Podcast
Anderson Business Advisors Podcast
Hosted by AndersonAdvisors.com · EN
Real Estate Investors, Stock Traders, and Business Owners guide to preserve their wealth, protect their assets, and prosper in the future.
29episodes
Episodes
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Cost Segregation & Depreciation Recapture Explained
2w ago01:05:32Tap to summarizeIn this episode of Tax Tuesday, Anderson Advisors' Barley Bowler, CPA, and Eliot Thomas, Esq., answer listener questions covering a broad range of real estate, retirement, and investment tax topics. They break down cost segregation studies and depreciation recapture, explaining how bonus depreciation accelerates deductions and how 1031 exchanges and stepped-up basis can help investors defer or eliminate gain entirely. They address whether vacated rental rooms can qualify as deductible office space, and walk through how multi-state 1099 income is taxed when a worker performs services in Kansas for California patients through a Utah company. Barley and Eliot also clarify how MAGI determines the taxable portion of Social Security benefits in retirement, and confirm that qualified retirement plan distributions are protected from California taxation once a taxpayer has established residency in Nevada. Additional topics include 529 college savings plans for children attending accredited foreign universities, combining Roth IRAs with a payroll strategy for minor children, when Schedule E versus Schedule C applies to short-term rental income, and the significant hurdles of qualifying for Trader Tax Status — along with an alternative C-corporation trading structure that may offer far greater and more reliable tax advantages. Tune in for expert advice on these topics and more! Submit your tax question to taxtuesday@andersonadvisors.com Highlights/Topics: [00:00] Intro to Tax Tuesday with Eliot and Barley [7:10] "I would like to know more about cost segregation and depreciation recapture on property sales." Cost segregation accelerates deductions upfront. Recapture taxes those gains at ordinary rates upon sale. [18:00] "At the beginning of this year, I moved into a new home. At my previous residence, I had been renting two rooms, and I am currently working to sublet them. I am still on the lease and committed to covering the cost of those two rooms until I find replacements. My question is: since I am continuing to pay for these rooms, would it be possible to classify them as office space and potentially use them as a tax deduction?" Have your business assume the lease directly. That creates a clean, legitimate deduction. [22:53] "My wife is doing remote 1099 work, and I had a question on where state taxes are due. We live in Kansas and she performs the work from a home office or rented office space in Kansas. She is performing this work through a contracting/locums company based out of Utah, but the current work she is providing is for patients in California. Do we pay KS or CA state income tax for this 1099 work?" Both Kansas and California claim the income. Kansas credits taxes already paid to California. [29:35] "Taxes in retirement: we know you can be taxed on Social Security. We don't know the details. How much can you make to avoid being taxed? Does the IRS include all incomes, passive and active? We just don't have details." Between 50–85% of benefits may be taxable. MAGI includes all income, even tax-exempt interest. [36:54] "I have been a Nevada resident for 2 years. I started my retirement from a California corporation this year. Can California tax my retirement benefits now that I am a NV resident?" No. Federal law fully protects qualified retirement benefits paid to Nevada residents. [40:55] "I am a business owner in Texas. My twin kids are growing up in a foreign country with their cousins. They may want to pursue higher education there. I haven't started a 529 college savings plan yet. If they decide not to go to college at an American university, what would be the best type of tax-sheltered account to invest in, for the kids?" 529 plans cover accredited foreign universities. Combine with a Roth IRA for maximum impact. [48:17] "Is it okay to use Schedule E to report short-term rental income?" Yes, if you provide only minimal services. Substantial services push income to Schedule C. [53:55] "For 2025 tax year, I made more than 800 trades - frequently - 3 days/week throughout the year. I made profits both from long-term investing and short-term trades. Am I eligible for Trader Tax Status and able to deduct my expenses in 2025 filing (I applied for extension)." Trader Tax Status is highly subjective and audit-prone. A C-corp trading structure is safer. Resources: 🔗 Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=cost-segregation-depreciation-recapture-explained%20&utm_medium=podcast 🔗 Schedule Your FREE Consultation https://andersonadvisors.com/strategy-session/?utm_source=cost-segregation-depreciation-recapture-explained%20&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
Transcribe →How To Turn Stock Market Gains Into Tax-Smart Investments In Your Business
