So much rich information for free! Thank you, Toby! I did have a question. I noticed you barley mentioned LLCs. Is that because once you set up an LLC, you have the option for elect S-Corp or C-corp as your choice for tax purposes? Is that how it works, and can you switch it up each tax year or once you’re an LLC taxed as a C-corp it remains that way? Thanks again!
Hey Toby, thanks for the valuable information. Smart but safe. I appreciate that. I have a question… have you ever handled taxes for influencers? It’s a crazy and different lifestyle as a business owner. I’m curious as to legitimate write-offs.
Great question - I fall into this space as well and I know a lot of people who have had terrible advice from accountants who don't understand how certain things are legitimate business expenses.
I just found you… and I’m so glad that I did !!! Thank you for getting straight to the point, thank you for being so thorough. I appreciate you ✨ I just subscribed!!!
Thanks for telling us how you felt small when you first started. Also, it’s so expensive to talk to lawyers and accountants. You’re so kind to share your knowledge. 😊
We highly recommend you join us at our next Free Tax & Asset Protection Workshop Livestream. Our attorneys and specialists will answer all your questions at no additional cost. Save Your Seat: aba.link/taptoby
No wonder small businesses stay small when they do their taxes with H&R Block and the rich keep getting richer, because you need to pay a little more to have someone like this guy on your side (advertising you). H&R Block haven’t told me any of this.
Thank you for the great information. I am learning so much. I would like to see a video on how to set up my LLC, S-Corp, real estate in a trust. How to set up the real estate in the business name. Advantages and disadvantages of that.
You’re a great teacher. Thank you so much. I have an accountant and I’m afraid to ask questions regarding many of these issues. He always tells us we have no deductions because my spouse works for a corporation-have to wait until he retires to get the full tax benefit of rental properties. Also, you have great cadence. Good luck and good health to you and yours.
You can do annual reimbursement on an accountable plan (see 10:50)? I thought you had to do it at least quarterly, because you can’t reimburse for an expense that is more than 60 days old. Doing it annually is certainly much easier and with less crap paperwork.
It is a reasonableness test. Generally speaking, 120 days is fine to account for something. Payment of that something is a different matter because sometimes a business lacks the funds to pay. We have handled many audits and the time frame was never an issue. The issue tends to be whether or not (a) the expense was incurred and substantiated and (b) was it reimbursed. I like to clean things up with clients annually to make sure there is never an issue as to the tax year a reimbursement occurs. Cash basis taxpayers have to cut the reimbursement check by 12/31 to write it off in that calendar year.
Great video! Very informative and clear to me. I'm someone who is thinking about starting a youtube and worries about the tax/business part so this was helpful. Thank you!
As always, knocked it out of the park!!!!! Thanku, my friend, I've been enlightened, and I'm sharing with my family, friends, and associates so that they can be enlightened and successful as well!!!
Hey Toby, thanks for this info! Question: should I bring these items to my accountant, or should I work with some sort of tax planner to determine what applies to me and then bring that to my accountant? My current accountant doesn't seem to know of any kinds of tax savings for my small business so trying to figure out next steps.
Thank you so much for your question! We highly recommend you join us at our next Free Tax & Asset Protection Workshop Livestream. Our attorneys and specialists will answer all your questions at no additional cost. Save Your Seat: aba.link/taptoby
Great video!! I'm writing my business plan for a home-based business as a virtual assistant offering mental health billing & bookkeeping. I do intend to form an LLC.
Can you cover ROBS 401k and any strategies there might be to replenish the 401k post business acquisition that isn't dependent on selling the business at the end?
I haven’t watched all your videos, but I wanted to see if you could do a video on how people working full-time, with a part-time small business deal with taxes. For example, should I be paying quarterly taxes or can I wait until I file my yearly taxes? Topics like that would be helpful. Thanks in advance.
@@TobyMathisabsolutely and attended your seminar. What a wealth of information. Immediately saw value for my biz and now have my holding LLC started with Anderson. This is such a game changer for me at the perfect time as I begin building my structure. I cannot thank you enough.
Hey Toby! I love all the information you so generously share. Thank you ! I have a question, can a real estate agent have a single member LLC? Because my broker had me open a sole proprietor, I’m considering to redo it after watching this video 😅
Thank you! I did get lost a bit between the different types of business incorporations and the comparisons to what the individual employee can take in write offs if someone has a very small 1-2 person company. Perhaps graphics would help someone like me? Fantastic information to dive into.
Incredible and clear content! Thank you. Sole proprietor here many years... will you please consider a class on changing to an S or C corp and which is best to choose.
@@TobyMathis Thank you. At 1st glance, an S Corp seems like it could be a good fit, however, I have other revenue streams and... I'd like my company to fund our non profit.
Toby. When the IRS says "rent a house for less than 15 days per year..." do they specify calendar days or the unit of time less than 360 hours? I ask because a hotel typically rents board rooms for an 8 hour day. This law was written mostly for the rental of homes to overnight guests. But a hotel typically rents a board room to a business for 8 hours for around $500-$1000. It would seem to me that if days is not specifically defined in pub 527, the common definition of 24 hours should be used. In that case, 15 days = 360 hours or less than 45 8-hour-work-day rental periods. Have you guys looked at this and have an opinion on this interpretation? I know of no hotel renting a meting room for less than $500.
What would you recommend for a flower Business to have a LLC or just a S-Corp or C-corp? ( new to all of this I wish to learn the ins and outs of tax laws)
Hi, thank you for leaving your comment. You can request a free 45-minute consultation to discuss our proven asset protection and tax strategies and how they apply to your unique situation. You can get set up here! -----------> aba.link/tobyss
Thanks for the support! Have you ever attended a virtual workshop? If not, I would highly recommend you attend and ask this question live during the event. =) aba.link/byj
How to have an accountable plan? Eg just a resolution that the corporation has an accountable plan or need to go to Schwab to set up an accountable plan? Can employer just reimburse the independent contractor without any formal paperwork? Thank you very much!
Hello, we recommend speaking with one of our advisors for any legal advice. Here is the link to schedule a free strategy session, bit.ly/3JbMhRP. Or you may call to speak with an advisor at our toll-free line, 800-706-4741.
Great information!! I'm about to watch it for a 3rd time. I have a small side business in it's 2nd year. Just the wife and I. Should I file as an S or C corp? Maybe an episode comparing the two? Anyway, please keep up the great work! Love your content!
Hi Josh, thank you for leaving your comment. You can request a free 45-minute consultation to discuss our proven asset protection and tax strategies and how they apply to your unique situation. Here is where you can get set up! ----------> aba.link/tobyss
Thanks for the support! That is a great video suggestion! In the meantime, I recommend you register for a free strategy session to learn more about LLCs that haven't earned no money. aba.link/6fk
Thinking, wait until our Gross is over 70,000 to switch to S from LLC? Gross year one , April to December 53,000. Thank you for clarifying, ugh... Tough times, but thinking S corp for 2025
Toby as always great video cld u do video about thid Infinit banking or life insurance where u cld borrow money aganst my primium, use it to for investment
Thank you for this info. How do you write off employees overseas (without a SS)? Is there a path to justify necessary expenses associated with your cost of goods?
Selling online is a big thing since COIVD. Platform fees are 20%, sales tax is held back by platform. My question. As full retiree single receiving SS. 14,400 a month how much can I make on line without paying Federal Taxes.
Hi, I’m concerned with how to inherit my mother’s trust property. My attorney advised I didn’t need another trust to title my share of an inherited house in an 60/40 split with a grandson (of decedent) special needs trust. Apparently, in 2021 a California law passed in which because my mother was in an Alzheimer live in facility for four years, I am losing her tax basis and her property will be reassessed to a higher taxable value. They win/I lose. I will still be able to file for a homeowner’s exemption but at a much higher assessed value. I’d love to see a video speaking to heirs of estates when trusts were involved. Thanks Toby, I love watching your videos.
