Podcasts about 501c6

Welcome to The Nonprofit Counsel podcast, hosted by May Harris, Esq.. In today's episode, we are honored to feature Traci DeForge, the founder of Produce Your Podcast and Co-Founder of The Podcast Professionals Association. Traci shares the mission of Produce Your Podcast, the producer of The Nonprofit Counsel podcast, and discusses the inspiration behind co-founding The Podcast Professionals Association. The conversation delves into the importance of hiring a professional to guide you through the steps of starting a nonprofit correctly, explores the differences between a 501(c)(3) and a 501(c)(6), and provides insights on compensating founders. This episode is packed with valuable information for anyone looking to start a nonprofit or those working in the nonprofit sector with questions.   IN THIS EPISODE:   [1:16] Traci discusses the goals of Produce Your Podcast, starting the nonprofit Podcast Professionals Association and discussion of the launch of May's book last August, How To Start A Nonprofit That Will Change The World [8:41] Discussion of the differences between 501C3 and 501C6 [15:40] Traci shares her business journeys and being intimidated by the various regulations of starting a nonprofit, and May shares that respect for the rules is required [21:04] Traci discusses how May assisted her in setting up the Podcast Professionals Association nonprofit and discussion the compensation founders [30:04] Details of determining compensation for co-founders [36:36] Discussion of who will benefit from May's book and the audio version coming out in August, and Traci highly recommends listeners purchase May's book from Amazon and download the audio version   KEY TAKEAWAYS:    If you want to start a non-profit, contact a professional who can help you navigate the steps to avoid future penalties. Most people are only aware of the designation of a 501C3. However, there are other designations a nonprofit can take. A professional can help you make those decisions.  To begin a nonprofit, one must have a healthy respect for the regulations and the IRS. This isn't a fear; it's learning and respecting the rules.   RESOURCES: For Profit Law Group - Website Nonprofit Counsel - Website Nonprofit Counsel - Instagram Nonprofit Counsel - Linkedin Traci DeForge - Produce Your Podcast - LinkedIn Produce Your Podcast - Website How To Start A Nonprofit That Will Change The World Book   BIOGRAPHIES: May Harris has been a pioneer of nonprofit law practice for over a decade, having founded For Purpose Law Group in April 2012. She serves the nation's nonprofit sector with unparalleled expertise, prioritizing her client's missions, visions, and values. She specializes in nonprofit & tax-exempt organizations, social enterprise & business law, and estate planning & charitable giving.   GUEST BIOGRAPHY:  Traci is recognized as an international podcast expert, sought-after speaker, and media contributor featured on ABC, CBS, NBC, CNN, CTV, Fortune.com, and American Express Open. She co-hosts Ask Brien Radio Show on KHTS AM & FM, Los Angeles, CA. Produce Your Podcast was named by Media & Entertainment Business Review as a Top 10 Podcasting Services Provider 2024. Her 30-year professional career reflects a unique combination of Award Winning Mixed Media Production, Business Consulting, and Broadcast Radio Expertise. This powerful combination led to the founding of Produce Your Podcast, a premier podcast consulting & production agency providing a comprehensive, full-service, high-quality solution to incorporating podcasting into B2B and B2C clients' overall digital marketing strategy. She is the creator of PodHive, an online community for business growth-focused podcasters, The Podcast Management Academy, the industry's only certification program for Podcast Managers & Co-Founder of The Podcast Professionals Association.

Steve Balistreri is the Managing Director and National Technology, Media and Telecommunications (TMT) Industry Leader at MorganFranklin Consulting. He is also on the Executive Committee of Mindshare, a 501C6 not-for-profit organization established to support first time CEO's of high-potential emerging technology companies in the Greater Washington market. On today's episode, Steve shares the origin story behind Mindshare, describes how it has helped nearly thirty cohorts of tech CEOs build successful companies, and emphasizes the importance of community for entrepreneurs and investors in the D.C. region.

Steve Balistreri is the Managing Director and National Technology, Media and Telecommunications (TMT) Industry Leader at MorganFranklin Consulting. He is also on the Executive Committee of Mindshare, a 501C6 not-for-profit organization established to support first time CEO's of high-potential emerging technology companies in the Greater Washington market. On today's episode, Steve shares the origin story behind Mindshare, describes how it has helped nearly thirty cohorts of tech CEOs build successful companies, and emphasizes the importance of community for entrepreneurs and investors in the D.C. region. Learn more about your ad choices. Visit podcastchoices.com/adchoicesSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Welcome back to the Compliance In Context podcast! Today’s show features two very special guests in the investment management space, Karen Barr from the Investment Adviser Association and Lisa Crossley from the National Society of Compliance Professionals, to talk to us about what’s happening in the investment adviser space, discuss the rich history of both organizations and more recent DE&I efforts, in the industry and what has helped these women become the fantastic leaders they are today. In our Headlines section, we examine the recent criminal indictment of FTX founder Samuel Bankman-Fried and some recent comments from Commissioner Peirce on ESG. And finally, we’ll wrap up today’s show with another installment of History Has Your Back, where we examine an old Navajo tradition that might help us polish the experiences over the last year and provide us with some perspective as we look toward 2023. Show Headlines DOJ, SEC and CFTC Charge FTX and Founder with Fraud (criminal indictment, SEC Complaint, CFTC Complaint) SEC Commissioner Peirce Criticizes SEC's Climate Disclosure Proposal Interview with Karen Barr and Lisa Crossley What is the mission and purpose of the IAA? What is the mission and purpose of the NSCP? Discuss the state of the registered investment adviser industry and the Investment Adviser Industry Snapshot 2022 Review key metrics from the survey and how the investment adviser industry has grown significantly over the past few years Given some of these trends, how do you see the investment adviser industry evolving in the future? Review the impact and focus of DEI initiatives within each organization and within the industry How did you get to the position you’re in now? What is some advice you would give to other women in our industry looking to take on leadership roles within their own organizations? Final Segment – History Has Your Back Examining the old Navajo tradition of polishing turquoise and how it can impact the way we view our past experiences and lead us toward a brighter tomorrow Quotes 11:00 - “The Investment Advisor Association is the leading association, advancing the interests of fiduciary investment advisory firms. And I do say ‘firms’ because we’re a trade administration. Our members represent the broader universe, both asset managers and RIAs, and they range in size from some of the largest asset managers in the world to the smaller five- and ten-person shop that really make up the core of our industry, and everything–everything–in between.” – Karen Barr 15:58 - “The mission of NSCP is to create a diverse professional community for compliance, by compliance. And I’m often asked, ‘What does that motto for compliance by compliance mean?’ NSCP is a 501C6 organization. It’s a membership organization versus the IAA, which is a trade or

en was the Interim CMO of Mayo Clinic where she led marketing, provided oversight for a large team, managed professional sports partnerships, market-specific corporate outreach, and site growth. She began her career in advertising for her family's business, Cub Foods. During her 13-year tenure, the company grew from four stores to 85 in 14 states. In 1990, two years before opening, Maureen joined Mall of America and rose to Executive Vice President where she was responsible for a 100 million dollar budget, all aspects of the P&L, managed a team of 1500, worked with 800+ retailers, restaurants, and attractions. After 25 years and much success, Maureen left Mall of America in 2015 to become the CEO of MN Super Bowl LII. During this 4-year assignment, she launched two companies, a 501C3 and a 501C6 and raised $60M in private funding. She created the Bold North brand, hired a staff of 32, secured 10,000 volunteers, and engaged 400 committee members from the public and private sector. She had oversight responsibility for 200+ events and 5,800 visiting media. The Minnesota Super Bowl LII has been deemed by the NFL as the most successful in history with an economic impact of $450M for Minnesota. Maureen graduated from the University of Minnesota with an MA in Journalism/Marketing and has taken further continuing board education courses at Northwestern University, Kellogg School of Management. She has always been active in the community. She has been a board member for several non-profit organizations including St. Catherine University, Minnesota Retailers Assoc. US Department of Commerce Travel and Tourism. Today she is a board member of the MN Orchestra, Taste of the NFL as well as others. What you'll learn about in this episode: The framework of Maureen's upcoming book, “Big Brands, Little Budgets” How we can use creativity to solve seemingly impossible business problems What we can do to stay ahead in the rapidly changing marketing landscape Why it is so important to have a solid plan and team in place at the start of each year. How Maureen oversaw the successful production of Superbowl LII How to be resourceful no matter what sized budget you're working with What Maureen did to overcome burnout and fatigue throughout her career Why personal development is the key to hit the ground running in 2021 How to develop and nurture relationships that will lead you to greater levels of success Resources: Website: boldnorthassociates.com LinkedIn: https://www.linkedin.com/in/maureenhooleybausch/ https://www.linkedin.com/company/bold-north-associates/ A Little Creativity Goes a Long Way You may be familiar with Maureen Bausch already, and if not, bringing Superbowl LII to Minnesota is just one of her long list of accomplishments in destination marketing. Maureen is currently a partner with Bold North Associates (BNA), where she specializes in business development, marketing, and destination development. In this episode of the Intentional Greatness podcast, Maureen joins us to share her journey, talk about her upcoming book, “Big Brands, Little Budgets,” and help us prepare for a successful 2021. Working with What You're Given Since many of you are entrepreneurs, you understand the pain and frustration of having a grandiose vision that is limited by menial client budgets. Maureen authored “Big Brands, Little Budgets” for that exact reason. From the Superbowl to the launch of Mall of America, it seemed that any time Maureen would show up to a new project, the budget would get cut. Working with financial restrictions forced her to look at her clients' challenges and goals with an entirely new perspective, and she learned how to get extremely creative with strategy and project management. With a little creativity, you can build a big brand, and the framework of this book applies to many different industries and niches. It Starts With a Plan It doesn't matter how much money you have. If you don't have a vision and you don't have a plan, it is very difficult to accomplish your objectives. Regardless of the budget, you should put everything down on paper first and look three to five years ahead. With the perfect plan in place, you can focus on building strategic partnerships and a stellar team that will help you execute it. Circumstances beyond your control will demand thinking on your feet and using creativity to persevere—as 2020 has shown us, there is no telling how great the impact may be. But with a concrete plan and team to lean into, you will still be able to deliver no matter what.

Bendetti: I'm trying to steal that great quote from Warren Buffet, "I'm trying to be greedy while others are fearful." And I'm trying to grow. And if you're an existing organization with a big overhead, wow, you're retreating. You are worried about how you're going to continue if you're a 501C6, you're not eligible for the PPP loans. They're in a period of retrenchment, these other professional associations. I have no costs. I'm lean by design. I have a job. This is my nights and weekend gig. So everything I do is easy and lean. And so I have no costs. And so I'm trying to grow, I'm trying to be greedy while others are fearful and expand this thing. While I can't meet anywhere physically, so I can grow virtually.

Mike Creeden joins the OnTrack Podcast to discuss his newly launched non-profit organization, the Printed Circuit Engineering Association (PCE-A), whose mission is “to empower you, the Printed Circuit Engineering Professional”. Mike is a board designer who began his career working in the automotive industry, and has since, in addition to maintaining a lucrative career, served on the IPC Designer’s Council. Join us and learn more about this organization for PCB designers. Watch the video, click here. Show Highlights: Mike began his career in the Midwest, designing boards for the automotive industry. He became an officer of the local chapter of the IPC Designer’s Council, serving as a Communications and Education Officer, and eventually started his own Design Service Center, which offered a more well-rounded experience than he felt he could get working for CAD vendors and designing products for OEMs over the years. Since selling his Design Service Center business, he’s been working with EPTAC and IPC as a CID Instructor, teaching CID and CID+, and is currently designated a Master IPC Instructor.   Mike has donated nearly a thousand hours to the collective EPTAC effort, part of which includes the task of rewriting the CID+ training manual! Within the last year, Mike has also taken a position as a Technical Director of Design Education with Insulectro, North America’s leading Isola and Dupont distributor.  “IPC is an Us, not a Them”: So, if you know your craft, you’re more than welcome to join! At the start of 2020, Mike launched a new design organization called PCE-A—Printed Circuit Engineering Association—in response to the dissolution of the IPC Designer’s Council. Printed Circuit  Engineering Association will be a non-profit, 501C6-type organization that is free to join, and their affiliated groups will be, for example, PCE-OC for Orange County, or PCE-SD, or PCE-RTC (the research triangle).  The purpose of the PCEA is to empower you, the Printed Circuit Engineering Professional, to improve your career and truly bring value to your company - there’s nothing to be sold here! Visit PCE-A.org for more information Links and Resources: IPC APEX 2020 HighlightsIPC APEX Expo 2021IPC Designer Certification ProgramPCB Design Certifications and Learning Programs with Ben Jordan    

Christmas is early in this special edition of Miracle Chrysler Dodge Jeep Ram podcast. In this episode, host John Haggard welcomes back Kim Baker, the CEO of the Gallatin Chamber of Commerce. Get to know her more as she and John discuss the Gallatin Christmas Events as well as the following topics: Kim’s Bowling CareerIs Kim Running for Mayor 30 Years from Now?Changes in Gallatin Over the Past 5 YearsMayor Paige Brown’s State of the City Address (Click on the Link to Watch)Holiday Events in Gallatin“Tinsel and Treasures” EventHow the “Tinsel and Treasures” Event WorksWhat Are the Prizes for the Participants?Perkins, the Oldest Standing Business in GallatinWhy Gallatin Christmas Tree Lighting Is Different From OthersGallatin’s Annual Christmas ParadeHow to Participate at the Christmas ParadeMisconceptions of the Chamber of CommerceHow Is the Chamber of Commerce Funded?Are There Any Job Openings at the Chamber of Commerce Right Now?How to Get in Touch with the Chamber of CommerceWhere’s the Chamber of Commerce Office Located Balloon Garland mentioned in interview: Baloon Garland is from (and sponsored by) Black Tie Floral Design and Events. Transcript John Haggard 0:02 Welcome to the Miracle Chrysler Dodge Jeep Ram Special Edition podcast where we also interview community leaders, Gallatin area events that are happening. And today we’re excited to have back to the podcast. Kim Baker, she’s the chief executive officer of the Gallatin Chamber of Commerce. Hey Kim, welcome back! Kim Baker 0:20 Hey, good to be here again. Thanks for having me. John Haggard 0:22 You know the last time we spoke one of the things we found out about you is that you are pretty close to a professional bowler. So my question is, have you bowled a 300 Kim, since we last spoke? Kim Baker 0:33 Now I’d be careful using the term professional but I’m not gonna make that claim. And no, I haven’t bowled a 300. So I guess that tells you a lot about my professionalism in bowling. John Haggard 0:43 All right. Well, you have had a chance to at least bowl have you since we last talked? Kim Baker 0:48 You know what? I haven’t bowled but I do like to bowl a lot in the winter. You know, there’s not much else you can do. You can’t do a lot of other activities outdoors. So we reserve that kind of sore the colder months at our house. John Haggard 0:59 Gotcha. Well, the cold weather is on the way, so there you go. Hey, for folks who missed our last podcast with Kim, by the way, you can go to www.miraclefordtn.com and look under the podcast tab and you can find Kim Baker right there as episode number nine. Kim, we learned a lot of things about you like again, you’re good bowler, your bargain hunter when it comes to shopping and you like tent camping and you actually told us one time that you were dead for a short while and brought back to life. So folks go to podcast number nine if you have not already done so to listen to our previous podcast with Kim Baker. So Kim, since we last spoke, we learned that you joined the chamber in 2013 became the CEO in 2015. Even said maybe one day 30 years or so from now you might run for mayor did I get all that right? Kim Baker 1:49 Might. Not so, you know. You got most of it right. John Haggard 1:53 Okay. So if we were going to or you were going to recap what has happened in the past five years in Gallatin, just overall in terms of new industry that’s come to town, new shopping centers, new arts and entertainment, that sort of thing. What has been going on? Kim Baker 2:08 In the last three to five years, there’s been a lot. You know, Gallatin looks a lot different than it did three to five years ago. It certainly looks a lot different than it did about 20 years ago when I landed here. And since I’ve been here at the chamber, I’ve seen a lot of changes. You know, I think the best thing I’ve seen is through all of the changes, just the way the community is stuck together, and that hasn’t changed. So I like that because a lot of times when we see change, we see everything change. But there’s some things that have just been completely stable. And I think that’s the heart and the community in Gallatin. You know, I love seeing the growth and revitalization and some of the steadiness of the ebb and flow in our downtown. Businesses and just the changes in the downtown Gallatin of ebb and flow historically. Kim Baker 2:55 But in the more recent years, they’ve kind of just maintained and the businesses become more sustainable. We’ve seen a lot of the same faces. And I like to say we really have aces and their places on our square right now. We’ve got a great group of folks that work together. Of course, we’re seeing a lot more variety. Our dining scene has gotten a lot more dynamic. I like to call it Gallatin’s dynamic dining scene. And there’s just so many different options. And we’re seeing more of those. I mean, we’ve got several new restaurants popping up and several more to come in the next few months. I noticed the other day, I think it’s a new burrito place over in the Greenlee area, they’ve put their sign up. So that’s a good sign when you see a new sign. And so I’ve seen a lot of that over the past few years. You know, a few weeks ago, the mayor delivered her State of the City address, which is an annual address she delivers. Kim Baker 3:45 We’ve had the honor of her presenting that at a chamber luncheon for about a decade now. And she delivered that again and then she did an evening presentation. They actually filmed that this year. And so I would highly recommend listeners who did not see or hear that presentation, go check it out and find it. And you can find it on Facebook. And I can even send you a link. So you can link it into this podcast. It’s on YouTube. (Follow Link to watch: https://www.youtube.com/watch?v=y79nK2e2Hzw) And it is a state of the city. And the mayor does a really phenomenal job when she delivers that presentation every year, I’ve never seen her deliver it poorly. But this year, I really liked how she opened with addressing some of our biggest challenges that we’ve seen in the past 12 to 18 months. And then some of the biggest challenges will face them in the days ahead. And she addressed those right, right off the rip, she said, “Look, the state of Gallatin and is great. We know we have these issues. However…” And then she celebrated all of our successes and how we’re going to integrate those along with these challenges over time. And I think that’s really positive for Gallatin to be able to stand up and say those things. So I’ll give you that link. So we can put that in here because folks should just really see that and I think it’ll allow them some time to reflect over things that they may not have even noticed that happened over the past year. Things that they may not even know are happening, you know, in their neighborhood in the days ahead. So… John Haggard 5:05 Yeah, that would be great. We will definitely put that link there. And was there any one thing that struck you as like, hey, what a surprise or glad to know, it turned out this way when we were working on it. Kim Baker 5:17 Let’s see, I don’t know that surprise for me because I, you know, I stay pretty in touch with a lot of the things that are going on in the community. I think that there was definitely some of the projects that were surprising to folks. And just, you know, one thing that the city’s working on right now, they implemented a strategic plan last year, and so they’re working on a comprehensive plan that is community involvement, and it’s focused on the feedback from community members, those insider community of people over the past year have had a chance to weigh in to develop this plan. And so they revealed a little bit of that and they revealed some clips of videos they had captured at some of the different planning sessions and so it is interesting to see people say different things, especially sometimes when you think you know, people really well. And then they have different viewpoints, which there’s nothing wrong with that. It’s what makes our city unique. And that gives us a different or unique culture. And if there was something that surprised me some of the clips they incorporate into that it’s like, oh, oh, they think like that. That’s interesting, you know, and it’s, it’s interesting to see how different people think. John Haggard 6:21 Yeah, well, let’s get to where the fun part is – the upcoming holiday events that are going on in the Gallatin area. We find that people now seem to travel a little bit more. Some if they live in Nashville they go to Franklin or they will go, you know, north or go east or go west. And I’m just wondering what is going on? What are the fun things that folks could look forward to in November, December, early January? Kim Baker 6:44 You know, there are so many. I like to say that this is the most magical time of year and I know that’s kind of cheesy because when we think of Christmas or even when we think of Disney World, we think of that term. But it really is a magical time of year in Gallatin and I think there’s a lot to do with it. I think the historic downtown it just has that very movie-ish feel to it when it’s all lit up and decorated for the holidays. Again, I think that hometown feel you experience in certain areas live in amongst all of the people that have been here for generations. But then I think a lot of it has to do with these special happenings that reoccur each holiday season. Kim Baker 7:21 So one of my favorites is actually coming up in November, and it’s coming up on Saturday, November 9th, and Sunday, November 10th. And it’s called Tinsel and Treasures. And it has been going on, we think, for about 50 years. Actually, it’s a chamber-organized event. It includes many local retailers in the area. So I think this year we’ve got right under 30 participating. And basically the gist of it is these folks, local retailers that have a brick and mortar in Gallatin, so they have to be in Gallatin proper 37066 zip code, they can participate. And we promote them. We market them. We Push out a passport that includes all of their names and their locations and their hours on them. And shoppers that weekend can start at any of the participating retailers. Pick up one of these passports, and then it serves as a guide and a passport to help them navigate the weekend. And so it is the holiday retail open house. It really kicks off the holiday shopping season in downtown Gallatin, and all over Gallatin. John Haggard 8:27 So passports that’s interesting. Tell me a little bit more about the passport itself. Kim Baker 8:32 Yeah, so it’s a piece of paper this year because we have so many participants. In the past, it had been a half sheet of paper. And so this year, it’s actually a full sheet, 8.5×11, because we have so many folks participating and so it kind of looks like a kind of like a Monopoly board on this like around the perimeter. There’s little boxes. Each of them has a logo or the business name and it may take it around. And so they start at they can start anywhere they want. And as they traveled each different spot, the idea is that they would go in hopefully shop and spend money. But if not just kind of browse and see what they have to offer and if it’s not something they need at the time, we hope that they go back. While they’re there they can get a punch. Each retailer has a unique hole punch that they will use to punch their passport and then they travel around and they can go to the next one. Kim Baker 9:20 A lot of these retailers will have their halls completely decked. That’s one thing we asked them – that they are decorated for Christmas. Every now and then we get a little pushback because they say Kim it’s the second weekend of November because this event always is the second week in November. But we say I know but it really kicks off the holiday season is sets the tone if you go ahead and put your trees up and your garland out and so they do. And they’ll have Christmas music playing, some of them will have live Christmas music like a chorus or a band. A lot of them will have Christmas cookies or Christmas spreads finger foods out special giveaways door prizes to shoppers throughout the weekend. And most of them already have their Christmas merchandise out. So if you’re looking to buy decorations, or you’re looking for new items that are hot and trending for Christmas gifts, that’s a great time to get them. Kim Baker 10:09 So the idea is that you would travel around and get as many punches as you can. This event stretches over two days. So on Saturday, it’s always from 10 to 5. And on Sunday, it’s from 12 to 5. So you have two almost full days to participate and get all the punches. If you visit at least 10 spots, you’re entered into a drawing. One thing we ask from these folks, this is not a revenue stream for the chamber by any means. We ask these folks when they participate, they give us $50 participate, and they give us $50 and gift cards. And so the $50 to participate goes to marketing and producing all the materials, we market and use our local media partners to help promote this event. And then the gift cards we divide up into two shopping spree prize packages. So two lucky winners will win a shopping spree to go back and shop at all these spots again. John Haggard 11:03 How much, if you are one of the two winners, would you receive? Kim Baker 11:07 Oh, let’s see, let’s do a little bit of math. Like this year, I mean, each place has given us $50. And then you got 30. So you divide that by two. Are you good at math? John Haggard 11:19 Yeah. $750 each, I think? Kim Baker 11:21 Yeah. About $750. Sometimes we throw in different prizes. Like we’ll put in some Christmas ornaments or some merchandise, and we’ll just have fun with it. Sometimes we’ll have retailers that give us things in addition to the gift card. So I mean, it could very well be a prize package up to about $1,000. John Haggard 11:41 Wow! Sounds fun! It sounds fun because people are going to want to shop anyway. So why not go, you know? Kim Baker 11:46 Oh, yeah, I mean, it really is and, and what we see now because this tradition has been going on it was it was started by Perkins many, many moons ago, decades ago, literally. And when it kind of started growing. I was told they reached out to the