Grant Dougherty EA

My favorite convos with clients… C: Why so different this year? Last year I got a refund and now I owe $27… what gives? Me: Well, for starters you had about a $300,000 increase in income from last year, so that played a small part in it

Failure to do this can result in both failure to file penalties (and failure to pay if you don’t pay the estimated tax) Now, the penalty is based on your tax due, so if you are owed a refund then technically no extension is required Buts it’s always still best practice to file one anyways

Individual returns are due 4/15 (S-Corps and Partnerships are 3/15) If you need an extension then you file Form 4868 and this gives you 6 months, until 10/15 This is just federal and some states require their ow separate extensions (but many accept federal extensions)

“What’s one trick the wealthy don’t want the poors to know about”? The file extensions for their tax returns… They also know that an extension is just to file and NOT pay your taxes

Gotta step up our marketing.

Making $100,000 today is like making $40,000/yr in 1990 $250,000 is the new $100k/yr salary🥲

Always remember… especially during tax season…. If you emailed your accountant and they didn’t respond… You’re going to jail Best regards,

Not sure who needs to hear this but… You still have until April 15th to max out both your Roth IRA and your HSA for 2025 Roth IRAs are one of the easiest tools to build tax free wealth and less than half of Americans have an account Start today and your future self will thank you🧠

If you had a child born last year (applies for children born from 2025-2028)… File Form 4547 to get them $1,000 invested into the new Trump accounts

Today The IRS released Bonus Depreciation guidance Here are the most important takeaways to real estate investors and biz owners: Section 3 of the notice contains the updates that they ARE keeping the TCJA rules, just with a few minor tweaks 1. Confirmation that bonus depreciation IS 100% going forward However, anything purchased/constructed before Jan 20th is considered to be a 40% bonus depreciation property Also, if you purchase an asset after the January 20th deadline, you can choose to elect into 40% bonus deprecation (I have a client this works beautifully for) 2. Confirmation of the 'date swap' for bonus depreciation Instead of the cutoff being September 27th, 2017, it's January 19th, 2025 for anything NOT eligible for new 100% bonus rate Again, reminder that if you purchase after the 20th, you can still elect into 40% if you want to 3. Binding Contracts Binding Contract is how we determine what is 'placed in service' for anything hanging around the Jan 19th cutoff What is a binding contract (for this specifically in tax)? Contract is enforceable under state law Does not limit damages to a specified amount (basically, there is no cap on damages There is a 5% safe harbor rule where if your liquidated damages are greater than 5% of purchase price, then it's considered binding (I think this allows a lot of smaller real estate deals to not be considered binding) 4. Component Election for Self Construction 'Componetize' (my personal term) will be BIG for 2025 developers and cost seg folk Essentially, if you are 'stuck' with a pre Jan 20th cutoff date (essentially you've sunk greater than 10% of total cost of the property), you might have a few ways out Say you started development in November 2024, and then the rest of your build carries into 2025. And you've sunk in 12% of your overall costs. This now means that you can look into making a 'component' election for items that you place in service or complete on your property that are eligible for 100% bonus. Complete the parking lots in February 2025? likely eligible for 100% bonus Complete the cabinets of your apartments in March 2025? likely eligible for 100% bonus Without this election, neither of those items would give you 100% bonus. --------- The are the 'hot button' items from the notice, and the IRS says they are going to continue releasing more! This focused a lot on real estate, but this also applies to those in manufacturing too!

Also, if yo plan on disposing of the assets in a few years then you may elect to straight line because of depreciation recapture Remember, all of the depreciation you claim on an asset must be recaptured at ordinary rates once you sell them

This is something I generally will recommend if I have a business that is scaling quickly and will have higher future profit Saving some of those deductions for future years may be more appropriate Therefore we would elect to straight line or take 40% instead of 100%

The IRS released Bonus Depreciation guidance as a good reminder going into tax season If you are a business owner or real estate investor…. Here are a few things to remember going into tax season:

@CornerstoneCPA_ @WannlundKevin I love this one. Get this a few times every year lol

@WannlundKevin @doutaxsolutions Can't we just estimate? 🤣

Not sure who needs to hear this but… You must file your business returns first Then you can file your personal returns

@doutaxsolutions Okay, but what if I want to file my personal first?!

So, make sure you are aware of the different returns you need to file and their respective due dates: 1065/1120-S due 3/15 1040/1120 due 4/15 Extensions give you an additional 6 months to file, but NOT TO PAY!

This is a mistake I see nearly every year Mistakes like this can not only create an administrative nightmare But they can also cost you thousands in fees and potentially penalties and interest on any underpayment of tax