Thank you so much for your question! We highly recommend you join us at our next Free Tax & Asset Protection Workshop Livestream. Our attorneys and specialists will answer all your questions at no additional cost. Save Your Seat: aba.link/taptoby
Hi i recently subscribed because i love your contents and I’m trying to do well in life , and because of this i have a following question. How do i person like me with some savings but regular employed with a big corporation avoid to pay so many taxes ? Should i open a gst and find a secondary job ? Or maybe with a secondary investment property and gst as real estate business i could use some loophole maybe ?! Thank you for your help !
You still have to spend money to get your money back. Net zero. Also, you never consider Schedule E income versus Schedule C income and not paying self-employment taxes.
Can your c-corp manage LLC’s with different NAIC’s? For example, let’s say two are real estate and one is e-commerce. How can that be set up for maximum benefit?
Your question involves some intricacies that would benefit from a more personalized discussion. I recommend scheduling a free strategy session with our experts to delve into the specifics of managing diverse LLCs under a C-Corp and optimizing the setup for maximum benefits. Visit: aba.link/6fk
How do you prove “convenience of the employer” for single-person businesses, especially ones without customers, like trading? The usual safe-harbor reasons given (24-hour contact with your employer or customers) don’t seem to apply. I am in constant contact with myself after all, even though I have two hats in my corporation (employer and employee).
Proving "convenience of the employer" for single-person businesses, especially those in trading, can be nuanced. To provide tailored guidance based on your specific situation, I recommend scheduling a free strategy session. Visit: aba.link/6fk
what about the cost of filling the break room with coffee and snacks? Many offices where I am from provide lunch every day for its employee. What about that?
Great content! QUESTION - What is the major difference between the S Corp, the C Corp and the LLC? Also, is an LLC the same as a sole proprietorship? And, can an LLC also deduct the cell phone expense and internet bill on a home employee?
Good questions. We could speak for days on the answers, but to be brief: 1- An S-Corp is a hybrid between a Corp and a pass through entity. Good for small business owners. A C-Corp is more of a 'traditional' corp, and is used for investments and businesses that plan on having investors. An LLC can elect its taxation, so it could be either, or a partnership or disregarded. 2- LLC is not the same as sole-prop. LLCs have liability protection, sole-props do not. 3- "It depends"- generally the answer is no, but there are some scenarios in which home employment related expenses can be reimbursed in part by a corporation.
Can 2 non married people be equal partners 50% each, in an LLC, taxed as an scorp. You mentioned partnerships were always treated as sole proprietors. Also can some of the expenses, such as education, cell phone just be paid for by the scorp instead of doing a reimbursement.
If you are taxed as an S-corporation you are not partners, you are shareholders. That is important, because partners can have allocations of income and deductions that are different than their percentage of capital. One partner can receive distributions even if another doesn’t. S-corporation shareholders can do neither of those things without instantly revoking the company’s S-corporation election. Any expense that could be reimbursed as a proper business expense can be paid directly by the corporation instead. Much less paperwork if you do.
I thought Augusta-rule payments cannot be made for properties that you also have a home office in. For purposes of a home office is your home treated as commercial (39 year depreciation) or residential (27.5 year depreciation)? Obviously the deduction for the latter is larger.
You can do both. 280A is for the meeting space - generally a large living area. The administrative office is generally a bedroom converted to an office.
Would love education on retired people selling online for supplementing income. This year a 600.00 income limit was to be Incorporated and all platforms were to mail 1099-K to IRS for online sales that had to be reported. At the end of 2022 it fell through. But most likely will be introduced in 2023. How do full retirees have to file these 1099-K's if making under the limit they can earn from a job after retired?
If an LLC taxed as a C Corporation sets up a medical reimbursement program, it can cover certain out-of-pocket eligible medical expenses. These typically include: Health insurance premiums for both employees and their dependents; Costs for treatments, procedures, and care from licensed medical practitioners, such as hospital stays, surgeries, and doctor visits; Prescription medications; Dental and vision care expenses, including eye exams and corrective lenses; Preventive care services, like vaccinations and screenings; and Emergency medical care or transportation costs. The program must adhere to IRS guidelines and may be subject to specific requirements and limits. The C Corporation should ensure that the reimbursement plan is well-documented and properly managed. Consulting with one of our tax advisors can help ensure the program complies with all regulatory requirements and optimizes its benefits.