Chamber. This predates me, of course, but they reached out to the chamber and said, “Hey, this is growing to want to help?” And then that’s kind of how it fell into the Chamber’s hands. We just carried on with it, because we think it’s really good for our retailers and so we know that it brings folks into the area to shop. I mean, you go out this weekend and you see mostly, it’s mostly women. Now, there are some men a lot of times you see the men that are like waiting outside of a coffee shop, or they’ve been dropped off at a restaurant to catch a football game. John Haggard 12:29 Yeah! Kim Baker 12:29 But I mean, they’re out there. And it’s primarily women. And now you see generations of women. So you’ve got grandmothers or great grandmothers, who have been shopping for this event. Then it began like 50 years ago, and now they’re bringing back daughters and granddaughters and even great-granddaughters. And so you see multi-generational like families here shopping this event together. And that to me is so magical. John Haggard 12:55 Now, you said started by Perkins. Now for folks who don’t know about Perkins, tell us about that. Kim Baker 13:00 Perkins is a local pharmacy and gift shop. They now have two locations here in Gallatin. One’s in down Hartsville Pike by the hospital by summer regional. And then the other one is off Greenlea Boulevard near the Fairvue plantation neighborhood. And they are the oldest standing business that is still operational in Gallatin and, let me remember how old they are… I think we’re at over 130 now? John Haggard 13:27 Wow. Wow! Kim Baker 13:29 I think that’s right. They have… over 100 years old. They have got they have a beautiful little gift shop and both of their… yeah established 1895 so John Haggard 13:41 Wow. Kim Baker 13:42 Yeah, it’s awesome, right? John Haggard 13:43 Yeah. Kim Baker 13:43 And I think they’re on their, I think just maybe, the third or fourth owner. I could be wrong on that, but it’s owned by a local family and both stores and they have a beautiful gift shop in those stores. It’s one of my go-to places for baby gifts, wedding gifts I mean, when my husband and I got married, we registered it. You know all of the normal spots people register for dishes and things like that. But we also registered a Perkins and so my favorite little household items and gifts came from Perkins. Same thing with when my daughter was born. And so they’ve been a staple in our community for many years. So we were happy as a chamber to carry on this tradition. And we love love love this event. It’s one of my favorites and it’s one of my favorites actually participate in to get out and for us like most of the work we do for the event, producing it and organizing it happens the week ahead. Kim Baker 14:14 So we’ll actually spend the whole week getting ready and dropping stuff off and visiting all of our retailers. We’ll go in and will take pictures to make sure we’re pushing them out on social media. So if you’re not following the Chamber on Facebook, make sure you’re doing that. And follow Tinsel and Treasures if you’re interested to see a sneak peek at some of what the retailers will be having. But at the weekend I really like to get out and just be out. It’s not even about for me that weekend about shopping. I just like to see other people having so much fun in our retailers having so much business. John Haggard 15:04 Hey, and you know, speaking of all that, is there something special that goes on in Gallatin during the Holidays that someone would not find elsewhere? Or at least not in this area? Kim Baker 15:15 Um, you know, I think, I think Tinsel and Treasures is definitely one of those and that’s early on. You know, then I think if we look ahead, and we think about the tree lighting and some of the festivities that happen in the downtown area during the holidays, those are really fun, too. Now, I think every city, I say every city, I think most cities do some type of tree lighting. But I don’t think they do it like us. And I think that Gallatin does a lot of things different and I think that’s really what sets us apart. If you haven’t ever been to the Gallatin Christmas tree lighting, let me just kind of paint the picture for you. So this year, it actually happens on a Monday night. Historically, it’s been on a different night, but this year for scheduling purposes it’s on Monday, December 2nd. And the tree lighting event happens at 5 pm. The folks will gather in the square, the elven are all over little downtown and the tree will be up. Kim Baker 16:07 They actually have a permanent hole. This is kind of fun. If you ever come into the downtown and you go over by the courthouse in the area of the square, one of the parking spots, you’ll see this big hole that’s covered. That’s actually where they set the Christmas tree. And I think that’s so fun. My daughter who’s a little over two, we were out there and she said, “Mommy, what’s that? What’s that for?” She stepped on it. And I said, that’s where that, I was so happy to know, I said, that is where the Christmas tree goes honey. And she said ha and she was so confused. I said I’ll show you in a few months. Yeah. But our tree lighting, so you know, they, everybody piles and people come to this, like people with kids, people without kids. I mean, you see like senior citizens, you see very young people. I mean, it is incredible. It really is like something from a movie and like I get a little emotional every year when it happens. Kim Baker 16:55 And so they bring in local school groups to sing, you know, Christmas songs. And I think last year they had the Benny Bills Barkers, that’s from Benny Bills Elementary and, I mean, cute kids you can’t go wrong with kids singing Christmas carols. Anyway but they’re out there and they’re in their little Santa hats and so they sing. And then the mayor is out there because we have a wonderful mayor. She’s out there and she usually wears like a festive pea coat or something that’s very in season like with the Christmas time. And she’s out there you know, just wandering around handing out candy canes and taking pictures like just out there doing that. Yeah. And then she makes a few announcements and then she hands it over to Santa Claus. And Santa Claus who comes into town early for this event. He flies in and then I guess he gets back to the North Pole pretty quick. He comes in and he plugs in the tree. And everybody counts down. And it really is. It’s just magical. And so while I think other people definitely and other areas have tree lighting, I don’t think they do it quite like Gallatin. John Haggard 17:56 So Kim, you know a lot of towns and a lot of counties, areas have Christmas parades. What about Gallatin? Kim Baker 18:03 Gallatin has a Christmas parade. Again a big big holiday tradition here in Gallatin, Tennessee. And I like to say that our Christmas parade, I really do think and I’ve seen a lot of other Christmas parades across the state, ours is one of the largest in length and one of the most organized parades in the Middle Tennessee region. Our parade always happens on the second Saturday in December. That’s off at noon. And what I like most about our parade is the route. Our route if you’re familiar with Gallatin, begins off of Steam Plant. So that’s where we stage our parade. Everybody’s numbered, so it’s very organized, you get a number we make our people come to parade meetings just to make sure they know what’s going on, know where to go, where to be, how to behave, all of those things. Because it is, you say, you know, they’re herding cats thing? It’s kind of like that. And we haven’t had cats but we do have horses, we had a bull. We had dogs. And so we do herd all kinds of creatures for this parade. John Haggard 19:05 That sounds, that sounds fun! And how does someone if they say, “Hey, I like marching in parades!” And how would someone, let’s say they’re new to the area, maybe they’ve been in parades in other cities, but how do you get involved with that? Kim Baker 19:18 We do we have an application, you can actually access it through our website, gallatinTN.org. And through there, you’d go to our event calendar and you’d find the event, which this year it’s December 14th, which is it’s always the second Saturday. You click on that event and you find the application. You could print it off and mail it back via snail mail, email, or you could walk it in here to the office. There is a small fee but that’s just to cover some of our costs. Believe it or not, parade requires quite a bit of insurance. And so our parade is insured and we just make sure that it’s really safe. On top of being well organized. our highest priority is a safe parade. We want to make sure that no one either in the parade or watching the parade gets hurt in any way. So… John Haggard 20:02 You know, when you think of a Chamber of Commerce, that, you know, conjures up in the mind, I think, well, it’s all business and real serious type of stuff. It sounds like you guys have a lot of fun there. I mean, it sounds like your major involvement in communities, it’s not just about the money and business licenses and all that type of thing. Kim Baker 20:20 Yeah. No, I think there is a big misconception. And I do think there are some chambers, especially like regional chambers, there are a lot more focused on just business, business, business and money and things like that. And that is very, very important. I mean, it is important and vital to the community’s success that we have a strong and thriving economy. Absolutely. But on the other side of that, it’s equally important for us in our businesses to be successful for us to have a strong community. I mean, when you have a strong community, you indirectly have strong businesses. You just do, you see it. And so people support each other and they support businesses. So I’ll tell you, you know, in my time here at the Chamber, I haven’t had a day where I’ve woken up and said, “I don’t want to go to work today.” Now, you know, have I had days that I didn’t like, you know, as much as others? Absolutely. I think we all have those. But I really have enjoyed coming to work every day. And I think a lot of it has to do with the fun we get to have. We get to do really fun stuff. You know, actually, while we’re sitting here doing this podcast, I am looking in front of me, I have a piece of garland that’s made out of balloons. There’s gotta be at least 100 balloons on this. And they are… I wish I could like… maybe I’ll take a picture (see below) and give it to you. But, I will. And so we can reference this, but it is this beautiful garland and it’s to decorate for an event we’re having in our office. And what other, I mean like there’s a bunch of balloons. I had a lady here putting together a balloon garland like that doesn’t happen in every office. And stuff like that happens all the time here. And so we really do have a fun workplace and then we get to do fun stuff like Christmas tree lightings. We get to go to events where we’re shopping In the community and just loving on businesses. And so absolutely, I think it is fun here. And I think that chamber work is just naturally somewhat fun. But I also think that the culture we’ve developed here within our own chamber is very fun. And I think my staff would say that too. Balloon Garland John Haggard 22:18 And Kim, remind folks who may not know how, again, is the Chamber funded? Kim Baker 22:24 Yeah, so the Commerce of Chamber is, we are classified as a non-profit organization. We’re a 501C6, which means that we are, it’s just the tax designation we have, it’s for chambers and associations, the C6 designation. We’re not a charitable non-profit, like a C3, like the United Way or Safe Place for Animals or Habitat for Humanity. But we are… that’s just how we’re classified. So how are we funded? Folks pay annual investments to be a part of the Chamber. And so different businesses like Miracle Ford, Miracle Chrysler, they pay an annual investment each year that we are able to provide different opportunities for them to support them, educate them, and engage them, connect them with the community. We help them market we help expose different services and products they have. We just help get them in front of the community and really serve as that liaison and connector. So those funds help us some of our events fund us throughout the year. You know, we have about eight signature events that happen throughout the year. Some of those are strictly for community, like Tinsel and Treasures. That’s not a revenue stream for the Chamber. But then there are some that service fundraisers where we do we are able to put a little bit of money back into our programming. nd then we do receive a grant from the city of Gallatin. And basically we serve as the Welcome Center for the city of Gallatin. A lot of folks find us first. We produce an annual map, we produce a city guide and business directory each year and so we distribute those. We mail out 30 to 50 newcomer packets a month to folks that are relocating to the area or think they might be interested in doing so. And so we really serve as that Welcome Center and that first stop entity for the city. So we’d like to think that we’re a great community partner with the city of Gallatinas they are to us. John Haggard 24:20 You all have a lot going on there. So I just gotta ask, are there any employment openings at this very moment at the Chamber? Kim Baker 24:28 At this moment, there are not any employment opportunities and openings, but we always are looking for volunteers. We need great volunteers all the time. And, you know, like everything else I’ve said, volunteering with the chamber is super fun. We usually feed you. We never give you a bad job. The worst thing you might have to do is stuff and envelopes. I mean, that’s the worst thing, but we bet we’ll probably let you eat pizza while you do it. I mean, it’s not awful. It’s a great way when you volunteer with the Chamber you get to get in front of the community, gets to know the community, you get some insider information and get to learn and see behind the scenes things that normal people don’t get to see. You know, I’ve got a great staff here. We’re a bigger staff than we’ve ever been. Right now. There are, I guess there are five of us, four of us that are in the office every day. There’s another one that does not have an office in our office, but she has, she’s definitely a part of our team. And she’s here in and out. She works mostly remote and kind of she’s my feet on the ground. And then I have two other very part-time folks that kind of pick up as needed, and they basically serve as events support for special events, special programs. John Haggard 25:42 All right. Well, so if somebody did want to volunteer or just get in touch with you, Kim, what’s the best way? Kim Baker 25:47 Oh, man, the best way to get in touch with me would probably be by calling here at the office you can reach us (615) 452-4000. Sending me an email always works too, kim@gallatinTN.org. And then you can always find us on social media. I know that’s the main route of communication for a lot of different people and things. So, Gallatin Chamber, you can find us on Facebook, Instagram, we’re on LinkedIn, Twitter can find us on all of the places. John Haggard 26:19 And for someone that’s not that familiar with Gallatin, where exactly are you from a landmark? Like across the street from or next to? Kim Baker 26:28 Yeah. My office is next to City Hall. If you’re familiar with the Downtown area of Gallatin and the courthouse, it’s in the courthouse, this center of the downtown. Our office is right before that. I like to say we look like the little house that sits next to the city hall, we share a parking lot. We have teal awnings where 118 West Main Street. John Haggard 26:50 Thanks, Kim. That’s Kim Baker, everybody! CEO of the Gallatin Chamber of Commerce, our special edition guest today here on the Miracle Chrysler Dodge Jeep Ram podcast. So join us again right here for another special edition of the podcast. In addition to our regular topics that we discuss each month on the best ways to purchase, lease, service and maintain, accessorize, and sell your vehicle for the highest resale value possible when you’re ready to do it. And don’t forget, there’s a transcript, right here, of the podcast and everyone on the website so that you can easily refer to it for information at your fingertips. We will also post those links that Kim talked about and that picture as well when it comes in. So I’m your host, John Haggard, we’ll see you next time.

Welcome to the 2019 NEXT Conference Series. Recorded live in Chicago, this series is bringing interviews straight to you from exhibitors and speakers at this year’s event. In this interview, host Jamin Brazil interviews David Almy, CEO of Insights Association. Find David Online: LinkedIn Website: https://www.insightsassociation.org [00:02] Hi, this is Jamin.  You’re listening to the Happy Market Research Podcast.  David Almy is the guest today. I am going to play our conversation with you.  We kind of picked up at a neat spot, I think, talking about trends in the space, how insights are becoming a cornerstone of success for modern businesses.  Enjoy. [00:23]    Well, from ’82 to ’84, I wrote an article called Business Aviation – The Fortune 500, which was a correlation of the use of business aircraft to financial performance.   [00:39] That’s fascinating.   [00:42] Yeah, and so, and it looked at the Fortune 500 and said that if you owned a business jet, for instance, how’d you do.  And I did it for three years times 500 companies, and big surprise to you probably is that there was a correlation between performance and business-jet ownership.  [01:00] Wow! [01:01]    Now, the great question then is whether or not it was causal or... [01:05] Always the question [01:06]       …or otherwise.  Having done that 82’ to 84’, very long time ago, you come here and you listen to your commen [01:15] Throw that thing out there. [01:16] And I have never seen any of that correlation study in this industry. [01:23]  Why is that? [01:24] Because this industry is not as evolved, not as mature (a funny word to use) as the business-jet industry, which has been around for 60, 70 years bigger  [01:37] Before… [01:37] Yeah, yeah.  So it’s an evolution of the industry’s group-think, if you will.  So, you announced to me this morning Watermark. And I’m going like, “Holy crap!”  This is exactly what I need, been looking for and did 38 years ago or whatever it is. [01:57]   Totally. [01:57]   And I went to look for it and couldn’t find it.  So you’ve got to tell me where do find it. [02:02] I’ll give it to you.  I have it on my desktop, well, laptop. [02:06]   OK, good.  It’s a keen interest, and I think particularly when you looked at the Insights Association, our mandate is economic development, is what it is.  It’s a not-for-profit 501C6. [02:20] That’s interesting you say that.  I did not know that.   [02:22] Yeah, that’s what we’re here to do.  Per the IRS, that’s our reason for being, is the growth of the industry.  And it’s a lovely term in the IRS regs, but our mandate is the growth of the industry from we draw our members.  That’s different than the growth of our members because it’s broader, bigger than that. And I’ve always loved that turn of phrase, you know.  So, come back to your Watermark, I’d really love to see that study and probably, if they want to do it again, participate in it somehow, support it ‘cause that’s...  [03:01]    Yeah, I’ve just been in Twitter conversations with one of their principals.  I can’t remember her name offhand but, yeah, I’ll do whatever I can to help connect.   [03:14] Yeah, that’d be great, that’d be great.   [03:16]   For sure.  I mean it’s a big deal, and it’s a great paper, I think. [03:22] It is a big deal, and it’s one that I kind of know in a different life. [03:26] Yeah, totally, it’s funny that we haven’t been driving that conversation though, to your point.  And I think that that’s systemic, or it’s endemic – anyways, it’s one of the “demics” – where we have had this like stuck-in-time framework.  And, if you pull back, you can see that... I started my research career in ’96. Market research was its thing in a department inside of a large corporation.  And then, tools came around. Remember Confirmit launched one of the first ...

Toby Mathis and Jeff Webb of Anderson Advisors are here to answer all sorts of tax-related questions that focus on everything from applications to forms and QuickBooks. Do you have a tax question? Submit it to Webinar@andersonadvisors.com. Highlights/Topics: Will income earned by lending money to real estate investors reduce Social Security benefits or increase taxes on them? Income vs. earned income; until full retirement age, benefits are reduced; when full retirement age, it doesn't matter what you make How do I get the 20% deduction from Trump's Tax Plan? The 199A Deduction is a 20% deduction on qualified business income, but you need a pass-through entity; QBI 20% deduction vs. 20% of taxable income are compared, and you get whichever is less When you make a contribution out of your own account to your LLC as a member, are you taxed on contributions? No. It’s a contribution to an entity that becomes your capital and money you can take back out tax-free, if you haven't used it to recognize losses What is the best business structure recommended against asset, structure, and personal protection? With any passive activity, use a passive entity - LLC taxed as a partnership/limited partner; whomever has control of entity decides what's distributed What is the best way to set up QuickBooks when I have a Wyoming Holding LLC and several other LLCs holding real estate in other states? Create one set of books with Wyoming LLC as the primary; do a classified income statement for other states What are the tax forms for 501c3? Use Form 1023 to apply to be an exempt charitable organization; yearly recording forms include 990-N If someone has rentals in their self-directed IRA, how are they impacted as UBIT - does it make a difference on the number/dollar amount? No UBIT, if it's a rental; UBIT is for an active business inside an IRA; passive income is almost always exempt Can I have recourse debt in a 401K or IRA? Can I have non-recourse debt? You can’t have recourse debt, but you can have recourse debt What are my options to re-distribute funds from one LLC in several entities to separate investments? You can always move it from one to another with no tax implication Can I write off costs for rehabbing out of the country? Yes. Worldwide profits; if it's income-producing property, you report it to the United States I lent money to a real estate flipper. She gave me a promissory note, but it wasn’t recorded with the deed of trust. Now, she is in default. Can I foreclose? Document it because you can’t foreclose until you file your secured interest Is there anything I can do to reduce my taxable income? Yes. There are lots of things you can do - make contributions to qualified retirement plans, charities, and C Corp I purchased a new computer that cost less than $2,500. Is that a straight expense in the current tax year or some weird depreciation thing? Section 179 deduction; you can buy up to $1 million and write it all off For all questions/answers discussed, sign up to be a Platinum member to view the replay! Resources U.S. Social Security Administration Trump’s Tax Plan 199A Deduction QuickBooks Tax-Wise Workshop 501c3 Unrelated Business Income Tax (UBIT) 990-T 990-N Section 179 Deduction 1244 Election Kiddie Tax Anderson Advisors Tax and Asset Prevention Event Toby Mathis Anderson Advisors   Full Episode Transcript: Toby: Hey, guys. This is Toby Mathis with Jeff Webb again. Jeff: Good afternoon. Toby: If you don't know, Jeff Webb's a tax manager here, and I am one of the partners. I'm not an accountant but I'm an attorney. Jeff is actually a CPA. This is Tax Tuesdays. If you've never been on Tax Tuesdays before, all we do is answer all sorts of questions. Let me see here whether I've got the right question field up. Look at that. We've got a bunch of people asking questions. Let's see. We'll get to all your questions, making sure you can hear us in the question and answer part. Just say, "Yes, I can hear you loud and clear," to make sure that we're getting through to everybody. If you do that, then we appreciate it. There we go. I'm getting a whole bunch of "loud and clear", "loud and clear", "loud and clear". All right, if you don't know the format if Tax Tuesday, it goes like this. We answer a whole bunch of questions. We answer the questions that people ask via the email that I'll be giving you at the end of the webinar, and we grab a whole bunch of them, and we just start answering them. If we can't answer the question or the question that you ask is too complicated, too specific, too long, then I grab it and kick it off to a staff or we answer it the following week, depending on how cool a question it is. That being kind of the overview, this is where we're at. We're going to go through these and we're going to make sure that we're answering all the questions. Let's see if I can actually make these slides advance. Look at that. That's weird. I didn't even know what that W there is. It's kind of cool. "Will the income I earned by lending my money to my real estate investors reduced my social security benefits or increased my taxes on them?" That's an interesting question. There's, "How do I get a 20% deduction?" I'm picking these literally from people's emails so don't yell at me for the typos. "When you make a contribution funds to your own account to your LLC as a member, are you taxed on contributions that you contribute to an LLC?" "What is the best structure–" and that is the weirdest thing I've ever had. "What is the best structure recommended against asset, structure and personal protection for a Multi-Family Home Investor acquiring and holding rental properties, especially if working–" and I'm going to go through each one of these. "What is the best way to set up QuickBooks when I have a Wyoming Holding LLC and several other LLCs holding real estate in various other states?" Those are our opening questions. We have a few more. We're going to go through a ton of them, and I'm already getting a bunch of questions on the Q&A portion. We will get to those but, first, we're going to knock these ones out. The first question: "Will the income earned by lending money to real estate investors reduce my Social Security benefits or increase my taxes on them?" The first thing is there's the benefit itself. In this particular question, I looked it up and I believe there were 61, so they're receiving Social Security benefits before they reach the full retirement age. Full retirement age varies between 65 and 67. The reason this is important is because, once you reach that age, it doesn't matter what you make. Until you reach that age, you will have your benefits reduced on what you're receiving. When you're pulling out Social Security early, 50 cents on the dollar once you get over $17,080.Of course, it's indexed for inflation, but it's a little bit over $17,000. I think this year it's $17,080 or something like that. What that means is, if you are lending money, then that would be counted as income. However, if you're under the full retirement age, they only count earned income. The question here is, "Until you're at full retirement age, will the income earned by lending money to real estate investors reduce my Social Security benefits or increase my taxes on them?" The answer is a big, resounding, "No." This will not hurt you in any way. Once you hit full retirement age, now we have to be worried about how much of your social security becomes taxable. When they look at your tax ability of the benefit, now we're looking at all sorts of income, everything that you make, and it's going to push it up. That's the one where it's not that you reduce the benefit but it becomes taxable. Jeff: Fairly quickly, additional income starts making your Social Security benefits taxable. They're never going to be more than–85% of your benefits are never going to be taxable. I'm saying this totally backwards. Toby: What it means is that the most they're ever going to tax your benefits is 85% of them. If you're getting $20,000 of benefit, the most you'll ever pay tax on is $17,000. You'll still get $3,000, tax-free. The sad part is you didn't get, really, a deduction when they took it out the first place. That's the old double tax that you hear about with Social Security. Anything else you want jumped into? This is kind of stuff. It makes your brain go numb so you're doing it right. You're actually asking good questions. Jeff: Just the matter of when you should take Social Security is such a huge question. Toby: Because you can start taking it. When is the earliest, is it 64? Jeff: I'm going to say 62, but maybe it's earlier depending on their age. Toby: It does depend on their age. There is a before-a-threshold and after-a-threshold. Now, I forget what the threshold is. What you do is you go to the Social Security Administration and you run your scenarios and they'll give them all to you, or you can contact us. We have folks we could send you out to that have software because it is complicated. Depending on what month you were born in and all that stuff, how many days–all of this gets factored in as to what's the earliest you could start receiving benefits. Once you start receiving the benefit, they let you receive that benefit only so long as your income is low and it's your earned income. If you're trying to get the benefit when you're 62 and you make too much money, you're going to lose a bunch of the benefits. If you start making–if you're 62, start pulling out the benefit and you have passive income, not that big of a deal; it doesn't reduce it so that's really cool. Enough of that. It makes my head hurt, Social Security. Do not rely on Social Security. There, I said it. Yeah, Social Security is one of those things that, when it was set up, the average life expectancy of people on Social Security was two years. It was really there to catch you if you're really old and didn't have any other benefits. Now, we use it almost like it's