Anderson Business Advisors Podcast

In this episode, Toby Mathis, Esq. sits down with insurance expert Caleb Guilliams to break down the truth behind infinite banking and permanent life insurance — and why so much of what circulates online is misleading. They examine how life insurance is routinely oversold as an investment, using Kyle Busch's widely publicized $8 million loss as a cautionary tale about what happens when policies are structured for agent commissions rather than client performance. Caleb explains the three distinct types of life insurance strategies — term, estate planning, and high cash value — and why the vast majority of people should start with term coverage before considering permanent products. Toby and Caleb also walk through how policy loans actually work, including interest rates, repayment flexibility, and the buy-borrow-die strategy as it applies to real estate investors. Additional topics include internal rate of return after all costs, the asset protection advantages of cash value, chronic and critical illness riders as an alternative to traditional long-term care policies, and the red flags that signal a policy has been designed to benefit the agent far more than the client. Tune in for expert insight on how to evaluate, structure, and integrate life insurance as part of a broader financial strategy! Highlights/Topics: 00:00 Don't believe everything you see online 01:22 Insurance being sold as an investment 02:55 What infinite banking actually is 09:00 Where policies go wrong 13:20 Commissions and hidden costs 18:30 How policy loans really work 23:00 The 3 types of life insurance strategies 31:00 Why most people need term first 38:00 Who life insurance is really for 41:00 Biggest red flags to watch for 45:30 Final thoughts Share this with business owners you know Resources: Guest – Caleb Guilliams / BetterWealth Have a policy you want reviewed? →https://go.betterwealth.com/tm-review Want to see if life insurance can better your financial situation? →http://betterwealth.com/tm-call The AND Asset: The Secret Way to Save And Use Your Money at The Same Time: https://www.amazon.com/Asset-Secret-Save-Your-Money/dp/1732724903 Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=the-truth-about-infinite-banking-and-permanent-life-insurance&utm_medium=podcast Schedule Your FREE Consultation https://andersonadvisors.com/strategy-session/?utm_source=the-truth-about-infinite-banking-and-permanent-life-insurance&utm_medium=podcast Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons

In this episode, Anderson attorney Eliot Thomas, Esq., and CPA Barley Bowler tackle a wide-ranging set of listener questions on retirement accounts, real estate strategy, and business tax planning. They explain the key differences between non-recourse and DSCR loans inside a Solo 401(k), and why maintaining non-recourse status is critical to avoiding a devastating unrelated debt financing income hit. They walk through how to properly establish state residency when relocating and cashing out a 401(k), and clarify why donating fully depreciated work trucks to charity won't produce a charitable deduction or avoid recapture. Eliot and Barley also lay out a detailed framework for strategically unwinding a rental portfolio — factoring in passive losses, real estate professional status, and sale timing. They break down the reverse mortgage interest deduction rules for a mixed-use property, explain how insurance proceeds and roof capitalization work after hail damage, and make a strong case for why real estate should always be transferred — never sold — into a disregarded LLC. The episode closes with a warning about Universal Business Organization Trusts, a rarely used entity type that typically surfaces in fraudulent tax schemes and won't generate the refundable NOL investors hope for. Tune in for expert guidance on these and more! Submit your tax question to [email protected] Highlights/Topics: 0:00 — Intro 8:37 — "I want to change from a Solo 401(k) non-recourse SFR loan to a Debt Service Coverage Ratio (DSCR) loan. Any tax implications or penalties to be aware of, particularly considering I'm 67 years old?" - No tax implications exist as long as both loans remain non-recourse. 14:35 — "I lived in Colorado January through March of 2025 and moved to Arizona in April. I had a small 401(k) that I cashed out in October 2025. Taxes were withheld. I understand I will be required to file two state returns. How will I reconcile the 401(k) for both states?" - Establish Arizona residency first; the 401(k) cash-out is taxed only there. 20:25 — "I have a fleet of work trucks that needs to be replaced. Can I donate the trucks to charity to avoid depreciation recapture? Can the charity then sell the trucks tax-free to fund their operations?" - Fully depreciated trucks yield no charitable deduction and no recapture to avoid. 25:08 — "From a tax perspective, what is the most strategic approach to unwind residential rental property?" - Track passive losses per property and time sales to offset income strategically. 32:33 — "I have a reverse mortgage on a 2-unit property where I rent one of the units. Will I be able to deduct the interest when I sell the property? What are the rules regarding reverse mortgages? Anything I should know after 10 years pass?" - Interest deductibility depends entirely on how the reverse mortgage proceeds were spent. 40:05 — "My rental property sustained hail damage that totaled the roof. I replaced it. Insurance paid for most of the work, but did not cover deductibles or roof depreciation. Can I recover those expenses using Federal and State tax codes? I live in California." - Out-of-pocket roof costs are capitalized and depreciated over 27.5 years. 43:58 — "When setting up a corporate structure to hold real estate assets, is it more tax efficient to sell the property to the corporation or just transfer ownership and declare it as startup capital?" - Transfer as a capital contribution; never sell to your own entity. 50:25 — "Can I sell my failing business/LLC to a Universal Business Organization Trust at 'cost basis'? Since the trust has no 'money/income' yet, I believe it will create a refundable NOL. Is that correct?" - No — the LLC's losses already flow through to your personal return. Resources: Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=the-tax-smart-way-to-move-real-estate-into-a-corporation&utm_medium=podcast Schedule Your FREE Consultation https://andersonadvisors.com/strategy-session/?utm_source=the-tax-smart-way-to-move-real-estate-into-a-corporation&utm_medium=podcast Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons

In this episode, Anderson attorneys Amanda Wynalda, Esq., and Eliot Thomas, Esq., answer listener questions on a wide range of real estate and tax topics. They cover tax benefits available for raw land purchases, including property tax deductions under SALT and investment interest expense on Schedule A. They explain the IRS tax code reference for short-term rentals — IRC Section 469 and Treasury Regulation 1.469-1T — and address special considerations for Airbnb-type rentals in foreign countries, including the mandatory alternative depreciation system (MADS) and foreign tax credits. Amanda and Eliot discuss minimum purchase prices for cost segregation studies and highlight property types like RV parks, car washes, and convenience stores that offer strong bonus depreciation benefits. They tackle the vacation home standard deduction question, clarifying how Schedule E rental properties interact with itemized deductions. The episode dives deep into multiple 1031 exchange questions, including timelines for entering a second 1031, California's clawback provisions on out-of-state replacement properties, and the drop-and-swap strategy for LLC partnerships. They also explain how to navigate delayed IRS refunds using the Taxpayer Advocate Service, and break down the time limits and rules for changing LLC tax status, including Form 8832 and the five-year rule. Tune in for expert advice on these topics and more! Submit your tax question to [email protected] Highlights/Topics: 00:00 — Intro 07:06 — "We recently made a large land purchase. Are there any tax benefits we can claim against our income?" — Deduct property taxes under SALT and investment interest expense on Schedule A. 14:27 — "Is there an IRS tax code reference I can look at for short-term rentals?" — Yes: IRC Section 469 and Treasury Regulation 1.469-1T define short-term rental rules. 18:20 — "Any special considerations for short-term Airbnb-type rentals in foreign countries?" — Use mandatory ADS depreciation; claim foreign tax credits to avoid double taxation. 22:55 — "Is there a minimum purchase price you recommend for STRs? Also, what type of property is ideal?" — A building value of $150,000–$300,000 is an ideal cost segregation starting point. 28:21 — "With today's Individual Standard Income Tax Deduction now so high, how can a Schedule E Vacation Home still be a tax advantage when write-offs no longer exceed the Standard Deduction?" — Schedule E rental deductions are entirely separate from your standard deduction benefit. 35:46 — "I sold one investment property and bought two under a §1031 exchange. When can I sell the two §1031 exchange replacement properties and enter a new §1031 exchange without a tax penalty?" — Hold replacement properties at least two years and thoroughly document your rental intent. 41:15 — "If a property is sold in California in a §1031 exchange and the replacement property in Tennessee is later sold through a second §1031, does California have capital gains taxes that need to be paid?" — Yes; California tracks deferred gains annually on Form 3840 until the tax is due. 44:34 — "If you have an LLC partnership with 3 members that recognized a sale, can each member make their own election with respect to a 1031 exchange? Or must the entire entity participate in the replacement property?" — Use the drop-and-swap strategy carefully; the IRS watches closely for step transactions. 49:15 — "In June of last year, the IRS asked me to submit my previous taxes before receiving my current tax refund. I did so. When I check the IRS website periodically, it says my refund is delayed. I have attempted to call, but no answer from the IRS. How do I expedite receiving my tax refund? Thank you in advance." — Contact the Taxpayer Advocate Service and review your IRS tax transcripts online. 53:18 — "What's the time limit on changing LLC tax status?" — File Form 8832 with an election date up to 75 days back or 12 months forward. Resources: Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=how-to-sell-1031-replacement-properties-without-tax-penalties&utm_medium=podcast Schedule Your FREE Consultation https://andersonadvisors.com/strategy-session/?utm_source=how-to-sell-1031-replacement-properties-without-tax-penalties&utm_medium=podcast Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons

In this episode, real estate data expert and multifamily investor Neal Bawa returns for the annual 2026 housing market forecast. Neal breaks down the performance of single-family and multifamily asset classes over the past several years, explaining why rents were essentially flat in 2025 and how the ICE workforce crackdown pushed a wave of unfinished inventory into 2026. He outlines why multifamily prices have hit a bottom — down 20–30% from their 2022 peak — and why that represents a buying opportunity, while single-family prices have remained surprisingly resilient due to the mortgage lock-in effect. Neal also shares his prediction of a rental supply shortage in 2027–2028 that should drive rent growth and occupancy higher, offers frank advice to syndication investors on holding through the downturn, and explains why small interest rate cuts can have an outsized impact on equity. He also introduces AI as a major wildcard that could reshape housing demand beyond 2030. Tune in for data-driven insights and practical takeaways for investors at every level. Highlights/Topics: 0:00 Intro + welcome Neal Bawa (2026 real estate predictions) 0:34 Single-family vs multifamily explained (Class A/B/C framework) 1:32 Real-world rent drop example: Fresno & Madera inventory surge 2:30 2025 rent growth recap: flat year, concessions, inflation effect 4:36 2026 forecast: supply rolling over, Q1 weak then accelerating rent growth 6:26 Investor question: should you buy now or sit on the sidelines? 7:11 Multifamily vs single-family since 2022: prices, resilience, lock-in effect 10:11 Why single-family cash flow is hardest right now (rates, taxes, insurance) 11:08 Why multifamily is near the bottom + “great time to buy” thesis 13:39 2027–2028 outlook: coming rental supply shortage + rent/occupancy boost 19:50 The AI wildcard: demand, jobs, and what changes after 2030 22:00 Advice for syndication investors: hold, cash calls, protect equity 24:16 Interest rates + equity math: why small rate cuts matter a lot 27:24 The “emotion” factor: sentiment shift and opportunity in 2026 32:00 Wrap-up + Neal’s free webinars at multifamilyu.com/club Share this with real estate investors you know Resources: Multifamily University Investor Club — Free webinars (8/year), no upsell, no subscription https://multifamilyu.com/lp/multifamily-university-investor-club-lp/ Grocapitus — Neal Bawa's investment company https://www.grocapitus.com Location Magic eBook — Neal Bawa's data-driven market selection resource https://multifamilyu.com/lp/location-magic-ebook/ Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons

In this Tax Tuesday episode, Anderson's Barley Bowler, CPA, and Eliot Thomas, Esq., address listener questions on a wide range of tax strategies for real estate investors, business owners, and healthcare professionals. They explain how seller financing affects the ability to use cost segregation and bonus depreciation under IRC Section 465's at-risk rules, and how a single-member LLC can recoup startup education costs through a C Corporation structure with shareholder loans. Barley and Eliot walk through the powerful tax advantages of setting up a management C Corporation over a Wyoming holding company — including medical reimbursements, accountable plan deductions, and W-2 solo 401(k) options. They cover what Medicare premiums and COBRA costs are reimbursable through a C Corp's medical reimbursement plan, how the Section 121 exclusion works for primary residence sales, and what options exist for mitigating a seven-figure business sale gain. Other topics include write-offs for uncollected insurance balances in healthcare practices, avoiding required minimum distributions by rolling into an employer plan, and electing pass-through entity tax in New York for investment partnerships. Tune in for expert guidance on these strategies and more! Submit your tax question to [email protected] Highlights/Topics: 7:18 — "How does the use of seller financing impact the ability to use strategies such as cost segregation and bonus depreciation?" Under IRC Section 465, your deductible losses are limited to the amount you have personally at risk. First phrase: "This is a great question. This covers a lot of different angles." 15:27 — "The business failed to make any profit in year 1. How are those initial costs recouped, and how much can be carried forward to future years?" A C Corp election allows full education deductions; fund via shareholder loan for tax-free recoupment. First phrase: "A single member LLC spent $9,500 on training and other related startup costs." 21:06 — "If I operate one LLC per real estate project, does it make sense to have a separate management entity to deduct shared expenses like an assistant, office costs, business meals, travel, and pre-development work? What's the correct tax structure?" A management C Corporation reduces rental income and allows tax-free reimbursements to the owner. First phrase: "If I operate one LLC per real estate project, does it make sense to have a separate management entity..." 27:45 — "What components of Medicare premiums are reimbursable by my property management C corporation?" Out-of-pocket Medicare and COBRA premiums qualify; general wellness supplements typically do not. First phrase: "What components of Medicare premiums are reimbursable by my property management C Corporation..." 38:10 — "If I sell my house, how long do I have to buy something else before I owe capital gains tax? Do I need to purchase the next home for more than the sale of the house or is there a percentage of that value?" Section 121 excludes up to $250K single or $500K married with no replacement property required. First phrase: "If I sell my house, how long do I have to buy something else before I owe capital gains tax?" 44:45 — "For my healthcare practice, where can I write off balances that insurance refuses to pay, and promotions/certain population deals where I give service discounts or free visits/supplement packages for charity events?" Cash-basis taxpayers cannot deduct uncollected income, and donated services are not tax-deductible. First phrase: "For healthcare practice, where can I write up balances? Insurance refuses to pay." 50:02 — "Can I avoid taking Required Minimum Distributions at age 73, if I roll over my retirement contributions from a previous employer's plan to my current employer's plan?" Rolling into a current employer plan may defer RMDs if you are not a greater-than-5% owner. First phrase: "Can I avoid taking required minimum distributions at age 73?" 53:12 — "Can an investment partnership elect the Pass Through Entity Tax in New York? What are the issues creating/dissolving investment partnerships?" New York allows any partnership to elect PTET, generating a valuable federal-level tax deduction. First phrase: "Can an investment partnership elect the pass through entity tax in New York?" 59:38 — "I sold my company, and I am coming into a 7-figure settlement soon. What can I do with that money to decrease my taxes?" Explore charitable remainder trusts, qualified opportunity zones, and capital loss harvesting strategies. First phrase: "I sold my company and I'm going to come into a seven figure settlement soon." Resources: Tax and Asset Protection Events — Live workshop in Las Vegas, March 19–21 https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=how-to-structure-a-tax-efficient-management-entity&utm_medium=podcast Schedule Your FREE Consultation — Scan the QR code or visit the link to book your strategy session htt

In this episode, host Toby Mathis, Esq., speaks with returning guest Chris Streit, a cost segregation expert from CSA Partners, about two frequently overlooked tax strategies that can save real estate investors thousands of dollars: Partial Asset Dispositions (PAD) and Qualified Improvement Property (QIP). They discuss how PAD allows investors to immediately expense the remaining value of replaced building components like roofs, rather than continuing to depreciate both the old and new assets simultaneously. Chris explains how QIP enables investors to leverage 100% bonus depreciation on commercial property improvements made after January 19, 2025, including improvements to short-term rentals. The conversation covers the critical timing of converting long-term rentals to short-term rentals before making improvements, the necessity of cost segregation studies for substantiating these deductions, and real-world applications for various commercial properties including hotels, restaurants, and retail spaces. Toby and Chris also address common concerns about IRS audits and emphasize the importance of working with specialized professionals to maximize these often-missed deductions. Highlights/Topics: (00:00) Understanding partial asset dispositions and roof replacements (07:11) Qualified improvement property explained for commercial assets (11:18) Converting long-term rentals to short-term (18:31) Bonus depreciation timeline and audit concerns Share this with business owners you know Resources: 📊 Cost Segregation Resources: Request a FREE Cost Segregation Benefit Analysis: https://aba.link/83c5ab Learn more about CSA Partners: https://csap.com/ 🎥 Related Videos With Chris Streit: 5 Cost Segregation Mistakes That Trigger IRS Audits: https://youtu.be/1urK1954GS8 Stop Overpaying Depreciation Recapture: The §1245 Move They Skip: https://youtu.be/DBbT2jVG3Js 📚 Download Your Free Resources: Download Your Digital Copy Of Infinity Investing: How The Rich Get Richer And How You Can Do The Same: https://inf.link/efz Register for an upcoming workshop today to protect your assets from creditors. Save Your Seat: https://aba.link/6ea4bf Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons

In this episode, Anderson attorneys Amanda Wynalda, Esq., and Eliot Thomas, Esq., tackle listener questions on tax strategies for real estate investors and traders. They explain the tax implications of house flipping, including when to report income and how installment sales affect taxation. Amanda and Eliot discuss transitioning from a disregarded LLC to an S Corporation for managing rentals and flipping properties, emphasizing the importance of avoiding dealer status. They dive deep into 1031 exchange requirements, including timing constraints, qualified intermediaries, and the rules for converting investment property to a primary residence. Other topics include home office deductions versus reimbursements, deducting mileage for consultants with administrative offices, optimal business structures for active stock trading, differences between S and C Corporations, and the tax consequences of using corporate equipment for personal use. Tune in for expert guidance on maximizing tax savings while maintaining compliance! Submit your tax question to [email protected] Highlights/Topics: [00:00] Intro [06:26] I purchased a home for $12,000 in 2025 for flipping. Do I show it on my taxes at all or only after I flip? How do I calculate the taxes from flipping? If I want to sell a flip on installments – how does that change the tax? Report only after sale; calculate as ordinary income plus self-employment tax. [10:02[ What do you recommend to transition from a disregarded LLC to S Corp for managing rentals and doing house flipping as well? Use separate S or C Corporation to avoid dealer status. [14:10] I'd like to do a 1031 Exchange and eventually move into the property as my primary residence. How quickly can I do that? Wait 24 months with proper rental use before converting to residence. [19:03] What are some of the pitfalls of a 1031 exchange to focus on? Timing deadlines, qualified intermediary requirement, and boot recognition are critical pitfalls. [29:28] Can my S Corporation pay rent to me for my home office? And if so, is this considered personal income? Use accountable plan reimbursements instead to avoid taxable rental income. [33:32] If I am a consultant and take a gig at a company 35 miles from my S-Corporation's administrative office, can I write off the costs to get to the facility on the days I work there? Yes, with administrative office, mileage becomes deductible business travel expense. [36:41] What's the best business structure setup for active stock trading? Limited partnership with C Corporation general partner provides optimal tax benefits. [42:19] What are the differences between an S Corporation and a C Corporation for an LLC? S Corporation flows through; C Corporation pays flat 21 percent rate. [47:25] If I move equipment into my C corporation, can I still use it for personal use? Personal use over 50 percent creates taxable fringe benefit complications. Resources: Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=1031-exchange-pitfalls-real-estate-investors-must-know&utm_medium=podcast Schedule Your FREE Consultation https://andersonadvisors.com/strategy-session/?utm_source=1031-exchange-pitfalls-real-estate-investors-must-know&utm_medium=podcast Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons

In this episode, Anderson attorney Clint Coons, Esq., sits down with real estate investor Gabriel Hamel to explore creative financing strategies for building wealth without traditional bank loans. Gabriel shares his inspiring journey from working minimum wage after military service to acquiring nearly 400 properties using seller financing and no-money-down techniques. They discuss how to structure creative deals, overcome the misconceptions about creative financing, the importance of cash flow over appreciation, and strategies for analyzing deals that work in any market. Gabriel also explains the power of building relationships, finding motivated sellers, and creating win-win scenarios that benefit both buyers and sellers. Clint and Gabriel emphasize the importance of taking action, getting involved in investment communities, and pursuing time freedom through real estate investing. Tune in to learn how you can start building your real estate portfolio even if you have little to no cash! Gabriel Hamel joined the military at 17 and deployed to Iraq in 2003-2004. After returning home, he found himself working 30 hours a week at minimum wage with dreams of financial freedom. When the 2008 financial crisis eliminated traditional lending options, Gabriel discovered creative financing and seller financing strategies. Starting in 2009 with his first no-money-down deal, he systematically replaced his minimum-wage income and eventually built a $60M portfolio of nearly 400 properties. Today, Gabriel co-hosts the Zero to 100 Real Estate Podcast, helping investors build wealth designed around freedom, family, and choice. Highlights/Topics: (00:00) - Introduction to Creative Financing with Gabriel Hamel (02:08) - First Properties and the 2005-2007 House Hacking Strategy (06:08) - The 2008 Financial Crisis: When Banks Said No (07:38) - Debunking Creative Financing Myths and Misconceptions (10:08) - Finding Motivated Sellers and Structuring Win-Win Deals (20:15) - Cash Flow vs. Appreciation: Building Sustainable Wealth (30:45) - Analyzing Deals and Making Offers That Work (42:49) - The Zero to 100 Tribe: Community and Time Freedom (45:46) - Taking Action: Final Advice for Aspiring Investors Resources: Connect with Gabriel 👇 http://www.zeroto100tribe.com/ https://www.instagram.com/the_real_gabriel_hamel https://podcasts.apple.com/us/podcast/the-zero-to-100-real-estate-podcast/id1745322778 Schedule Your FREE Consultation https://aba.link/0qx Tax and Asset Protection Events https://aba.link/2f2856 Anderson Advisors https://andersonadvisors.com/ Anderson Advisors Podcast https://andersonadvisors.com/podcast/ Clint Coons YouTube https://www.youtube.com/channel/UC5GX-U6VbvMkhSM1ONBiW8w Anderson Advisors Tax Planning Appointment https://andersonadvisors.com/ss/

In this episode, Toby Mathis, Esq., sits down with 3,700+ unit operator Aaron Adams to discuss the six hottest real estate markets for 2026 and six markets to avoid. They cover the economic factors driving real estate growth, including GDP expansion, potential interest rate decreases, and tax bill impacts. Aaron shares his top picks: Kansas City (benefiting from Oracle's massive $28 billion Cerner acquisition), Idaho Falls (emerging nuclear technology hub), Charlotte (continued banking sector growth), the Winston-Salem triad area (affordability with five universities), and Indianapolis (steady lockstep growth in rents, wages, and prices). On the flip side, they discuss why to avoid Chicago (high property taxes, population decline), San Francisco (rent controls, tenant protections), Detroit (60% population loss, aging infrastructure), New York City (landlord-unfriendly policies), Los Angeles (high acquisition costs, poor cash flow), and Austin (overbuilt multifamily, high insurance and taxes). They also cover the strategy of investing in smaller cities within 30-40 miles of hot metros to capitalize on growth while maintaining affordability. Tune in for expert insights on where to invest for cash flow in 2026! Highlights/Topics: 00:00 - Introduction: 2026 Real Estate Market Outlook 01:42 - Economic Convergence: GDP, Interest Rates & Tax Impacts 12:30 - Hot Market #1: Kansas City (Oracle's $28B Acquisition) 17:02 - Hot Market #2: Idaho Falls & Markets to Avoid: San Francisco 23:08 - The 30-Mile Strategy: St. Joseph, MO Example 28:16 - Hot Markets #3-5: Charlotte, Winston-Salem & Indianapolis 35:31 - Asset Allocation Strategy: The 30-30-30-10 Model 40:39 - Markets to Avoid: LA, Austin, Chicago & Detroit Share this with business owners you know Resources: 📚 Download Your Free Resources: Download Your Digital Copy Of Infinity Investing: How The Rich Get Richer And How You Can Do The Same https://inf.link/efz Register for an upcoming workshop today to protect your assets from creditors. Save Your Seat: https://aba.link/6ea4bf 🏘️ Connect With Aaron Adams: REI Kickstart Summit Event https://course.infinityinvesting.com/infinity-summit-interest-update Alpine Capital Solutions https://alpinecapitalsolutions.com/ Contact Aaron Adams https://alpinecapitalsolutions.com/contact/ Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons

In this Tax Tuesday episode, Eliot Thomas, Esq., and CPA Barley Bowler address listener questions on diverse tax topics including property management S corporations and QBI deductions. They explain how to structure management companies for rental properties, the relationship between W-2 wages and K-1 distributions, and the power of the 199A qualified business income deduction. Eliot and Barley dive deep into 100% bonus depreciation, cost segregation studies, and depreciation recapture rules—clarifying when to use Section 179 expensing versus bonus depreciation. They also cover maximizing education expense deductions through C corporations, leveraging oil and gas working interest investments for immediate ordinary deductions of 60-85%, structuring private operating foundations with proper payroll procedures, and optimal tax strategies for business sales including the powerful Section 1202 exclusion. Tune in for expert guidance on these advanced tax planning strategies! Submit your tax question to [email protected] Highlights/Topics: 00:00 - Intro 05:34 - "I have a property management S corporation for my rental properties. All rents and expenses are paid to/from the S-corporation. I take a W2 from the corporation. At the end of the year I receive a K1 for the net rental income. Can I take a QBI deduction for this K1?" - The K-1 reflects only the management fee, not rental income. QBI applies to that fee. 14:07 - "I am curious how I can get the maximum benefit from a tax perspective for education class fees paid." - C corporations can deduct new business education via loans from shareholders arrangement. 19:04 - "Please explain 100% Bonus Depreciation recapture and eligible assets with a less than 20 year life being fully depreciated in Year 1." - Cost segregation identifies 5, 7, 15-year assets eligible for immediate bonus depreciation. 24:08 - "What happens if you sell a rental property with depreciation recapture after a cost segregation with bonus depreciation?" - Five-year and fifteen-year property recaptures at ordinary rates; building capped at 25%. 29:46 - "Please explain Section 179 expensing." - Section 179 allows immediate equipment expensing but cannot create a loss situation. 36:20 - "Is oil and gas a good tax deduction?" - Working interest investments provide immediate 60-85% ordinary deductions through intangible drilling costs. 40:36 - "My family has a private operating foundation. One family member works full-time for the foundation and we agreed to pay a wage to that individual. Would that family member have a w-2? Or does the owner withdraw? Also payroll?" - Pay reasonable W-2 wages through payroll; no owner withdrawals in nonprofit foundations. 44:40 - "What is the best tax strategy for selling a business?" - Stock sales create capital gains; consider Section 1202 for qualified small businesses. Resources: Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=100-bonus-depreciation-recapture-explained&utm_medium=podcast Schedule Your FREE Consultation https://andersonadvisors.com/strategy-session/?utm_source=100-bonus-depreciation-recapture-explained&utm_medium=podcast%C2%A0 Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons

In this episode, Toby Mathis, Esq., interviews Chris Streit from CSA Partners about the five critical elements that cause cost segregation studies to fail under IRS audit. Chris, whose firm has completed tens of thousands of cost seg reports, reveals that 80% of studies contain fatal flaws that will not survive scrutiny. The conversation covers the importance of establishing proper real estate professional status or short-term rental qualification before taking accelerated depreciation. Chris explains why land value allocation is the first thing the IRS examines and how it must use county valuation at time of purchase—not rule-of-thumb percentages. They discuss the non-negotiable requirement for physical site visits with video documentation, the necessity of using current RSMeans software with local jurisdiction pricing (not outdated books or averages), and why having accessible audit support is crucial when the IRS comes calling. Chris emphasizes that the burden of proof is on the taxpayer, making professional documentation and expert backup essential. Tune in to learn how to protect your cost segregation deductions and avoid costly audit failures! Highlights/Topics: (00:00) - Introduction: Why Your Cost Seg Will Fail (00:54) - Element #1: Real Estate Professional Status (02:46) - Element #2: Land Value Allocation (09:06) - Element #3: Engineered Study & Site Visits (12:38) - Element #4: RSMeans Cost Data Requirements (15:39) - Element #5: Audit Support & Accessibility Share this with business owners you know Resources: Request a FREE Cost Segregation Benefit Analysis https://aba.link/vsh Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=your-cost-segregation-will-fail-audit-if-you-miss-these-5-elements&utm_medium=podcast Learn more about CSA Partners: https://csap.com/ https://csap.com/ Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons

In this episode, Anderson attorneys Amanda Wynalda, Esq., and Eliot Thomas, Esq., tackle listener questions on reducing capital gains taxes and advanced tax strategies for real estate investors and business owners. They explore the intricacies of cost segregation studies and bonus depreciation versus Section 179, including timing issues for renovations. Amanda and Eliot discuss strategies for minimizing capital gains after decades of depreciation, converting ordinary income to capital gains in development deals, and the tax implications of oil and gas working interest investments. The duo also covers deductible expenses for corporate retreats, entity structuring for piano tuning and bookkeeping businesses, and sophisticated trading partnerships using C corporations. Finally, they take a deep dive into Solo 401(k) contribution limits, explaining the differences between employee contributions, employer matches, and the mega backdoor Roth strategy for maximizing retirement savings. Tune in for expert advice on these and more! Submit your tax question to [email protected] Highlights/Topics: "I purchased a rental and did a cost seg in 2024. I renovated it in 2025. Can I use a cost segregation and/or Section 179 to depreciate the new renovation assets in 2025?" Answer: Yes, bonus depreciation works; 179 has limitations. [21:16] “How can I reduce capital gains on the sale of a rental property after nearly 27 and a half years? The accelerated depreciation reduced the basis to zero." Answer: 1031 exchange, installment sale, or opportunity zones. "How can I get capital gains on my K-1 instead of ordinary income on my investment into a real estate developer corporation?" Answer: Development corporations typically generate ordinary income, not capital. "What expenses for an off-site retreat for an LLC member and officers meeting are deductible? For example, travel, lodging, meals, activities." Answer: Travel, lodging, 50% meals if genuinely business-related. "If I invest in an oil and gas working interest and I have a first year larger intangible drilling cost loss than is needed for a given tax year based on adjusted gross income, can the excess be carried forward to a future tax year as a net operating loss? Would the NOL have alternative minimum tax implications as well?" Answer: Yes, NOL carries forward; minimal AMT concerns today. "How do I set up a holding company in California? I want the holding company to own my two companies. One's a piano tuning business and then a bookkeeping business. I have an average income of $125,000 per year combined: $45K for piano, $80K for bookkeeping." Answer: Wyoming LLC holding company owns two California entities. "I want more information on how I can structure my LLC more efficiently for day trading. What can I do to minimize my taxes for the new year? How can I lower my capital gains tax from day trading?" Answer: Trading partnership with C corporation for deductions. "Please take a deep dive into Solo 401(k) contributions. What are the individual contribution limits, employer match limits, and especially the voluntary after tax contribution limits. Which components need to be earned income and how does this change if contributing to a Roth 401(k)?" Answer: $72K total; $24.5K employee; mega backdoor uses after-tax. Resources: Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=how-to-reduce-capital-gains-taxes-when-selling-a-rental-property&utm_medium=podcast Schedule Your FREE Consultation https://andersonadvisors.com/strategy-session/?utm_source=how-to-reduce-capital-gains-taxes-when-selling-a-rental-property&utm_medium=podcast Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons

In this episode, Anderson Business Advisors host Clint Coons, Esq., sits down with Brian Hanson, co-founder of Real Advisors and AI for Business, to explore how artificial intelligence is revolutionizing real estate investing. Brian, who has been teaching business owners and investors about AI and marketing for several years, shares how investors can use AI to crunch massive amounts of data in seconds to identify the most predictable houses likely to sell — something that used to cost $20,000+ from data scientists. They discuss using humanized chatbots and voice bots that can have thousands of personalized conversations simultaneously without sounding robotic, automating follow-up sequences that never miss opportunities, and building custom apps in under five minutes without any coding knowledge. Brian reveals specific tools like Rest Bag for analyzing repair costs at 10 cents per photo, Yellow Pages Scraper for building 20,000-person cash buyer lists for just $80, and browser-use.com for creating custom APIs by simply showing the system what you do manually. As Brian explains, "I just don't think that most people really realize what's possible out there." The conversation covers everything from data mining and lead generation to creating high-converting marketing campaigns using competitive intelligence, virtual staging, and automation tools like Lovable, Google's AI Studio, Air DNA, House Canary, and Semrush. Tune in to discover how AI is the ultimate force multiplier for real estate investors looking to scale their businesses efficiently! Brian Hanson is the co-founder of Real Advisors and AI for Business. He got his start in real estate in his early 20s working with renowned real estate educator Ron LeGrand, where he developed a passion for marketing. Over the years, Brian has become obsessed with finding smarter, faster ways to grow businesses, and when AI emerged, he immediately recognized its transformative potential. Brian now teaches business owners and investors how to leverage AI to dramatically scale their operations, reduce costs, and increase output. He hosts the AI for Business podcast and regularly conducts three-day intensive training events where he shares cutting-edge AI strategies and tools. Brian's approach focuses on practical implementation—helping entrepreneurs automate processes, eliminate roadblocks, and achieve results they never thought possible. Highlights/Topics: (00:00) - Brian Hanson and the AI Opportunity (05:23) - Finding Off-Market Deals: Data Crunching and Lead Generation (11:35) - Automating Follow-Up and Conversations with AI (17:24) - Property Analysis, Contracts, and What AI Can't Replace (25:19) - Building Custom Apps in Minutes Without Coding (30:13) - AI-Powered Marketing and Competitive Intelligence (33:17) - Where to Learn More and Final Thoughts Resources: https://podcasts.apple.com/ke/podcast/ai-for-business-podcast/id1821570230 https://www.linkedin.com/in/brian-hanson-1548797 https://www.facebook.com/brian.hanson1?mibextid=LQQJ4d https://events.aiforbusiness.com/ Schedule Your FREE Consultation https://andersonadvisors.com/strategy-session/?utm_source=ai-for-real-estate-investing&utm_medium=podcast Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=ai-for-real-estate-investing&utm_medium=podcast Anderson Advisors https://andersonadvisors.com/ Anderson Advisors Podcast https://andersonadvisors.com/podcast/ Clint Coons YouTube https://www.youtube.com/channel/UC5GX-U6VbvMkhSM1ONBiW8w Anderson Advisors Tax Planning Appointment https://andersonadvisors.com/ss/

In this episode, Toby Mathis, Esq., of Anderson Business Advisors, interviews Ryan and Tait, hosts of the Passive Income Pilots Podcast and seasoned real estate investors. Ryan has built a $750 million self-storage portfolio while Tait continues flying for a major commercial airline. They share how pilots can build tax-free income while traveling the world through strategic real estate investing, syndications, and debt funds. The conversation covers the biggest mistakes new pilots make with retirement accounts, powerful Roth conversion strategies during probationary years, and how to leverage real estate professional status to offset W-2 income. Tyler and Tait explain how they legally pay almost no federal income tax on nearly $1 million in combined annual income using accelerated depreciation, cost segregation, and oil and gas investments. You'll also hear about whole life insurance strategies, airplane leasebacks for depreciation benefits, and why pilots' largest expense is actually taxes—not housing. Tune in for expert insights on building multiple income streams and achieving financial freedom! Ryan Gibson is the President, Chief Investment Officer, and Co-Founder of SIG. He has organized over $450M of private equity for Spartan’s projects. Ryan has experience managing the development of SIGs projects in challenging markets. For SIG, Ryan is responsible for investor relations and capital raises for projects. Ryan is also a highly experienced commercial airline pilot. Ryan graduated from Mercyhurst University with a bachelor’s degree in Business, with concentrations in Marketing, Management, and Advertising. Tait Duryea is the Founder and Chief Executive Officer of Turbine Capital. As an experienced airline captain and third-generation aviator, Tait combines deep industry knowledge with more than a decade of real estate investing experience across single-family, multifamily, self-storage, industrial, mobile home parks, and short-term rentals. Highlights/Topics: Best pilot-friendly passive income models: syndications, debt funds, and strategic real estate investing Biggest mistakes new pilots make: rolling old 401(k)s too quickly and missing Roth conversion opportunities during probationary year Tax-advantaged real estate: using accelerated depreciation and cost segregation to offset high W-2 income Real estate professional status: How Tait and his wife legally pay almost no federal income tax on nearly $1 million annual income Stacking strategies: combining low-income year Roth conversions with discounted LP valuations for maximum tax savings How one Southwest pilot saved $100,000 in taxes by following podcast education and implementing strategies Lifestyle creep: Converting purchases into time to make smarter financial decisions and avoid overspending What separates financially free pilots from those who aren't: continuous education, networking, and disciplined saving Share this with business owners you know Resources: Listen To The Passive Income Pilots Podcast https://passiveincomepilots.com/ Learn more about Ryan Gibson and Spartan-Investors https://spartan-investors.com/ Learn more about Tait Duryea and Turbine Capital https://www.turbinecap.com/ Schedule Your FREE Consultation https://andersonadvisors.com/strategy-session Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=how-pilots-build-tax-free-income-while-traveling-the-world&utm_medium=podcast Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons

In this Tax Tuesday episode, Anderson Advisors’ Barley Bowler, CPA, and Eliot Thomas, Esq., tackle a wide range of listener questions covering everything from business structures to retirement planning. They discuss the pitfalls of investing in movie production under Section 1801, explain why commuting expenses aren't tax-deductible even for long-distance work arrangements, and clarify the new 1099-NEC reporting thresholds and the upcoming 1099-DA requirements for digital assets. Barley and Eliot break down Section 179 vehicle deductions and the advantages of heavy SUVs over luxury vehicles, explain the reasonable wage requirements and distribution strategies for S corporations, and provide guidance on structuring spec house construction businesses to minimize employment taxes. They also cover mark-to-market elections for traders, the tax consequences of below-market rent to friends or family, and the complications of placing a personal residence in an LLC. Tune in for expert advice on these topics and more! Submit your tax question to [email protected] Highlights/Topics: "Any thoughts about investing in movie production for high-income earners?" - Section 1801 expires 2025, creates passive losses, not recommended for most. "I work for a local government agency in Cochise County, Arizona and live in Maricopa County, Arizona, approximately 215 miles apart. I commute in on Monday, stay in a hotel and leave on Thursday. I've been doing this every week since December of 2024. Is there a tax break deduction for this?" - No deduction available; this is considered commuting, not business travel. "Is the new 1099-NEC now starting after $2,500?" - Still $600 for 2025; increases to $2,000 in 2026 only. "Who needs to file this new 1099-DA digital asset form?" - Brokers must send to clients by February 15, 2026. "I'm a sole proprietor and would like to buy a BMW X7 to save the tax based on section 179. Is it covered?" - Yes, if over 6,000 pounds; 100% write-off available first year. "I'd like to know the proper ratio of distribution payments to salary within an S corporation." - One-third to 60% of net income is typical rule of thumb. "Can I pay myself quarterly out of my S corporation LLC?" - Yes, quarterly W-2 payments are acceptable and help avoid penalties. "What's the best way to structure a business to minimize taxes when building spec houses? I do the majority of the work on the houses, so it looks like a lot of profit on my labor, which is not good. I'm currently structured as a pass through LLC and purchase the house lots in a different LLC from my construction LLC." - Use S corporation for labor; sell land separately at capital gains rate. "Is it too late for a mark to market election for 2026?" - No, must file on 2025 return by April 15, 2026. "Is mark to market a good tax deduction?" - Only if trader status qualifies; creates ordinary losses on unrealized gains. "I'm renting to a friend for $300 a month. Fair market rent would be over $1,500. Any tax consequences?" - Deductions limited to income received; cannot create rental loss at all. "How can I have an LLC for my personal residence if the house is the residence of both my son and I as joint tenants?" - Possible but risks losing section 121 exclusion and homestead exemption. Resources: Schedule Your Free Consultation https://andersonadvisors.com/strategy-session/?utm_source=how-to-structure-multiple-llcs-for-spec-home-building-and-lower-taxes&utm_medium=podcast Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=how-to-structure-multiple-llcs-for-spec-home-building-and-lower-taxes&utm_medium=podcast Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons

In this episode, Toby Mathis, Esq., interviews Chris Streit, a tax incentive and cost segregation expert, about four major changes for real estate investors under Trump's One Big Beautiful Bill. Chris explains how energy tax credits like 45L (residential) and 179D (commercial) are sunsetting on June 30, 2026, offering up to $5,000 per door for qualifying new construction. They discuss the brand new Qualified Production Property (QPP) provision that allows manufacturers to expense up to 70% of facility costs with zero recapture if held for 10 years—a game-changing opportunity for production facilities. The conversation covers the return of 100% bonus depreciation for properties acquired and placed into service after January 19, 2025, and how this creates immediate tax benefits for residential and commercial real estate investors. Chris and Toby also explore how investors who purchased properties before January 19th can still benefit from 100% bonus on improvements made after that date. Tune in for expert insights on maximizing these tax strategies before key provisions expire! Chris Streit is the Chief Executive Officer of CSA Partners, a firm specializing in tax services like cost segregation, known for leading with operational excellence, customer-centricity, and driving significant growth in areas like tax incentives for real estate. He's a seasoned executive with decades of experience in finance, investment, and leadership, having previously worked at major firms like Merrill Lynch and Bridgewater Associates. Highlights/Topics: Energy tax credits 45L and 179D are sunsetting June 30, 2026—builders can still get up to $5,000 per door for new construction meeting Energy Star requirements 179D commercial energy deduction offers $5.80 per square foot for properties with construction starting before January 2023, exempt from prevailing wage requirements Qualified Production Property (QPP) allows manufacturers to expense up to 70% of facility costs with zero recapture if held 10 years—a permanent tax reduction 100% bonus depreciation is back for properties acquired and placed into service after January 19, 2025, creating immediate first-year tax benefits Properties purchased before January 19th still eligible for 100% bonus on improvements made after that date, though original purchase uses old rates One client discovered $30 million in overlooked 179D benefits on a 5.1 million square foot property that started in 2021 QPP creates new manufacturing incentives by expensing facility costs without recapture, making production facilities extremely attractive for investors Cost segregation studies paired with bonus depreciation can generate immediate tax savings worth 7-10x the cost of the study Share this with business owners you know Resources: Request a FREE Cost Segregation Benefit Analysis https://aba.link/ka3 Learn more about CSA Partnershttps://csap.com/ Stop Overpaying Depreciation Recapture: The §1245 Move They Skip https://youtu.be/DBbT2jVG3Js Real Estate’s Biggest Tax Loophole: Cost Seg + 1245 Exchange Explained https://youtu.be/JYKo34_n8yU Schedule Your FREE Consultation https://andersonadvisors.com/strategy-session/?utm_source=4-big-changes-for-real-estate-investors-under-trumps-big-beautiful-bill&utm_medium=podcast Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=4-big-changes-for-real-estate-investors-under-trumps-big-beautiful-bill&utm_medium=podcast Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons

In this episode, Anderson CPA Barley Bowler and attorney Eliot Thomas, Esq., tackle year-end tax planning strategies and answer listener questions on a variety of critical topics. They explain the new rules for research and development cost deductions following recent legislation, including the choice between immediate 100% deduction or five-year amortization for domestic R&D. Barley and Eliot cover the 72T procedure for penalty-free early IRA withdrawals, the strategic benefits of qualified opportunity zone investments for deferring capital gains, and how to use IRA funds without penalty for first-time home purchases. They discuss the complex rules for deducting expenses on mixed-use vacation homes, calculating tax-free administrative office reimbursements, and essential year-end action items including payroll, bonus depreciation, solo 401K contributions, and charitable giving strategies. Tune in for expert advice on maximizing deductions before December 31st! Submit your tax question to [email protected] Highlights/Topics: "What are research and development costs? How are they deducted?" - Domestic R&D costs can now be 100% deducted immediately. "What expenses that I incur on behalf of my employer can I deduct on my personal 1040 tax return?" - Very limited options exist; reimbursement from employer is best approach. "Can you please explain what a 72T procedure is?" - Take equal IRA distributions before 59.5 without 10% penalty. "I am considering investing in an opportunity zone fund to defer capital gains. What are some top items I should be thinking about?" - Consider fund structure, compliance requirements, and ten-year holding period benefits. [33:35] Title Question "How can I be exempt from paying the IRS the penalty of using my retirement money to buy a condo?" - First-time homebuyers can withdraw $10,000 from IRA penalty-free. "Are expenses such as real estate property taxes and home improvements deductible on vacation homes that are used both for personal and rental purposes?" - Personal use over 14 days limits deductions to rental income. "I'm attempting to calculate the reimbursements for our administrative office. How do I calculate, how much can I reimburse myself for tax-free every year?" - Calculate square footage percentage times home expenses for reimbursement amount. Resources: Schedule Your Free Consultation https://andersonadvisors.com/strategy-session/?utm_source=can-you-use-retirement-money-for-a-condo-without-the-penalty&utm_medium=podcast Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=can-you-use-retirement-money-for-a-condo-without-the-penalty&utm_medium=podcast Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons

In this episode, Anderson Advisors Barley Bowler, CPA, and Eliot Thomas, Esq., tackle listener questions on critical tax strategies. They cover the differences between Section 179 expense deductions and bonus depreciation, including how to combine them effectively and avoid creating excessive losses. Barley and Eliot discuss the timing of equipment purchases for tax planning purposes and explain the complexities of equipment leasing investments, emphasizing the importance of material participation tests. They address the mark-to-market election for active traders and explain why Anderson doesn't recommend this strategy due to audit risks. The attorneys clarify that qualified charitable distributions can only be made from IRAs, not Solo 401(k)s, and explore strategies for using IRA withdrawals to purchase rental properties while offsetting taxes through cost segregation studies. They also explain excess business loss limitations, the interaction between cost segregation studies and qualified opportunity zone funds, and why 1031 exchanges cannot be used to avoid capital gains tax deferrals ending in December 2026. Tune in for expert guidance on these advanced tax topics! Submit your tax question to [email protected] Highlights/Topics: "How can I take advantage of tax code 179, Section 179?" - Section 179 allows immediate deduction of qualifying business equipment expenses. "If I have more business items to buy like a desk, should I buy them before the end of the year? Or maybe I wait to the new year? When do I buy these things?" - Purchase timing depends on which year needs the deduction more. "If one invest in an equipment leasing investment in 2025, and it's active, and writes off 100% of the equipment cost in 2025, but then in 2026 no longer active, does the income revert to passive income or is it still active for 2026?" - Active losses remain locked in; only future income becomes passive. "Can I still take the IRS mark-to-market election for the tax year starting January 1st 2026?" - Election must be made on 2025 return by April 15th. "I have a Solo 401(k). First of all, how does this work? And can I make qualified charitable distributions from my Solo 401(k)? Plus do these tax-free distributions go on my 1040 as a deduction?" -QCDs only work from IRAs, not Solo 401(k) retirement plans. "Is there a cap on how much money I can withdraw per year from my traditional IRA to purchase an income-producing rental property? What are the things I need to consider before making this decision? I'm 55 years old and I am aware of the 10% penalty." - No cap exists; expect regular income tax plus 10% penalty. "Is there an annual cap on bonus depreciation? Is there a limit on how much bonus depreciation we can take?" - Excess business loss limitation caps deductions at $313,000 single, $626,000 married. (44:44) Title question "Can I do a cost segregation study on a property that's in a qualified opportunity zone fund? How does this impact the capital gains tax deferral that ends in December of 2026?" - Yes; cost seg helps operations but doesn't offset deferred gains. "Can I do a 1031 exchange and avoid the tax due when the deferred tax comes due in 2026?" - No; cannot use 1031 to avoid QOZ deferred capital gains. Resources: Schedule Your Free Consultation https://andersonadvisors.com/strategy-session/?utm_source=can-you-do-a-cost-segregation-study-on-property-in-a-qualified-opportunity-zone-fund&utm_medium=podcast Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=can-you-do-a-cost-segregation-study-on-property-in-a-qualified-opportunity-zone-fund&utm_medium=podcast Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons

In this Tax Tuesday episode, Anderson attorneys Amanda Wynalda, Esq., and Eliot Thomas, Esq., tackle listener questions on choosing the right business structure and maximizing tax savings. They explore when to switch from sole proprietor to S-corporation status, explaining the sweet spot for making the transition and the significant tax benefits available through S-corps versus Schedule C filing. Amanda and Eliot dive deep into house flipping strategies using C-corporations to avoid dealer status and self-employment tax while maximizing deductions through accountable plans and bonus depreciation. They clarify the complexities of 1031 exchanges, especially when properties are held in partnerships, and introduce the "lazy 1031" strategy for offsetting capital gains using passive activity losses. The duo also addresses managing multiple LLCs without creating excessive tax filing burdens, deductions available for nonprofit volunteer work, and creative ways to fund retirement accounts through trading partnerships. Whether you're a truck driver looking to reduce your tax burden or an investor navigating 1031 exchange rules, this episode delivers expert guidance on structuring your business for maximum tax efficiency! Submit your tax question to [email protected] Highlights/Topics: "I have a trading partnership with 40% C-corporation and 60% myself for ownership. The partnership makes around $20,000 in ordinary staking income." We're going to be talking about Bitcoin. "Can the C-corp use its $8000 in income to fund a 401(k) owned by the corporation since this is ordinary income?" - Yes, use solo 401(k) or tax-free reimbursement strategies instead. "What kind of deductions can I use as a C-corporation to offset capital gains from a house flipping?" - House flipping creates ordinary income, not capital gains, offset accordingly. "If I have multiple LLCs, do I have to file multiple tax returns?" - It depends on entity type and how they're connected. "I am a sole proprietor, independent truck driver, and I feel I'm paying very high taxes. What can I do?" - Consider switching to S-corp for self-employment tax savings at scale. "My tax preparer says, don't switch to an S-corp. Make an S-election until your revenue hits a hundred thousand dollars. Why is that? And how will an S-corp help me?" - S-corps save self-employment tax but add compliance costs and complexity. "If a property purchased via 1031 exchange is held in an LLC partnership, can it be converted to personal use like a personal residence after two years? If so, what are the tax implications?" - Extremely complicated; partnership ownership creates significant tax issues and barriers. "How may I pay no capital gain without a 1031 exchange?" - Use the lazy 1031 strategy releasing suspended passive losses. "If I volunteer my work or my time at a nonprofit agency, are there any tax deductions that I can take?" - Personal time isn't deductible, but mileage and expenses are. Resources: Schedule Your Free Consultation https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=s-corp-vs-sole-proprietor-when-should-you-switch-to-an-s-corp&utm_medium=podcast Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=s-corp-vs-sole-proprietor-when-should-you-switch-to-an-s-corp&utm_medium=podcast Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube

In this special episode, tax attorney Toby Mathis, Esq., shifts focus from financial health to physical health by welcoming William Donovan from the Pritikin Longevity Center to discuss America's number one killer: cardiovascular disease. William shares his personal story of reversing heart disease and eliminating the need for bypass surgery through lifestyle changes at Pritikin, explaining how their medically supervised program has helped thousands achieve remarkable health transformations. The conversation covers the alarming statistics showing that 50% of heart attack victims had normal cholesterol levels, the critical role of endothelial function and arterial plaque, and why traditional risk factors don't tell the whole story. William explains the Pritikin Program's three-pillar approach, combining a whole-food, plant-based diet low in calorie density, daily exercise routines including resistance training, and comprehensive lifestyle education. They discuss how participants typically see dramatic improvements in just two weeks - lowering cholesterol by 23%, reducing blood pressure, eliminating medications, and reversing diabetes. With insights on inflammation, the dangers of processed foods and added oils, and the importance of getting professional medical guidance, this episode provides actionable strategies for anyone concerned about heart health, especially business owners and investors who need to protect their most valuable asset: their health. Highlights/Topics: 0:00 Heart Disease Statistics and Personal Story 3:40 What Pritikin Does and Nathan Pritikin's Story 12:45 Opening the Center and 60 Minutes Validation 19:40 What Happens in One to Two Weeks at Pritikin 30:20 The Challenge of Getting Healthy in Modern Society 36:45 Inspiring Success Stories 39:20 GLP-1s vs Lifestyle Change 42:50 Three Big Myths About Heart Disease Share this with business owners you know Resources: Schedule Your FREE Consultation https://andersonadvisors.com/strategy-session/?utm_source=the-number-1-killer-in-america&utm_medium=podcast Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=the-number-1-killer-in-america&utm_medium=podcast Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons

In this episode of Tax Tuesday, Anderson advisors Barley Bowler, CPA, and Eliot Thomas, Esq., address listener questions on tax topics ranging from basic bookkeeping to advanced ESOP strategies. They cover essential bookkeeping practices for first-time rental property owners and the tax implications of transferring a fully depreciated truck from an S corporation to personal use. Barley and Eliot explain how to catch up on missed depreciation from prior years, the tax benefits of inheriting property versus receiving it as a gift, and how independent contractors should handle federal income and employment taxes. Other topics include choosing the best filing structure for single-member LLCs, tax reduction strategies for Schedule C solopreneurs earning over $100K, deferring traditional IRA distributions using Qualified Longevity Annuity Contracts (QLACs), and the little-known 1042 fund strategy for deferring taxes on ESOP distributions. Tune in for practical tax advice and strategies to keep more of what you earn! Submit your tax question to [email protected] Highlights/Topics: "What's the most efficient way to get my books ready for filing taxes? I'm filing taxes for my first time rental business. I just acquired them this year. I'm a first time landlord without bookkeeping experience." A: Use bookkeeping software and categorize expenses properly throughout the year. "My S corporation owns a fully depreciated truck. Can I transfer the truck to my personal name and start taking mileage reimbursement instead? What are the tax implications?" A: Yes, but you'll recognize income equal to fair market value. "For the eight years now, my prior taxpayer never took depreciation for any of my rental properties or my property assets for the building, along with the components like the water heater. What do I do now?" A: File Form 3115 for a change in accounting method. "I'm considering moving into my parents' home while they're still living there. I'm curious about the best way to either transfer the house into my name or should I stay there and wait until they pass because they intend to leave the house to me anyway." A: Wait for inheritance to receive stepped-up basis and avoid gift taxes. "How do I pay federal income and employment taxes working as an independent contractor receiving a 1099?" A: Pay quarterly estimated taxes using Form 1040-ES throughout the year. "What tax filing structure do you recommend for a single-owner LLC wanting to not be a disregarded entity? Why? Pros and cons of the options." A: Consider S corporation for self-employment tax savings if income supports it. "I'm a Schedule C solopreneur looking for ways to avoid being overtaxed. I made over $100K this year and I'm the only breadwinner in my family of four with two kids under 18. We're in Florida. What do you recommend for ways to lower my taxable income?" A: Establish S corp, maximize retirement contributions, and utilize business deductions. "Is there any way to defer for tax reporting a distribution from my traditional IRA? I recently heard someone talking about this and was not sure if they were referring to a Qualified Longevity Annuity Contract (QLAC)." A: Yes, QLACs allow deferring up to $200K until age 85. "How does a 1042 fund work? I've never heard of that." A: It defers ESOP distribution taxes by reinvesting in qualified replacement stock. Resources: Live Event in Dallas Dec 4-6 2025 Schedule Your Free Consultation Tax and Asset Protection Events Anderson Advisors Toby Mathis YouTube Toby Mathis TikTok Clint Coons YouTube

In this episode, tax attorney Toby Mathis, Esq., welcomes Tom Chittum, former ATF Deputy Director and firearms law expert, to discuss the critical intersection of firearms ownership and estate planning. They explore what families need to know when inheriting firearms, from identifying contraband weapons to navigating complex federal regulations. Tom explains the biggest mistakes executors make, including informal transfers and failing to determine whether firearms, such as machine guns, are properly registered under the National Firearms Act of 1934. The conversation covers the distinction between regular firearms and NFA weapons (machine guns, silencers, short-barreled shotguns), the severe criminal penalties for unlawful possession, and the importance of working with federal firearms licensees for transfers. Tom provides practical guidance on securing firearms, maintaining proper inventories, using gun trusts to simplify inheritance, and understanding both actual and constructive possession. With insights from decades of ATF experience, Tom offers actionable steps gun owners can take today to protect their families from legal headaches and ensure valuable firearms or family heirlooms don't become government-destroyed contraband due to simple mistakes. Highlights/Topics: 0:00 Why Listen to Tom Chittum 2:58 Biggest Mistakes with Firearm Inheritance 6:20 History of Federal Gun Laws 8:36 Legal Possession and Registration Requirements 11:30 Prohibited Persons and Transfer Restrictions 12:59 How to Transfer Firearms to Heirs 15:30 NFA Firearms and Special Requirements 18:35 Gun Trusts and Estate Planning 22:29 Executor Rights and Possession 24:31 Securing Firearms in Estates 25:51 Handling Contraband Firearms 28:50 Weekend Action Steps for Gun Owners 31:00 Outro Share this with business owners you know Resources: Schedule Your FREE Consultation https://andersonadvisors.com/strategy-session/?utm_source=guns-and-estate-planning-what-every-family-needs-to-know&utm_medium=podcast Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=guns-and-estate-planning-what-every-family-needs-to-know&utm_medium=podcast Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons

In this episode, tax attorney Toby Mathis sits down with Chris Streit, CEO of CSA Partners, to dive deep into cost segregation studies and how they can dramatically improve cash flow for real estate investors. They explore the biggest mistakes investors make with depreciation, explaining how the IRS treats properties as single assets when they're actually composed of multiple components that depreciate at different rates. Chris breaks down the mechanics of cost segregation studies, revealing how even a $200,000 rental property can generate $40,000 in year-one deductions instead of just $5,000-$6,000 annually. The conversation covers the impact of the One Big Beautiful Bill's reinstatement of 100% bonus depreciation, the differences between engineered studies versus software-generated reports, and strategies for minimizing depreciation recapture through 1245 exchanges. With over 20,000 studies completed and minimal audit issues, Chris provides expert guidance on audit-proofing returns, maximizing tax savings throughout the property lifecycle from acquisition to sale, and debunks common myths about depreciation timing and syndication eligibility. Highlights/Topics: 0:00 Biggest Mistake Real Estate Investors Make 5:15 Why Regular Investors Should Care About Cost Segregation 8:45 What is a Cost Segregation Study 12:20 Real Life Cash Flow Examples 15:30 Engineering Studies vs Software Studies 20:45 Audit Concerns and IRS Statistics 25:10 One Big Beautiful Bill and Bonus Depreciation 30:15 Depreciation Recapture and 1245 Exchanges 35:40 Cost Segregation and 1031 Exchanges 38:20 Advice for Investors 40:50 Cost Segregation on Syndications 42:30 Biggest Myths About Depreciation 44:15 Closing Thoughts Share this with business owners you know Resources: Learn more about Ryan Gibson and Spartan-Investors https://spartan-investors.com/ Schedule Your FREE Consultation https://andersonadvisors.com/strategy-session/?utm_source=real-estates-biggest-tax-loophole-cost-seg-1245-exchange-explained&utm_medium=podcast Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=real-estates-biggest-tax-loophole-cost-seg-1245-exchange-explained&utm_medium=podcast Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons

In this episode of Tax Tuesday, Anderson attorneys Amanda Wynalda, Esq., and Eliot Thomas, Esq., tackle a diverse range of tax questions from listeners. They discuss oil and gas investments used to offset Roth conversion income and explain excess business loss limitations. Amanda and Eliot clarify filing requirements for C-corporations with losses, emphasizing that corporations must file regardless of activity. The team explores multiple scenarios involving converting short-term rentals to primary residences or vacation properties, covering Section 121 exclusions, depreciation recapture, and the strategic use of S-corporations to step up basis. They present creative alternatives to 529 plans, including paying children through family businesses to fund education tax-free. Eliot and Amanda also review key provisions of the One Big Beautiful Bill Act affecting small business owners, including permanent QBID, enhanced bonus depreciation, and the SALT workaround. Finally, they demystify passive loss limitations, explaining the hurdles of basis, at-risk rules, and passive activity loss restrictions that syndication investors commonly face. Submit your tax question to [email protected] Highlights/Topics: "I've made a Roth conversion earlier this year and am currently in the process of doing another conversion. We have invested in oil and gas to help offset taxes due. Is there a concern that we've invested too much?" - Excess business loss limits apply but unused losses carry forward. "I have not had any activity in my C-corporation and it had $26,000 of loss, and had some expenses. Do I still need to file an 1120 corporate return?" - Yes, corporations must file tax returns regardless of activity level. "We're thinking of taking our short-term rental out of service and moving into it as our primary residence. What are the tax implications if we sell our existing primary residence?" - Section 121 excludes up to $500,000 gain on primary residence sale. "Same scenario with short-term rental and primary residence, but we're turning our existing primary into a short-term rental instead of selling it. What are the implications?" - Basis transfers to rental, depreciate building over 27.5 years going forward. "Same scenario with short-term rental and primary residence, but we're converting one property into a vacation home with no rental activity. What happens?" - Personal vacation homes lose business deductions, only Schedule A applies. "We do not have any education savings set up for our son who is now a junior in high school. Is there any other option to pay for college pre-tax? Most of our income is from rentals." - Pay child W-2 wages through rental LLC under standard deduction amount. "Would you please go over some of the benefits of the Big Beautiful Bill for small business owners?" - Permanent QBID, 100% bonus depreciation, SALT workaround, enhanced Section 179 available. "A lot of time you talk about taking passive losses from syndications to offset passive income. However, I've encountered passive loss limitations where about two-thirds of losses have been disallowed due to basis, at-risk limitations, or excess business loss. Would you please explain how and why losses are being limited?" - Three hurdles exist: basis, at-risk, and passive activity loss rules. "What expenses are incurred for rental properties that are tax deductible and what is the best way to stay organized when keeping records?" - Reference IRS Schedule E page one for complete deduction list. "How do we properly track and maximize deductions across multiple rental properties while maintaining compliance?" - Maintain separate books per property, use accounting software regularly.RetryClaude can make mistakes. Please double-check responses. Resources: Schedule Your Free Consultation https://andersonadvisors.com/strategy-session/?utm_source=the-big-beautiful-bill-benefits-every-small-business-should-know&utm_medium=podcast Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=the-big-beautiful-bill-benefits-every-small-business-should-know&utm_medium=podcast Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq Clint Coons YouTube https://www.youtube.com/@ClintCoons

In this episode of Tax Tuesday, Anderson advisors Barley Bowler, CPA, and Eliot Thomas, Esq., tackle listener questions covering essential tax strategies for real estate investors and business owners. They explain how LLCs holding investments should be taxed, breaking down the differences between disregarded entities, partnerships, and corporations. They walk through complex scenarios including calculating capital gains on homes with mixed personal and rental use, including non-conforming use periods and depreciation recapture. Barley and Eliot discuss strategic tax planning for cryptocurrency gains, maintaining disability benefits while generating passive income, and the mechanics of cost segregation studies for accelerating depreciation deductions. They also cover creative strategies like the daughter's stock trading scenario using the 0% capital gains bracket, finding passive income to offset accumulated passive losses, and using nonprofits for tax savings. Throughout the episode, they emphasize the importance of proper structure and timing to maximize deductions while staying compliant. Submit your tax question to [email protected] Highlights/Topics: "Should my LLC holding investments file as a C or an S corporation or with my individual 1040?" - Disregarded LLC on personal return; corporations for active business only. "We are selling our personal home with acreage for considerable gain. How do I figure out which percentage of capital gains we will owe? Zero 15. 20. And how can we decrease the amount of capital gains we will owe?" - 0%, 15%, or 20% based on taxable income brackets after exclusions. "My daughter trades stocks and has low earned income. If she closes positions at a profit that were held over a year, the capital gains remain untaxed provided her net taxable income is below the threshold. Can she close in a profit and reopen the same position year after year? Can that be ongoing to avoid any tax?" - Yes, if total taxable income stays below threshold annually. "What is the best asset protection entity structure to be in that will save on taxes with gains in cryptocurrencies?" - Trading partnership with 90/10 split and C corporation for efficiency. "I'm a disabled nurse collecting social security disability. I'm considering an LLC as an asset holding company. How can I make it so the distribution and salary are passive so that I don't lose my benefits?" - Use disregarded LLC; dividends and capital gains typically don't affect disability. "Can you please explain a cost segregation study?" - Accelerates depreciation by reclassifying building components into shorter-life assets for upfront deductions. "I have a house I lived in for three years, rented for five years, moved back in two years ago. How does the rental depreciation and recapture gain work on my tax return if I sell it?" - Apply Section 121 exclusion; 50% non-conforming use affects gain calculations. "What types of passive income could I invest in to offset my accumulating passive losses?" - Limited partnership interests in businesses generating profits, not portfolio income like stocks. "Would you please explain how nonprofits are used to save on taxes?" - Itemized charitable donations create deductions; funds must serve nonprofit purposes only. Resources: Schedule Your Free Consultation https://andersonadvisors.com/strategy-session 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 Clint Coons YouTube https://www.youtube.com/@ClintCoons

ode of Tax Tuesday, Anderson attorneys Amanda Wynalda, Esq., and Eliot Thomas, Esq., tackle a diverse range of tax questions from viewers. They explore the differences between PadSplit/co-living models and short-term rentals, explaining why PadSplit typically doesn't qualify for the same tax advantages as short-term rental activities. The duo covers entity formation costs and how they're treated for disregarded LLCs, the importance of proper documentation for independent contractor payments including W-9 forms and 1099 requirements, and cryptocurrency taxation for long-term holders. They also discuss offsetting bond interest with stock losses, wash sale rules for options trading, 1031 exchange strategies including improvement exchanges to minimize boot taxation, and comprehensive guidance on real estate professional status requirements. The episode concludes with settling a marital dispute about whether primary residence maintenance counts toward real estate professional status hours. Submit your tax question to [email protected] Highlights/Topics: "Are the fees for disregarded LLCs taxable on the business return or the personal return?" - Fees follow the entity's disregarded destination and activity type. "Will the PadSplit/co-living model give you the same tax advantage as a short-term rental?" - No, PadSplit typically doesn't qualify for short-term rental benefits. "Last year I purchased a three-level eight-bedroom house with one kitchen and one bathroom on each floor. I rent the floors as separate apartments except for one level where I have two rooms rented separately. I put the house in service on January 25. I listed it as my primary residence. I never actually lived there. Can I perform a cost segregation, take advantage of bonus depreciation, et cetera?" - Yes for cost seg, but homestead fraud concerns exist. "I paid freelancers to put up a fence last year. I didn't get a receipt. Can I write off any of the costs of this fence? I used my company credit card or bank checks to conduct business with vendors and stores. I am bad at keeping receipts. But I print my bank statements. Can I use my statements as proof of purchase for tax purposes?" - Bank statements help but proper W-9s and 1099s are required. "I will be receiving profits from the sale of cryptocurrency investments that I've had for five years. I'm retired and receive social security as my only income. How will this crypto be gained from an IRS perspective?" - Taxed as capital gains, likely at fifteen percent rate. "Can interest gained on a US savings bond be offset with the loss on a stock sale for tax purposes?" - Yes, up to three thousand annually against ordinary income. "If I sell a stock at a loss and purchase calls instead, do I lose my loss benefit as if I had repurchased more stock within the 30 day period? Or in simpler terms, are calls treated the same as stock?" - Yes, calls typically trigger wash sale rule provisions. "We did a 1031 exchange with the building we own, but the place that we bought the replacement property was 250,000 cheaper. How do we minimize our capital gains on the leftover money? I know we can use capital improvements that we've made, but what are the rules and how must we document the improvements? Likewise, can we use depreciation schedules from the prior returns for the new tax returns?" - improvement exchanges must occur during exchange. "I wanna know more about the tests for real estate professional status as a way to deduct expenses from other passive income. I understand that I need 750 hours, but this is very loose and I'm not sure how it is audited exactly." - 750 hours plus fifty percent test, requires detailed documentation. "Please settle this one thing that my husband and I disagree on, I say that maintenance on our primary residence cannot be used towards rep status. He says certain things you could count towards reps would be pool maintenance, HVAC service, et cetera. I say no because it's a primary residence and reps is strictly for time you spend on rentals only. I'd like him to not have to sleep on the couch any longer." - No, personal residence maintenance doesn't count toward business hours. Resources: Schedule Your Free Consultation https://andersonadvisors.com/strategy-session 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 Clint Coons YouTube https://www.youtube.com/@ClintCoons

In this Tax Tuesday episode, Anderson Advisors’ Barley Bowler, CPA, and Eliot Thomas, Esq., tackle ten listener questions covering essential tax strategies for business owners and real estate investors. They break down the enhanced contribution limits for solo 401(k)s, including the new employer Roth contributions and age-based catch-up provisions. The attorneys explain proper loan structures between shareholders and corporations, emphasizing documentation requirements and interest rate compliance. They cover installment payment reporting for private money loans, clarify the Augusta Rule (280A) for tax-free rental income from home meetings, and distinguish between deductible business expenses versus personal costs. Investment structuring strategies for AI and energy stocks are explored, along with C-corporation real estate ownership considerations. The episode concludes with discussions on the expanded SALT deduction limits, pass-through entity tax workarounds for high-tax states, and the new research and development tax benefits under recent legislation. Submit your tax question to [email protected] Highlights/Topics: "What is the maximum that can be contributed to a solo 401k Roth as the employee and employer of my own business, what do I need to do to handle payroll for myself?" - Employee limits: $23,500 (under 50), $31,000 (50-59), $34,750 (60-63). Employer: 25% of compensation. Use professional payroll services. "I want to loan cash for my business to myself, since my spouse and I have regular W2 jobs that push our incomes into high, the highest tax brackets. Other than loaning money to myself to pay for rental property. Are there any other uses for those loan funds? What are the issues on the backend for repayment rights?" - Must have written documentation, regular payments, and applicable federal rate interest (4.22% for 2025). "I'm receiving installment payments on a private money loan from my borrower. Are these payments listed as income, even though the entire principal balance and interest haven't been paid yet? How do you show this on a tax return?" - Interest portion is taxable income as received. Principal repayment is not taxable. Report on Schedule B. "I have a C Corp and two LLCs. Can you clarify the tax allowance on Augusta meetings, please? Also known as 280A. I believe I was informed that I can deduct up to $1000 per month on these monthly meetings when held, is this still the case for 2024 and 2025?" - Fourteen days maximum per year regardless of entity count. Get three local quotes for reasonable rates. "Are the paid fees for business essentials and the Living Trust deductible as startup costs or operating costs?" - Business essentials are deductible (startup vs operating depends on timing). Living trust is personal expense, not deductible. “What strategies should I set to invest in AI or energy stocks?" - Wyoming LLC for passive investing. Trading partnership with C-corp for active trading and tax benefits. "A C corporation owns a disregarded LLC, which in turn owns real estate. The real estate is sold for capital gains that is incurred by the C Corp. Is this the best way to be structured?" - Never put appreciable real estate in C-corp unless flipping. For buy-and-hold, use Wyoming holding company structure. "Does the SALT (state and local tax) deduction of $40,000 apply to a joint tax return?" - Yes, $40,000 limit applies to joint returns. Phases out at $500,000 AGI but maintains $10,000 floor. "How does the new PTET (pass through entity tax) SALT (state and local tax) deduction work around policy work for high tax states like California? Are certain entities included like SSTBs (specialized service trader businesses)?" - Pass-through entities can pay state tax for federal deduction. Complex structures and publicly traded partnerships excluded. "How might the research and development (R&D) tax credit that's been affected by the big beautiful bill help me as a small business owner?" - Domestic R&D expenses can be deducted immediately (100%) or over five years. Foreign expenses still 15 years. Resources: Schedule Your Free Consultation https://andersonadvisors.com/ss/?utm_source=5-reasons-restructure-sole-proprietorships&utm_medium=podcast 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 Clint Coons YouTube https://www.youtube.com/@ClintCoons

