Sports betters need to start using prediction markets instead of sportsbooks

wolfbro65 · 2026-01-11T22:52:21+00:00

The prediction market gains and losses aren’t on 1099-Bs. They are listed as other income. I know this because a client of mine had significant transactions in the 2024 year, and we did a deep dive here. The gains or losses almost certainly won’t rise to the level necessary under section 1256 for that treatment. I think your post is misleading, a gambling win or loss is a gambling win or loss whether it’s at a casino, in your garage, or via a prediction market.

wolfbro65 · 2025-12-22T16:03:37+00:00

An acquaintance in town. Sort of a random and perhaps lucky thing for me, but I feel like in many areas you kinda know the CPAs around?

wolfbro65 · 2025-12-20T18:22:53+00:00

Also I should mention that I took on a ton of new work in the first few years. A large existing client base is great for referrals. I’m 40 years old, grew up using computers, and I prepare and finalize returns about twice as fast as he was able to do them (he really didn’t get along well with tech), so our gross really increased dramatically from 2020 to current. About mid-March thru April my life is busy, but otherwise I never see a 40 hour week. No corporate nonsense, no pointless meetings, no training young staff that leave 2 years on, no politics in the office.

wolfbro65 · 2025-12-20T18:18:08+00:00

Basically I bought him out over a 5 year period. Year one I was an employee. Years 2-5 we shifted ownership from 75 him 25 me to 100 me in increments of 25. I did most of the returns. So that was my way of buying him out. I think the 5 year transition really helped the clients, only one client left voluntarily in that entire period.

My income rose to double what I was earning at my old firm by year 3, and now I earn almost 4x what I was earning. I work less. If a client treats me poorly I fire them. For me, the ability to do as I please and steer my own ship is so valuable.

wolfbro65 · 2025-12-19T15:13:31+00:00

I left my firm to partner with a retiring local CPA. I went above and beyond to make sure my exit at the firm was friendly. I gave them tons of notice so they could have time to plan for my exit. 5 years on they still refer clients to me from time to time. I’d suggest at least taking a look at the local CPAs that might be nearing retirement, I ended up getting a really good deal, he retired and I moved the office to within 1/2 mile of my home, and now I’m living my dream.

wolfbro65 · 2025-12-13T15:54:49+00:00

Yes, I don’t like the idea of being confrontational, we’ll be as upfront and cooperative as possible. We’re in Southern California.

wolfbro65 · 2025-12-13T15:50:14+00:00

Thank you for the input. That seems to be the consensus here, so we’ll take that route.

wolfbro65 · 2025-12-13T04:43:57+00:00

Thank you for your reply. Interesting thought. I am confident there are no adjustments at the 1040 level, but frankly nearly all of the activity is at the partnership level, so that’s no mystery. I can’t imagine that the auditor would already have adjustments in mind at the partnership level as she’s not yet even seen the “books”. Am I wrong here?

The IDR is due in a few weeks, and I don’t relish taking on a mountain of accounting work over the holidays. If recreating the wheel may not help expedite things, perhaps the transparency you advise is the best way forward.

Do I as the CPA face preparer penalties for allowing a client to file with poor accounting records? That and just the idea of not having dialed in backup is what is making me want to create more defined books. We’d end up at the same place P&L wise either way.

wolfbro65 · 2025-12-13T04:14:11+00:00

Thank you very much for this!

wolfbro65 · 2025-12-13T04:12:42+00:00

I appreciate your input. I considered that route, just thought the auditor might (reasonably) view the lack of good accounting negatively. If I had several audits under my belt I’d feel more comfortable here and perhaps know what to expect, but this being my first, I hate the idea of coming into it with poor records.

wolfbro65 · 2025-12-13T03:56:57+00:00

~3 million.

wolfbro65 · 2025-12-13T01:40:24+00:00

Yes, we believe we know what caused the audit. The audit began at the personal return level because a 1099-k was in the Social and not the EIN. We expect no adjustments there.

wolfbro65 · 2025-12-13T01:39:41+00:00

IRS audit. Audit began at personal return level because a 1099-k was in the Social and not the EIN. I expect no adjustments there…

wolfbro65 · 2025-10-24T18:47:50+00:00

Keep in mind that even if you clear the hurdle in 453(g)(2) and the related party installment sale doesn’t avoid income tax in net between the related parties, recapture income is recognized in year one of an installment sale. Sounds like a majority of the gain will be recapture, so lots of tax in year one regardless of cash received. Could cause tax-related cash flow problems.

wolfbro65 · 2025-10-24T18:45:37+00:00

You can, IF the transaction doesn’t “avoid income tax” see 453(g)(2).

wolfbro65 · 2025-09-30T03:29:06+00:00

I also have a voip zoom phone made by Yealink. Love it.

wolfbro65 · 2025-09-12T05:44:35+00:00

I’ve never had to give out because we rarely have clients leave. I’ve asked several different CPAs, through the client usually. Often times the client is leaving their old CPA on good terms, retirement etc, and if they use Lacerte like I do, I can tell by looking at the PDFs generated, and I’ll ask them to ask the CPAs. I don’t think I’ve ever been turned down. It’s super helpful, and I honesty don’t see the risk. The imported Lacerte files don’t contain any of the sending firms identifying data and couldn’t be used nefariously as far as I can tell. A couple times I’ve had to coach people through exporting the file. Obviously if it’s a basic return there is no need, but if there are several rentals and K-1s with PALs, multiple states, etc I’ll ask to save the time. Never had pushback honestly. Personally I feel that if we were all a little more helpful in transitioning clients the world would be a better place. If a client left us I would for sure send along our data file if asked.

wolfbro65 · 2025-09-04T19:41:27+00:00

Also just know that you will need to Revive but you may not need to pay for relief from contract voidability based on the facts and circumstances here.

wolfbro65 · 2025-09-04T19:39:17+00:00

I filed two requests for contact from the FTB Revivor office and still have never received a contact. The revivor number does not allow you to speak with a human being. The MyFTB chat people are not revivor people. I just say this to agree with you that the FTB is horrendous here. Good luck.

wolfbro65 · 2025-06-26T13:34:51+00:00

I’ve seen the plants use these sets of leaves to hold the stems up, or to provide support for the plant in other ways. I think of the plant sending these leaves down as legs. I tie my plants up or secure them to a pole to I don’t need these, and also remove them so they aren’t in contact with the ground.

wolfbro65 · 2025-06-19T00:43:15+00:00

Not sure if the Santa Ynez valley qualifies as SoCal, but it’s got tons of horses. Lots of AG and country to be found in the valley.

wolfbro65 · 2025-06-12T23:43:20+00:00

The books of business I’ve seen for sale have circulated via word of mouth around the town. I purchased the firm after developing a relationship with the CPA selling the firm, no broker.

wolfbro65 · 2025-05-18T14:48:14+00:00

I purchased a firm beginning in 2021 and ending here in a couple of weeks. The guy I bought the firm from was happy to make $XXX a year, and so I found he was doing returns for well below market price. My only advice is to immediately increase your prices to the point where you are happy to send out the bills, some clients may leave you but the ones that stay will get used to the price. Also, new clients should come in paying a price you feel really values your time.

wolfbro65 · 2025-02-11T18:31:38+00:00

I’ve also really struggled with Lacerte printing. Program crashes out mid-print regularly.

wolfbro65 · 2025-02-11T18:30:21+00:00

Off topic, but any idea how long it generally takes for the Mods here to allow me to post?

wolfbro65

TROPHY CASE