax.
• “Can you benefit from cost segregation at any time?” The longer you wait, there’s nothing left to depreciate. A tiny benefit, if any.
• “Need to move from sole proprietorship to some form of business entity. [...] C-corp? Something else?” Jeff is not a fan – there’s a lot of landmines out there. If you’re doing well, you want the capital gains. Put your cash in an LLC with an 80/20 split. Watch how to structure a trading business!
• “I currently own a home in one state (Oregon) and I am looking to purchase an investment property in another state and plan to do so using an LLC or an S-Corp. [...] What would be the easiest way to go about this?” Do not own in an S-Corp! Buy the AZ property in a land trust and LLC. Have someone guide you through this process
• “If I invested $30,000 in a marketing class to start a marketing company, do I have to amortize it over 15 years to see any of it back? Can it be a business investment and get it all back?” The only ones that can do this are C-Corps.
• “Is 1245 property subject to depreciation recapture if the rental property is sold with capital gain?” Gain is subject to recapture. You’re going to pay ordinary income tax.
• Send us your questions, and check out the event schedule listed in the resources section.

Infinity Investing

https://infinityinvesting.com/

Email us at Tax Tuesday

[email protected]

Tax and Asset Protection Events

https://andersonadvisors.com/real-estate-asset-protection-workshop-training/

Anderson Advisors

https://andersonadvisors.com/

Toby Mathis YouTube

https://www.youtube.com/@TobyMathis

Toby Mathis TikTok

https://www.tiktok.com/@tobymathisesq

Toby Mathis, Esq. welcomes Jason Zundel, Esq., an asset protection and estate planning attorney with Anderson Business Advisors. Jason and Toby discuss all the aspects of lawsuits, including getting served, things to worry about, protecting yourself, being actively involved, and possible outcomes. Protect your assets with Anderson’s asset protection services.

• You need to receive a Service of Process for an actual lawsuit
• Default judgements
• Case studies from Toby and Jason - suits can haunt you for decades
• Next steps when responding to a suit
• Timeline to expect
• Pursuing YOUR rights with a lawsuit- first steps
• The ‘hurry up and wait’ period
• Initial discovery can last 6 months to a year
• Make sure you’re involved every step of the way- don’t be passive
• Reminder - first, take a deep breath!

Tax and Asset Protection Events

https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=aba&utm_medium=podcast&utm_content=what-steps-to-take-when-facing-a-lawsuit

Toby Mathis on YouTube

https://www.youtube.com/c/tobymathisesq

Anderson Advisors

https://andersonadvisors.com/

In this episode of Anderson Business Advisors, Toby Mathis, Esq., welcomes Anderson Attorney Jonathan Evans, Esq., to dig into the ins and outs of using the IRS’ 1031 exchange in your real estate investment toolbox. Jonathan shares what a 1031 exchange is, how it works, what types of real estate investments you can exchange, the potential pitfalls, using a qualified intermediary (QI), and more.

• Light/kind or 1031 exchanges
• Using 1031 as a tool – only for trading real estate investment properties
• Carrying out the transfer - using an intermediary or ‘accommodator’
• Other rules and requirements - timeframe and number of properties
• Debt and the 1031 - mortgage boot
• Pitfalls and potential problems - what you can’t do
• Qualified intermediaries - check references
• Intent vs. hard rules
• Drop-n-Swaps, multiple owners/syndicates, LLCs
• Have a structured game plan before entering a 1031
• Share and subscribe

Anderson Advisors

https://andersonadvisors.com/

Toby Mathis YT

https://www.youtube.com/@TobyMathis

Tax & Asset Protection Events

https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=aba&utm_medium=podcast&utm_content=how-to-use-the-1031-exchange-to-avoid-taxes-in-real-state-investing

Learn Next Level Passive Income Strategies Through Real Estate & Stock Investing

https://infinityinvesting.com/infinity-investing-workshops/?utm_source=aba&utm_medium=podcast&utm_content=is-airbnb-dead-the-numbers-nobody-is-discussing

In this episode, Clint Coons, Esq. speaks with Shannon Robnett, a 4th generation real estate professional who has built his deal network by being THE BEST resource for ‘connections.’

For more than 30 years, Shannon Robnett Industries (SRI) has built a strong reputation as a leading commercial real estate investment group by investing in multi-family properties in the Treasure Valley. Their family of subsidiaries, including My Vertical Equity, Phoenix Commercial Construction, and Executive Management Services (EMS) Property Management, have grown to become a substantial earner in multi-family real estate syndication, investing in and around Boise, Idaho.

• Robnett’s family generations of real estate professionals
• How Shannon built his source list and later diversified
• Building your network - be everyone’s best resource for connections
• Learning from more experienced investors
• Cash flow, deal parameters, long-term debt
• Solving the seller’s problems
• Moving up to bigger deals, becoming part of a bigger machine
• Finding deals in non-local markets - how to drum up referrals through experts
• Questions to ask when vetting realtors, leveraging out-of-state connections
• Money or deals, which comes first?
• Aggregating capital first - creating your investor list
• Helping to structure the deal - creative financing, options for sellers
• Learning this process, the jargon, doing the homework
• Reach out through his website to get on to Shannon’s calendar!
• The 2008 crash could have been averted if we had these podcasts at that time

Shannon Robnett

https://shannonrobnett.com/

Robnett’s Real Estate Rundown Podcast

https://open.spotify.com/show/0JiVrqBwzZQinfzD3DReef

Tax and Asset Protection Events

https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=aba&utm_medium=podcast&utm_content=how-to-elevate-your-real-estate-investing

Anderson Advisors

https://andersonadvisors.com/

Anderson Advisors Podcast

https://andersonadvisors.com/podcast/

Clint Coons YouTube

https://www.youtube.com/channel/UC5GX-U6VbvMkhSM1ONBiW8w

In this episode of Anderson Business Advisors, Toby Mathis, Esq., welcomes Jamie Lane, the Chief Economist and SVP of Research at data aggregator AirDNA. Jamie’s research leadership has helped the whole STR (short-term rental) industry understand the drivers of success. He is a leading voice of authority on the health and outlook for the STR industry: on top of hosting AirDNA’s own podcast, STR Data Lab, he is a regular contributor to international media outlets such as Wall Street Journal, New York Times and Bloomberg, providing exclusive analysis and forecasts of the industry to global audiences. Jamie delves into the cold hard numbers, percentages, and facts from this market, which are actually very encouraging. Tune in to hear how STRs remain a strong space for investors and where you can look to find the best markets for your rental.

• Short-term rentals are seeing record numbers but normalizing
• Stats in the short-term rental space
• Market and season-specific occupancy
• Rentals in the top 25 Metro Statistical Areas (MSAs) vs. high demand secondary destinations
• Revenues per unit
• Second home statistics and short-term rentals
• How rentals are being used - not just for tourists
• Laws and restrictions on STRs in some metro areas
• Looking forward into 2024 - many new areas for STR investment

Jamie Lane Twitter

https://twitter.com/Jamie_Lane

AirDNA LinkedIn

https://www.linkedin.com/company/airdna

AirDNA

https://www.airdna.co/

STR Data Lab Podcast

https://www.airdna.co/podcasts

Anderson Advisors

https://andersonadvisors.com/

Toby Mathis YT

https://www.youtube.com/@TobyMathis

Learn Next Level Passive Income Strategies Through Real Estate & Stock Investing

https://infinityinvesting.com/infinity-investing-workshops/?utm_source=aba&utm_medium=podcast&utm_content=is-airbnb-dead-the-numbers-nobody-is-discussing

On today’s Tax Tuesday, host Troy Butler, Senior Manager of Bookkeeping at Anderson, speaks with Jeff Webb, CPA, Vice-President of Professional Services at Anderson about some timely tax questions around deductions and payroll. The discussion also addresses some detailed information around bookkeeping including services offered by Anderson, and other apps and software that are best for certain situations. Submit your tax questions to taxtuesday@andersonadvisors.