a retirement plan that's not what it was intended for. That's why it doesn't work to do it. Here's the next one. "How do I get the 20% deduction from Trump's Tax Plan?" First off, it's not Trump's Tax Plan. It's the Tax Cut and Jobs Act and it was passed by our wonderful Congress because, technically–though, they seem to forget this–Presidents don't write laws. Now that we got that out of the way, they did put this thing called a 199A Deduction, which is a 20% deduction on qualified business income from pass-through entities. Follow me here. The first thing we need to have–and I'm going to write these up–is we need to have a pass-through entity, and you can be an LLC taxed as–this is a 1065 that's partnership, a sole proprietor or as an S Corp. Those are your choices. Technically, it could also be a trust. Then, you look at other entities, S Corps and just flat out partnerships, including limited partnerships, all that fun stuff. It's passing through; it doesn't pay its own tax. Then, you need qualified business income. I'm just going to call it QBI, which just means income. Generally speaking, it's active income, but they also include real estate, if you are making money on real estate in which you participate in some fashion. The only type of real estate that's not included as far as we can tell–because they're still giving us regulations on it, but the proposed regulations make clear that real estate, rental real estates included, is if you have a commercial building and triple-net leases that you're giving out where you're not really taking on much of the risk, then they're not going to let you have the qualified business income. Then, they compare that qualified business income 20% deduction versus 20% of your taxable income, whichever is less. Why is this important? Because if I'm a sole proprietor–let's say I have $50,000 that I'm making–that I would get a $10,000-deduction under the QBI. Let's say that I take and contribute into my retirement plan–a husband-and-wife sole proprietor is still the same thing, and they both put in–what's a good number–let's just say $10,000. Then, my taxable income is actually $40,000 because I rode off–I made tax-deductible contributions into my IRA of $10,000 so I would take the lesser of that. Then, they do this wonderful thing, is they then say, "Well, if it's a special service company, we're going to put a cap on how much QBI you can actually make." It's not really QBI; it's actually your taxable income, and they say, "We'll only let you ride off so long as your taxable income is below a threshold." If you're single, that threshold is $157,500, and there's a phase-out for the next $50,000. To make your head spin, it goes from $157,000 to $207,500. That's the easiest way to look at it. If you're married, filing jointly, those numbers are $315,000 to $415,000. Jeff: What's an example of a special service? Toby: Special services are something that it is you and your skill that makes the money, and they use–it's going to be doctors, lawyers, accountants, engineers, real estate agents who are solo, somebody who–it's their skill so like a carpenter who doesn't have a bunch of staff. That's going to be a special service. If you get above those thresholds, you are done. Somebody's asking a question which is pretty interesting. A single-member LLC counts. You have a flow under you so that's when you're sole proprietor or just going under your tax return that's passed through entity so you're fine. The interesting here is that you can control your taxable income. Even on those thresholds–and when we teach this in the class, we actually go through a learning chart where we say, "If this, then this. If this, then this." If you're a special service, we just need to make sure that we can control your income, and the way you control your income is by splitting it with tax-free, tax-exempt or separately-taxable entities. Let me give you an example. If I have a C Corp and it makes a bunch of money, great, that's not income to me. I don't want to pay myself a whole bunch of money and make whatever my other business is that is or where I'm going to meet the threshold taxable because I'm losing that 20% deduction. Let's say I have $200,000 coming in. As an individual, I can get some donations and deductions into a retirement plan and I get myself underneath that $157,000 and I have another $200,000 in C Corp that I pay myself. If I leave the $157,000 as is and I don't take any money out of the C Corp, I'm going to get a 30-something thousand dollar deduction. It's just going to come off the top. It's a 20% deduction so almost like I spent. If I took the money out of the C Corp–and, by the way, that C Corp is a flat 21% tax rate now so it's going to pay 21% so it's not horrific. If I paid myself that money, I push my taxable income over the threshold, now I get 0 deduction on my qualified business income. That's why it's important. If it is not a special service, then those thresholds trigger something else. It takes us to an area where we can write off up to 50% of the W2 income or 25% of the W2 income for the business plus 2.5% of the assets. Jeff: No, you're right. I'm just jumping ahead of you. Toby: Yeah, so what we're looking at, then, is you better have a regular business that actually has salaries. If you, for example, as a sole proprietor, single, are making–what would be a good example–$200,000 and you're over the threshold, you're phasing out, you'd have to go to the second test. You're over the 157 and the second test is now pushing you at 50% of W2 wages, and you have zero so your deduction is going to be zero. You're going to get literally nothing. You might get a few dollars because you're not quite at the 207, which is the top line of the actual phase-out so you'd be phased out about 90% plus of the benefit. Now, let's say you converted that sole proprietorship to an S Corp and, instead, you paid yourself a salary, so same situation, $200,000. Let's say I paid you $75,000 of salary. Then, the QBI or the monies that's flowing through is actually the net income and net profit, so you'd subtract the 75 off. It would be $125,000. You compare 20% of that number, which I should grab the calculator, whatever that number is. Jeff: It'd be 25,000. Toby: Yeah, 25,000, and we would compare it to one-half of the W2 income, which would be 37,500. You'd get the lesser of the two. You'd get a $25,000-deduction just because of the type of entity. That's the one I have to do. Somebody just said, "I have almost 300K in real estate and other income. Is there anything I can do?" A single person? Yeah, there's something you can do because, remember, it depends on whether you're special service and then it depends on the business, and there's one last thing: It always comes down to your taxable income. "What other ways can I use to control my taxable income?" The most obvious is I split it with a C Corp, I give it to charity–and it could be my charity–or I deduct it by putting it into a tax-deferred retirement plan. For example, same situation, I'll use the $200,000 and they do a 401K. They put a husband and wife each–they're under 50. They each contribute 18,500–or, actually, the example I used was a single person so I would have to say I put 18,500 and in, and they get a 25% deduction on the 75,000. They would put in–again, I'm using crazy numbers so what would that be? About $18,750 or whatever that is–around under $19,000. I can put, in essence, about $37,000 right into the 401K, and that reduces my taxable income. The taxable income goes from 200 down to almost the threshold, and now I don't have to worry about it. It makes my life so much easier. I'm just going to get a nice big, fat deduction and I'm happy as a clam. That's how this stuff works, but if you don't do it before the year ends, you're toast. This is going to be my–this is why you need to have some sort of somebody doing tax planning. How do I get the 20% deduction from the new tax act? Very deliberately. You make sure that you have the income flowing under your return and then you make sure that, if there's a disqualifying factor that would cause you to lose it, that you look and say, "What's better? To just walk away from it and not worry about it or would I be better to take a couple of actions to allow myself to take advantage of the deduction?" It's a freebie, guys. If I make $20,000 in real estate, that rental real estate–that's my net after all my depreciation–I get a $4,000-deduction. I'm only recognizing 16,000 under this taxable income so that's a nice little benefit especially if I'm a high-income person so that's what I'd be looking at. Jeff, do you want to do this one because I'm […] barding the answers again? Jeff: No, that's alright. "When you make a contribution out of your own account to your LLC as a member, are you taxed on contributions that you contribute to the LLC?" No, actually, you're not. That is a contribution to an entity that becomes your capital, your owner's equity–we can call it a lot of things–your owner's capital in that company. That's actually money that you can take back out also tax-free assuming that you haven't used it up to recognize losses or maybe other things like that. Toby: We get that a lot. I'll give you a real-life example. Some guys were doing a syndication on apartment buildings and they were telling people, "Hey, we're going to return your capital out of the profits and you're not going to have to pay any tax on the money that you receive up to your investment." I said, "Hey, that's not really the case." Here's how it works: I can always get back my contribution, and it's tax-neutral; it means nothing. If the company makes zero, no profit, it can always give me back my money and I pay no tax, but if the company makes money, I'm taxed on my portion of that gain no matter what even if they're giving me extra. I was like–what they were doing was they were saying, "Here's a little thing. We'll make some profit. We'll just give you your money back. You want to pay tax on it?" I was like, "No, that's not how it works. You actually have to pay tax on the profit in proportion to your ownership, and it's a little bit funky." Jeff: This is a case that, sometimes, we see where a client will tell us, "I had deposits of $100,000 into my business," and what they fail to tell us is that 50,000 of it was their own money. We want to make sure that we're able to differentiate what the owners are putting into the company versus what income they're making in the company. Toby: There's a couple of questions. Somebody says, "My head is spinning." We do record this. If you're platinum, you're going to get a recording of it in your little platinum area. Somebody asks, "Is this pre-recorded?" No, it's not. We're doing it live but I'm answering the questions that people have emailed me first and, yes, we have about 50 questions that are in the queue that we're going to go through here in a second. Jeff: We don't have a three-second delay or anything? Toby: No, I don't think so. I could give you a 10-second delay. All right, "What is the best business structure recommended against asset, structure and personal protection?" I don't know what that means. I'm going to assume they mean to protect the business–for a Multi-Family Home Investor acquiring and holding rental properties, especially if working as a team member with other investors? Here's what I'm going to say: Anytime you have a passive activity–that is, when you buy the property or the cash flow and the appreciation–you're going to want to use a passive entity, meaning an LLC taxed as a partnership or a limited partner. Don't do anything else. That's it. There's maybe some really weird exceptions but I'm going to say, 99% of the time, you're going to end up using an LLC, and it's either going to be disregarded even if you have other people in or it's going to be a partnership. If anybody does anything differently, they're doing some weird stuff. If you have other investors, then it depends on your relationship with those investors. I'm not going to going to get into securities, Reg Ds and all that but, generally speaking, you're going to have it taxed as a partnership, but the most important consideration is always going to be control, who has control of that entity, because that's who decides what's distributed. That partnership agreement or the operating agreement of the LLC is really going to be important. You do not want to do this stuff half-arsed. You want to make sure that you're actually really addressing this stuff. At Anderson, we tend to be very protective of the manager, meaning we want you to have control. If it's your project, we don't want people to force you to do stuff and, on the flip side, if you're investing and you're a client, we're always going to say, "You don't want to be forced to kick in more capital against your will." Those are the things we always look at. Where does that one go? Here we go. "What is the best way to set up QuickBooks when I have a Wyoming–" and this is going to be so you, Jeff, because Jeff loves QuickBooks. "What is the best way to set up QuickBooks when I have a Wyoming Holding LLC with several other LLCs holding real estate in various other states?" I'm going to draw this. There's my Wyoming LLC. It's either going to be a 1065 or disregarded, and it holds all these cute little LLCs in other states. Let's say this is Texas LLC, Washington LLC, Nevada LLC, Georgia LLC, and they're all going to flow up to that Wyoming. I want to keep my books straight because, if you know QuickBooks, they will sell you QuickBooks for this one, this one and this one. You'll end up with four sets of QuickBooks and you'll drive yourself crazy. What do you do, Jeff? Jeff: Here's what we like to do: We like to create one set of books with the Wyoming LLC at the top being the primary set of books. Then, what we do is what we call a classified income statement where each of these four LLCs below the Georgia, Nevada, Washington and Texas where they're all kind of their own set of books within your Wyoming LLC books. All this income is going to flow from those bottom four up to the top one anyway and, while we need to keep the entities separate so we can report them that way, ultimately, what we're reporting is what's coming through the whole kit and caboodle. Toby: Yeah, we only need to worry about setting up QuickBooks for this guy right here, and then we set up these guys as classes. All that means is we have one set of books. Jeff: Yeah. You can still pull an income statement for your Georgia LLC or your Texas LLC to see what's just in that but, all in all, you still have one set of books. It makes it easier and you don't have all these inter-company transfers that you have to track. Toby: Oh my god. I'll tell you, we're horrible on that. He's giving me the look. See, here's the problem, is if you have different companies with different sets of books, you've got to close out the previous sets of books and then open up the new company. It's a process and it takes a few minutes and it's really annoying when you're trying to enter stuff into it. It's going to save you a whole bunch of time to use one set. Jeff: Yeah, then you don't run into things like, "Well, I transferred money from Georgia, the taxes that I did it, I record it in both companies." When you record them on one, you end up re-recording it in both. Toby: Yeah, and there's some fun stuff. Some of them just ask for a basic QuickBooks question, jump in the line. It's hard to set up classes in QuickBooks, not horribly, but if you don’t want to learn–QuickBooks is one of those things where you're going to spend some time with it. You just have a bookkeeper do it. Anderson does that if you want. All right. If you have questions–you guys, I know you do because there's a ton of them already in the little queue here. Here's how it works: If you want to ask a more detailed question, if you have a question that you didn't hear answered on the webinar, you can just email them on in to webinar@andersonadvisors.com, and, that way, we can put it in that queue and we can answer it just like we just did. We're going to break those out. Those will be separate little videos, each one of those, so that you get your answer. Somebody was saying, "My head was spinning about 199A." You can go back and listen to that. Better yet, you can come to some of our other webinars or come, actually, to the Tax-Wise Workshop and we go through this stuff. Spend some time with us. If you invest a little bit of time in taxes, it will pay off in spades. Other questions–some people just answered this stuff. "Can you go over the tax forms for 501c3? Jeff: There's a couple of forms for the 501c3. To apply the BF 5O1c3, there's what's called the Form 1023. It's the application to be an exempt charitable organization. Then, there's several different yearly recording forms. The 990 is the primary one where you report, among other things, what your income was, what your balance sheet looks like, your plan, your purpose, who you've dealt with. What were you going to say? Come on. Toby: Basically, if you're making less than $50,000 in your 501c3, you're doing a 990 post-note card. You're just doing a real basic here. Literally, it looks like a postcard. Jeff: They don't do that anymore. Toby: I thought they're still– Jeff: All these old people still call it postcards, but it's a… Toby: They do that in the 10… Jeff: But it's a 990N and it's filed electronically. Toby: Yeah, I know but it's the same thing. Jeff: It's still close. Okay. Toby: It's a postcard. Oh, my god. Yeah, you do it electronically now but it's really simple. You go above that, then you're going to be filing a little more detail. You get about 250, you're filing very detailed. Never do it yourself. Just hire an accountant to do it, and those guys–we do them. They're not horrifically complicated unless you have a huge void that everybody's taking money. You go American Red Cross, you can go look at the actual tax forms that everybody files because they're all public record. You can go in there and take a look at anybody and see just how complicated it is. What you'll realize is that the more the stuff they're doing, the more complicated it gets, and not doing ton it is pretty simple. We have ones that are $5 million non-profits and it's a few pages. Then, you have ones that are $1 million but they've got everybody and their mother with their hands in the thing, and you're doing a lot of reporting. That one might be more complicated. If you're a church, you don't file anything. If you're religious and you're a religious organization, you don't file anything; you file zero tax forms. Jeff: When you have an accountant do these 990s for you, they're going to ask you a lot of questions because there's a lot of questions on the form that they don't have the answer to, basically about what it is the non-profit does and things like that. Toby: All right. "If someone has rentals in their–" basically, again, if you have those tax forms, this is one other thing, is that's the tax compliance on an annual basis. If you're setting up a 501c3, you are doing–more than likely, 501c3 is an application called a 1023. If you're doing a 501C6 or some of these others, that's a 1024. Jeff: Wow, I'm impressed. Toby: Yeah, sorry. It's stuck in my head. Those are the applications for exempt status. Your business, your non-profit, is in existence and it's considered exempt from Day 1. Even though you haven't gotten your exemption approved, you actually have 28 or 29 months to get approved, and it relates back to the day that you started. You can actually do a 501c3 and be up and running in a matter of weeks if you want to. All right, from Lisa: "If someone has rentals in their self-directed IRA, how is it impacted as far as unrelated business income tax (UBIT) and does it make a difference on the number or dollar amount?" You want to do this one or would you like me to? Jeff: Why don't you do this one? Toby: All right. Self-directed IRA and it has real estate? You have no UBIT if it's just rental. That's not unrelated business income tax. Unrelated business income tax is when you're doing an active business inside an exempt organization, inside an IRA, or church, or something else, and you're running a mini-mart then they tax you on it because it's unrelated business income so not related to your exempt purpose so they tax you on it. Passive income's always going to be–I shouldn't say "always"; it's almost always exempt. I guess there's possible–if you have some royalty stuff, it's possible, if you're advertising, that the exempt organization tax, but for your IRA for rentals, don't worry about it. Here's what you worry about when you're doing an IRA with rentals: It's usually the case–this is what we've seen–is that people will oftentimes want to lever that real estate. In an IRA, you have something called–I'm just going to blank on it–unrelated debt financed income. There we go, UDFI. Unrelated debt financed income means–or just call it debt finance income–the portion of the profits that are coming from the debt. If I have a piece of property, I have a 50% loan on it, then 50% of its income is going to be taxable to the IRA. It's not allowed to have that type of loan and not pay tax on it. A 401K is allowed to have that type of loan, and it doesn't pay tax on it. It's one of those weird things where you're like, "Hey, should I be an IRA or 401K?" More often than not in our world, you're going to want to be the 401K. It has different rules, and one of the big ones is the ability to use debt. Now, here's something for you. I think I had poll questions on this. This is fun. I'm going to send a poll out to see whether you guys are listening. You guys can answer this, and what it is, "Can I have recourse debt in a 401K or IRA?" Let's see about that. Isn't this kind of cool? Jeff: It is cool. Toby: We're going to see whether or not you can have recourse debt in a 401K or IRA. For those of you who don't know what recourse debt, recourse means, "I can go after you. I have recourse, and I can go–" basically, a personal guarantee, personal guarantor. We got a lot of people voting. I will share the results with you once we're there. Jeff: What if Lisa is flipping instead of renting in an IRA? Toby: Then, we don't have any cases on it. Jeff: Great. Toby: What we always say is do five at a max. Here's the thing: If you disqualify an IRA, the whole thing's disqualified. What I want to do is if I'm flipping in a self-directed IRA, I want to make sure only that money is in that IRA so if I have a disqualifying event, it's only for that one little IRA. So, I may have two or three IRAs. Good news: People are listening. That's always good news. We have about–50% of you guys voted. I'm going to go ahead and close this thing in about a few seconds. Let's see. There, I closed it and now I'm going to share it with you. Do you want me to tell you the answer? You cannot have recourse debt. 36% of you guys just disqualified your plans, and you have a 10% penalty plus it's all taxable. Sorry to say that you just destroyed your plan, but you cannot have recourse. This is half the fun. What's the next question I could ask you? I could throw up another poll at you. Let's see. Get out of there. Let me see if I can do this. All right, what's the next one? Here's a better one: Now that you know you can't have recourse debt, I'm going to launch a new poll. "Can I have non-recourse debt in an IRA or 401K?" This is where accountants and tax lawyers have– Jeff: Disagreements? Toby: No, this is where it's so much fun. Are you kidding? Let's see. Somebody's saying, "No." What is non-recourse? Non-recourse means you can't hold the person responsible. There's no personal guarantor. You can only go after the property so the property is truly asset-based lending. There's nobody on the hook for that loan if it goes south. A typical non-recourse loan in a plan–this is kind of cheap because it's going to give you the answer–is they're going to look at the other plan assets and so they're going to secure the other plan assets. They're going to make sure that they're not over-leveraged. In other words, they're not going to give you a 99% loan to value; they're going to give you a 60% loan to value or 50% loan to value. We'll see if you guys still get the answer even though I just basically gave it to you. This is fun. I'm just going to stop this one and I'm going to share it because the numbers are pretty done. It looks like 86% of you said, "Yes." Can I have non-recourse debt? 86% of you are correct. You can have recourse debt. Here's the trick: In an IRA, that non-recourse debt creates debt finance income so you have to pay tax on the portion that you're making but it doesn't disqualify your plan. In a 401K, you do not pay the debt finance income, and some of you guys are not too pleased with me for that, but I'm getting giggles out of it. That's enough with polls. I could have polls all day long and we would have a lot of fun. Last one: "I hold some assets in LLC–"and, by the way, this is the last one from people that have shot it in but it says, "You don't pay tax until withdrawal, correct?" No, if you have debt finance income, you're paying it in the year in which the debt finance income–you actually file a 990 T. You actually have to report it. "I have some assets in an LLC that is a day-trading entity." You're brave. "If this generates sizable profits–" I just love traders. "What options are out there to re-distribute funds from one LLC in several entities to the separate investments?" You can always move–if it's yours, it's like–an LLC is a safe so I can always move it from one safe to another, no tax implication. This is one of the questions we had earlier. I can always put money in, take it out. Somebody was talking about an opportunity zone. The opportunity zone's awesome. It's where you take capital gains and invest them in the opportunity zone. It's actually called the growth opportunity zone, and you defer the tax on that income. The max amount you can defer that tax is until 2025 right now. Then, you get a portion of that as non-taxable. Then, the growth–if you leave it in the opportunity zone for 10 years, all that growth and the gains on the investment itself are tax-free, and that's pretty interesting. Growth opportunities, we'll be talking about that as they give us more information. Somebody says, "Can you take the poll down?" I thought I did. I'll make sure polls, hide. There we go. Sorry about that, guys. Everybody's telling me, "Flip off the poll." I'm flipping it off. I like your opportunity zone discussion, and think about a bank, and loan out funds to other LLCs you use. You could do that. Then, it's interest unless it's all you. In which case, you don't charge yourself interests. "I am told that funds in an LLC are much like funds in a savings account. I pay taxes on the gains my funds make, and funds can be withdrawn at any time." That is true as long as it's disregarded or taxed as a partnership. I want to make sure that we're very clear. LLCs that are partnerships are disregarded. Yes, you can do that. If it's an LLC taxed as a corporation or LLC taxes in S Corp, little bit different. An S Corp probably has a huge difference. Jeff: Yeah. You can even pull securities out–even if it's a partnership–pull securities out and put them somewhere else. Like what Toby's saying, if it's an S Corporation