The problem I ran into having too much expenses is not able to refi my house or get a HELOC without out showing enough income after the deductions. How do you deal with that?
My company gave us an option to work from home the last 3 years - should we have been reimbursed for internet cell electric gas??? This is the internet company Frontier communications.
Can you give someone (like kids, family) an item and issue a 1099-NEC to them. But actually keep the annual value under $599 and not issue the 1099-NEC. For example, Grandma (a non-employee) offers professional advice. In exchange, You buy her a nice TV. She is not an employee, so you typically would issue her a 1099-NEC, but if the annual value is less than $600. you don't issue the form. Maybe you depreciate the item you give them in the business first and then give it to them with a lower fair market value. Grandma needs the TV to watch a seminar. The TV is now used when you give it to her so you depreciate it by 30% before giving it to her.
That's a great question, and it involves some complex tax considerations. To get personalized advice tailored to your specific situation and ensure you're handling everything correctly, I recommend scheduling a free strategy session with us. Visit: aba.link/6fk
Claim Your FREE 45-minute consultation to receive business planning tips and asset protection. 👉 aba.link/6fk
Toby thank you!!!!
Great topics, Toby🙏🏾
Great video! Very clearly explained. Not many accountants are this clear and or educated about this.
Glad you liked it dear viewer!
Agreed!
First time I can watch an honest learning video with a clear context. There are few people who do things without any interest. Gracias 😊
So much rich information for free! Thank you, Toby! I did have a question. I noticed you barley mentioned LLCs. Is that because once you set up an LLC, you have the option for elect S-Corp or C-corp as your choice for tax purposes? Is that how it works, and can you switch it up each tax year or once you’re an LLC taxed as a C-corp it remains that way? Thanks again!
Hey Toby, thanks for the valuable information. Smart but safe. I appreciate that. I have a question… have you ever handled taxes for influencers?
It’s a crazy and different lifestyle as a business owner. I’m curious as to legitimate write-offs.
Great question - I fall into this space as well and I know a lot of people who have had terrible advice from accountants who don't understand how certain things are legitimate business expenses.
Learn how to use the IRS tax code to your advantage and keep more of what you earn during this free webinar. aba.link/rui
I just found you… and I’m so glad that I did !!! Thank you for getting straight to the point, thank you for being so thorough. I appreciate you ✨ I just subscribed!!!
Great information.
I clueless all about tax.
I'm glad I found you, I'm educating myself from your videos.
Tanks much
Thanks for the support! Keep learning and rockin' those taxes =)
Thanks for telling us how you felt small when you first started. Also, it’s so expensive to talk to lawyers and accountants. You’re so kind to share your knowledge. 😊
We highly recommend you join us at our next Free Tax & Asset Protection Workshop Livestream. Our attorneys and specialists will answer all your questions at no additional cost. Save Your Seat: aba.link/taptoby
I've been binge watching all your content! Very informative videos, Toby; keep up the great work!
Thanks! Will do!
Me too!!!!
LOVE all your information, Toby!
Thank you for sharing it with us!
Sure thing!
This video and all the information you share from your videos has been so phenomenal for me thank you so mucH!!!!
You are so welcome!
Excellent and valuable explanation -thanks so much!!
You're very welcome! Thank you for watching!
No wonder small businesses stay small when they do their taxes with H&R Block and the rich keep getting richer, because you need to pay a little more to have someone like this guy on your side (advertising you). H&R Block haven’t told me any of this.
A CFP is different than a CPA.
This is the best thing on the internet. I wish I had known this 5 years ago when I became a Realtor. Now how to set it up 😅
Thank you for the great information. I am learning so much. I would like to see a video on how to set up my LLC, S-Corp, real estate in a trust. How to set up the real estate in the business name. Advantages and disadvantages of that.
Great suggestion! We will make a note of it!
