Has anyone addressed whether the grandson is involved in the business operations? If he's not materially participating, you might have passive activity loss limitations to consider. And remember that gifts of partnership interests to family members often trigger family partnership rules under Section 704(e).

This is a complex situation that requires careful documentation. Since you dissolved the original partnership and formed a new one, you'll want to make sure you have clear records showing this wasn't done to avoid gift tax obligations. The IRS will look at the substance over form. A few additional considerations: First, get a qualified appraisal for the 10% interest - family partnership transfers are heavily scrutinized and you'll want professional support for any valuation discounts. Second, consider whether the grandson meets the requirements for a bona fide partner under Section 704(e) if he's not actively involved in operations. Third, document the legitimate business reasons for the partnership restructuring beyond just the gift transfer. The gift tax return (Form 709) is definitely required regardless of the partnership restructuring. The value reported should reflect the fair market value of the 10% interest at the time of transfer, with appropriate discounts if supportable. Consider consulting with a tax professional who specializes in family partnerships to ensure all aspects are handled correctly.

I'm also an international student and cryptos are taxed weirdly in US. 2 important things to understand - your TAX RESIDENCY status is completely different from your IMMIGRATION status. You could be nonresident for immigration (F1 student) but still be resident for tax purposes if you stay in US long enough (substantial presence test). This affects which form you fill - 1040 vs 1040NR. Also even if youre nonresident, ANY crypto you sell while physically present in US is US-sourced income taxable here. Doesnt matter if your exchange thinks your foreign or not, you still gotta report it!

As someone who went through a very similar situation last year, I completely understand your confusion! The key thing to remember is that the forms you receive from different platforms don't determine your actual tax filing requirements - your immigration and tax residency status does. Since you're an international grad student, you'll most likely need to file Form 1040NR (not 1040) regardless of what Coinbase provided you. The reason TD Ameritrade sent you 1042S is because they correctly identified you as a non-resident alien, while Coinbase may not have your status properly documented in their system. Here's what I'd recommend: First, determine your tax residency status using the substantial presence test (but remember F-1 students have an exemption for the first 5 calendar years). Then file 1040NR and report all your crypto transactions using Form 8949, just like you would attach it to a regular 1040. The most important thing is accurate reporting on your actual tax return - don't worry too much about the inconsistency in the forms you received from different platforms. What matters is that you report all your US-source income correctly as a non-resident alien.

One other thing to consider - depending on your state, you might be able to get some state tax relief even if you can't lower your federal bracket. Some states have more generous deductions or lower rates for certain types of income. What state are you in?

I'm dealing with a very similar situation after receiving a large severance earlier this year. One strategy that worked well for me was timing my year-end bonus deferral at my new job - if your employer offers this option, you might be able to defer some of your December income to next year. Also, don't forget about the potential for increasing your state tax withholding if you're in a state with income tax. While it won't change your federal bracket, making sure you're not hit with additional state penalties can help your overall tax situation. Have you looked into whether you can contribute to a SEP-IRA if you did any freelance or consulting work during your unemployment period? Even small amounts of self-employment income can open up significantly higher contribution limits than traditional IRAs. The key is to act quickly since we're getting close to year-end. Many of these strategies need to be implemented before December 31st to count for this tax year.

Just wanna point out that an S corp with $1M profit should be maxing out retirement contributions too! You can put up to $68,000 in a Solo 401k for 2025 (that's $23,000 employee contribution plus 25% of your salary as employer contribution up to the max). This reduces your taxable income immediately. Also look into setting up a defined benefit plan if you're planning to have similar profits for several years. Our S corp was able to legally contribute over $200k annually to retirement this way, creating a massive tax deduction.

One thing I haven't seen mentioned yet is the potential for Section 199A deduction (QBI deduction) which can be huge for S corp owners. With $700K in pass-through income, you could potentially deduct up to 20% of that ($140K) if your business qualifies and you're under the income thresholds. However, there are some complexities with S corps and QBI - the deduction is generally based on your K-1 income minus your W-2 wages from the S corp. So if you take a $150K salary, your QBI would be calculated on $550K, potentially giving you up to $110K in additional deductions. The rules get tricky around the income limits and whether your business is a "specified service trade or business" (SSTB), but with proper planning this could save you tens of thousands. Your accountant should definitely be running these numbers for you, especially since you're right at the income levels where the phaseouts start kicking in.

Has anybody used the supplemental rate calculator on the IRS website? I tried using it for my bonus but I think I'm doing something wrong because it says my withholding should only be around 35% total but my company took out almost 50%.

This is completely normal and you're not alone! The 52% withholding you're seeing is exactly what I experienced with my last bonus. The key thing to remember is that this is just withholding - it's not your actual tax rate on the bonus. Your employer is required to withhold at the supplemental wage rate, which is 22% for federal taxes, plus your state rate, plus payroll taxes (Social Security and Medicare). In high-tax states, this can easily add up to 50%+ in total withholding. The good news is that when you file your taxes, your bonus gets added to your regular income and taxed at your marginal rate. Since you make $95k, your effective tax rate on the bonus will likely be much lower than 52%. You'll probably get a decent refund when you file, especially if your regular paycheck withholding is also set up correctly. I'd recommend keeping track of your total withholding throughout the year so you can adjust your W-4 if needed to avoid a massive refund (which is basically giving the government an interest-free loan). But for now, just know that most of that extra withholding will come back to you!