schirallicpa

Honestly - the reason to change is "because her colleagues are set up as LLCs "or" electing S status." An attorney sent her to me before setting up anything. (Which is amazing!) She's been in business a while. I am sure she has all the usual insurances. Thank you DANRVAN for the reference to Fleischer.

Which is the preferred method? Or should we just tell her to stick to the LLC. New client. She's an investment advisor. Has operated as sole proprietor and pays se tax of 30K. She reports a lot of dividends and cap gains. Other income from her husband's pension is minimal. She absolutely should be set up as an LLC. Has it in her head that she should be an S-corp. I'm wondering if it makes more sense to go one way or the other from LLC to S-corp or just start a corp and elect S status. If anyone has a pro or con either way. Fees are not an issue.

I'm in NY. NYS likes to do more auditing than the IRS here. But I have successfully argued my way thru a handful of farm/ag audits. The first issue in NY is the ridiculous property taxes. Try to have a farm without property. Try to have profitable farm when you have to pay property taxes here. (yes - there are some credits available.) Second is interest. Farmers are always indebted. Interest is a fact of life eroding the profit. And third is depreciation. Most farmers are turning around equipment and taking advantage of bonus or Sec 179. After taking these things out of the picture, the hobby argument tightens up. Now we can talk about hours. And we can talk about why someone would do all the stuff as a hobby. And then I can start my rant about how the farmer can't seem to raise his price on milk as he needs. He can't recover the increasing costs of trucks or equipment or electric by raising the price of milk, or soy, or any other product Uncle Sam has his hands in. Any time the government subsidizes the price of the ag product, you will have a farm loss. So most of the time, the IRS or NYS ultimately have to back off.

Oh good lord......

My fault. I forgot to untick the box for estimates to be paid of my client's account bank account this year. The first one came out on April 15. And 3 more are set up. What can I do to prevent the next 3 from coming out?

You have to consider as well that a smaller truck cannot haul heavy trailers. I have a client that has a nice 350 that I know is occasionally used for personal stuff (hauling the boat.) But if you consider how much a loaded trailer weighs when you load a piece of equipment on it thats weighing 20,000 lbs, you need a pretty big engine to move that thing, and stop that thing. Then add a few hills or mud, then he needs a big truck. He needs to keep track of usage, but this kind of truck is basically a piece of equipment. I tell my farm and contractor clients to take pictures of the trucks hauling something heavy so when asked I can let the auditor from NYC know that this truck has a purpose.

Me too! Usually after trowling thru 20 spreadsheets that they have created.

She moved to Florida. She's probably handing out bad advice down there as we speak.

Did it extend the life of the home? I think I would lean towards expense. This wasn't something they set out to do to extend life of the home. Maybe their own lives will be extended, but not the integrity of the structure of the home.

New clients. Sold rental property in Florida for a nice profit in early January - before having their taxes prepared for 2023. So the lady that prepared their taxes last year told them they would not have to pay tax if they put their money in a money market - you know - from one investment to another. Now I'm the bad guy.

Every. Single. Return has had issues. And I don't do very many basic w2 clients, so I expect issues. But really a lot more issues this year. I think we should just set up a zoom call with everyone and complain for a good solid hour - we're the only ones that understand our misery.

Where in WNY are you. I'd love to get together sometime and complain about the roads. I'm in Wellsville.

Maybe this is a dumb questions, but I'm good at those. PA residents. Taxpayer and spouse are on the splits but still married at 12/31 , and he is in ND somewhere. Filing a joint return per her request so he doesn't have to file his own. I am sending DocuSign for him for 8879s and engagement letters to sign. The local PA return only shows spouse's income. (She's the only one that worked.) Does he really need to sign it?

They are on extension........

Wow - I never knew that!