Great information. My late husband was a master at these techniques. Hope your transparency and tutleage will help me this tqxbs season.
You’re a great teacher. Thank you so much. I have an accountant and I’m afraid to ask questions regarding many of these issues. He always tells us we have no deductions because my spouse works for a corporation-have to wait until he retires to get the full tax benefit of rental properties. Also, you have great cadence. Good luck and good health to you and yours.
As a brand new business owner of an S-corp all these videos are amazing! thank you for sharing and I'm glad I've stumbled upon your channel!
Is there a tax write off for using your personal money to pay for business expenses necessary before the business earns any money.
Thank you very much I am not NEW but am way more educated about what to ask as I start a new LLC
You can do annual reimbursement on an accountable plan (see 10:50)? I thought you had to do it at least quarterly, because you can’t reimburse for an expense that is more than 60 days old. Doing it annually is certainly much easier and with less crap paperwork.
It is a reasonableness test. Generally speaking, 120 days is fine to account for something. Payment of that something is a different matter because sometimes a business lacks the funds to pay. We have handled many audits and the time frame was never an issue. The issue tends to be whether or not (a) the expense was incurred and substantiated and (b) was it reimbursed. I like to clean things up with clients annually to make sure there is never an issue as to the tax year a reimbursement occurs. Cash basis taxpayers have to cut the reimbursement check by 12/31 to write it off in that calendar year.
Very helpful and useful info! Thanks!
Glad you think so, thank you for watching the video!
What paperwork is required to have “accountable plan”?
Thank you. I will put your video in my Business Tax course.
Great video! Very informative and clear to me. I'm someone who is thinking about starting a youtube and worries about the tax/business part so this was helpful. Thank you!
As always, knocked it out of the park!!!!! Thanku, my friend, I've been enlightened, and I'm sharing with my family, friends, and associates so that they can be enlightened and successful as well!!!
I appreciate the support!
Hey Toby, thanks for this info! Question: should I bring these items to my accountant, or should I work with some sort of tax planner to determine what applies to me and then bring that to my accountant? My current accountant doesn't seem to know of any kinds of tax savings for my small business so trying to figure out next steps.
Thank you so much for your question! We highly recommend you join us at our next Free Tax & Asset Protection Workshop Livestream. Our attorneys and specialists will answer all your questions at no additional cost. Save Your Seat: aba.link/taptoby
Hi Toby, how can I be a client to start 2023 right. I have a new C corp currently. Thank you.
Great video!! I'm writing my business plan for a home-based business as a virtual assistant offering mental health billing & bookkeeping. I do intend to form an LLC.
Great video! Valuable information.
Thank you!
Can you cover ROBS 401k and any strategies there might be to replenish the 401k post business acquisition that isn't dependent on selling the business at the end?
GREAT GREAT INFORMATION.....
Thanks for watching!
I haven’t watched all your videos, but I wanted to see if you could do a video on how people working full-time, with a part-time small business deal with taxes. For example, should I be paying quarterly taxes or can I wait until I file my yearly taxes? Topics like that would be helpful. Thanks in advance.
Hi. I don’t know if you got a reply on this. I’m a CPA and am happy to discuss with you if you’d like.
Awesome video thanks
Thank you for watching!
Great info. You sound like my tax advisor 👍😁🤣
Really appreciate, good for knowledge 👍🏼
Glad it was helpful!
Thank you so much Toby, it is really kind of you to share this much information. I appreciate you!
Thank you for watching the video!
Toby, this content is truly amazing and eye opening. Thank you for the time and effort that you have spent to compile and present this so elegantly.
I appreciate that! I hope you subscribe to the channel for more of my videos.
@@TobyMathisabsolutely and attended your seminar. What a wealth of information. Immediately saw value for my biz and now have my holding LLC started with Anderson. This is such a game changer for me at the perfect time as I begin building my structure. I cannot thank you enough.
thank you sir its been so important for me.. im signed up with your company and i love the peace of mind.
What is an accountable plan?
Can you reimburse an independent consultant or contractor (person is not an employee)
Thanks for the video. Easy to follow and full of great information. I subscribed.
