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.
@@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.
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.
My Wife has been a real estate agent for years helping her customers while in parallel 😅she manages at least 5 of our long term rentals. She does the postings in MLS, do the screening and receive calls for maintenance ... Our CPA doesn't recommend claiming her real estate professional status because supposed to be a magnet for IRS audits... we declare everything nothing to hide...And I am a W2 full time that will be benefit of offsetting some tax with passive losses. What is your opinion about it? Thanks
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!
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?
They say to sell your house to an s corporation. Right now I'm in Florida and I have homestead exemptions on a house I bought 25 years ago as a repo. It was in bad shape and I've done a lot of work to it over time. My taxes are less than $1,200. If I sold this to an s corporation, now I'm paying full tax on the price that I sold it to my Corporation. How in the world will that save me any money? Especially when I'm paying for the new sales price, which would be a minimum of $250,000? Also, I may move back into it one day. I would have to pay the corporation back the money and now I'm paying the higher basis property taxes taxes. Make it make sense.
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 ?
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
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?
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.
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?
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?
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.
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,
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
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
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.
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?
@@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.
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.
@@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?
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
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 UA-cam 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.
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
When I think needs to happen is there just needs to be less taxes and they need to stop over complicating everything. You shouldn't have to depreciate anything. They're just needs to be less taxes and less regulations
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.
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
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
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
Do you want to dive deeper into this topic and talk to someone on my team? Schedule your free consultation now. aba.link/b505b6
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.
@@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.
Thanks Toby for all your tax savings for rental properties
Toby, you are the best!
thanks =)
Gold, this info is straight gold. Thank you!
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.
She is brilliant!
What is the bonus depreciation you alluded to? Thanks for another great video
My Wife has been a real estate agent for years helping her customers while in parallel 😅she manages at least 5 of our long term rentals. She does the postings in MLS, do the screening and receive calls for maintenance ... Our CPA doesn't recommend claiming her real estate professional status because supposed to be a magnet for IRS audits... we declare everything nothing to hide...And I am a W2 full time that will be benefit of offsetting some tax with passive losses. What is your opinion about it? Thanks
If I use a five years asset as a 27.5 years depreciation in the first year can I change it and take advantage of the 179 deduction in the current year
Very good information ,did you guys service all the 50 states ??
We do, Schedule a free consultation here: aba.link/b505b6
Hi very interesting Chanel I live in upstate NY and starting in real estate how I look for a real state accountant?
Great content
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!
Excellent info Amanda
Such well described information. Thank you
What about people renting room out in their personal house?
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?
Can these depreciations count against stock gains, banking interest, etc. for someone retired?
Absolute content, I made a note of two of them to look into. Thank you!
They say to sell your house to an s corporation. Right now I'm in Florida and I have homestead exemptions on a house I bought 25 years ago as a repo. It was in bad shape and I've done a lot of work to it over time. My taxes are less than $1,200.
If I sold this to an s corporation, now I'm paying full tax on the price that I sold it to my Corporation. How in the world will that save me any money? Especially when I'm paying for the new sales price, which would be a minimum of $250,000? Also, I may move back into it one day. I would have to pay the corporation back the money and now I'm paying the higher basis property taxes taxes.
Make it make sense.
Depending on income level not all of can us are allowed to take depreciation.
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 ?
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
@@TobyMathis just a simple question
Money talk…
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
love your video and you both explained so well. I might contact you soon
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?
1031 Exchanges can be helpful to defer capital gains for those who are unable to perform a cost segregation analsis.
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.
We have llc Corp how do we get taxed we have 1 property under us.
Please let me know when you speak on Title 26 Subtitle A income taxes 🙏
Great Content. However, the Idea of deferring the higher brackets of W2 income to Inc. is not ideal a S-Corp yields more tax benefits than the INC.
Wow. Thank you. Will have time listen a few times to determine what's best. You did not mention transferring into an LLC. Mmmm
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?
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?
Excellent video Team
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?
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.
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,
What if I'm not a w2, but a small business owner that just got an investment property? Current business not same industry
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
Marry a real estate agent
Can you make a video on how can i make money owning a valuable stock?
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
Section 1250 says basis is adjusted on business property like real estate regardless of whether the depreciation is actually expensed.
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.
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?
Yes
No necessarily. 50% of your time must be devoted to 1 rental. That’s a red flag to the irs. I would audit you.
@@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.
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.
@@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?
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
As a landlord can you claim real estate professional status or do you have to get a real estate license?
go through the questions from turbo tax and you can find out easily.
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 UA-cam 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.
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
Do you think a General Contractor would qualify as a real estate professional ?
Toby i need your help..:..
hi! Schedule a free consultation with my team aba.link/b505b6
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)
When I think needs to happen is there just needs to be less taxes and they need to stop over complicating everything. You shouldn't have to depreciate anything. They're just needs to be less taxes and less regulations
Can I sell my residential house to my S corporation and rent it to myself?
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.
S.C.A.R.
Segregated
Cost
Analysis
Report
Where’s the ebook pal?:)
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
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
Sure pay 12k for a cost segregation study. And complicate your life. Not sure that works for everyone. Not for me.
Hi still didn't receive my booklet
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