To The Moon

@ArthurJSpring 15 year QIP and bonus?

For the 1000th time, your tax pro is asking you questions because theyre trying to HELP you If I ask about your $50k office reno and I get details, I'll expense what I can and depreciate the rest But if you say "we redid our office" then that whole thing gets 39.5 yr depreciation

@Micha_Siegel @DianeGilabert PTP!

@DianeGilabert What was the set up? I've never seen one live. They sell the property and receive partnership interest for the FMV and basis is carried over?

Client expectation: all capital gain. Actual result: hello §751. What’s your go-to way to break that news? #MandATax #Deals

@waynebriqu37421 @BkwrmCPA Sometimes the second time has transactions that aren’t in the first. Especially non covered transactions. Very dumb

@BkwrmCPA I love that Schwab states all the dividends and dispositions twice

I think I’m going to start charging for each 1099-Consolidated form individually… This is ridiculous

@bsuecannon Are they over 59.5? Think it would be 7 then

Back Door Roth contribution - 1099-R has code 7 in box 7? Shouldn't it be code 2?

@joshualowenthal What if…… other related entities with VERY large profit and lacking wages for 199A then grouping them on the 1040. (Assuming they qualify to group). Could make sense in that unique instance?

Got into an S-Corp tax return earlier today doing some diligence. The K-1 showed negative income to the owner. The W-2 wages showed over a million dollars to that very same owner. Please don't do this.

@TGorcz @cordes_tax What was the penalty for?

I just got a $71,000 penalty abated for a taxpayer caused by a tax professional error. We handle a lot of these types of representation cases for other tax pros. If your client needs help, reach out!

@cordes_tax @tonynovak Are these account really better than just a 529 beyond the pilot contribution? Contributions nondeductible, tax deferred rather than tax free gains? What’s the draw over a 529?

@tonynovak "lives better" doesn't necessarily mean financially only. If you remained a faithful, active, and involved father then you are 95% of the way there. Your instilling of the values necessary for them to be able to provide for themselves is the biggest leg up you can give them.

Trump Accounts are far more powerful for the rich than for the middle class who are already struggling with the cost of living, education, healthcare, and saving for retirement. This new tax break, mostly for the rich, will widen both class and racial wealth gaps.

@CPATaxTeam @fintaxdude Just have everyone say remind later and just run it at night instead

For any of those Lacerte and UltraTax firms who deal with updates in #taxtwitter...Lacerte pushes updates nearly daily sometimes causing us to have to reboot the server during the day. Does UT never do updates? We don't have that issue with UT updates. @fintaxdude

@TGorcz Lunch ordered for the staff on a random Tuesday afternoon eaten in the conference room with all staff. 50% deductible or nothing in 2026?

The rumors that office coffee and snacks are nondeductible in 2026 are swirling again on social media: this is not what new §274(o), which was part of TCJA, did. Read the detailed analysis in my Tom Talks Taxes article from this past summer (link below) #TomTalksTaxes

@CMcCulloughEA @nobletaxhelp Hope they got an appraisal for that

@nobletaxhelp My old firm had one client claim $10K of these donations. I wondered if that would be a semi load of donations. Even after an are you sure you have valued this stuff at thrift store value and do you have well kept backup for this in case IRS asks, client stuck with that number.

For some reason, all of my clients think the fair market value of their Goodwill donations are thousands and thousands of dollars this year. Usually they are much more reasonable.

@ForemanTaxLaw SSTB portion of it even worse

199A remains atrocious tax policy.

@rledbetterCPA Were these related businesses? Shares office? Shared employees? Shared customers? Etc? Can’t just aggregate anything right?

Met a business owner a few years ago killing it Profitable partnership. Break-even S-corp I told him: "Have your CPA look at aggregating your QBI" Didn't want to move his taxes - CPA was a long-time family friend and he didn't want to hurt the relationship I get it. Fast forward a couple years. He calls. Wants to talk about moving his tax work over I pull up his return from the year after we talked Record year for his businesses His CPA never made the aggregation election - was busy fighting the IRS over a tiny notice that should have just been paid He lost $400,000 in QBI deductions in that one year alone His S-corp was paying solid W-2 wages. His partnership was throwing off big profits. But without aggregating, those W-2 wages just sat there in the S-corp doing nothing for his 199A deduction The partnership needed those wages. The W-2 wage limitation was choking his deduction on the partnership side, and the S-corp had more than enough wages to fix it. One election (he was eligible for*). Combine the businesses. Let the S-corp wages work for the partnership profits. His CPA never looked at it - and you can't amend for it If you have multiple LLCs - check that election!

@korlando2251 @DianeGilabert This is correct. As long as market comp W2 it’s fine

@DianeGilabert What I've seen in a couple deals is that the seller becomes a W2 employee of buyer after the sale & is compensated that way. But my sample size is small compared to yours! :)

Tax deal professionals: If an earnout requires continued employment, are you still comfortable calling it capital gain?

@nytimes @TheAthletic USA taking gold

From @TheAthletic: Reports have surfaced before the Winter Olympics that allege ski jumpers are injecting their penises with hyaluronic acid to fly farther. The World Anti-Doping Agency has vowed to investigate. nyti.ms/4r10aaA

@adammarkowitzEA Sounds familiar!

Yes, it is a problem if you have taken a gross payroll of $0 through your S-corp so far in 2025. Yes, you can give yourself a payroll today to fix it. And yes, you ARE going to give yourself a payroll today to fix it. #TaxTwitter

@taxpreptech Assuming the rental agreement would have to specifically exclude the room that is the home office as they cannot overlap? Was this just a board of directors meeting by owner?

@ToTheMoon10k We included the analysis as part of an ongoing monthly planning engagement. We used comps to determine a daily FMV rent which we adjust for their home office use under an accountable plan. While feasible it’s quite a bunch of hoops to clear for a defensible deduction.

I just ran the numbers on a properly applied Augusta rule strategy for an S corporation insisting on it. The results were…unimpressive. Just because something can be done doesn’t mean it needs to be done.

@going_concern The credit debit part is largely true for cash basis of accounting, which the vast majority of small businesses use.

This is what we mean when we talk about job security in accounting.

@daverichard What about Kincaid? I don’t see him in your rankings?

I've moved some players down because of the forecast for persistent rain. Might motivate both teams to run more. As usual, wait until 1230p ET to really get an idea of the weather.

@chris_hobbzilla I don’t think this should be spun that way. Lane was option A. Unless option B is a big name and equal to the caliber of lane, this is a let down. And nobody else if that caliber seems available

My source just told me we are out on Lane… and before y’all panic, just know this is where the real story gets good. Every time Florida has gone quiet in a major coaching hunt, it has meant something bigger is brewing behind the scenes. This is when the smoke gets thick right before the explosion. Do not blink. This next part is about to get wild