Avoid Tax Traps: Attorney Shares Essential Tips For Rental Property Owners

[@TobyMathis]

Do you want to dive deeper into this topic and talk to someone on my team? Schedule your free consultation now. aba.link/b505b6

[@Slide61]

I appreciate the video's Toby. They are great!! I tried contacting you folks once but never got a call back. Figured my net worth wasn't quite where it needed to be.

[@ckwong7941]

@@TobyMathis Free private consultation is good but it should be much better if a video can be made to address the issues mentioned in my last comment because I believe many investors like me should want to see it. Thank you.

[@sadams6663]

Toby, you are the best!

[@TobyMathis]

thanks =)

[@patriciaingraldi4719]

Such well described information. Thank you

[@mac_vegas7026]

Great content

[@ckwong7941]

Hi Thank you very much for your great video. I would like to ask some related questions. My wife and I have a rental property for 10 years. Can we now move back and live there for 2 years and then sell it to a c or s corporation owned by us so as to enjoy the benefit of the full exclusion $500,000 capital gain for the selling and also enjoy the depreciation of the higher purchase cost when the property is rented out by that corporation? Besides, I would like to know how to set up the corporation, how to do the selling and purchase of the property, and how to report tax for the rental income for the corporation annually? I will deeply your advice on these questions. Thank you again.

[@ProbateandTrustHelp]

Absolute content, I made a note of two of them to look into. Thank you!

[@robertduffy5805]

What is the bonus depreciation you alluded to? Thanks for another great video

[@willmallory9085]

Excellent video Team

[@ToddBizCoach]

Why use a 1031 exchange if using cost seg with material participation on a new RE purchase/ build will eliminate all cap gains and recapture on the sale?

[@TobyMathis]

1031 Exchanges can be helpful to defer capital gains for those who are unable to perform a cost segregation analsis.

[@joliebrooks381]

What about people renting room out in their personal house?

[@ciracano8050]

Very good information ,did you guys service all the 50 states ??

[@TobyMathis]

We do, Schedule a free consultation here: aba.link/b505b6

[@hptrans6605]

love your video and you both explained so well. I might contact you soon

[@brucebond2112]

Can these depreciations count against stock gains, banking interest, etc. for someone retired?

[@crush42mash6]

Is it possible if you own rental units to use a truck for a lease? My accountant says no, I don’t think he wants to do the paperwork

[@MTN99999]

Wow great content and perfect timing I was about to setup an LLP + C-CORP structure as a US non resident for my properties investment portfolio I am building and trying to minimize my taxes as much as I can. Thank you. Do you guys have international accountants for USA &CANADA ? So IRS + CRA recomendations to avoid double taxations? Thank you!

[@carrie4579]

I do not agree with your two statements: 1). if taxpayer does not take depreciation, when sale, no recapture will be occured due to accumulated depreciation amount is 0. A taxpayer does have a choice to avoid deprecaition recapture. 2) Accelelated deprecation may not be benefit for a taxpayer due to standard deduciton or itemized dedution amount will be wasted for at least first 1-2 years. Both accelated depreciaton and SL depreciation only help for tax defer but not for tax saving. All in all, I guess you just hear what people said about these ideas but do not run test returns to verify the ideas/concepts with real numbers

[@MattRyan135790]

Section 1250 says basis is adjusted on business property like real estate regardless of whether the depreciation is actually expensed.

[@RayMelville]

Can you have both 121 Exclusion and 1031 Exchange on the same property that you lived in it for many years before converting it to rental the last 2 years?

[@elvisnasi8350]

If your AGI is higher than 125k then you can deduct your RE loss against your w2. It will just get added to your basis. Is that right?

[@abeeiland2996]

Please let me know when you speak on Title 26 Subtitle A income taxes 🙏

[@vdoan6583]

Great information Toby. Thank you Per Amanda said if her grandmother transfer the house to the kids when they turn around and sell it they will pay big tax between 26k and 800 So my question is what if her kids live there another 3 to 5 years then sell it As a married couple they don’t pay tax on 500k capital gain . Can we do it that way ?

[@TobyMathis]

That's a great question. For a more personalized answer, I suggest scheduling a free 45-minute consultation with my team. We’ll provide advice tailored to your specific situation. Visit: aba.link/b505b6

[@vdoan6583]

@@TobyMathis just a simple question Money talk…

[@BigGodLife]

What if I'm not a w2, but a small business owner that just got an investment property? Current business not same industry

[@TobyMathis]

I would recommend setting up a free consultation to talk about some strategies and how they apply to your unique situation. Sign up here aba.link/b505b6

[@buddyadkins2432]

So, how does depreciation work if you inherited the rental property and didn't pay anything for it?? So, how does depreciation work if you are building a new house any paying as you go? Paid off?

