The hobby loss rule can be stressful, but you're actually in a stronger position than you might think. Having legitimate wholesale accounts with Southern Hobby and GTS Distribution, maintaining detailed QuickBooks records, and keeping all receipts shows you're operating like a real business - not a hobby. The 3-out-of-5 year profitability test is just one factor the IRS considers. They also look at whether you're making business-like changes to improve profitability, which it sounds like you are doing. The fact that you're actively evaluating whether to continue or dissolve shows business judgment. If you do decide to dissolve, you'll need to handle the inventory carefully. Any inventory you sell during wind-down is income, while inventory you keep for personal use would be treated as a distribution at fair market value. You can still deduct legitimate business expenses through the final dissolution. One suggestion: before dissolving, consider documenting any specific changes you've made or plan to make to improve profitability. This creates a paper trail showing business intent that could be valuable if the IRS ever questions your losses. The card market has been volatile, so external factors beyond your control might also support your case.

I've been through a similar situation with my consulting business that ran losses for the first few years. The hobby loss rule is definitely something to take seriously, but you're actually doing a lot of things right that work in your favor. The IRS uses a nine-factor test to determine business vs. hobby intent, and you're hitting several key factors: maintaining complete records, having legitimate wholesale supplier relationships, operating from a dedicated space, and most importantly - you're actively evaluating and making business decisions (like considering dissolution). One thing that really helped me was creating a written business plan that documented my strategy for achieving profitability. This doesn't have to be fancy - just outline what you've learned about which products have better margins, how you plan to reduce inventory costs, or any market trends you're adapting to. The trading card market volatility since 2021 actually works in your favor as an external factor affecting profitability. If you do dissolve, timing matters for tax purposes. You'll want to coordinate the final sale/distribution of inventory with your tax professional to optimize the treatment of remaining losses and any income from liquidation. But honestly, with your solid documentation and business practices, continuing might be worth considering if you can identify a clear path to better margins.

Has anyone tried applying for an advance from multiple tax prep companies? I got denied by H&R Block but wondering if I should try Jackson Hewitt or Liberty before just giving up on getting an advance this year.

Just want to point out that tax refund advances are basically payday loans with slightly better marketing. Even when you do get approved, there are usually fees hidden in the tax preparation costs. You're much better off just filing early and waiting the 2-3 weeks for the IRS to process your return. The advances made more sense years ago when refunds took 6-8 weeks, but now it's just not worth it.

Yes, OASDI is exactly the same as Social Security! OASDI stands for "Old-Age, Survivors, and Disability Insurance," which is the official name for what we commonly call Social Security. For 2025, the maximum annual OASDI contribution is $11,780 (6.2% of the $190,000 wage base limit). Based on your YTD amount of $9,342.18, you're getting close to hitting that cap - you have about $2,438 left to contribute. Once you reach that maximum, the OASDI deduction will stop appearing on your paychecks for the remainder of the year, which means you'll see a nice increase in your take-home pay (that extra 6.2%!). Most employers don't give advance notice - you'll just notice when your paycheck is suddenly larger. Given your current contribution level, you'll probably hit the cap within the next few months. It's actually a nice perk of higher earnings - those last paychecks of the year feel like bonuses when the OASDI withholding stops!

Yes, OASDI is exactly the same as Social Security! OASDI stands for "Old-Age, Survivors, and Disability Insurance," which is the official name for what we commonly call Social Security. For 2025, the maximum annual OASDI contribution is $11,780 (6.2% of the $190,000 wage base limit). Looking at your YTD amount of $9,342.18, you're getting close to hitting that cap - you have about $2,438 left before you reach the maximum. Once you hit that cap, the OASDI deduction will completely stop for the rest of the year, which means you'll see a nice 6.2% increase in your take-home pay for those remaining paychecks. It's like getting a temporary raise! Most employers don't notify you in advance - you'll just notice when your paycheck suddenly gets bigger. Based on your current contribution rate of $783.25 per paycheck, you'll probably hit the cap in about 3 more pay periods. So if you're paid biweekly, that's roughly 6 weeks away. Mark your calendar - those holiday season paychecks are going to look great!

One thing I've found helpful as another high-income earner is to look at the effective interest rate after tax savings, not just the dollar amount saved. If you're borrowing $1M at 6.2% and your effective rate after tax benefits is 5.1%, that's still a pretty high rate historically. Would you borrow money at 5.1% to invest elsewhere? That's essentially what you're doing when you choose a smaller down payment to "take advantage" of the mortgage interest deduction.

Great question! As someone who went through this exact analysis last year with similar income levels, I can share what I learned. Your math is directionally correct, but there are a few key refinements for high earners: 1. **Marginal vs. Effective Rate**: At $520K income, you're likely in the 35% bracket, but remember that not all your income is taxed at that rate. The mortgage interest deduction saves you taxes at your marginal rate on the amount above the standard deduction. 2. **Phase-out Considerations**: At your income level, you're getting close to where certain deductions start phasing out. The mortgage interest deduction itself doesn't phase out, but other itemized deductions might, which can complicate the calculation. 3. **SALT Cap Impact**: Don't forget that state and local taxes are capped at $10K. If you're in a high-tax state, this cap might already push you past the standard deduction before you even factor in mortgage interest. 4. **Declining Benefit**: The tax benefit decreases each year as you pay down principal and the interest portion shrinks. Your first-year calculation looks right, but year 10 will be much different. I'd recommend modeling this out over several years rather than just the first year to get a true picture of the financial impact on your down payment decision.

I went through a very similar situation last year with my C-Corp, and I can tell you that you definitely need to get this sorted out properly. Taking "owner's draws" from a C-Corporation without proper documentation is a major compliance issue. Here's what I learned the hard way: C-Corporations are separate tax entities, so any money you take out must be classified as either salary (subject to payroll taxes and requiring W-2s) or dividends (requiring corporate board resolutions and 1099-DIV forms). You can't just take informal draws like you might with an LLC. Your tax preparer should absolutely be addressing this on your 1040. If they're only showing your S-Corp K-1 income and ignoring the C-Corp distributions, that's a red flag. I'd recommend having a serious conversation with them about how those distributions should be reported, and if they can't give you clear answers, consider getting a second opinion. The double taxation aspect is also important to understand - your C-Corp should have paid corporate income tax on its profits, and then you'll pay personal income tax on any dividends you receive. This is very different from your S-Corp where income only gets taxed once at the personal level.

This is a really complex situation that highlights why having multiple entity types can create significant compliance challenges. Based on everything discussed here, it sounds like you have several urgent issues to address: 1. **Immediate action needed**: Your C-Corp distributions are likely being completely omitted from your personal tax return, which means you're potentially underreporting income. This could result in penalties, interest, and audit risks. 2. **Proper classification required**: Those "owner's draws" from your C-Corp need to be properly classified as either salary (requiring payroll tax compliance and W-2s) or formal dividend distributions (requiring corporate resolutions and 1099-DIV forms). You can't treat C-Corp distributions the same way you handle S-Corp pass-through income. 3. **Documentation gap**: It sounds like your C-Corp may not have the proper corporate formalities in place (board resolutions, dividend declarations, etc.) that the IRS expects to see for legitimate dividend distributions. Given the complexity and potential penalties involved, I'd strongly recommend getting a second opinion from a CPA who specializes in multi-entity business structures before finalizing your return. Your current preparer's omission of the C-Corp income is concerning and suggests they may not have sufficient experience with your specific situation. Don't rush to file until you're confident everything is properly documented and reported - the cost of getting expert help now is much less than dealing with IRS penalties and audit issues later.