HELOC Taxes and What Does It Mean for Your Wallet?

Free Tax Tips & Strategies In this episode of Tax Tuesday, tax attorney Toby Mathis, Esq. and CPA & Tax Director at Finance Business Advisors, Jeff Webb, bring tax knowledge to the masses and answer your tax questions LIVE! https://youtu.be/ierCgY3z9z4 Updated April 6, 2021 Featured Questions - If a new C-corp. is started and the owner is the only employee during the initial years, does the owner-employee still need to draw a salary even if the C-corp. is not profitable for the first few years? - I earn bonuses on a quarterly basis (as I work in a sales organization). Since the bonus is treated as supplemental income by the IRS, it’s subject to a higher tax. How do I reduce the tax hit on my bonus? What is a strategy to keep or protect that bonus income? - How can I live in a home owned by my LLC that is not producing income? - Real estate investor start-up expenses on education, classes, materials — can I write all that off my taxes once my LLC is formed? - I am a physician and work for a university hospital. During the pandemic, I have been working from home. Can I get a deduction for rent? - I used the HELOC of my primary residence to purchase an investment property. Any tax deduction/advantage I can take? - I have insurance policies in India and would like to bring the money once they are matured. Do I need to pay taxes on this money? - If I buy office supplies and inventory for my business with my personal credit card, can that be the owner's equity? - Could I take out $100,000 from my current 401(k) according to the CARES Act and roll it to a different QRP without tax consequences? - If I used a credit card to purchase stock, can I write off the interest I'm paying on the credit card if I incur losses? - If Biden gets in, how far back can they go with tax changes? - What happens for tax purposes if I want to sell a property that was in an LLC (do I need to transfer it back to myself)? - Do capital losses offset capital gains in a 1:1 ratio no matter what your earned income level? Would $1 of capital loss offset $1 of capital gain in the same ratio regardless of gain being short- or long-term? - My son and I both have solo 401(k)s. How can we partner in a buy-and-hold real estate investment without violating disqualified parties rules? - I have an HSA account from my employer. The IRS maximum contribution amount for 2019 was $3,500 and my employer contributed $1,500. The IRS maximum contribution amount for 2020 is $3,550 and my employer will contribute $1,500. Am I allowed to contribute this November for both 2019 and 2020 tax years, the remaining $2,000 and $2,050, respectively? As always, take advantage of our and every other Tuesday we have , a great educational series. Our answers your questions about how to structure your business entities to protect you and your assets. One of my favorites as well is our . Additional Resources:

Finance Advisor

Finance & Trading Writer

3 min read

Free Tax Tips & Strategies

In this episode of Tax Tuesday, tax attorney Toby Mathis, Esq. and CPA & Tax Director at Finance Business Advisors, Jeff Webb, bring tax knowledge to the masses and answer your tax questions LIVE!

Updated April 6, 2021

Featured Questions

– If a new C-corp. is started and the owner is the only employee during the initial years, does the owner-employee still need to draw a salary even if the C-corp. is not profitable for the first few years?
– I earn bonuses on a quarterly basis (as I work in a sales organization). Since the bonus is treated as supplemental income by the IRS, it’s subject to a higher tax. How do I reduce the tax hit on my bonus? What is a strategy to keep or protect that bonus income?
– How can I live in a home owned by my LLC that is not producing income?
– Real estate investor start-up expenses on education, classes, materials — can I write all that off my taxes once my LLC is formed?
– I am a physician and work for a university hospital. During the pandemic, I have been working from home. Can I get a deduction for rent?
– I used the HELOC of my primary residence to purchase an investment property. Any tax deduction/advantage I can take?
– I have insurance policies in India and would like to bring the money once they are matured. Do I need to pay taxes on this money?
– If I buy office supplies and inventory for my business with my personal credit card, can that be the owner’s equity?
– Could I take out $100,000 from my current 401(k) according to the CARES Act and roll it to a different QRP without tax consequences?
– If I used a credit card to purchase stock, can I write off the interest I’m paying on the credit card if I incur losses?
– If Biden gets in, how far back can they go with tax changes?
– What happens for tax purposes if I want to sell a property that was in an LLC (do I need to transfer it back to myself)?
– Do capital losses offset capital gains in a 1:1 ratio no matter what your earned income level? Would $1 of capital loss offset $1 of capital gain in the same ratio regardless of gain being short- or long-term?
– My son and I both have solo 401(k)s. How can we partner in a buy-and-hold real estate investment without violating disqualified parties rules?
– I have an HSA account from my employer. The IRS maximum contribution amount for 2019 was $3,500 and my employer contributed $1,500. The IRS maximum contribution amount for 2020 is $3,550 and my employer will contribute $1,500. Am I allowed to contribute this November for both 2019 and 2020 tax years, the remaining $2,000 and $2,050, respectively?

As always, take advantage of our and every other Tuesday we have , a great educational series. Our answers your questions about how to structure your business entities to protect you and your assets. One of my favorites as well is our .
Additional Resources: