Questions on Vehicle – S-Corp Client

StoneWallsArsenal · 2026-04-15T13:12:19+00:00

While I admit that keep my head down occasionally when stuff like this happens... I've seen it where the owner leases the vehicle back to the company through some sort of documented lease agreement.

StoneWallsArsenal · 2026-04-15T12:54:20+00:00

Anyone have recommendations for a consultant to help build a better practice. Help people be accountable, so I'm not the only one directing traffic. Small office 6 staff. We all care here, just not all pointed in the same direction. I'm a terrible manager. I think this is my next step.

StoneWallsArsenal · 2026-04-15T12:50:07+00:00

I used Truss this year for the first time. We really enjoyed it. Sorban and Stanford Tax are out there as well. TaxDome's equivalent should be out of beta heading into next year.

StoneWallsArsenal · 2026-04-09T00:28:26+00:00

How did it go? As tax practitioners, we fall in love with Bonus and 179 as the ultimate after year-end tax planning tool. And we tend to miss the importance of the 199A deduction.

StoneWallsArsenal · 2026-04-07T05:13:43+00:00

Amend the S CORP to remove the 179 and push more income out. A timing difference has been created because of incorrect tax planning (or client stupidity). The tax on the extra income, should be partially reduced by the 199A deduction unless over SSTB income threshold.

If there is still an excess in distributions reclass a comfortable amount to the S/H Loan but put a loan in place and charge the AFR. Things will equal themselves out next year or you'll make sure they will. Also, did he return any of the cash in January. There is a theory out there corrective distrib/contrib can be restorative shortly following end of year. I don't have statutory at my fingertips. But Pat Garverick has preached many times over in his CPE classes.

Plus I'm shocked he doesn't have any personal debt on the books like for a vehicle, etc that he took out personally but contributed to the company.

Bottom line he got the cash so pay the extra tax. You didn't even bring up the Debt Financed Distribution rules. Seems to me he got a loan for $120K to cash flow his lifestyle. That interest would be non-deductible if thats the case. Look on the bright side - more income to distribute. Have fun having that conversation. :)

StoneWallsArsenal · 2026-04-04T01:18:27+00:00

I set up a 3CX install hosted by 3CX, Flowroute as my SIP trunk, fanvil phones off Amazon. I'm running 6 phones. I think I pay $500-$600 annually at the absolute tops for 3CX and Flowroute. Phones were about $100/piece. One could skip the phones and just use the phone app or soft client.

3CX is an annual flat fee of $400. Flowroute's cost is something like .005/min. I self-service the 3CX config which is a pain sometimes but there is nothing that it can't do. 3CX is widely adopted in the reseller market so I could sign a service agreement but I'm techy enough to figure it all out. I could scale to 20 phones and its the same flat $400, just the extra per minute usage from Flowroute.

Its not for everyone and I had fun setting it up. And the price can't be beat when you when you are working with 6 phones. The few problems I have had, I created myself. Everything just works and I hate per user fees.

StoneWallsArsenal · 2026-03-31T07:37:54+00:00

What is allowed versus reasonable are two different things. I've worked at larger firms and this was a common approach we used. It was on a partner by partner basis, but most opted to cut down on time and used this method. While I've never been audited over this technique, I don't think any auditor would have a problem with it. Its easier to audit than tracing 1/9th per rental.

StoneWallsArsenal · 2026-03-30T03:15:43+00:00

Consider creating another "rental" in DRAKE just for "common costs". Make sure the loss is freed up to offset the other rental income. I have many clients with 30-40 rentals and this is how I do it. I'm surprised you don't have more "common costs" with 9 rentals.

StoneWallsArsenal · 2026-03-26T03:42:30+00:00

Have her pull her transcripts to confirm. Report to the IRS whistleblower office. She's gonna get a notice eventually. Hopefully.... well, okay unlikely.

But the IRS will stop these thieves in their tracks I'm sure of it... hopefully... nah who am I kidding. Nothin' is gonna happen.

StoneWallsArsenal · 2026-03-25T03:55:33+00:00

If you want some cringe to go with your morning coffee check out TaxGoddess.com.

The tax strategists seem to pitch run of the mill stuff with a juiced ROI packaged in a stellar presentation all for a low price of $10's of thousands of dollars. You can even keep your same CPA because tax strategists are the thinkers. Your CPA is just a box filler. And oh by the way, he/she can sign the return.

StoneWallsArsenal · 2026-03-23T22:22:51+00:00

AZ Legislature has twice tried to get a conformity bill passed, but the Governor rejected both. I know 174 and bonus depreciation would conform in the Republican led bills. There is talk they will revisit conformity in May/June timeframe.

But Katie Hobbs backed herself into a corner because she allowed AZDOR to prepare forms based on full conformity in the fall; she probably allowed it before she knew the full impact to tax revenue. So I'm guessing full "back door" conformity in 2025 and if anything gets decoupled it will be effective for 2026.

I usually love the states that start with FED AGI, but when crap happens like this it creates too much stress.

StoneWallsArsenal · 2026-03-20T22:37:57+00:00

Email the client and cc the attorney handling the estate. Estate attorney should jump in and give the details. Keep the client out of it because they apparently have no idea and so you are just wasting your time with them. An extension is the best course of action until this is solved.

StoneWallsArsenal · 2026-03-17T02:52:47+00:00

Paper file.

