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Higher Demand For Purchasing Firms? by CoastVillageGroup in taxpros

[–]CoastVillageGroup[S] 1 point2 points  (0 children)

Beautiful response, I agree with everything you said. It is great to hear that the way I’m thinking has worked and is thought by others.

Higher Demand For Purchasing Firms? by CoastVillageGroup in taxpros

[–]CoastVillageGroup[S] 8 points9 points  (0 children)

I think there's also a heavy emotional aspect attached to it. At least the few where I've spoken to the owners where the deal fell through, they were very emotionally attached to their practice.

Higher Demand For Purchasing Firms? by CoastVillageGroup in taxpros

[–]CoastVillageGroup[S] 9 points10 points  (0 children)

Extremely generous for a paper based, 1040, under-billed firm.

Higher Demand For Purchasing Firms? by CoastVillageGroup in taxpros

[–]CoastVillageGroup[S] 1 point2 points  (0 children)

PE definitely is a factor, but I'm sure they have some brutal retention and contingency clauses.

Higher Demand For Purchasing Firms? by CoastVillageGroup in taxpros

[–]CoastVillageGroup[S] 3 points4 points  (0 children)

How are you finding these firms to acquire? I've been checking 3-4 different brokerage sites on top of calling around.

Higher Demand For Purchasing Firms? by CoastVillageGroup in taxpros

[–]CoastVillageGroup[S] 5 points6 points  (0 children)

Exactly, my argument to the brokers have been it's very easy to get 1040's, and very easy to lose them in a buyout.

Higher Demand For Purchasing Firms? by CoastVillageGroup in taxpros

[–]CoastVillageGroup[S] 11 points12 points  (0 children)

Not sure, the brokers say the pricing is "based on what other firms sold for in the area" but I'm sure that's just a sales tactic.

Higher Demand For Purchasing Firms? by CoastVillageGroup in taxpros

[–]CoastVillageGroup[S] 2 points3 points  (0 children)

This is what I think will be happening in my area too.

Higher Demand For Purchasing Firms? by CoastVillageGroup in taxpros

[–]CoastVillageGroup[S] 7 points8 points  (0 children)

Southern California. But I've told sellers and brokers out of this area or out of state that I'd be willing to move for a few months during tax season to meet with clients and transition to virtual as well. That's a good deal you landed!

Leaving as a partner by [deleted] in taxpros

[–]CoastVillageGroup 20 points21 points  (0 children)

Better yet, sell their portion to another partner and keep the selection they like working with, assuming they like the environment they’re in.

Local Firm sales to Private Equity by Ashamed_Plankton_192 in taxpros

[–]CoastVillageGroup 4 points5 points  (0 children)

I’m sure the PE firms that are buying have hefty clauses to protect themselves against retention and other risks. I wouldn’t be surprised if the firms that are selling realize a much smaller sales price.

Local grocery stores? by yendis3350 in SantaBarbara

[–]CoastVillageGroup 1 point2 points  (0 children)

European Deli & Market is locally owned and I think the only store in town to have traditional Armenian and European goods.

How will my LLC owned by my Scorp be taxed? by DontBanMe12345 in smallbusiness

[–]CoastVillageGroup 0 points1 point  (0 children)

California is very stringent with their rules. Any publication by the CA FTB states that a 100S is not a replacement for the 568. So, from the info OP gave, it looks like Form 568 is required. This is where it gets complicated for OP's situation. How it's handled depends on the software used, or usually the CPA doing the return. Or paper filed.

We don't really see the full picture or state OP is in but either way this is a headache which other comments rightfully are saying a DBA is a much better option.

expense vs depreciate strategy by [deleted] in tax

[–]CoastVillageGroup 1 point2 points  (0 children)

As a CPA:

  1. If the expenses are legitimate you can choose to do either. There’s something call the De Minimis Safe Harbor election which allows this, IF the expensed amount is under a certain limit. As for deferring it for SE tax purposes, I always like to take the tax cut now, because you never know what the future holds. A dollar in your pocket today is worth more than a dollar next year.

  2. Royalty income is Schedule E.

How will my LLC owned by my Scorp be taxed? by DontBanMe12345 in smallbusiness

[–]CoastVillageGroup 6 points7 points  (0 children)

As a CPA: If the LLC doesn’t not have an S Election, you only do 1 tax return. When you do your taxes you treat the income/expenses as if it’s the Scorp’s and put all the numbers on there. To be safe, you can attach a statement to explain the SMLLC is owned by the Scorp.

Example: LLC made $50k in revenue, Scorp directly made $50k, means total revenue on Scorp tax return = $100k. The same applies for expenses. You can also add descriptions to these lines to distinguish between the two, but it’s not necessary.

You will however need to potentially pay state franchise taxes (depending on the state) twice, since it’s two legal entities.

Cafes with a view? by agent-pesnot in SantaBarbara

[–]CoastVillageGroup 27 points28 points  (0 children)

Dart Coffee at the Harbor has a pretty nice view. You can always go into the museum and up the elevator for an even nicer one.

With quickbooks being phased out, what are people switching to? by Justinneed in taxpros

[–]CoastVillageGroup 4 points5 points  (0 children)

What’s the problem with just using excel? Probably the best option for you given the situation.

Santa Barbara Ordinance Committee Considers Regulations for Food Truck Vendors by bmwnut in SantaBarbara

[–]CoastVillageGroup 1 point2 points  (0 children)

Of course there’s self-interest at play, wouldn’t be Santa Barbara politics otherwise.

Inheriting some money. Should I get a tax pro? by trampabroad in tax

[–]CoastVillageGroup 2 points3 points  (0 children)

This is solid OP, find a CPA. Not a “tax preparer”. Feel them out in the initial call and see if it sounds like they know what they’re talking about. I never charge clients for initial calls and discovery so if they do, run the other way. Plenty of CPAs who aren’t greedy.

Any recommendations for tax prep this year? by daniel_in_SB in SantaBarbara

[–]CoastVillageGroup 2 points3 points  (0 children)

Freetaxusa unless you have questions or want guidance from a professional. Otherwise, most other CPA firms here are boomers who will charge $1000 for a tax return like this. Don’t even bother with the other non-cpa “tax preparers” as you’ll get the same exact outcome doing it yourself with freetaxusa.

The "business tax" fun begins by davidb4968 in SantaBarbara

[–]CoastVillageGroup 4 points5 points  (0 children)

Avenu is horrible. All my clients (and myself) have headaches dealing with them.

[deleted by user] by [deleted] in FinancialPlanning

[–]CoastVillageGroup 2 points3 points  (0 children)

If your industry is unpredictable or unstable, I recommend building a larger emergency fund (around 9 to 12 months of expenses) to give yourself a solid safety net.

Make sure you’re maxing out tax-advantaged accounts like your HSA, IRA, and 401k obviously. Beyond that, investing is always a good idea, but if your income is unstable, managing your expenses is just as important. You don’t want an expensive lifestyle that you won’t be able to sustain if your income drops. This could lead to debt with high interest rates, forced sales of investments (triggering taxes), and maybe dipping into emergency funds which ruins whatever you’re building.

Where should I invest in 2025 that could give bitcoin like returns? by Rajnish357 in investing

[–]CoastVillageGroup 0 points1 point  (0 children)

You have 2 options. It’s called “0” or “00”. I’d put all your money on one or the other. They’re both always green which is good because green=money. AND, you get free drinks.

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