4w ago01:01:01Tap to summarizeIn this episode, Anderson attorneys Amanda Wynalda, Esq., and Eliot Thomas, Esq., tackle a wide range of listener questions on tax strategy for real estate investors, business owners, and stock market traders. They dig into whether Section 187 depreciation on heavy equipment can offset capital gains from a property sale, and why material participation is critical for bonus depreciation to work. They clarify that real estate professional status is an individual designation — not an entity filing status — and explain how it can convert passive rental losses into active deductions. Amanda and Eliot also address how stock market gains can be offset through actively managed farms and rentals, the benefits of a C-Corp property manager in Washington state despite the Business & Occupation tax, and why you cannot deduct life insurance policy loan interest under Section 264. They cover the tax impact of converting a rental property to a primary residence, how the Section 121 exclusion applies proportionally to a mixed-use apartment building, the mechanics and timing rules of a 1031 exchange, and why transferring a fully depreciated property into a land trust generally has no income tax impact. Tune in for expert advice on these and more! Submit your tax question to taxtuesday@andersonadvisors.com Highlights/Topics: 00:00 — Intro and questions 09:50 — "I'm starting a Heavy Equipment Rental Business, which will be active income. Can I use the Section 187 Depreciation expense on Heavy Equipment to offset the Capital Gains tax that I will incur on an investment property that I am selling in 2026?" Section 187 is obsolete (was for mining safety); bonus depreciation requires active material participation. 18:50 — "I am a homebuilder with an LLC structured as a C-Corp. I self-manage/own a new 36-unit rental property in a passthrough LLC. I have my real estate license (inactive). Should I change my filing status to real estate professional from a C-corp?" Real estate professional is an individual status, not an entity's filing designation. 25:02 — "I am consistently making profits in the stock market. I have a farm and some rental properties owned as pass through LLC's. Can I invest in my business and the rentals to reduce tax consequences from stock market gains?" Active material participation in farm and rentals can offset stock gains. 33:44 — "We set up a C-corp property manager to manage a rental portfolio via rental LLCs. Unfortunately, in WA state prop. mgrs. are required to pay a 1.5% Business & Occupation tax, while rental owner LLCs are not. High-level question: is it still worth using a C-corp property manager?" Yes — the management fee income stays below the $100K B&O exemption threshold. 38:45 — "How can I borrow money from a life insurance policy, use it to invest in lending like private lending or a mortgage note, and be able to write off the policy loan interest as expenses to lower overall tax liabilities from interest earned from lending activities?" Tax code Section 264 prohibits deducting life insurance policy loan interest. 41:42 — "What are the tax implications if I purchase a property in an LLC for rental purposes, renovate it, and take all applicable write-offs, but then change my mind and decide to live in it and transfer it into a living trust?" Depreciation deductions lower your basis, reducing your Section 121 exclusion later. 46:04 — "I live in Arizona and owner-occupy (live-in) in 6% (1 unit) of a 17-unit apartment building square footage (9,645ft²). Would the $250,000 capital gains tax exclusion rule apply to the sale of the building?" Only the 6% owner-occupied portion qualifies for the capital gains exclusion. 49:49 — "Please review the benefits of 1031 exchanges." A 1031 exchange defers all capital gains tax by rolling into replacement property. 55:10 — "What is the tax impact of placing my fully depreciated property in a land trust?" Transferring to a land trust typically creates no income tax event whatsoever. Resources: Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=how-to-turn-stock-market-gains-into-tax-smart-investments-in-your-business%20&utm_medium=podcast Schedule Your FREE Consultation https://andersonadvisors.com/strategy-session/?utm_source=how-to-turn-stock-market-gains-into-tax-smart-investments-in-your-business%20&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
Transcribe →3 Secret Ways 529 Plans Can Boost Your Retirement Savings
Apr 2900:44:51Tap to summarizeIn this episode, host Toby Mathis sits down with 529 plan expert Chris Stack to explore the surprisingly versatile — and widely misunderstood — ways these accounts can be used far beyond traditional college savings. Chris explains how 529 plans primarily benefit account owners, not just future students, offering tax-free compounding growth, powerful estate planning advantages, and remarkable flexibility in how and for whom funds are used. They discuss how married couples can superfund a single account with up to $190,000 in one contribution, how beneficiaries can be changed to any family member without tax consequences, and how accounts can be structured to grow entirely outside your taxable estate. Chris also covers the strategy of directing non-educational distributions to lower tax-bracket recipients to minimize taxes, rolling leftover 529 funds into a Roth IRA, bankruptcy creditor protection, and the wide range of qualifying expenses from K–12 through graduate school, trade schools, apprenticeship programs, and nearly 500 international institutions. Tune in to discover how 529 plans can be a powerful, flexible tool for wealth building, legacy planning, and tax strategy at every stage of life. Highlights/Topics: 00:00 529 expert Chris Stack - most surprising ways people use 529s 02:10 How 529 plans work and their history 06:41 Gifting strategies and estate planning benefits 17:42 Taking money out for non-education expenses 23:05 Investment options costs and choosing a plan 29:46 Eligible expenses and qualifying institutions worldwide 31:41 Three groups who benefit most from 529s 40:43 Overcoming misconceptions and getting started Share this with business owners you know Resources Chris Stack – Saving for College: savingforcollege.com Chris Stack Email: cstack@savingforcollege.com IRS Form 709 – Gift Tax Return: irs.gov/forms-pubs/about-form-709 U.S. Department of Education – Eligible International Institutions: studentaid.gov/understand-aid/eligibility/requirements/international-schools Would you like to learn more about protecting your assets and minimizing taxes? Schedule a free consultation here: https://aba.link/3c7g Register for a Free upcoming workshop today if you want to protect your business and personal assets from snoopy lawyers and creditors. Save Your Seat: https://aba.link/14g1 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
