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@KurtSupeCPA You don't understand the step up in basis rules under 1014.

He was absolutely devastated. He added his eldest daughter to his $650K brokerage account as a "joint owner." The goal: "If anything happens to me, she can pay bills and manage the house without probate." Simple. Logical. Efficient. Until last week. His daughter was involved in a serious DUI accident. Because her name was on the account as a joint owner, the lawyers for the other driver moved to freeze the entire $650K. Grandpa can't pay his own property taxes. Can't withdraw for medical co-pays. "That's my life savings. She didn't put a dime in there." The Law: Doesn't matter. In a joint account, her creditors are your creditors. The Hidden Tax Trap: Even if the assets survive the lawsuit, by making her a joint owner now, he likely just cost her a fortune. She keeps his original (lower) cost basis on her half. If he'd kept it in his name, she'd get a "step-up in basis" at his death—potentially saving tens of thousands in capital gains taxes. He tried to save her from probate. He handed her a massive tax bill and himself massive liability. The "Safe" Duo he SHOULD have used: Power of Attorney (POA) Gives her legal right to manage the account without making her a legal owner. Her creditors can't touch it. BUT: The POA dies when you do. Zero help once you pass. Transfer on Death (TOD) Picks up where POA leaves off. → Bypasses probate completely → She gets the money instantly when you pass → She gets full "step-up in basis," wiping out capital gains tax You need both. POA for while you're here. TOD for when you aren't. Is "convenience" worth risking your nest egg to her creditors and losing your best tax advantages? With a Joint Account: You aren't just sharing access. You're sharing the risk of their life and the burden of your old tax bills. 40 years of saving. One "convenient" signature. A legacy tied up in a courtroom. This is not personalized financial, tax, or legal advice. Please consult a qualified professional regarding your specific situation. This is a hypothetical example for illustrative and educational purposes only.

@rledbetterCPA Have you ever had basis questioned on the sake of a home or anything? Have clients walk around and make a list. I paid $5k for that bathroom, $20k for that. Gain is under $500K before you know it. Also surviving spouse has two years to sell home and use $500K exclusion.

I don't always love "show me what you got" calls - but this one today saved like $45k in 10 minutes of talking: She bought a home for $900k 7 years ago Just sold it for $1.6 million and rolled all the equity into their new home After the 121 exclusion, was looking at taxable gain of $200,000 Was worried how they were going to pay that amount since they've put a lot of cash into the new home already Walked her through the gain calculation and realized they'd put $250k into remodeling the home over the last 7 years Wiping away the amount due - and saving Christmas

@rocknrollofall Dazed and Confused is also a cover as were a lot of the earlier songs. Wiki it. Page is still the best though. He made them his own.

Origins of Whole Lotta Love, Jimmy Page came up with the guitar riff for "Whole Lotta Love" in the summer of 1968, on his houseboat on the River Thames at Pangbourne, Berkshire, England. However, John Paul Jones stated that it probably was developed from a live improvisation during performances of Dazed and Confused. Page denied that the song originated onstage and that he had the riff and the rest took it from there. The chugging riff sounds like twin guitars because Page is playing two guitar strings in unison, while bending one of them to slightly change the pitch. At the same time, John Paul Jones is using the same technique on bass guitar, doubling the guitar part in a lower octave. Page recorded his part while playing through a solid-state amplifier. During the two day mix of the Led Zeppelin II album, audio engineer Eddie Kramer discovered what he thought was some magnetic tape bleedthrough on Plant's vocals on the "Whole Lotta Love" track, which could not be removed, so he put some echo on it, and Page liked the sound. Page also employed a backwards echo production technique. Years later, engineer J. J. Blair analyzed the multi-track tape and found that the second guitar track contained traces of an earlier vocal track by Plant caused by microphonic induction of the guitar pickup. This thin-sounding vocal preceded the main vocal track in a manner similar to bleedthrough. It was released as a single in 1969 in several countries; as with other Led Zeppelin songs, no single was released in the United Kingdom. In the United States, it became their first hit and was certified gold. Parts of the song's lyrics were adapted from Willie Dixon's "You Need Love", recorded by Muddy Waters in 1962; originally uncredited to Dixon, a lawsuit in 1985 was settled with a payment to Dixon and credit on subsequent releases. Led Zeppelin performing 'Whole Lotta Love' live at The Royal Albert Hall, in 1970.

@ajthecpa1226 I'm less likely to choose a fiscal year for an estate or a 1041-T. IRS can't handle them. Guaranteed notices. Not worth the hassle.

The IRS is broken and taxpayers are paying the price. Last year, filed a '23 amended return for a client's dependent to remove their dependency claim for themself. Had the parent paper file the return with a letter explaining the situation. Over 14 months later and the IRS still hasn't processed the e-filed 1040x for the dependent, and never processed the paper filed return that was submitted. This is only going to get worse going forward.

#TaxTwitter If you have a K-1/K-3 with 135 PFICs, how many of you file 135 8621s?

@FortWayneCPA Do the strength training on Peloton. Buy dumbbells. Pick a program. They have excellent instructors. You need to build muscle to lose the fat.