or corporation, if you pull securities out of a corporation, you have to recognize gain immediately. Toby: It sucks. Appreciated assets is considered wages, right? Use an example here. Jeff: We had a client who had a couple of $100,000 of securities in a corporation, wanted to move it somewhere else, and we tried to explain to him that if he pulls securities out that are now worth 250 and he's only got a basis of $100,000, he's going to have capital gains of $125,000 in that corporation. The corporation will pay gains and then, for you to take it out, that's got to come from somewhere else, so either a salary, roan repayments or dividends. It doesn't work out well. Toby: No Bueno. The other one is people that real estate in an S Corp and then they need to take it out to refile it or something. All that appreciation is wages. It's horrific and so we have oftentimes say, "Hey, if you're going to do this S Corp, it's cool." The capital gains still flow down to you; it's just that you can't take it out. You've got to leave it in there. Jeff: Can we  re-running into that more and more where the banks are running to take it out of the LLCs and stuff? Toby: They got horribly hosed during the downturn of people doing weird stuff. What happened is I would do a financing in an entity. Say I'm the owner, and then I would sell Jeff my ownership and the entity and the bank had no idea that I'm no longer the guy that they were dealing with that they gave the loan to in their mind and had sold his interests. They had no idea. One day, Jeff comes back in and says, "By the way, I'm the owner of this LLC, not the guy that you loaned the money to." No Bueno. They don't like that. All right, we got a lot of questions to go through so if you have questions, you can always email them in. I'm going to start going out through these things, and we have questions from almost an hour ago. People were asking questions before we even started. "I did a cash-out refinance from my residence to invest in private lending or to buy rentals. California only allows 150,000 to deduct interest expense for residence." That's actually the new federal rule. "For the portion that is more than 750, can I deduct the interest as investment expense?" All right, so here's the rule–and, Jeff, I'm [...] barding, but I deal with this stuff all the time. Your new limit is–unless you owned your house prior to–during 27 and perhaps during the first quarter of 2018 if your loan was already in process before December 15th of 2017, don't try to remember this stuff; just know that if you're in that weird period, you may qualify, then you're up to a million, but it has to be for acquisition indebtedness. Acquisition indebtedness means, "I bought the house," or, "I improved the house." That's for the mortgage person to be deductible on your Schedule A, which is your itemized deduction. If you're using the money for something else, then it has to be deductible on that something else. For example, if I am buying rental real estate, then the interest–you'd be writing off the interest on your Schedule A, essentially, against the income from that rental real estate. You are no longer writing off your mortgage interest personally as the individual residing in it; you are now writing it off as part of an investment. Anything you wanted to add on that? Jeff: No. If we're talking about buying a piece of investment property like you're just going out and buying more land, hoping that it'll go up in value, then it would be considered investment interests and go back on Schedule A. Typically, we want to keep it–if it's in a business interest or rental property, something like that, we want to keep it there. Toby: Again, the Canadians have been dealing with this for a lot longer than us guys. You cannot write off interest if it's not for your home in Canada unless it was used for an investment. People actually have to go re-file their houses, they get all the cash they could, pay down their house, re-file it so they could show that they used it for an investment so they could actually write off the interest. I think it was called Scotts transactions. It's weird. Hey, I'm not Canadian. This is another question: "Say I deducted a newsletter subscription in 2017 but received a refund for it in 2018. Do I need to add this back as income in 2018 or no?" If you wrote it off and it means your basis is zero, give you the money back, what does that sound like? Jeff: Income. Toby: Income. It is income. At the same time, I see people saying, "Hey, what if I reimburse myself from my cell phone out of two companies?" Now, each reimbursement represents–I said, "Well, you can reimburse yourself up to your expense. Anything above that is income so it becomes taxable." Fun stuff. Yes, you would report it, but only–your cash basis tax first. You report it in the year that you received the money back. "You've saved me so much money. I call y'all my friends." I love that when I get stuff like that. That's not really a question but I'm going to repeat it because it's better than, "Flip off the poll." Not that I had too many of those, but I had a few. "Can I write off costs for rehabbing out of the country?" This sounds like something for Jeff. Can you write off? US taxes. Jeff: Yeah, you do have investment in another country. Toby: Worldwide profits, baby. Yes. Jeff: If it's income-producing property, you're going to be reporting that to the United States. Any expenses you have on that property will go towards that also. Toby: If you're rehabbing a property, it sounds like dealer activity and active business. I may be little interest–I probably want to be looking at structures in the Bahamas if that's where it is. I'd be looking at something that's taxable there so you don't get into treaties and all sorts of fun stuff. "Do I have to pay $800 off the top to the franchise tax board when we start our corporation?" Jeff: No, California has an exemption to corporations that are first year only. Toby: Yeah, and that $800–this is, if you like tax cases, there's Veritas 1, there's Veritas 2, there's Northwest Energetic Services, there's Bakersfield Mall, and they're all versus your friendly–what is it called? Not the franchise tax. No, it's whatever. I forget what they're called. Jeff: We know what it's called. Toby: Yeah. Anyway, I'll remember it as soon as I could. I'm trying to think about it, but they keep suing the Board of Equalization, the BoE. It's $800 and they say that's the minimum tax, but they say, really, it's a fee because if it was a tax, then it'd be an unconstitutional tax because it's not attached to the income. They keep trying to call it a fee. They lose and then they change it a little bit and they lose again. That's just an aside. California is kind of evil. "We live in Washington. We have a Nevada C Corp which fully owns a watch and LLC and employs the kids. What are the recommended strategies to optimize for college tuition?" Wow, so you're doing a great thing. You are going to run them through payroll. When you're applying for things like scholarships, if it's going to be based on income, you're going to show that income. You're going to show those returns, but those kids should–most of that income is going to probably be underneath the standard deduction. Right now, it's $12,000. They're going to pay zero and they're going to pay very little on any amount over that. Plus, if you're smart, you're putting some of that money in a Roth IRA and they're never going to pay tax on that. It's smart to do this with your kids. If I paid tuition out of my tax bracket, it's coming out of my highest tax bracket. If I'm in the highest tax bracket, that's 37%. If my kids pay for their tuition and are working for the company, and they have to do something, then they pay at a third tax bracket, which, quite often, is zero. I do this with my own daughter. Last year, I think we paid $500 in taxes total for the year when it cost me $8,000 if I was doing it, but she has to do something. She has to actually work for the company and do stuff for the company. Other stuff you could do to optimize is dump it into–defer it into a retirement plan. If you want to do a 401K, they can put the first 18,500 of their income and they can defer it. You're still reporting it. I'm not sure it'll have an impact on scholarships or not. I have not seen it have much of an impact, but that's what I'd be doing, is the benefits far outweigh anything with this on the scholarship side. It is huge. Here's one: "I lent money to a real estate flipper. She gave me a promissory note, but it was not recorded with the deed of trust. Now, she is in default. Can I foreclose?" When you loan money to a flipper with no deed of trust, that's called a gift. I'm just kidding. You need to make sure that you're documenting it. You cannot foreclose until you actually file your secured interest. You got to have it filed and then, yes, you can actually start foreclosure proceedings if you want, if they don't pay it. You definitely want to make sure that, when you're giving notes–there's something called "first in time, first in right". You want to make sure you know it's recorded and you have your deed of trust against that house. Otherwise, somebody else could go slap theirs on first. There's also places where they get priority. In Nevada, for example, the HoAs get super liens. They actually step in front of the primary lender. It sounds weird but it's true. You want to make sure that you're documenting your loan and covering yourself as best you can, make sure that you're getting a personal guarantee and, if they have any other assets, you may want to slap a lien on those, too. All right, "With a new company, there's quite a lot of expense reimbursements. Since I don't have a lot of revenue yet, I haven't paid it back. Is it okay to carry it over a year or should I go ahead and pay it back even though I'm still in the red?" Jeff, this sounds like you unless you're zoning out there. She has a new company, she has lots of expenses, she doesn't have any money that she's made yet, so should they pay it back, carry it forward? "Can I pay myself, reimburse myself in the future year?" The answer is yes, you could reimburse yourself whenever. The question really becomes, "Do I want to capture all my startup expenses in the first year?" Jeff: Yeah, I think you do. You want to capture as many expenses as possible even if you're not getting directly reimbursed right away. Toby: Yeah, you have two choices whenever you fund a company. You can fund it with your cash and then it's going to have a loss and it's going to carry that loss forward if it's a C Corp. If it's an S Corp, you can actually take that loss. I've contributed $20,000. That's my basis and it loses 20,000 and, technically, I'd have a $20,000-loss with an S Corp. Usually, we're seeing this in C Corps, and you just carry it is a payable and a receivable. It's payable to you, you would say, "Hey, it owes me some money. It's kind of like this." I always use Krispy Kreme in my examples. I go out for Anderson and I bring in 12 dozen Krispy Kreme for a meeting or something, and the others say, "Hey, I'll pay you back but we don't have the money right now." It doesn't mean that it goes away; it means that I'm sitting there, waiting for them to pay me back. If they pay me back in two years, all it means is they can't write that off as a deduction until they pay me back so they're not going to have a loss if I'm carrying it as an IOU. If I give them the money to buy the doughnuts and they buy the doughnuts, they get the loss right away even though they haven't returned my money to me. They could return that money to me at any time. For me, it's always going to be tax-neutral. "Do I need to be on payroll with my real estate income or can I just take distributions from my LLC?" This is regarding Trump's 20% deduction on the plan. If it's investment real estate, you never have to take a seller as long as it's rental real estate. If it's flipping and it's in an S Corp, then you would have to take some salary if you're taking distributions. I don’t want to twist it. This sounds like it's just an LLC with rental property. You do not have to take it. The 20% is for 2018 onwards. If they think that it has a sunset clause, the end of 2025. Is it the end of 2025 that it ends? Jeff: Yeah. Toby: Yeah, so 2025. Here's a really long one. Boy, this is a really long one. Let me see if I can condense this. "I have a Wyoming LLC that is the sole member of a second LLC that is disregarded entity. I funded the Wyoming with 8,500 and the Wyoming funded the other bookkeeping QuickBooks balance sheet shows an owner equity 100% of 16,500. This is offset a balance sheet with capital contribution. While this does end up with net equity of 85, it gives the impression of the equity, which is incorrect. Is there a different way of handling?" Do you see what they're doing? Jeff: This is what we call–anytime you have combined financials or tax returns, you're going to have a–you may have a payable from one to the other where you've lent money to the other company, but when you do the combined financial or tax return, this is what you call an eliminating entry. If you lent $8,500 to one, those two entries are going to offset each other and it's going to be zero on your tax return. Toby: He's looking at it and saying, "Hey, they took the eight that I put into the second and added it to the 8,500 that I put in the first," and it's only 8,500 and then 8 went to the second LLC. Jeff: Yeah, I think you just need to clarify that it was the same money that– Toby: We're doing it and we'll take a look at it. We'll grab that name and, when we can, I'll print this out. "Can SMLLC, single-member