Transcribe →How To Do A Cost Segregation Study When It Saves You Money and When It Doesn’t
Apr 2300:29:24Tap to summarizeIn this episode, host Toby Mathis, Esq., welcomes returning guest Chris Streit to break down the truth about cost segregation studies — when they work, when they don't, and who should consider one. Chris explains how cost seg studies accelerate depreciation by separating a property's components into shorter-lived assets, enabling large year-one deductions under bonus depreciation rules. They walk through a real-world example of a $500,000 duplex to illustrate potential tax savings, and discuss who qualifies to use those losses — including real estate professionals versus passive investors. The conversation also covers the best and worst property types for cost seg, how to use studies to offset rental income across a portfolio, and whether you can apply a study retroactively after a tax year has ended. Chris shares critical red flags to watch for when hiring a cost seg firm, including improper land valuation, lack of site visits, and insufficient substantiation — all of which can expose investors to serious IRS risk. Tune in for expert, no-nonsense guidance on one of real estate's most powerful — and misunderstood — tax strategies. Highlights/Topics: 00:00 Intro - Bonus depreciation and year one write-offs 04:01 Who should consider a cost seg study 06:06 Example 500K duplex breakdown 10:00 Real estate professional versus passive investors 14:19 Best versus worst property types for cost seg 18:25 Red flags and bad cost seg providers 22:08 Importance of site visits and proper substantiation 25:20 The biggest mistake real estate investors make 27:32 How to get started with a cost seg study Share this with business owners you know Resources: CSA Partners (Chris Streit's company — cost segregation specialists): https://csap.com/ Request a FREE Cost Segregation Benefit Analysis: https://aba.link/594e87 Anderson Advisors Free Workshop (asset protection & business structure): https://aba.link/7gdd 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
Transcribe →How To Claim Missed Depreciation On A Rental Property
Apr 2101:03:17Tap to summarizeIn this episode of Tax Tuesday, Anderson advisors Eliot Thomas, Esq., and Barley Bowler, CPA, tackle a packed lineup of listener questions covering construction business accounting, rental property depreciation, and family tax planning. They explain the pros and cons of switching from accrual to cash accounting, and when a SEP or Solo 401(k) can help reduce a tax bill before an extension deadline. They walk through how to claim a college student as a dependent even if the student earns grant income, and how hiring your kids through a C corporation can shift income and fund a Roth IRA. Eliot and Barley detail how the Ladybird enhanced life estate deed works in the five states that allow it, and how stepped-up basis applies at inheritance. They cover when a management corporation makes sense for short-term rental owners with W2 jobs, the real risk of children's working hours undermining a spouse's material participation, and how the aggregation election simplifies real estate professional status across multiple properties. Other topics include how to catch up missed depreciation using Form 3115, how to properly report an owner-financed note, and whether repairs and maintenance on a non-income-producing rental are deductible. Tune in for expert guidance on these topics and more! Submit your tax question to taxtuesday@andersonadvisors.com Highlights/Topics: 00:00 Intro to Tax Tuesday with Eliot and Barley 7:09 We file accrual; however, if I switch to cash, the tax bill will be lower. Is this a good idea? Is there anything I can do to lower 2025 taxes before my extension is due in September, like a SEP or retirement plan? - Cash basis is simpler; a SEP or Solo 401(k) can still be established. 16:16 My son gets some grant money from the University for his peer mentor role and research he does. He is a Junior and is 20 years old. Can I still list him as before as a dependent on my tax return? - Yes, if you provide more than half of his total annual support. 21:28 What are the tax ramifications of my brother and I inheriting my mom's home via a Ladybird (enhanced life estate) deed? - You receive stepped-up basis; rental or personal use rules then apply. 27:17 My husband and I both have W2 jobs. We have both long-term and short-term rentals. I manage the STRs. Does it make sense that I open an S Corporation as a management company? Is there an additional advantage to employing my teenage kids to help manage properties? - A C corporation management company maximizes tax-free reimbursement benefits for families. 