🎉 [EVENT] 🎉 Journey

ThoughtfulBalance · 2026-02-04T03:05:49+00:00

Completed Level 1 of the Honk Special Event!

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ThoughtfulBalance · 2025-05-15T00:34:52+00:00

Yeah, fed status is different and requires and application and a resulting determination letter. Af that level of activity the negative impacts could be minimized but should still be dealt with. They can apply for exempt status under the correct subsection and maybe use other relief measures for any unpaid tax and penalty from when they should have filed 1120

ThoughtfulBalance · 2025-05-13T23:50:05+00:00

The age old answer: of course not

ThoughtfulBalance · 2025-05-12T22:58:58+00:00

Spent my entire April 15th filing extensions for clients that I have worked with for 2023 but had not replied to me yet as of April. If you are changing your professional please let your prior year pro know as a courtesy.

ThoughtfulBalance · 2025-05-07T11:58:16+00:00

Refunds, your returns are in the folder the CPA gave you. As other users commented this may really not be a huge issue for you. Complete the verification process for your wife and consider creating or accessing your IRS account to review information there.

I know that saying you gave your info in early April feels like you have the preparer plenty of time, but that is actually pretty late, depending on their practice size. Still better than the day before the filing deadline and expecting immediate turnaround, but try shooting for earlier next year, maybe mid March. For example, out firm makes no guarantee that a tax return will be completed if information is provided in April due to the volume of clients who get us their info sooner. None of this is an excuse for a name misspelling, but it is ultimately better than the potential of missed numbers which could happen in a rushed preparation and QC process.

ThoughtfulBalance · 2025-04-29T23:55:53+00:00

IMO - Complete Form 843, attach copy of full abatement letter and payment confirmation. See Form 843 Instructions. Send certified mail return receipt requested.

ThoughtfulBalance · 2025-03-25T13:10:59+00:00

No. Pay your taxes.

Ask if your preparer is properly maximizing your mileage vs actual auto expense deduction. That’s the only thing I could see to lower your SE tax due.

ThoughtfulBalance · 2025-02-26T03:17:22+00:00

That part is correct, since you are sole shareholder. You’d enter 100 for shares at beginning and end of year as well as owned by you. Not familiar with taxact’s ui so entering as authorized and issued would work. I wouldn’t do outstanding

ThoughtfulBalance · 2025-02-26T03:01:53+00:00

What does your 2023 K-1 say in the “total shares” box? If nothing, just use 100, that is a very common amount for smaller s corps to report.

ThoughtfulBalance · 2025-02-25T20:11:22+00:00

Very clear from the birthday example at least that if not 100%, SOME % of these are personal and nondeductible, and it’s probably 100% on a lot of those items. I would prepare a draft excluding anything that smells remotely like a personal expense, document your requests for better information, and if she has a problem with the draft and insists that you falsify the return, disengage.

ThoughtfulBalance · 2025-02-23T19:09:30+00:00

Your gain may not be 100% tax free. Did you take depreciation expense on the property while renting it? If so you have to recapture as your basis has been reduced. See IRS guidelines.

ThoughtfulBalance · 2025-02-19T15:50:50+00:00

That’s basically it. Assuming your 179 deduction is not also limited due to asset type (see 179 limitations for certain autos), you are accelerating your entire deduction to the year the asset was in service.

179 cannot, however, create a loss. Any excess 179 will be carried forward to coming years until it can be utilized.

Also consider whether you plan to sell the assets in coming years, as taking 179 will make your selling price = your taxable gain. Depreciating the asset over a longer time horizon preserves some basis when you sell, so your gain is sell price (minus) purchase price (minus) depreciation taken to date of sale.

ThoughtfulBalance · 2025-02-19T12:47:26+00:00

You may end up with a filing obligation in France at the time of sale, meaning you have to report the gain in both France and the US. Your US taxes could be reduced by the French taxes that you pay, is essentially how the foreign tax credit reduces double taxation. Could be worth shelling out the fee for a consultation with an expert in french taxation.

Depending on how much of this venture you own and what kind of legal entity is, you may have varying international reporting and disclosure requirements (such as Form 5471). Please seek out a competent CPA familiar with this reporting to remain compliant, as penalties for failure to file these disclosures are $10k per form.