[@kevin-ub9gp]

Great video! If I were to sell my current home to a S Corp that I own and move to a new home, would I be able to transfer my property tax basis under Proposition 19? I reside in California and my new home would also be in California.

[@buddyadkins2432]

If you have a C Corp where the business is property rental and management, that C Corp owns rental property, can the 1031 exchange be used to sell one rental property and buy another rental property?

[@sderbacher]

I thought the bonus depreciation was down to 60% for this year and zero in 2026 for the tax reduction act on short term rentals. It doesn’t work at all for long term rentals unless you’re a real estate pro.

[@1smokan]

Depending on income level not all of can us are allowed to take depreciation.

[@ToddBizCoach]

In regards to cost segregation and material participation in a STVR. If a vacation rental is put into service in Dec.,2024, and the owner participated in management and marketing and construction management does that qualify as material participation?

[@muruganvet78]

Yes

[@lisajpsnowpeak431]

No necessarily. 50% of your time must be devoted to 1 rental. That’s a red flag to the irs. I would audit you.

[@ToddBizCoach]

@@lisajpsnowpeak431 that’s not true. Read the tax code, it says 50% of time to rentals not to each individual property. If a person has 3-4 rentals the math does not support devoting 50% to each rental.

[@TobyMathis]

It should count as participation since you handled marketing, construction, and management of the entity. However, it may not be enough hours for you to claim REP status.

[@ToddBizCoach]

@@TobyMathis true ,regarding REP status. The issue at hand is material participation with new construction and management of STVRs. Have you helped professionals with logs of their time spent on co- management of construction on-site of STVRs?

[@Michael-of6gj]

Can you 1031 a property to pay off the loan for another rental property? Can you 1031 a property to build a new rental property, let's say I sold a house to build a 4 plex. Please advise. Thanks,

[@DavidParent3044]

Do you think a General Contractor would qualify as a real estate professional ?

[@lisajpsnowpeak431]

1. You didn’t state that dep recapture tax is actually equal to the dep. which is always much higher. Not taking dep is valid. Sure take the dep now only to repay the equal amount taken when you sell.

[@carrie4579]

About living trust, you are not necessary to do so. There is an easy and simple way to do so called transfer on death deed (TODD)

[@malikdixon2104]

Can you make a video on how can i make money owning a valuable stock?

[@Slide61]

As a landlord can you claim real estate professional status or do you have to get a real estate license?

[@datbio7302]

go through the questions from turbo tax and you can find out easily.

[@Casmige]

No license necessary. Only 750 hours annually. Do a 1 year running diary on everything you “do” to support the rental property. This includes?? Reading & Research & yes, watching KZbin videos on the subject matter (learning Hand-Man issues, Landscaping & irrigation, Maintenance & Repair, HVAC, Plumbing, Hot water heaters, Et cetera). Posting/collecting bills, formatting/sending quarterly news letters, accounting & bookkeeping processes, There’s seemingly an ENDLESS manner to engage in “continuing education” that would contribute to the benchmark of 750 Hours per year.

[@Slide61]

​Thank you!​ My research indicated that including what the tax software was saying but it never seems to delve into the specific case if being a landlord@@Casmige

[@charlette8380]

Wow. Thank you. Will have time listen a few times to determine what's best. You did not mention transferring into an LLC. Mmmm

[@MarkJ991]

Can you do a video on unleveraged real estate ? Looking to buy a four plex and pay it off in short term and then use cash flow plus w2 income to accrue the next one. Thank you

[@KidsR1st]

Toby i need your help..:..

[@TobyMathis]

hi! Schedule a free consultation with my team aba.link/b505b6

[@Casmige]

S.C.A.R. Segregated Cost Analysis Report

[@carrie4579]

Sell a property to a S corp is not a good tax strategy due to you are required to pay yourself salary and your health insurance expense will be treated as your taxable income

[@ashrafpervez4451]

Can I sell my residential house to my S corporation and rent it to myself?

[@TobyMathis]

You can, but we do not recommend that course of action. If you want to have your home in an entity, we advise either a personal residence trust or an LLC.

[@ryanbittle9766]

Where’s the ebook pal?:)

[@TobyMathis]

Hi, do you mind sending my team a message so I can ensure you get the digital book? Please message us on Instagram. instagram.com/andersonadvisors/?hl=en

[@lisajpsnowpeak431]

Sure pay 12k for a cost segregation study. And complicate your life. Not sure that works for everyone. Not for me.

[@rochellejordan1835]

Hi still didn't receive my booklet

[@TobyMathis]

Hi, do you mind sending my team a message so I can ensure you get the digital book? Please message us on Instagram. instagram.com/andersonadvisors/?hl=en