LLC, disregard an entity under an MMLLC, which is a multi-member LLC taxed as a partnership, be converted to a single, multi-member LLC taxed as if–" you guys are killing me, "And would the tax changes be implemented?" What you're really saying, Billy, is, "Can I spin off a single-member LLC, make it into a multi-member LLC and change it to an S Corp?" The answer is yes. We just have to make sure that we follow the S Corp rules, which means there's got to be natural persons owning it, resident aliens–if it's somebody from out of the country, that they reside in the United States in certain trusts and even certain single-member LLCs. All right, to the question about–this refers to qualified business income. Sorry for lack of a better–no, Janet, you've already got it. "Since rental real estate is included for the 20%, are you also required to be a rep for that to be true?" No. You automatically get it. "High-tech network engineer, does it qualify as special services?" If you're not a network engineer and it's just you, then I would say probably yes. If you have a company and it's not so much you but your company has its own–like it's lots of people and it's just known, then the answer is no. Then, you're not. Jeff: Yeah, there were some specific carve-outs. I think the architects got a carve-out of this, but there's a few industries that have been specifically exempted from those specialized industries. Toby: I'm not sure but software engineer–I would say that if it's just you, chances are going to be under the special services. "When I file taxes, the taxes for the rental property show up on my tax showing a schedule form that is Schedule E. I almost $300,000 with my real estate and other income as a single woman." I think we already talked about this one. "Is there anything I can do to reduce my taxable income?" Yes, Janet, you can make contributions to qualified retirement plans. You can make contributions to charities, including your own. You can make contributions to C Corp if it has a business relationship. There are lots of things you can do or, if you have anybody that you need to pay salaries to like kids or somebody that's working with you, that would be something else you could do to lower the taxable income. "If you were writing out another slide, it's not showing up on my computer." Sorry, Sir. I think that's where all they go. "What about an IOL as a tax-deferred compensation for my property management income?" That would not work. An IOL is tax-neutral although you can do tax-deferred compensation where it's taxable to the entity and it's not taxable to you under certain circumstances. If I do tax-deferred income like, "Hey, I'm taking deferred compensation," I need to be at a losing. Usually, non-compete is going to be the thing that makes it work. We use these especially in the non-profit world where somebody says, "I don't want to be paid; I want to work, but I do want to get paid eventually for all the work I'm doing now. Rather than pay me this year, pay me when I'm 65 and maybe I wipe it out or not, but as long as I have a non-compete with that–" it's saying, "Hey, basically, if you go work for somebody else in a competing industry, you lose all that deferred compensation." You should be good. "I purchased a new computer that cost less than $2,500. Is that a straight expense in the current tax year or some weird depreciation thing?" Dean, it's called a Section 179 deduction. You can buy up to $1 million, you're good. You can write it all off. Otherwise, that would be depreciated. They also have 100% bonus depreciation, so we're going to catch it no matter what. Bonus depreciation is, if it's less than a 15-year property, you can write it off this year. You're not required to. Somebody says, "Is 199A or that 20% a 20% tax deduction or a 20% reduction?" No, it's a 20% deduction against your qualified business income. The net effect could be much more than 20% depending on your tax bracket. If you're not in a high tax bracket, then the net effect won't be huge. If I'm in the highest tax bracket in a state that's taxing me where I'm at 50%, that 20% deduction could be worth a ton. It could be worth significant amounts especially if I'm in a company that's not a specialized service and I meet the requirements. I could have hundreds and thousands of dollars of qualified business income being exempted, and that could be worth hundreds and thousands of dollars to me from a tax standpoint. We already did this one. Somebody who had their spinning left. You can go in bite-sized pieces, guys. We're going to break these things down, and I understand that we're going through fast, but that's half the fun. We're not dwindling around here. "My self-directed IRA received a K1 for net rental loss for a passive investment of $50,000. Do I need to file a 990 T to show loss? Does the IRA custodian sign the return or can I sign?" Jeff: Here's what happens: If your IRA is a partner in a partnership, that partnership is required to issue a K1 to all of its partners. That doesn't mean you have to do anything with the K1 in your IRA. You're not going to recognize any taxable income until you actually start taking money out of the IRA, especially since this is a rental property we're talking about. Toby: Cool. Hey, this is a really good one. By the way, if you ever do a 990 T and it says self-directed IRA, your custodian does have to sign, and they like to charge you for that. "401K, 401K." "I have a C Corp with accumulated losses and would rather close it than repurpose it. Is there a way to direct the loss of my personal taxes? Is it possible?" The answer is yes. It's called a 1244 election. It should have been made when you issued your stock. If Anderson did your C Corp, we already did that because I do it with every single corporation. You can then write off as a single person up to $50,000 or up to $100,000 if married, filing jointly, and then it could be used to offset even your W2 income. Jeff: Going back to one of the earlier questions, this is one reason we want to start recognizing reimbursements and stuff as early as possible to establish those debts to you early on. Toby: Yeah, I had this happen and we actually had–the one time this was ever audited was because this accountant refused to give him a $67,000-deduction. It was one of our clients who was a trader who was ready to launch and go into his business and then his employer made him an offer he couldn't refuse and gave him a whole bunch of our money. He took a $67,000-loss. He had never made a dollar in the corporation. We went under audit. We won. Yay. It took two seconds because it was a single letter and we gave him the law, and it's a statute. The IRS is just a policing agency. If there's a statute that's clear, they don't sit there and fight with it. I think it was a $38,000-reimbursement–what do you call it–refund. Awesome first-timer. We love first-timers. Thank you for joining us. "I want to receive an invite, a reminder to a different email." We can give you that. You can always use this when you register for the Tax Tuesday. Just put in your other email. "Interested doing sandwich lease options. What is the best business structure and what document can you provide to protect myself from sellers suing me if a tenant or buyer stops paying rent or if a tenant or buyer trashes the home?" That's a tough one. You're literally leasing it and then re-leasing it with the right to buy. Let me think about this one. How am I going to do this? I'm going to be doing that through an entity. The way you protect yourself is to keep very little amounts of asset in that entity so that if you're sued, it's not you; it's the entity itself, and the entity doesn't have much to lose. That's a tough one. I tend to stay away from stuff like that. I want to buy the property and then you do a lease option in an LLC. Jeff: Make sure you have insurance. Toby: Yup, make sure you have insurance, too. That could happen so the tenant trashes the place and somebody else says, "Hey, wait a second." That's why there's always risk. What you do is you just keep it to a low. "Is it hard to set up classes in QuickBooks? Does Anderson do this?" It's not hard and, yes, we do it. "How long does it take to set up a class in QuickBooks?" Jeff: No, you'd have to ask bookkeepers. Toby: Jeff's such an accountant. Yes, it's actually very easy. Jeff: Actually, the bookkeepers are really good at it. They do it all the time. Toby: It's literally all you're doing, is setting up another class. It's almost like a revenue class so you might have revenue that comes in from plumbing and then selling products in your plumbing business and then, "Hey, I have one that's a consulting," and that might be another class. It literally takes two seconds. "What if the Wyoming LLC owns a C Corp which owns an LLC?" I don't know what that means, but what we mean is–I imagine for the 199A. We're just going to look at it is the C Corp owns an LLC that's not going to be qualified for the 20% deduction. The LLC that owns the C Corp, if it's doing other activities, might qualify for the deduction. Here's the problem: In the qualified business, the part I didn't tell you about is what is qualified business income. Dividends, interest, capital gains are not included in that definition so if you're issuing interest from a C Corp to the LLC that flows under your return, you're not going to be getting the 20%. "If you set up QuickBooks with a single entity and use class as a separate income, can you also print a balance sheet by class?" Jeff: Yes, you can do it if the balance sheet is also classified. Toby: Okay. See, we're good. We're getting there. We only have about 200 more questions to go. I'm just teasing you. We've gone through about three-quarters of them. "What is Jeff's last name?" Webb. "I have a rental company. This will be my first year doing taxes. What can I expect to pay on my capital gains? What are some determining factors?" Isaac, if you're a rental company and you're selling–like if you have capital gains, it's going to be depending on whether you sold it within a year or after a year. If it's less than a year, it's going to be ordinary income to you. If it's over a year, it's going to be taxed with either 0%, 15% or 20%. If you make over 250,000, you're going to get to add no another 3.8% and then whatever your state tax is. What are the determining factors? How much you make. If you're married, filing jointly less than 77,000, your capital gains rate is zero. All those things come into it. You can always write us at webinar@andersonadvisors if you want to ask specific questions. "I'm in the process of setting up QuickBooks account for my C Corp. I have a construction business and a hair salon that are DPA-ed as C Corp. I am flipping single-family residents in Wyoming LLC? I have sub-expense and sub-income accounts for those." This is getting long. This one, we may want to answer next week because this is kind of cool. It's talking about sub-accounts. I'm just going to table that one unless you want to jump on it. Jeff: No, I think there were a couple of issues in there. Toby: Yup, "But you don't pay tax until the withdrawal, correct? That was just with regards to the IRA." Steve, you do need an account and, yes, you don't pay the tax until you withdraw, add up in IRA. If you have unrelated business income tax or debt finance income out of an IRA, you'd pay it in the year that it was generated. "Can I set up an entity to receive W2 income and max out top […]?" Yes, but you can't do it out of a self-directed IRA. The reason being is that you are a disqualified person so you cannot do that unless you do something called a ROBS transaction, and that's going to be a major topic for another day. That's if your IRA invests in a C Corp that you set up and there are ways to do it and then you could actually pay yourself, so there. "I recently rolled over a 401K to equity trust IRA account, lending funds to other investors charging interest. Is interest income taxable to the IRA?" No, you can do that all day long, and equity trust is having to sign all your docs. My recommendation would be to set up your own 401K so you can sign the loan documents. Somebody says, "How many times a year can you roll over from 401K to IRA or reverse rollover?" It depends on whether you're doing a direct rollover. Jeff: You can do a trustee to trustee every day if you want, meaning you're going from TDM trade to Bank of America. You can do those as long as it's directly being transferred. You can pull the money out once to yourself once every 12 months, and it's a rolling 12-month period. If I pulled it out today, then I wouldn't be able to do it again until next October. Toby: Somebody asks, "Can I roll individual stock holding into Roth trading account if the current value is under the 550 limit, and how?" The answer would be, really, no; you're going to have to liquidate the holdings, open up a new account in the Roth IRA and then contribute the 5,500. It's a pain in the butt, I know, but I don't make the rules. It's this whole Bank Secrecy Act and all this stuff since they flew planes into trade centers. "Is the old rule dead on personal residences two out of five years?" No, that's still the rule, and we still use it like crazy. That's exception 121. Jeff: Yeah, they were talking about making it five out of eight years, and that got thrown out so it's still the old two-out-of-five rule. Toby: Yup. "Do my startup costs carry over two years if my net was negative?" It's actually 20-something years. Jeff: 15 years. Toby: 15 years now? Nate, you can carry forward your startup costs. Is it 15? Jeff::Yeah. Toby:  "Hey, wait a second. I have an S Corp. They keep charging me the 800 fee ever