Awesome, thank you!
Hey Toby! I love all the information you so generously share. Thank you !
I have a question, can a real estate agent have a single member LLC? Because my broker had me open a sole proprietor, I’m considering to redo it after watching this video 😅
Amazing information, thank you!!!
Glad you enjoyed the video!
Excellent video. Enjoying the channel. Tks for sharing.
Thanks for watching!
Thank you! I did get lost a bit between the different types of business incorporations and the comparisons to what the individual employee can take in write offs if someone has a very small 1-2 person company. Perhaps graphics would help someone like me? Fantastic information to dive into.
Please let us know if you have any questions!
Amazing information. Subscribed right away
Incredible and clear content! Thank you. Sole proprietor here many years... will you please consider a class on changing to an S or C corp and which is best to choose.
Great suggestion! We will certainly consider it!
@@TobyMathis Thank you. At 1st glance, an S Corp seems like it could be a good fit, however, I have other revenue streams and... I'd like my company to fund our non profit.
Thank you for the video!!! We learn a lot with you! Thank you!
My pleasure! Thank you for watching.
Toby. When the IRS says "rent a house for less than 15 days per year..." do they specify calendar days or the unit of time less than 360 hours? I ask because a hotel typically rents board rooms for an 8 hour day. This law was written mostly for the rental of homes to overnight guests. But a hotel typically rents a board room to a business for 8 hours for around $500-$1000.
It would seem to me that if days is not specifically defined in pub 527, the common definition of 24 hours should be used. In that case, 15 days = 360 hours or less than 45 8-hour-work-day rental periods.
Have you guys looked at this and have an opinion on this interpretation? I know of no hotel renting a meting room for less than $500.
LOVE LOVE LOVE your videos! LOVE LOVE!!!!
Genius! I think I may have to switch over to you 😀
You should! Let us know if you are interested in a free strategy session to go over our offerings 😄
Thank you so much for this information. This was amazing.
I'm glad you found the information helpful!
What would you recommend for a flower Business to have a LLC or just a S-Corp or C-corp? ( new to all of this I wish to learn the ins and outs of tax laws)
Hi, thank you for leaving your comment. You can request a free 45-minute consultation to discuss our proven asset protection and tax strategies and how they apply to your unique situation. You can get set up here! -----------> aba.link/tobyss
Absolutely great information! Thank you!
Glad you enjoyed it! Thank you.
You have a wealth of information our livelihood.
Thanks. I knew a lot of this but learned some new things.
Glad it was helpful!
Is there a difference in gifting your kids vs having them in the family business?
Great channel Toby!
Thanks for the support! Have you ever attended a virtual workshop? If not, I would highly recommend you attend and ask this question live during the event. =) aba.link/byj
Are you taking new clients? I would like have my business looked at and get some advice on what I should do to protect myself and family.
Yes, you can get started with us by registering for a free strategy session andersonadvisors.com/ss/
Thank you for the information!
I watched this again. Alot of great info here!
Glad it was helpful!
How to have an accountable plan? Eg just a resolution that the corporation has an accountable plan or need to go to Schwab to set up an accountable plan? Can employer just reimburse the independent contractor without any formal paperwork? Thank you very much!
Hello, we recommend speaking with one of our advisors for any legal advice. Here is the link to schedule a free strategy session, bit.ly/3JbMhRP. Or you may call to speak with an advisor at our toll-free line, 800-706-4741.
Thank you so much Toby very great and smart vdo😊
You are friggin AMAZING!!!
Toby, are there any breaks for passive income from digital real estate or is it not considered that way in tax law.
Awesome thanks so much…
You bet!
Great information!! I'm about to watch it for a 3rd time. I have a small side business in it's 2nd year. Just the wife and I. Should I file as an S or C corp? Maybe an episode comparing the two? Anyway, please keep up the great work! Love your content!
Haha. I watched it at least 3 times while working on my quickbooks just now. Great video.