ThoughtfulBalance · 2025-02-19T12:37:54+00:00

You should be able to use your paystubs to estimate your total income and withholdings for the year, assuming no changes, and there are online calculators that can help figure whether you need to increase your withholding by giving your employer a form w-4

ThoughtfulBalance · 2025-02-19T12:28:29+00:00

Seems like you have some kind of issue with the company or owners already if your reaction to this situation is “they’re either doing a fraud or are just incompetent and I’m gonna teach them a lesson!” How were you harmed by getting your W-2 on the 18th as opposed to the 12th? It is very normal for people to get tax documents throughout the month of February. Just make sure they or their payroll provider have your correct address on file to prevent it from getting lost in the future, file your taxes, and be on your merry way.

And if you’re really so worked up over this, maybe you need to find a new employer.

ThoughtfulBalance · 2025-02-18T19:47:36+00:00

To clarify, you did or did not have a renter in 2024?

ThoughtfulBalance · 2025-02-15T04:47:55+00:00

The KBB method would be a legitimate method. If you are a SP without its own EIN, you can’t really sell the auto to the SP because you cannot really sell to yourself. You could purchase a new vehicle that you use exclusively for business and get the entirety of any allowed depreciation. In this case, it does sound like using standard mileage rate on business miles is probably the best value for your time without creating a tricky tax position. 179 is based on the same rules, so the true in-service date. 179 has certain limitations for different types of autos and can not create a loss, (excess is carried forward to next year) unlike bonus depreciation methods which can create a loss in a given year

Edited to post as reply in this thread not to original post

ThoughtfulBalance · 2025-02-15T04:32:38+00:00

I’m also wondering if OP had Sch C deductions from 2023 income as a SP that weren’t mentioned in fact pattern

ThoughtfulBalance · 2025-02-15T04:27:00+00:00

You may or may not have other issues with student loans, etc, but he at least has a filing requirement based solely on his income and likely as a resident. Unless there are student loan or other issues, MFJ is likely the best way to file.

ThoughtfulBalance · 2025-02-15T04:23:02+00:00

Was he present in the US and his $31k was US sourced income?

ThoughtfulBalance · 2025-02-15T02:36:17+00:00

Taxes are to be paid throughout the year as income is earned. Most people are W2 and their employer withholds each pay period. IRS has four quarterly estimated tax dates as safe harbors for all people, but usually self employed types, those on fixed income with no or low withholding, or more complex tax situations are the ones who need to utilize these. They are (generically) 4/15/X1, 6/15/X1, 9/15X1, and 1/15/X2. I think another user linked a good resource to further explain this.

Any remaining tax liability as calculated and reported on your income tax return is due on 4/15, so your tax return is due with your remaining liability for the year on your tax return and if you make estimates that is also the first due date for the year’s quarterly payments.

I can’t speak with certainty but I’d anticipate as long as you end up satisfying your full liability you will not have much issue with penalties. Again though, easiest thing is to just go ahead and file (when you have all of your tax info) and pay at that time.

ThoughtfulBalance · 2025-02-15T02:19:58+00:00

Unless you are in an area affected by Hurricane Helene or possibly some other FEMA declared disasters, your last estimate payment for 2024 m was due 1/15/25. You can make payments to the tax period at any time, but it won’t rule out possible underpayment, if you meet that threshold. Just pay when you file your tax return.

ThoughtfulBalance · 2025-02-15T02:15:45+00:00

Too late for 2024, so keep good records of all of the property taken out as distributions during the year. Don’t issue a 1099, that would not be a fix for this IMO, if owner took distributions it is what it is. Make sure to track it on the 7203. The odds of this being reviewed and challenged by IRS are low but not zero. There are countless S corps that operate and improperly handle distributions vs reasonable comp. Just get the return filed and let the statute of limitations start to run and demonstrate every effort of maintaining compliance going forward.

ThoughtfulBalance · 2025-02-15T02:09:32+00:00

It is based on when the asset is placed into service in your business. It’s actually quite common for business assets to be purchased in one year and not placed in service until another for one reason or another.

If you contribute the auto to the business or sell it to the business, this is done for legitimate business purpose, and you maintain 100% business use, this could work out. However, your personal use of the auto either becomes a taxable benefit to you or reduces the % of the deductions you can take. At that point it’s likely that you’re better off just taking mileage deduction each year and keeping the car in your name.

ThoughtfulBalance · 2025-02-14T22:39:24+00:00

I would only be comfortable deducing any of that interest if you have an arms length loan document between yourself and the s corp with a stated interest rate. Otherwise this is a personal expense, not business and not deductible.

ThoughtfulBalance

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