This is such a comprehensive discussion! One aspect I haven't seen addressed yet is the state tax implications of your allocation decisions. Different states treat business asset allocations differently, and some have specific requirements that might conflict with your federal tax optimization strategy. For instance, some states don't conform to federal bonus depreciation rules, so allocating more to equipment for federal purposes might not provide the same benefits at the state level. Additionally, if either you or the seller are in different states, there could be varying treatment of goodwill and intangible assets. I'd recommend checking with a tax professional familiar with your specific state's requirements before finalizing your allocation strategy. The last thing you want is to optimize for federal taxes only to create problems with state compliance. This is especially important with a transaction of your size ($4.1M total) where the tax implications can be substantial. Also, consider whether any of the business assets might qualify for state-specific incentives or credits that could influence your allocation decisions. Some states offer additional depreciation benefits for certain types of business equipment or technology investments.

For cross-state transactions like yours (Texas/California), I'd definitely recommend getting advice from professionals in both states or finding a firm that specializes in multi-state business transactions. The complexity increases significantly when you're dealing with different state rules. Some key conflicts to watch for between federal and state treatment: **California-specific issues:** - California has its own depreciation rules that don't always follow federal bonus depreciation - They have unique treatment of goodwill and intangible assets that might affect the seller's California tax liability - California's conformity with federal Section 179 expensing has historically been limited **Texas considerations:** - While no state income tax, Texas franchise tax is based on margin calculation that could be affected by how you depreciate acquired assets - Property tax assessments on business personal property vs. real estate can vary significantly - Some Texas economic development incentives are tied to specific types of business investment **Multi-state allocation strategies:** - The seller's California tax situation (especially if they have depreciation recapture) might influence their negotiating position on allocations - Your Texas franchise tax calculation might benefit from certain allocation approaches even without state income tax I'd suggest finding a tax advisor with multi-state M&A experience rather than trying to coordinate between separate state advisors. The interplay between state rules can create opportunities or pitfalls that someone handling just one state's issues might miss. Given your transaction size, the additional cost of specialized multi-state advice will likely pay for itself in tax savings and compliance certainty.

I've been using Varo for tax refunds for three years now, and compared to traditional banks, the timing is much more favorable. With my previous bank (Wells Fargo), even after the IRS released the funds, I would often wait 1-2 additional business days before seeing the money. With Varo, I've consistently received my H&R Block processed refunds between 9am-12pm Eastern on the same day the IRS releases the funds. This year was particularly efficient - my return was accepted February 12th, and my refund hit my Varo account exactly 15 days later at 10:17am. The processing timeline was nearly identical to last year's experience.

Thanks for sharing all these experiences everyone! As someone who's been through this waiting game multiple times, I can confirm that Varo is definitely faster than traditional banks for tax refunds. Mine typically arrives between 10am-1pm EST when using H&R Block. One tip that helped reduce my anxiety - I set up account notifications so I get a text immediately when any deposit hits, then I just put my phone away and focus on work instead of constantly refreshing the app. The money always comes through, usually within that morning window everyone's mentioned. Good luck to anyone still waiting! 🤞

Does anyone know how this works if your spouse is also on your marketplace plan? I'm self-employed but my wife works part-time and doesn't get insurance through her job. We get a premium tax credit but I pay for the family plan out-of-pocket portion.

This is such a relief to read everyone's responses! I've been in the exact same boat as the original poster - 1099 contractor paying out-of-pocket premiums after marketplace tax credits and totally confused about what I could deduct. What really helped me was keeping detailed records of my actual premium payments vs. what the tax credit covered. I use a simple spreadsheet to track my monthly out-of-pocket costs ($185/month in my case) so I have clear documentation for tax time. One thing I'd add for anyone else dealing with this - if you're using tax software, make sure it's asking the right questions about marketplace insurance and premium tax credits. I almost made the mistake of entering my full premium amount instead of just the portion I actually paid. The software should automatically coordinate between the self-employed health insurance deduction and Form 8962, but it's worth double-checking that the numbers make sense. Thanks everyone for sharing your experiences - it's so much clearer now!

Your instincts are absolutely right - this is a major red flag. I work in cybersecurity and can tell you that sending tax documents via unencrypted email is like leaving your front door wide open with a sign saying "valuable stuff inside." The dismissive "this is how we always do things" response is particularly concerning because it shows they're not keeping up with current security standards or threats. Email servers can be compromised, emails can be intercepted during transmission, and your sensitive data could end up in the wrong hands without you ever knowing it happened. Here's what I'd suggest: Give them one last chance by explaining that you need secure document transmission as a condition of working together. If they still refuse, walk away. There are plenty of competent accountants who understand that data security isn't optional in 2025. In the meantime, if you do decide to send anything, at minimum use password-protected, encrypted zip files and send the password through a different channel (text, phone call, carrier pigeon - anything but the same email). But honestly, their attitude about security would make me question what other corners they might be cutting in their professional practices.

I completely understand your frustration and you're absolutely right to be concerned. As someone who works in financial services, I can tell you that data security isn't just a nice-to-have anymore - it's a legal and ethical requirement when handling sensitive personal information. What really stands out to me is that your accountant dismissed your legitimate security concerns rather than addressing them professionally. Any reputable tax professional in 2025 should have secure systems in place and be willing to explain their data protection measures to clients. The IRS has been very clear about this - they regularly issue warnings about tax-related identity theft and specifically recommend against sending sensitive documents via unencrypted email. In fact, the Federal Trade Commission reported that tax-related identity theft affected over 51,000 people last year alone, and unsecured email transmission is one of the common vulnerability points. My recommendation would be to have one final conversation with them, but this time make it clear that secure document transmission is a requirement, not a request. Reference the IRS guidelines that other commenters have mentioned, and ask them to either implement a secure solution or provide it in writing that they're declining to use industry-standard security practices. If they still won't budge, please don't hesitate to find someone else. Your financial security is too important to compromise for convenience.

As someone who went through a similar situation, I'd strongly recommend being very cautious here. The IRS has specific criteria for medical expense deductions, and gym memberships rarely qualify even with a doctor's recommendation. The key issue is that they view fitness facilities as having a "personal pleasure" component that disqualifies them as purely medical. For a gym membership to potentially qualify, you'd need: 1) A specific diagnosed medical condition (not just general health improvement), 2) A doctor's prescription (not recommendation) stating the facility is necessary for treatment, 3) Documentation that the treatment can't be performed elsewhere, and 4) Evidence you're using it solely for medical treatment. Since you're self-employed, remember you'd still need to itemize deductions and exceed the 7.5% AGI threshold for medical expenses. Given the audit risk others have mentioned and the strict IRS interpretation, you might want to focus on other legitimate medical deductions instead. Keep your doctor's documentation though - it could be useful for other related medical expenses.

Based on my experience as a tax professional, I have to echo what others have said - gym memberships are extremely difficult to deduct, even with a doctor's recommendation. The IRS has consistently ruled that health club memberships have too much "personal benefit" to qualify as pure medical expenses. However, since you mentioned you're self-employed, there might be a different angle worth exploring. If your back problems are directly related to your work (like if you have a desk job that caused the issues), you might be able to argue for a business expense deduction instead of a medical one. This would require documenting that the gym membership is primarily to address work-related health issues that affect your ability to perform your job. That said, this is still a risky deduction that could trigger scrutiny. The safest approach would be to focus on clearly qualifying medical expenses - your doctor visits, any physical therapy, prescribed medications, etc. These definitely count toward your medical expense total and are much less likely to raise red flags. Keep that doctor's documentation though - it might be useful if you end up needing specific therapeutic treatments that can only be done at certain facilities.