Hi Josh, thank you for leaving your comment. You can request a free 45-minute consultation to discuss our proven asset protection and tax strategies and how they apply to your unique situation. Here is where you can get set up! ----------> aba.link/tobyss
Thanks for this great content. Looking forward to working with you in the near future.
Can't wait! Let us know if you need help with anything 👍
Thank you! Love your content! ❤
Glad you enjoy it! Thanks for watching.
Your videos are so informative. Do you have a video on new LLCs that earned No money
Thanks for the support! That is a great video suggestion! In the meantime, I recommend you register for a free strategy session to learn more about LLCs that haven't earned no money. aba.link/6fk
Thinking, wait until our Gross is over 70,000 to switch to S from LLC? Gross year one , April to December 53,000. Thank you for clarifying, ugh... Tough times, but thinking S corp for 2025
Best!!! Thank you!
Toby as always great video cld u do video about thid Infinit banking or life insurance where u cld borrow money aganst my primium, use it to for investment
Thank you for this info. How do you write off employees overseas (without a SS)? Is there a path to justify necessary expenses associated with your cost of goods?
Just found this channel, great information 👍.
Awesome, thank you!
Selling online is a big thing since COIVD. Platform fees are 20%, sales tax is held back by platform.
My question.
As full retiree single receiving SS. 14,400 a month how much can I make on line without paying Federal Taxes.
Toby... one more... what about adoption benifits?
Hi, I’m concerned with how to inherit my mother’s trust property. My attorney advised I didn’t need another trust to title my share of an inherited house in an 60/40 split with a grandson (of decedent) special needs trust. Apparently, in 2021 a California law passed in which because my mother was in an Alzheimer live in facility for four years, I am losing her tax basis and her property will be reassessed to a higher taxable value. They win/I lose. I will still be able to file for a homeowner’s exemption but at a much higher assessed value. I’d love to see a video speaking to heirs of estates when trusts were involved. Thanks Toby, I love watching your videos.
Thank you so much for your question! We highly recommend you join us at our next Free Tax & Asset Protection Workshop Livestream. Our attorneys and specialists will answer all your questions at no additional cost. Save Your Seat: aba.link/taptoby
Hi i recently subscribed because i love your contents and I’m trying to do well in life , and because of this i have a following question.
How do i person like me with some savings but regular employed with a big corporation avoid to pay so many taxes ? Should i open a gst and find a secondary job ? Or maybe with a secondary investment property and gst as real estate business i could use some loophole maybe ?! Thank you for your help !
Thank You! 🙃
You still have to spend money to get your money back. Net zero. Also, you never consider Schedule E income versus Schedule C income and not paying self-employment taxes.
Can your c-corp manage LLC’s with different NAIC’s? For example, let’s say two are real estate and one is e-commerce. How can that be set up for maximum benefit?
Your question involves some intricacies that would benefit from a more personalized discussion. I recommend scheduling a free strategy session with our experts to delve into the specifics of managing diverse LLCs under a C-Corp and optimizing the setup for maximum benefits. Visit: aba.link/6fk
How do you prove “convenience of the employer” for single-person businesses, especially ones without customers, like trading? The usual safe-harbor reasons given (24-hour contact with your employer or customers) don’t seem to apply. I am in constant contact with myself after all, even though I have two hats in my corporation (employer and employee).
Proving "convenience of the employer" for single-person businesses, especially those in trading, can be nuanced. To provide tailored guidance based on your specific situation, I recommend scheduling a free strategy session. Visit: aba.link/6fk
what about the cost of filling the break room with coffee and snacks? Many offices where I am from provide lunch every day for its employee. What about that?
Wow. Solid Gold 💰
Wow, I learned so much.
Great content! QUESTION - What is the major difference between the S Corp, the C Corp and the LLC? Also, is an LLC the same as a sole proprietorship? And, can an LLC also deduct the cell phone expense and internet bill on a home employee?