Losing weight. Looking for thoughts... Upping my exercise, looking for thoughts. I was killing it on the Peloton until I had problems with my right knee and my physical therapy to rehab my right knee might be 75% done... It looks like I can ramp back up to riding the Peloton 30 minutes a day in the next week or two according to my physical therapist. Likely next Friday I will start... I will likely start with low impact only and ramp up. I miss riding each day. I had the final visit with my Orthopedic Doctor the day before yesterday. I have real flat feet and I have major arthritis in both knees which I first learned last month. He said this was always going to happen to me and that he fully expects both of my knees to be replaced down the road. He said my goal should be to do both of the below items and if I do both, maybe, we can push both knee replacements to when I am between 65 and 70. I turned 58 last month. I am semi retiring just before I turn 62. This is a little depressing; however, it is what it is. He said they try to push the knee replacements out because they only last 15-20 years. First and most important, he said what would help the most is to lose more weight. I was at my peak weight at the 2023 TaxRetreat. Karena and I have been slowly and consistently losing weight and I lost 31 pounds from the 2023 retreat to the 2025 retreat. I am not unhappy with this; however, I can do better. Due to my knees I need to and will do better... So now I have decided that I will lose at least another 29 pounds between now the the 2026 tax retreat. That will put me at losing 60 pounds over a three year period and I will reevaluate because I will still be heavier than I should be. I likely will come up with another weight loss goal by the 2027 taxretreat... I actually have my DD214 (Discharge papers from the USN back on 3/1/95) and I am thinking about setting the weight I was on the day I was discharged as my goal for 2027 taxretreat. I am not sure what that number is right now, but might be another 20 pounds... Karena and I will lose 10 pounds each in the 13 weeks starting July 21st, the day after @taxretreat. I have already lost one pound... So I am moving... Then I will make goals after that to lose another 19 pounds by next summer. I make goals in small pieces because it works better for me. Second he said to strengthen my quads and maintain stronger quads. Further, and less important than strengthening the quads, is stretching the quads & hamstrings and strengthening the glutes, hip abductors, hamstrings, and calves. Right now I am doing 15-20 minutes of exercises three times a day on my own. On days I go to PT I do them only twice because of what they have me do at their facility. I think my last day of going to physical therapy might be 7/31/25. We will see. Depends on insurance. I will do private pay if PT recommends it for sure. No reason to be cheap on something this important. Once that is done I am going to go back to riding 30 minutes a day on the Peloton and the PT and I have talked about a schedule to do that and we will finalize that at my last visit. I tried to ramp back up two weeks ago and it did not work... Doing 30 minutes on the Peloton and then another 45-60 minutes of leg exercises a day was too much 2 weeks ago. It caused a lot of discomfort in my right knee and the therapist put the kabosh on it. That being said, there is no doubt my legs are getting stronger because I hit the exercises pretty hard. I just went too fast... I have not finalized my new plan and will talk to the PT about it a lot the last day of PT. At PT they also tell me I ask more questions than basically, anyone... I think I want to land on 15 minutes of leg exercises and combine that with 30 minutes on the Peloton and do that every day. It might need to be 20 minutes of leg exercises, I am just not sure today. Basically ride every morning and stretch and do exercises right after. Then when I can do that consistently for a month or so I think I will go to the YMCA, hire a physical trainer, and add two days of weight lifting a week. I may focus on legs first due to my knees. So long term I think my goal will be to daily ride 30 minutes and then do 15-20 minutes of stretching and exercises. This might be 5.5 hours a week and this is all in our house... My work place is 1.8 miles from my house with zero traffic and two stop lights. The YMCA is .4 miles from my office and zero stop lights. I might shoot for 45 minutes of lifting twice a week. This would get me up to 7 hours a week and I like this nice round number... My physical therapist is kind of funny. He gives me a 9.5 for effort and he does not think I need to hire a physical trainer because he can tell I hit the exercises he gives me really hard in between visits and once I hit them too hard... Me ramping up too fast is why he gives me a 9.5... I am trying to learn from that. Karena is already doing this and she is riding 30 minutes and then doing closer to 20-25 minutes of stretching and light lifting afterwards. Some days it is 30 minutes. We are both increasing our fluid intake, for weight loss. Limiting ourselves to one diet soda a day and if I was smarter I would just cut that out; however, I am a weak on this. I want to drink 8 OZ of juice in the morning, 32 OZ unsweetened iced tea after that. 32 OZ water in the afternoon. Then 32OZ unsweetened iced tea or water after that. Likely a Diet Dr. Pepper in between because I am weak... That is 120 OZ per day and the most successful diet we ever did was crazy high protein and fluids... I may not be able to consume that much in fluids. It is 11 AM and I am at 40 OZ right now. I do not want to be up all night... I may settle in at closer to 100 OZ a day. We will see... So my question is; what would you change and yes I am talking to my main Dr. (General Practiioner) the Ortho Dr., and the PT. I talk to all of them. I am not winging it. I am thinking of adding one or more supplements... I am looking for opinions not medical advice. I am getting a lot of medical advice. Right now I am focusing on breakfast. I eat breakfast every day. My go to breakfast is: Cottage cheese and blueberries. Fairly common ones are: Egg bites. I make them in muffin tins. Cottage cheese and salsa. Cottage cheese and apple sauce. Salmon. We watch calories. We eat three meals a day. I shoot for 300 calories for breakfast. 450-650 for lunch and dinner. Limit myself to one snack and it is a protein drink. Calories I am generally at about 1600 a day. This was a long post... Too damned long.