39:00 We have a home management company (partnership). My spouse qualifies for REP status with no other job. Could he have both? Can you also elaborate on this: "Under §469, each rental property is treated as a separate activity. You must participate in each property. Not just your portfolio as a whole." - An aggregation election bundles all rentals to simplify material participation requirements significantly. 49:05 I have a single-family home rental. Depreciation was not taken on previous tax returns. How do I go back and calculate depreciation? -File Form 3115 to catch up all missed depreciation in one year. 53:50 How do I report the mortgage payment paid to me from my owner finance note? - Report interest received on Form 1098 and installment gain on Form 6252. 57:38 Can you write off expenses and maintenance costs for rentals that are not producing any income due to disrepair? - Yes, if the property remains available for rent or is temporarily out of service. Resources: Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=how-to-claim-missed-depreciation-on-a-rental-property%20&utm_medium=podcast Schedule Your FREE Consultation https://andersonadvisors.com/strategy-session/?utm_source=how-to-claim-missed-depreciation-on-a-rental-property%20&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
Transcribe →How To Use A 1031 Exchange When Flipping Houses
Apr 1300:58:41Tap to summarizeIn this episode of Tax Tuesday, Anderson attorneys Eliot Thomas, Esq., and Amanda Wynalda, Esq., tackle ten listener questions covering a range of real estate and tax topics. They explain when short-term rentals belong on Schedule E versus Schedule C, and how material participation and substantial services factor into that decision. They explore strategies for mitigating capital gains on rental properties, including 1031 exchanges, Delaware Statutory Trusts, and UPREITs, and clarify why house flippers cannot use a 1031 exchange since flipped properties are treated as inventory. Eliot and Amanda also cover write-off strategies for fix-and-flip investors using a C corporation, grouping rental activity with an operating business to offset income, and deducting stock trading education expenses through startup costs. Additional topics include accountable plans for home office and mileage reimbursements, the difference between contributing funds to a for-profit business versus donating to a nonprofit, reporting the sale of foreign property on a U.S. tax return, and whether a prior-year cost segregation study can still be applied in 2026. Tune in for expert, practical guidance on all of these topics and more! Submit your tax question to taxtuesday@andersonadvisors.com Highlights/Topics: [06:08] "Can I file a Schedule E if I'm doing short term rentals?" Avoid substantial services and keep average guest stays over seven days. [15:49] "How can I mitigate capital gains taxes for rental property if I do not want to hands on operate rentals anymore?" Consider a 1031 exchange into a Delaware Statutory Trust or UPREIT. [22:38] "How can I get tax write offs on fix and flips?" Use a C corp for deductions through accountable plans and reimbursements. [26:24] "If I'm in the business of flipping houses, could I use a 1031 exchange to defer my taxes?" No — flipped properties are inventory and not eligible for 1031s. 30:29] "How does grouping work in order to claim losses in a self rental situation?" Group your rental property with your business to offset income with depreciation. [35:41] "I already purchased stock trading education programs before having any entity set up. How can I deduct those education expenses?" Set up your C corp now; deduct education courses as startup costs. [39:33] "How can I get reimbursed for a home office, business mileage and other expenses?" Use an accountable plan through your S corp or C corp. [44:15] "Can you write off or deduct a financial contribution made from your personal account to your for profit business account in the same way you can make a contribution or donation to your nonprofit?" No deduction; contributions adjust your basis and reduce future taxable distributions. [49:58] "If I sell property abroad, how do I handle the taxes on my US Tax return?" Report on Form 8949, Schedule D; claim a foreign tax credit. [53:15] "If I had a cost segregation study conducted in a previous year but did not use it, can I still use it in 2026?" Update calculations with your original cost seg firm before filing your return. Resources: Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=how-to-use-a-1031-exchange-when-flipping-houses&utm_medium=podcast Schedule Your FREE Consultation https://andersonadvisors.com/strategy-session/?utm_source=how-to-use-a-1031-exchange-when-flipping-houses&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
Transcribe →The Truth About Infinite Banking And Permanent Life Insurance
Mar 3100:47:32Tap to summarizeIn 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
Transcribe →The Tax-Smart Way To Move Real Estate Into A Corporation
Mar 2401:00:12Tap to summarizeIn 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 taxtuesday@andersonadvisors.com 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
Transcribe →How To Sell 1031 Replacement Properties Without Tax Penalties
Mar 1001:02:14Tap to summarizeIn 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 taxtuesday@andersonadvisors.com 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
Transcribe →The 2026 Housing Market Forecast
Mar 500:33:51Tap to summarizeIn 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
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