Good questions. We could speak for days on the answers, but to be brief: 1- An S-Corp is a hybrid between a Corp and a pass through entity. Good for small business owners. A C-Corp is more of a 'traditional' corp, and is used for investments and businesses that plan on having investors. An LLC can elect its taxation, so it could be either, or a partnership or disregarded. 2- LLC is not the same as sole-prop. LLCs have liability protection, sole-props do not. 3- "It depends"- generally the answer is no, but there are some scenarios in which home employment related expenses can be reimbursed in part by a corporation.
Can 2 non married people be equal partners 50% each, in an LLC, taxed as an scorp. You mentioned partnerships were always treated as sole proprietors. Also can some of the expenses, such as education, cell phone just be paid for by the scorp instead of doing a reimbursement.
If you are taxed as an S-corporation you are not partners, you are shareholders. That is important, because partners can have allocations of income and deductions that are different than their percentage of capital. One partner can receive distributions even if another doesn’t. S-corporation shareholders can do neither of those things without instantly revoking the company’s S-corporation election.
Any expense that could be reimbursed as a proper business expense can be paid directly by the corporation instead. Much less paperwork if you do.
I thought Augusta-rule payments cannot be made for properties that you also have a home office in.
For purposes of a home office is your home treated as commercial (39 year depreciation) or residential (27.5 year depreciation)? Obviously the deduction for the latter is larger.
You can do both. 280A is for the meeting space - generally a large living area. The administrative office is generally a bedroom converted to an office.
Would love education on retired people selling online for supplementing income. This year a 600.00 income limit was to be Incorporated and all platforms were to mail 1099-K to IRS for online sales that had to be reported. At the end of 2022 it fell through. But most likely will be introduced in 2023.
How do full retirees have to file these 1099-K's if making under the limit they can earn from a job after retired?
I would like to verify it: If LLC is a C corp, the business owner can eligibly deduct all his medical bills?
If an LLC taxed as a C Corporation sets up a medical reimbursement program, it can cover certain out-of-pocket eligible medical expenses. These typically include: Health insurance premiums for both employees and their dependents; Costs for treatments, procedures, and care from licensed medical practitioners, such as hospital stays, surgeries, and doctor visits; Prescription medications; Dental and vision care expenses, including eye exams and corrective lenses; Preventive care services, like vaccinations and screenings; and Emergency medical care or transportation costs. The program must adhere to IRS guidelines and may be subject to specific requirements and limits. The C Corporation should ensure that the reimbursement plan is well-documented and properly managed. Consulting with one of our tax advisors can help ensure the program complies with all regulatory requirements and optimizes its benefits.
The problem I ran into having too much expenses is not able to refi my house or get a HELOC without out showing enough income after the deductions. How do you deal with that?
Great video! Thank you! Is an LLC able to still use these tips?
Hi, great question! For a more detailed response, I suggest you sign up for a free strategy session with my team. Visit: aba.link/6fk
My company gave us an option to work from home the last 3 years - should we have been reimbursed for internet cell electric gas??? This is the internet company Frontier communications.
And you have shown us how the rich get richer now it’s our turn
Thank you for this valuable info!!
Wow you really did a great job!!
Glad it was helpful!
Loved your video please tell me more about putting away for retirement I have a C Corp.
Does this all work for partnership as well ?
Can you give someone (like kids, family) an item and issue a 1099-NEC to them. But actually keep the annual value under $599 and not issue the 1099-NEC.
For example, Grandma (a non-employee) offers professional advice. In exchange, You buy her a nice TV. She is not an employee, so you typically would issue her a 1099-NEC, but if the annual value is less than $600. you don't issue the form. Maybe you depreciate the item you give them in the business first and then give it to them with a lower fair market value. Grandma needs the TV to watch a seminar. The TV is now used when you give it to her so you depreciate it by 30% before giving it to her.
That's a great question, and it involves some complex tax considerations. To get personalized advice tailored to your specific situation and ensure you're handling everything correctly, I recommend scheduling a free strategy session with us. Visit: aba.link/6fk
Toby, what if I’m renting an apartment? Can a reasonable amount of my rent be reimbursed under an accountable plan?
Thank you. How do you file disregard LLC?
House is a depretiatable asset? Write off the homes depreciation? All of my homes have and will continue to appreciate.