• "How do you write-off classes or courses, cars, equipment, or anything in general? What is the process? What do you keep? How do you show your proof of funds spent?" In a C-corp, you're allowed to take education for new lines of business. Other entity types, you're only allowed to deduct education for business tha you’re already doing.
• "What's the best way to get payroll started? I want to start with hiring a couple of part time employees." - I highly recommend using a third-party for payroll. I don't recommend that you do it yourself, unless you have a full-time dedicated bookkeeper that this is their job.
• "Can I deduct expenses for working from home, and what forms can I use?" - What we recommend, typically, is that if you have an entity such as a corporation or even a partnership, you do administrative home reimbursement.
• "What's the best way to record startup expenses incurred on your private accounts?" There's a lot to read there, so we'll go on to the next one. - Startup costs, organizational costs are actually intangible assets, and those intangible assets get amortized.
• "Which bookkeeping app would you recommend for four units or less landlords to make our tax preparation easier for all of us?" - QuickBooks is always good. I like QuickBooks Online.
• "Can we discuss how our bookkeeping service works?" I can do that pretty well. "We're drowning in Excel and Quicken." - We have several different services we offer here at Anderson. The flagship one is called full service bookkeeping, and that's where we're going to do your books on a monthly basis.
• "What are common expense categories I should use?" - There are lots and lots of templates of charts of accounts out there that can give you a good baseline. For our Platinum members, we offer some generalized templates.
• "Can I discuss some big picture strategies to help with bookkeeping automation/AI?"
• “We have a physician set up their PLLC in New York State. Do I need to set up payroll, give myself W2? How much do they pay themselves to avoid an IRS audit? What's the bookkeeping needed? How do I take the remaining money out as a distribution?" That's seven questions in one. They're getting their money's worth out of that one.
• “What are the minimum requirements to do so and suggested curiosity of tasking?" – If you have a ton of activity, and a week's worth of transactions takes you four hours to do, then you probably shouldn't wait a whole lot of time to do your bookkeeping. At the minimum, I would recommend doing your books quarterly.
• "If our business is still paying off business debt from previous tax years, how do we account for that as far as bookkeeping and reporting?” - If you take out a loan, and you're making payments against that loan, those loan payments aren't expenses, except for the interest on that loan.
• “How does the bookkeeping service integrate with the accounting service?" – If you're using us for bookkeeping and using us for tax, we will coordinate your tax return with your tax preparer. Your bookkeeping team will work with your client tax coordinators/tax preparer

Infinity Investing

https://infinityinvesting.com/

Email us at Tax Tuesday

[email protected]

Tax and Asset Protection Events

https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=aba&utm_medium=podcast&utm_content=how-to-write-off-general-business-expenses

Anderson Advisors

https://andersonadvisors.com/

In this episode of Anderson Business Advisors, Toby Mathis, Esq. welcomes back Trent Lee of First Choice Business Brokers (FCBB). Trent has been ranked NUMBER ONE in business brokerages for the last five years in a row. You’ll hear Toby and Trent discuss the latest industry stats and requirements surrounding the purchase of small businesses. From restaurants to medical facilities to construction companies, there’s something for every interest in this space. Get in touch with Trent if you want the expert in the business broker space.

• Trent’s the number one business broker in the country by volume for the last 5 years in a row
• Higher interest rates don’t mean that great businesses are not available
• Good businesses in their industry, bad owners
• Motivated sellers
• Case study - an urgent care facility
• Cap rate vs. multiples
• Case study - EBITDA to determine value
• The SBA, deals, and some positive changes
• Case study - a paving and grading company and the SBA
• Buying franchises
• Follow Trent on socials to hear about deals