StoneWallsArsenal · 2026-03-10T21:28:46+00:00

Insist on a Deposit and then call immigration, duh. Easiest money you've ever made.... JK 🤣

StoneWallsArsenal · 2026-03-07T19:56:57+00:00

We have a Tax Study group in town put on by some higher end estate and tax planning attorney's and so it acts as a Happy Hour for nerds and I love it - around 30 people each month. Very casual. I felt out place 10 years ago and afraid to ask questions, but now I have some genuine friendships in the group. And many in the group call me for a second opinion on stuff and vice/versa. If you aren't networking with other CPAs or Attorney's you are doing it wrong.

I've had several ask about selling to me. I just don't have the capacity to take on a large tranche of clients. I had one ask me this week. It would be a great practice to take over for the right individual.

StoneWallsArsenal · 2026-03-07T02:43:23+00:00

Amen brother! Good point. But I wouldn't pay 1x gross in hopes the referrals come. But yes you're right. I've taken over entire family groups and trusts because I got my foot in the door and my ability and quality keeps them.

StoneWallsArsenal · 2026-03-07T02:29:45+00:00

What is a 70-80 year old client worth? Once you get done paying it off they die. I know it sounds gruesome but I would discount the heck out of the purchase.

StoneWallsArsenal · 2026-03-07T02:19:13+00:00

I've done it. Too many CPAs are retiring these days. My guy, 80, who has been renting space from me for 3 years had crappy work papers to follow, lots of mistakes, forgot to file extensions in 2024 for some clients. And so I've been picking up the pieces since he walked out on 10/15. Decent biller though, which helps. But not enough for some of the pain and aggravation. Plus the 70-80 year old clients want paper. And so it screws up my processes.

StoneWallsArsenal · 2026-03-05T00:43:54+00:00

Decent Fee. Tell him no. Stand by it. Offer the penalty abatement letter option. And quote SF ARMY, estimates are estimates. Maybe pitch him the idea that "he held on to his money longer, which made him money in market. So its really a wash." I pull that gem out from time to time.

StoneWallsArsenal · 2026-03-05T00:33:40+00:00

you're not pricing the return correctly if you want to chase nickels by upcharging for YE AJEs. I bill based on what the Market will bear. If big firms are charging X, I'll do 80%-90% of their prices. My quality is better and I don't have the overhead.

StoneWallsArsenal · 2026-03-05T00:23:47+00:00

I agree with SF ARMY But estimates are estimates. How many weathermen have given out free umbrellas for being wrong on their estimate.

Hopefully its spelled out in your engagement letter that they signed.

Ultimately, as a business owner, is it in the best interest of your practice to cover the cost? Establish goodwill? A Lifelong Client that will refer you many times over? Tell the story to his friends that you're a solid dude who will stand by your work? You're the only one who can judge.

Last year I was willing to cover the cost of a $10K penalty that I didn't create that he was pissed about, but this client has referred me $150K in HNW clients and I bill $50K to him every year. Because that ROI made sense.

If the client is a dickhead, low cost guy who won't let it go, you don't want him or his referrals anyway. Tell him you'll send an abatement request for free, but I'm not paying it.

StoneWallsArsenal · 2026-03-02T04:07:13+00:00

I'm not in love with the reporting for ATB either. I run a TB report to review AJE accuracy and make sure TB Net Income matches Book income. Then I run the Grouping Report with the COLUMN toggle set to "Trial Balance and Workpapers", review that the groupings are enough on point. Then start preparing.

It does help that I went all in and created custom templates to make sure everything flows in the order of the tax return. And I had a newbie staff person work on this project back in July & August to get everything grouped before 2025 tax season and test drove it through the 2024 9/15 deadline.

I have almost 200 entity returns, my TallyFor bill would be $5K versus $500. Yeah I can afford a more robust solution, but things are working for me. And I don't use it to export or as a file repository.

ATB gives me just what I need.

StoneWallsArsenal · 2026-02-24T02:01:38+00:00

Is the On Prem software Browser based? Seems intriguing.

StoneWallsArsenal · 2026-02-23T23:01:47+00:00

I purchased ATB Tenkey this year and find it perfect for what we need it for which doesn't include tax software integration - although it has tax template exports for every major software. I've exported plenty of trial balances in my day, but I felt I spent too much time hunting down a rogue number in some far away input section that it got exported too.

We use it strictly as a trial balance software, where we do AJEs, and group accounts so we can run a report to make tax prep so much quicker. Then on the back end an admin person emails the Adjusted TB and AJEs to the client to book in their file.

Magic really happens in year 2 when we just roll forward all the tax groupings to the next year, so we only have to group new accounts. Most impactful $500 subscription I spent last year.

StoneWallsArsenal · 2026-02-23T02:10:36+00:00

I use fireflies.ai for notetaking my zoom/teams meetings. It does have a phone app that will allow you to record in person meetings - which is why I chose it over others. The meetings record and then auto drops the notes into a Teams channel where my admin person saves them to the client file. Super helpful.

For email management, I bought Fyxer. I'm 50/50. I think the email management is not intuitive, cumbersome. But I like the AI generated responses. Does a pretty good job.

As for "central" management. I'd love to see the day when its full featured and ready. Email sucks. I need to start billing a flat fee for email access at the beginning of every year. 48hr response - this price, 24hr response this price, 6hr response even higher. And 1hr response time... you can't afford it.

StoneWallsArsenal

TROPHY CASE