In this Tax Tuesday episode, Anderson tax attorneys Amanda Wynalda, Esq., and Eliot Thomas, Esq., tackle a diverse range of tax questions covering rental property strategies, depreciation rules, and business structure optimization. They explain the tax implications of renting property to family members below market rates, including income reporting requirements and limited deduction capabilities. The attorneys discuss gifting rental properties to children and the associated gift tax filing requirements, while exploring sophisticated property management company structures for generating earned income and maximizing retirement contributions. They provide detailed guidance on utilizing IRS sections 168 and 179 for depreciation and bonus depreciation, clarifying the current 100% bonus depreciation rules and debunking outdated 80% figures. Other topics include S-corp benefits for 1099 contractors, holistic health business taxation, accountable plan cell phone deductions backed by IRS Notice 2011-72, vehicle deduction methods and limitations, and even professional gambling expense deductions for Vegas visitors. Throughout the episode, they emphasize proper entity structuring, asset protection, and tax planning strategies. Submit your tax question to [email protected] Highlights/Topics: "I have a question about tax implications of renting my property to my parents. If I rent it to them for less than fair market value, are there any tax incentives or exemptions in this situation? I'm trying to understand whether I would still need to report the income and if I would lose the ability to deduct expenses associated with the property." - Must report income; IRS treats below-market family rentals as not-for-profit activities. "In 2024, I deeded some rental properties to my children about $250,000 each. Is there a way to write this off?" - No deduction available; must file Form 709 for gift tax reporting. "I have four rental properties. I personally manage them through an LLC. Can I use my company as a management company and charge a 20% fee for managing it to be able to show I have earned income and then contribute to an IRA? Also, would I be able to establish a Roth IRA?" - Yes, with reasonable fees and proper structure; enables IRA contributions. "How do I utilize IRS code section 168 and 179 for depreciation and bonus depreciation? How do I buy cars and furniture right off up to 80% of the value of the property every time I buy a house rental or asset? Can I utilize AI or any AI software with these to automate and hands off anything?" - Use 179 first, then 168 bonus depreciation; now 100% not 80%. "I'm a 1099 independent contractor. I own two pieces of property, one is my primary residence, the other has a home and a small apartment on it that I rent out long term under the table. My thoughts are that I need to create an LLC for my business, possibly an S corp. As I understand the tax laws, there will be no way to use any of the rental properties to reduce the tax burden of my 1099 income. Am I on the right track here?" - Report all income; S-corp saves self-employment tax; passive losses don't offset. "I'm going to start a consulting business that focuses on holistic health. What should I be looking for in the next six months or so when I launch? Is taxation different from real estate and in what way?" - Consider S-corp for self-employment tax savings; business expenses differ significantly. "With an accountable plan, can I deduct a hundred percent of a cell phone? Is there some documentation that backs this up? Prove it." - Yes, 100% deductible with S/C-corp; IRS Notice 2011-72 provides documentation. "I have a question about vehicle deductions. There are two methods available, the standard mileage deduction and the actual expense method. Can I use the actual method to claim all the depreciation in one year, then switch to the standard mileage deduction in subsequent years. If this is possible, how does it work? Assume the vehicle is used a hundred percent for business purposes." - Three methods exist; business-owned vehicles allow 100% bonus depreciation benefits. "Since you're in Vegas, you might know the answer to this one. My friend won a reportable jackpot, mid five figures, and he was wondering if he could deduct the travel lodging expenses just as he might do if he made this money as a business deal or future excursions to Sin City to try and extend his winnings." - Only if professional gambler with business intent and meticulous records. Resources: Schedule Your Free Consultation https://andersonadvisors.com/ss/?utm_source=5-reasons-restructure-sole-proprietorships&utm_medium=podcast 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 Clint Coons YouTube https://www.youtube.c

Today on Tax Tuesday, Anderson Advisors Barley Bowler, CPA, and Eliot Thomas, Esq., focus on capital gains, cryptocurrency, stock trading structures, and real estate strategies. They explain how capital losses are deducted and the $3,000 annual limit that hasn't been adjusted for inflation since the 1950s. You’ll hear about Bitcoin's tax treatment as a personal asset with favorable capital gains rates but note the lack of wash sale rule protections. They demonstrate how a trading partnership with a C corporation can provide significant tax advantages through accountable plan reimbursements. The episode extensively covers real estate topics including the distinction between repairs and capital improvements, the inability to deduct lost rent from deadbeat tenants, and home office deductions for primary residences. They explain 1031 exchanges in detail and explore strategies for managing large capital gains from personal residence sales, including converting to rental properties and the Section 121 exclusion benefits. Submit your tax question to [email protected] Highlights/Topics: "I have a large capital loss. How are capital losses deducted? When should I consider taking a tax write off by closing the position, unrealized versus realized gains?" - Capital losses offset gains first, then $3,000 annually against ordinary income. "My wife and I are considering investing in Bitcoin. What are the tax advantages or disadvantages of doing so investing crypto for crypto for that type of investment?" - Bitcoin treated as capital asset with favorable rates, no wash sale rules. "I do a lot of stock buying and selling. Is it tax efficient to set up a business entity?" - Trading partnerships with C corporations provide excellent accountable plan reimbursement opportunities. "Can you explain what differentiates whether a real estate rental deduction would be categorized as a maintenance repair deduction versus a capital expense deduction? And provide examples. Please explain how these are treated differently from a tax perspective as well." - Repairs maintain property condition; capital improvements add value, extend life, or change use. "Can I deduct lost rent from a deadbeat tenant?" - No deduction available; you simply don't report income you never received. "I've heard you talk about renovations major to rental property and tax advantages, but what about for my primary residence? I need to finish the basement. Upgrade the house. This is also the address of my C corp business is registered to, and I operate a home office out of it. When I complete taxes next year, is there anything specific that I can take advantage of due to this large expense?" - Primary residence improvements add to basis; home office allows business-related deductions. "Can I do a 1031 exchange on real property?" - Yes, but not on primary residences or inventory properties like flips. "I bought a rental property in California in 2019 for 700,000 as replacement property from a 1031 exchange. 400,000 was from the sale of rental property in Seattle, Washington. 300,000 from my savings. I took a loan, also a 600,000 for expansion, uh, in repairs in January of 25. How much of the money I invested from my personal savings, the 300,000, can I get back without having to pay tax? I listed my rental property for 935,000." - Any cash taken from 1031 exchange creates taxable boot; consider real estate professional strategies. "I'm selling my personal residence next year. We currently have an anticipated capital gain of a million. I'll be paying taxes on 500,000 of the capital gain above the capital gain exclusion for married filing joint. What tax strategy would you suggest that I may plan to use in order to mitigate paying federal taxes against the 500K capital gains? Could I do a 1031 exchange or of a personal residence? Can we convert the personal residence to a rental and then sell it in one to two years?" - Use Section 121 exclusion first, consider converting to rental within five-year window for 1031. Resources: Schedule Your Free Consultation https://andersonadvisors.com/strategy-session Tax and Asset Protection Events https://andersonadvisors.com/ss/?utm_source=5-reasons-restructure-sole-proprietorships&utm_medium=podcast Anderson Advisors https://andersonadvisors.com/ Toby Mathis YouTube https://www.youtube.com/@TobyMathis Toby Mathis TikTok https://www.tiktok.com/@tobymathisesq

In this special Tax Tuesday episode, Anderson attorneys Amanda Wynalda, Esq., and Eliot Thomas, Esq., break down the major provisions of the "One Big Beautiful Bill" - nearly 1,000 pages of new tax legislation. They cover significant changes to child tax credits (increased to $2,200), expanded 529 plan qualifications now covering trade schools and licensing exams, and modifications to personal casualty loss deductions. The attorneys explain the updated salt (state and local tax) limitations increasing from $10,000 to $40,000, new charitable deduction rules for both itemizers and non-itemizers, and the elimination of clean energy tax credits after 2025. They also discuss the extension of lifetime estate and gift tax exemptions to $15 million, the return of 100% bonus depreciation for real estate investors, revamped opportunity zone investments starting in 2027, and enhanced qualified small business stock (1202) exclusions with reduced holding periods and increased limits. Tune in for expert analysis on these game-changing tax strategies! Submit your tax question to [email protected] Highlights/Topics: Child Tax Credit Changes - Increased to $2,200 with $1,700 refundable portion for qualifying children. 529 Plan Expansion - Now covers trade schools, licensing exams, and K-12 up to $20,000. SALT Deduction Limits - Increased from $10,000 to $40,000 for state and local taxes. Charitable Deduction Rules - Non-itemizers get $1,000 single/$2,000 married; itemizers face 0.5% floor starting 2026. Clean Energy Tax Credits - Electric vehicle and solar credits eliminated after September 30, 2025. 100% Bonus Depreciation - Applies to property with 20-year or less lifespan; requires cost segregation study. Opportunity Zone Investments - 10% stepped-up basis after 5 years; tax-free appreciation after 10 years. 1202 Stock Exclusions - Reduced holding periods: 50% at 3 years, 75% at 4 years, 100% at 5 years. Resources: Schedule Your Free Consultation https://andersonadvisors.com/strategy-session 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 Clint Coons YouTube https://www.youtube.com/@ClintCoons