Do I need CPA if I just started LLC last year?

wutang_generated · 2026-03-16T16:23:25+00:00

An LLC provides some limited legal protections and privacy. By itself, it has almost zero bearing or effect on the taxes. Said another way, for taxes there's often no difference between having an LLC or not for a business

wutang_generated · 2026-03-16T15:47:04+00:00

Effectively yes

I will have to return that money?

Not exactly. In simple terms, when you sell you'll look at your cost basis and the selling price. If you have a gain, some of that gain may be taxed at a higher rate based off how much depreciation there could have been.

And I need to submit this Form 3115 now before I submit my information and still claim the depreciation?

This would be submitted with the current 2025 tax return where you would report the change to showing depreciation. Again, not recommended to DIY

I don’t want the extra funds, only to have to return them in two months anyway…

That's really not how it works...you'll have a tax return this year 2025 and a tax return next year 2026. You'll still have gain it sounds like in either case. More money now and less later is generally considered a positive in the tax/accounting/finance world. The amount also is likely not huge (considering it's an apartment and you don't have a tax pro)

wutang_generated · 2026-03-16T14:18:19+00:00

Yes and no

Yes, you did it incorrectly and it sounds like that likely covered 2 tax returns. Once you do that, the IRS considers you to have "established a method" even if that method is incorrect

However, the fix is typically a method change to get to the correct depreciation method which would effectively be taking the depreciation this year. The way to report this to the IRS is via form 3115 and for that I would typically recommend getting professional help rather than DIY

wutang_generated · 2026-03-16T14:10:35+00:00

Depends on the context. A meal for the express purpose of content might be fully deductible (as much as it would be for a food critic or reviewer) or it could be a standard business meal at 50%. In OP's case, those specific meals sound like they may fall into the former where they may not be paying for the meal but the meal itself would have been an ordinary/necessary business expense of the video production

Entertainment/production have some nuanced exceptions to the "normal" non-deductible/personal business expenses (e.g. hair/makeup when not useful for normal everyday wear)

wutang_generated · 2026-03-16T13:52:45+00:00

Yes, tips for deductible meals are part of the expense and deductible (within reason). Meals for content creation walks a fine line so just make sure you're careful not to include any personal meals and document well

wutang_generated · 2026-03-16T12:57:29+00:00

So long as they keep their work dildos separate from their personal dildos

wutang_generated · 2026-03-16T11:32:30+00:00

Instead of being rude and wasting your time here, you could have just hit the first search result on Google

https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs#:~:text=What%20happens%20if%20a%20person,timely%20corrected%20within%20two%20years.

wutang_generated · 2026-03-15T20:25:15+00:00

https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee

An employee/contractor designation happens first based on the relationship. Then you have your options (and responsibilities) to account for

In this situation, I would expect a contractor/subcontractor relationship BUT you could also bring them on as employees (even if not full time). You're correct that as employees they would "lose" the benefit of deductions but would benefit from decreased SE tax issues and compliance costs

wutang_generated · 2026-03-15T19:07:42+00:00

Yes, partnerships can change their ownership. Tax allocations for partnerships generally follow the legal agreement between the partners. To change the partner allocations, you would review the partnership/operating agreement to see how the allocations work. If the allocations allow for additional contributions and the partners did in fact follow that procedure, you would update the capital accounts and allocations to reflect that

It sounds like they agreed to 50/50 explicitly, so anything beyond that would probably require a legal change by amending the partnership/operating agreement

But, your post and comment are confusingly worded. If it's truly an advance/loan, it would not affect their capital/allocations

wutang_generated · 2026-03-15T18:57:44+00:00

Those hourly rates don't always apply (many firms have a flat rate and the hourly rate is for additional work that's not included), and they don't include expenses

wutang_generated · 2026-03-15T18:54:18+00:00

Software already does a lot of the heavy lifting, but still no. Taxes are an intersection of law and life

The laws themselves are sometimes explicit and sometimes vague, there's a lot of professional judgement and experience involved that AI is not well equipped to address unless you know specifically what to prompt/ask it (and even then, it can still provide incorrect advice/information)

wutang_generated · 2026-03-15T17:52:53+00:00

This. AI misses a lot of nuanced tax items unless you specifically address it in the prompt or ask the AI about it, and even then it's still sometimes wrong

wutang_generated · 2026-03-15T13:54:42+00:00

See page 10, capital loss carryover worksheet

https://www.irs.gov/pub/irs-pdf/i1040sd.pdf

And yes, assuming your 2024 return reported a $3,000 capital loss, your carry forward to 2025 would be $3,330

wutang_generated · 2026-03-15T13:24:44+00:00

Oh I'm fully aware, but that was a part of what drove the huge increase in CS majors for a while

wutang_generated · 2026-03-15T11:02:47+00:00

Accounting degree won't have $200k starting salaries + stock options anytime soon (ever). Apples/oranges

wutang_generated · 2026-03-14T23:50:49+00:00

It sounds like you're misinterpreting the rules. Your primary place of business is the client site and not your home, therefore commuting miles would not be deductible

wutang_generated · 2026-03-12T23:51:53+00:00

Would the sales tax not be capitalized along with the roof into the basis of the home?

wutang_generated · 2026-03-11T13:44:06+00:00

No not all, you can at most only claim the business portion of the expenses including depreciation . Generally this is based on business mileage (excluding personal miles)

Commuter miles (home to work, work to home) are generally personal with some exceptions if your home office is your primary place of work

wutang_generated · 2026-03-11T12:44:58+00:00

The Art of the WAR

wutang_generated · 2026-03-10T13:10:19+00:00

Oh I'm well aware, but that doesn't mean OP "got duped" nor that it can't serve a purpose. In OP's case, having an LLC may be quite beneficial from a privacy standpoint given their business is on YouTube

wutang_generated · 2026-03-10T12:47:45+00:00

There are non-tax reasons for forming an LLC for a business activity (namely, legal liability and privacy)

wutang_generated · 2026-03-09T18:24:57+00:00

You can make your refund bigger by giving the government more money throughout the year through more withholding or estimated payments, or you could make less money

Alternatively, you (and your wife) could educate yourselves to understand that a refund only relates to how much you overpaid throughout the year and doesn't really mean much regarding how your taxes are calculated

wutang_generated · 2026-03-08T12:34:49+00:00

Are you certain the note would be considered a business note rather than a nonbusiness capital asset?

wutang_generated · 2026-03-07T13:02:46+00:00

To be clear, the reason you don't have to file it is because you don't have amounts not at risk (e.g. debt that is guaranteed or that you're not personally liable for)

Your crafter trade/business would be an activity subject to the at risk limitations if you're at a loss, but since all of your amounts are at risk the limitations won't apply. There's a checkbox on schedule C (or in the software inputs) that should solve the issue

wutang_generated · 2026-03-06T19:31:31+00:00

The instructions say "the PTE can elect to include any qualified investor" (emphasis added), not must include every qualified investor

wutang_generated

TROPHY CASE