This is a really nuanced decision that depends heavily on your specific financial situation. I've been through a similar analysis with my manufacturing business, and one thing I'd add is to consider the cash flow implications beyond just the tax benefits. When you personally purchase the equipment, you're tying up your personal capital (or taking on personal debt) that could be used elsewhere. The S-Corp lease payments become a fixed monthly expense, which can actually help with budgeting and cash flow management for the business. Also worth noting - if your S-Corp ever needs additional financing, having the equipment owned personally can sometimes complicate loan applications since the collateral isn't owned by the borrowing entity. Some lenders prefer when the business owns its core operational assets. Before making this decision, I'd strongly recommend running actual numbers on both scenarios using your projected income, tax brackets, and the specific equipment costs. The "best" choice really varies based on your personal vs. business tax situations, how long you plan to keep the equipment, and your overall financial goals.

I've been following this discussion and wanted to share my experience from the lender's perspective, since I work in commercial lending. James raises an excellent point about financing complications that people often overlook. When evaluating loan applications, we generally prefer when businesses own their core operational assets because it strengthens the company's balance sheet and provides clearer collateral. Personal ownership of business-critical equipment can create several issues: 1. The personal guarantor's debt-to-income ratio gets impacted by the equipment financing, which can limit their borrowing capacity 2. Cross-collateralization becomes more complex when assets are split between personal and business ownership 3. If the business fails, there's no automatic way for us to claim equipment that's personally owned (even though it's used in the business) That said, it's not a deal-breaker - just adds complexity. We've worked with plenty of clients who have this arrangement, but they often need higher down payments or additional collateral to offset the increased risk. My advice would be to factor in your future capital needs when making this decision. If you're planning to expand or may need equipment financing down the road, keeping everything under the S-Corp might be the cleaner approach, even if it's not optimal from a pure tax perspective.

One thing to keep in mind is that for 2017 returns, you're actually past the statute of limitations for getting a refund (typically 3 years from the original due date), but you should still file to avoid ongoing penalties if you owed taxes. The IRS wage and income transcript is definitely your best bet for getting the W2 information you need. Also, since you mentioned this was from a move in 2018, make sure to update your address with the IRS if you haven't already - you can do this online or by filing Form 8822. This will ensure any correspondence about your back taxes gets to you at your current address. Good luck getting caught up!

Another option that worked for me when I was missing old W2s - check if you have any old bank statements or pay stubs from 2017. Even if you don't have the actual W2s, having pay stubs can help you verify the information on the IRS wage transcript when you get it. I found some old pay stubs in a random folder that helped me confirm the numbers matched up correctly. Also, if you used any tax software like TurboTax or H&R Block in previous years (even if you didn't finish filing), they sometimes keep your partially completed returns in their systems. Worth logging into any old accounts you might have had to see if there's any 2017 data saved there. It's a long shot but could save you some time! One more thing - when you do get your wage transcript from the IRS, double-check that it includes ALL your employers from 2017. Sometimes if a company didn't report properly, their info might not show up on the transcript, and you'd need to track that down separately.

Don't forget to look into the step-up in basis rules if these stocks were actually inherited rather than gifted to you from your grandparents! The language in your post makes it sound like maybe your grandparents passed away and you inherited these stocks? If they were inherited (not gifted while your grandparents were alive), you likely received a "step-up" in basis to the market value on the date of their death. This would be HUGELY beneficial for tax purposes because any gains that occurred during your grandparents' lifetime would never be taxed.

Just wanted to add another perspective on the transfer process itself - you might want to consider whether a direct stock transfer is actually the best approach here. Instead of transferring the actual stocks to your partner's account, you could potentially sell the stocks in your account, pay any capital gains tax (which might be minimal if your cost basis is relatively high), and then gift the cash proceeds. This would give your partner a "clean slate" to invest in whatever they think is best, rather than inheriting your grandparents' old stock picks and cost basis. The downside is you'd pay capital gains tax now instead of deferring it, but the upside is your partner gets full flexibility and a fresh cost basis at current market prices. Given that you mentioned they're really good at investing, they might prefer to start with cash and build their own portfolio rather than managing positions they didn't choose. Just something to consider - the "right" approach depends on your specific tax situation and investment goals!

One thing nobody mentioned - if she's generating income from the parking lot, she needs to report that on Schedule E as rental income. But if she's actively managing it (like a parking business with attendants, etc.), it might need to go on Schedule C and be subject to self-employment tax. Big difference tax-wise!

Great advice everyone! Just to add one more consideration - make sure your sister keeps detailed records of any expenses related to the parking lot (maintenance, repairs, insurance, etc.) as these can be deducted against the rental income. Also, if she decides to make any improvements like adding lighting, security cameras, or resurfacing, those improvements would also be depreciable assets separate from the original paving. Since she's new to this, I'd really recommend consulting with a tax professional who specializes in real estate to make sure she's maximizing all available deductions and handling the depreciation correctly. The rules can get complex, especially with inherited property, and getting it right from the start will save headaches later during audits or when she eventually sells.

I'm dealing with a 470 code right now too and this thread has been incredibly helpful! Been waiting about 4 weeks and was starting to panic that I'd never see my refund. The fact that you have a court ruling in your favor is amazing - that's solid legal proof the IRS can't ignore. From everything I've read here, it sounds like they'll probably offset some of your refund against the outstanding balance, but with your hardship status and that court documentation, you should definitely see at least a portion back. The waiting is absolutely brutal but everyone's experiences here show that these codes do eventually clear, usually within 6-12 weeks. Keep copies of everything and don't be afraid to call for updates every couple weeks. Your case sounds really strong with all that documentation backing you up! Hang in there! 🤞

I'm in a very similar situation with a 470 code that's been pending for about 6 weeks now! Reading through everyone's experiences here is giving me so much hope. The court ruling you have is absolutely huge - that's solid legal documentation that proves the IRS made an error with the original EIC adjustment. From what I've learned through my own research and calling the IRS multiple times, they typically do apply refunds to outstanding balances, but with hardship status and especially with court documentation like yours, you should definitely see at least a partial refund. Most people I've talked to with 470 codes see resolution within 8-12 weeks, though the waiting feels like forever! Make sure you keep multiple copies of that court ruling and consider faxing it directly to the processing center if you haven't already - sometimes things get lost in their system. Keep calling every 2-3 weeks for updates and document everything. Your case looks really strong with all that legal backing! Hang in there - this will work out in your favor! 💪