Trent Lee YT

https://www.youtube.com/channel/UCncOtmBY1gbuE6wDyaFfwBw

Trent on Facebook

https://www.facebook.com/TrentLeeBizBroker

Trent on Twitter

https://twitter.com/TrentBizBroker

Trent on IG

https://www.instagram.com/trentleebizbroker/

Business Brokers Las Vegas

https://businessbrokerslasvegas.net/c/

Anderson Advisors

https://andersonadvisors.com/

Toby Mathis YT

https://www.youtube.com/@TobyMathis

Tax & Asset Protection Events

https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=aba&utm_medium=podcast&utm_content=how-big-changes-to-sba-rules-can-make-that-a-reality

In this episode, Clint Coons, Esq. speaks with “Mojo Michael” Gefteas about real estate wholesaling. Clint has been working with Michael for many years in the wholesaling space. After 25 years in the ‘corporate world,’ Michael went out on his own, building a huge buyers list over most of the last decade, and fine-tuning the way buyers and sellers approach wholesale deals. In this episode, you’ll hear about what wholesaling is, why you should consider investing this way, and some of the pitfalls and advantages of purchasing real estate with these methods.

• What is wholesaling?
• Contracts in Texas
• Do you know your real ARV to market at the right price?
• Finding sellers and the right price
• Once you’re in the contract - how can you maintain the sale?
• Memorandums of Contract and “cloud on title”
• Tips and advice for potential wholesalers
• com and what it offers

Mojo Michael

https://www.mojomichael.com/

Tax and Asset Protection Events

https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=aba&utm_medium=podcast&utm_content=real-estate-wholesaling-how-to-safeguard-your-deals-from-sellers

Anderson Advisors

https://andersonadvisors.com/

Anderson Advisors Podcast

https://andersonadvisors.com/podcast/

Clint Coons YouTube

https://www.youtube.com/channel/UC5GX-U6VbvMkhSM1ONBiW8w

Toby Mathis, Esq. welcomes Preston Knight, Esq., Senior Attorney at Anderson Advisors to the show to discuss some of the tax implications around crypto mining. You’ll hear how and when transactions are taxed, how the IRS views crypto and mining as a business entity, and some tips and tricks for avoiding and minimizing short and long-term capital gain and other taxes.

• Taxable events
• How the IRS views your work
• Capital gains hit when paying with bitcoin
• Short vs. Long term gains
• ‘Staking’ and how it is taxed
• Working through an S-Corp
• How to use a Roth to avoid taxes
• Using depreciation
• Writing off business expenses
• Airdrops and forks - what are the tax implications?
• Tracking and bookkeeping

Tax and Asset Protection Events

https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=aba&utm_medium=podcast&utm_content=how-crypto-mining-sales-and-staking-is-taxed

Toby Mathis on YouTube

https://www.youtube.com/c/tobymathisesq

Anderson Advisors

https://andersonadvisors.com/

Host Toby Mathis, Esq. speaks with Bill Mencarow, founder of The Paper Source and 30-year veteran of real estate note investing. Bill writes for Think Realty magazine and has authored several guides and seminars on notes. He has been interviewed on numerous radio and TV programs including “Good Morning America,” national networks and in major U.S. newspapers and magazines.

You’ll hear Bill and Toby discuss the pros and cons of note investing, including how and when you can buy and sell, getting cash out of your note, and what to look for when buying a note - including the three P’s - Property, Paper, and Payer.

• What is note investing?
• Selling notes for cash
• Pros and cons, options for using this ‘negotiable instrument’
• Selling your property using a note
• Where can you find notes to buy?
• What you should avoid- rules of thumb
• Slicing and dicing your note for sale
• Why go to a megabank corporation when you can get a note with someone in your community?
• Sign up for Bill’s free eCourse or email him for advice
• 3P’s - Look at Paper, Property, and Payer

Unlock the secrets of note investing and become a savvy investor with our exclusive 360 Pro Membership!

Infinity Investing Membership

https://infinityinvesting.com/pricing/

Tax and Asset Protection Events

https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=aba&utm_medium=podcast&utm_content=how-to-be-a-note-investor

The Paper Source

https://papersourceonline.com/

Toby Mathis on YouTube

https://www.youtube.com/c/tobymathisesq

Anderson Advisors

https://andersonadvisors.com/