Don't forget about state tax implications too! I learned this the hard way. We used the bonus method for a new partner and while the federal tax treatment was as expected, we got hit with some unexpected state tax issues. Some states treat the admission of a new partner differently than the feds do. We ended up having to file in three additional states because our new partner had nexus there. It was a mess! Make sure you consider both federal AND state tax consequences of however you structure this.

This is such a helpful thread! I'm dealing with something similar right now where we're bringing in a new partner for $500k into our consulting partnership. Reading through all these responses, I'm realizing I need to think more carefully about the existing partners' tax implications. One thing I'm still not clear on - if we go with the goodwill method to avoid immediate tax hits to existing partners, how do we actually value that goodwill? Is it just the premium amount ($750k minus proportionate share of assets) or is there a more complex calculation involved? Also, our partnership agreement has a forced buyout provision if someone leaves - does that affect which method we should choose? I'm wondering if creating goodwill on the books might complicate future partner exits.

The WMAR tool is notoriously unreliable for 2023 amended returns. Many taxpayers (myself included) received their refunds while the tool still showed "received" status. If you filed Form 1040-X electronically on June 18, 2023, you should be approaching completion based on current processing timelines. Have you checked if your account transcript shows any TC 971/977 codes? Those indicate amendment processing activity even when WMAR doesn't update.

I'm dealing with a very similar timeline - filed my amended return in late June 2023 as well. From what I've gathered reading through everyone's experiences here, it seems like 7-8 months is becoming the new normal for amended returns, which is frustrating when you're counting on that money. The inconsistency with the WMAR tool is really concerning - it sounds like many people are getting their refunds without any status updates online. I've been checking weekly too and mine still just says "received." One thing I'm wondering - for those who got their refunds after 7+ months, did you receive any notice beforehand or did the check just show up? I'm trying to figure out if I should expect any kind of heads up or if it'll just appear one day. The uncertainty is the worst part of this whole process. Thanks for starting this thread - it's helpful to know others are in the same boat, even though the wait is incredibly frustrating when you need the money for legitimate expenses like moving costs.

Curious - did u receive any tax forms from the new 401k provider showing the incoming rollover? When I did mine, I got 1099-Rs from my old plans but nothing from the new one that received the $$.

I went through this exact same situation last year and was totally confused by the distribution codes too! What really helped me was understanding that the code on the 1099-R doesn't always perfectly match what actually happened - it's just the plan administrator's best guess at categorizing the transaction. For your Roth rollover, even if you see code J (early distribution, no known exception), it doesn't mean you'll owe penalties if you did a proper direct rollover. The key is how you report it on your tax return. When you file, you'll need to indicate that this was rolled over to another qualified plan, which will make it non-taxable regardless of the distribution code. I'd recommend keeping all your rollover documentation (confirmation letters from both plans, transfer forms, etc.) just in case. The IRS cares more about the actual substance of the transaction than the specific code your old plan used. As long as you can show it was a legitimate rollover, you should be fine!

I'm in a similar situation but haven't mailed my amended return yet. Did you include any kind of note or explanation with your amended return about the Form 8606 error?

Based on everyone's advice here, I feel much more confident about moving forward. I did include a detailed explanation with my amended 1040X about the Form 8606 error - basically explained that I incorrectly reported my traditional IRA conversion and needed to correct the basis calculation. For anyone else dealing with Form 8606 amendments, make sure you're crystal clear about what changed because it affects your basis going forward. Since I'm planning to file my 2023 return soon, I'll use the corrected basis amounts from my amendment even though it hasn't been processed yet. Thanks everyone for the reassurance that I don't need to wait for the amendment to clear!

About the commercial insurance question - definitely get commercial coverage. I bought a vehicle through my LLC and initially kept my personal insurance. Had a minor accident and my claim was DENIED because the vehicle was registered to a business entity but only had personal coverage. Had to pay out of pocket for repairs AND still had to switch to commercial insurance after. The premium difference wasn't even that big in my case (about $300/year more), but the coverage is much better for business use.

One thing to keep in mind is the timing of when you can claim the commercial clean vehicle credit. Unlike the personal EV credit which can be taken at the point of sale, the commercial credit (IRC 45W) is only available when you file your business tax return. So if you purchase the PHEV in 2024, you won't be able to claim the $7,500 credit until you file your 2024 business taxes in 2025. This is important for cash flow planning - you'll need to finance the full purchase price upfront and wait for the credit to reduce your tax liability later. Also, since you mentioned this is a single-member LLC with pass-through taxation, make sure you have enough tax liability to fully utilize the credit. The commercial clean vehicle credit is generally non-refundable, so if your total tax liability is less than $7,500, you might not be able to use the full credit (though there may be carryforward provisions - worth checking with your tax preparer).