@FortWayneCPA Provisions severely limiting PTETs were removed by the Senate in the past day or two.

One of the many things wrong with the US tax code... My wife and I own multiple businesses. Most of them are SSTB's. Looking at our 2024 1040 we get ZERO in qualified business income deductions in 2024 for our accounting business. We do get QBO for another business I own and of course for some investments. Congress just had to prioritize investments for this deduction over high income service businesses. Congress is bought and paid for... @aicpa

@FortWayneCPA What about proposed legislation to do away with PTET for SSTBs? Another blow to accountants and lawyers.

@FortWayneCPA Mike, you have to do strength training too. Get some dumbbells (Costco has) and do the Peloton strength training 3 days a week. They have programs you can follow. Instructors are excellent.

Guess what? No. No. Not that. The best thing we did recently is bought and rode our Pelotons. We bought two. Activated on Dec 21st, 2024. Karena has ridden 106 days in a row because she is awesome. I have ridden 102 days of the last 106... My knees force me to take a break and I am going to continue taking a couple of days off a month. I have ridden 844 miles and for 51 hours. During busy season. I am impressed with us and you can deal with it... My average ride has been 8.3 miles over this stretch. When I started my output was about 150. Now my average is about 220. So I have increased about 47%. I am out of shape; however, I am getting a little less out of shape... Some if you look at a 30 minute ride with an output of 220 and laugh because it is easy for you and that is awesome... For me, I am impressed I am improving.

@FortWayneCPA just curious, do you get paid by X? I have a client, age 22, making $30k per month from X. I need to get in on this.

@LilBill811 @realEstateTrent I would take a hug from my daughter over my hobbies any day.

@realEstateTrent Another reason not to have children. I like to race cars and fly planes.

A couple of my friends with young kids recently suffered pretty serious accidents as a result of longtime hobbies. One was dirt-biking, the other was riding a motorized scooter. Both will be fine, but they required surgeries, and both now face long roads to recovery, and lots of rehab. When I had kids, I knew right away the risk/reward ratio of continuing some activities no longer made sense. For me, scuba diving was a hobby I loved and knew I had to give up. It’s a sad thing to come to grips with. Those hobbies are often part of our identity, but it’s among the many sacrifices we make when we decide to have families. We love our hobbies, but as our lives progress and priorities shift completely, we may need to find new ones to fall in love with. It’s not about us anymore. It’s about them.

@LorilynWilson More importantly, what is your threshold for filing in another state assuming it is K-1 income? I find filing generates notices (don't give credit for withholding and then you owe instead of refund).

What are we charging minimum for additional states because I'm currently regretting my pricing #taxtwitter

@TaxProArizona I have a AZ loss carryover question. Can nonresident use AZ sourced NOL (or PAL) in subsequent year when there is no federal NOL or PAL. AZ sourced loss in 2023. Big gain in 2024. I want to net the 2023 loss against 2024 gain.

@camp_wealth Make sure you tell them the stock has to be held for a year. It must be long term capital gain property.

If you’re a high earner you shouldn't be donating cash to charity. There is a better method with a double tax benefit. Here’s what you need to know:

@vagaaccounting It's all about the stock options. If you make a move, make sure you go some place that gives you stock options.

How long are people staying at Big 4? Was recently promoted to Senior Associate with 113k base. No complaints, but seeing industry jobs at 140k with what I am assuming is less hours and stress When is the correct time to make the switch?

@FantasyProsMLB Is Lodolo worth picking up for a low (good) draft pick for next year? Will he bounce back?

@LoganGrafTax I got one where IRS said IRA loss should have been reported on Sch A, denied QBI deduction and denied moving expenses. Oh, and there were none of this things on the return. (Return was paper filed due to lost IP PiN).

Have any tax professionals not received IRS letters from clients that make no sense in the last two months?

@MikeSyl36625988 Client day trading. Made 475 MTM election. Lost tons. Stopped trading 20 years ago. Now trading again. Does MTM election still apply? I would think so.

I have had a dozen clients try day trading in the last 20 years. None of them made money, all got out of day trading.

@TheNFTCPA I'm going with the 1099s on wash sales. No, I'm not checking it against other accounts (including IRAs). It's a deferral. It is was it is and our clients are not paying us to do that.

Has anyone seen an IRS auditor actually go thru the history of ones trading and update / change the wash sale totals vs what is on the brokerage statements? #TaxTwitter

@LizDoogCPA Need to break it down to different "groups of items" all under $5,000 so no appraisal required. Men's clothes, women's clothes, men's shoes, women's shoes, kids clothes. Thanks former client. #don't be a chozer.