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Any good resources to learn about partnership tax? I've been using Becker but their partnership stuff isn't very thorough. Have an interview next month and need to study up.
I found the Partnership Taxation textbook by Willis & Hoffman super helpful - way better than the CPA review courses for this topic. Also, check out the IRS's own publication on partnerships (Pub 541). It's actually surprisingly readable compared to other IRS publications.
Thanks for the recommendations! I'll check out that textbook. Do you think that's better than the Partnership Tax section in the CCH Master Tax Guide? That's what someone else recommended to me.
As someone who struggled with partnership tax concepts during my own CPA studies, I'd recommend starting with the fundamentals and building up. Here's what helped me: First, master the basic flow: Partnership income/losses flow through to partners based on their ownership percentages, but partners are taxed on their allocated share whether or not they receive distributions. This is key to understanding everything else. For guaranteed payments vs distributions, think of it this way: Guaranteed payments are like paying an employee (deductible expense, subject to SE tax), while distributions are like paying dividends to shareholders (not deductible, generally no SE tax). The Section 754 election is all about fairness when someone buys into an existing partnership. Without it, new partners can get stuck paying tax on appreciation that happened before they joined. Practice with real numbers - work through examples where you calculate the tax impact on both the partnership and individual partners. This will make the concepts stick much better than just reading about them. Good luck with your interview! The fact that you're preparing this thoroughly shows you're taking it seriously, which will definitely come across to the interviewers.
This is such a great breakdown! I'm also studying for interviews and the flow-through concept was confusing me until I read your explanation. One thing I'm still unclear on - when you say partners are taxed on their allocated share whether or not they receive distributions, does that mean they could owe taxes even if they didn't actually receive any cash from the partnership? That seems like it could create cash flow problems for partners.
Don't forget about property tax implications too! Some states have homestead exemptions that only apply to your primary residence. If your husband establishes residency in the new state before you sell your current home, you might lose eligibility for the homestead exemption which could significantly increase your property taxes for those remaining months. We learned this the hard way when my spouse moved ahead of me - our property tax bill suddenly increased by $2,200 because we lost our exemption. Might be worth checking with your county tax assessor about the rules for your specific location.
This is such a timely question! I went through almost the identical situation when my spouse relocated for work in 2023. Here's what I learned from our experience and CPA: The key distinction is between "statutory residency" (based on days/physical presence) and "domiciliary residency" (based on intent and permanent home). Your husband may become a statutory resident of the new state due to the 183-day rule and having an apartment there, but your domicile can remain in your current state until you actually make the permanent move in May. A few critical points: 1. Document EVERYTHING - keep records of when utilities are disconnected/connected, school enrollment changes, the home sale date, and moving expenses 2. Be consistent with your story - don't file as residents of the new state while still claiming homestead exemptions in your current state 3. Consider the timing of your home sale carefully - this is often considered the clearest indicator of when domicile actually changed We ended up filing part-year resident returns in both states with May as our official domicile change date, and neither state questioned it because our documentation was consistent. The small overlap period where we paid taxes to both states was offset by credits for taxes paid to other states. Your accountant's advice sounds reasonable, but make sure they're familiar with both states' specific rules since they can vary significantly!
This is incredibly helpful! I'm curious about the timing of the home sale - did you have any flexibility in when you closed? We're hoping to sell in May but the market might dictate otherwise. If we end up closing in June or July instead, would that push back our official domicile change date even if we physically moved in May with all our belongings? Also, when you mention "credits for taxes paid to other states" - do both states typically offer these credits, or is it usually just one direction? I want to make sure we're not missing out on any credits we're entitled to during that overlap period.
Don't forget you can deduct other golf-related expenses too if they're for content creation! I deduct portion of: - Camera equipment - Editing software - Golf attire worn specifically in videos - Props/training aids featured in videos - Travel to courses for filming (mileage) The key is keeping everything separated and documented!
Be careful with clothing deductions though. The IRS is super strict about those. If the clothes can be worn outside of "work" (like regular golf polos), they're usually not deductible. Special branded items might be different.
The profit motive question is crucial here. Even without current monetization, you can still potentially deduct expenses if you can demonstrate legitimate business intent. The key factors the IRS considers are: 1. **Business-like operation** - Keep detailed records, have a business plan for your content 2. **Time and effort** - Document the substantial time you spend creating content 3. **Expertise** - Your golf knowledge and content creation skills matter 4. **Expectation of profit** - Those brand inquiries are gold for showing intent I'd suggest opening a separate business bank account and credit card for all content-related expenses. This creates a clear paper trail. Also consider getting an EIN and treating this as a legitimate business from day one. For the golf expenses specifically, I'd only deduct rounds where you can prove the primary purpose was content creation. Maybe create a simple spreadsheet tracking: date, course, content planned, actual content posted, and business purpose. This documentation will be your lifeline if questioned. One more tip: Consider the "hobby loss rule" - if you don't show profit in 3 of 5 consecutive years, the IRS may reclassify your activity as a hobby, which severely limits deductions. Start planning for profitability now, even if it's small amounts.
This is really comprehensive advice! The separate business bank account tip is especially smart - I hadn't thought about that level of separation. Quick question though: when you mention the "hobby loss rule," does that mean I should actually try to make some profit this year even if it's just a few dollars from those brand partnerships? Or is showing clear business intent and documentation enough to satisfy the IRS initially?
pro tip: if id.me fails try early morning or late night. servers less busy
This! Got mine at 5am no problm
If you're still having trouble with ID.me verification, try calling the IRS transcript line at 800-908-9946 instead. Yes it takes 5-10 business days by mail but at least you'll have a definite timeline. I was in a similar crunch for my mortgage and ended up going this route when the online kept failing. Make sure you have your SSN, DOB, and prior year AGI ready when you call. They can also sometimes expedite if you explain it's for a mortgage closing.
Liam O'Connor
Quick tip about the VIN issue - I'm a car salesperson and see this problem ALL THE TIME with hybrid tax credits. There's often a disconnect between how the manufacturer reports VINs to the IRS and how dealers record them. Sometimes it's as simple as a space or dash in the wrong place. Get your Manufacturer's Statement of Origin (MSO) from the dealer - this is the birth certificate of your car and has the VIN exactly as the manufacturer recorded it. Compare this to what you submitted. I've seen cases where someone put a letter O instead of a zero or vice versa. Also, check if your specific hybrid model has the required battery capacity for the credit you're claiming. The requirements changed in 2023 and some vehicles that qualified before no longer do.
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Amara Adeyemi
ā¢This is super helpful. My Kia dealer never mentioned an MSO document when I bought my hybrid. Is this something they're required to provide? Would it be listed on any of the paperwork they typically give you when purchasing?
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Anna Xian
ā¢@Amara Adeyemi The MSO isn t'always given to customers at purchase - many dealers keep it for their records. You re'absolutely entitled to a copy though! Contact your Kia dealer s'finance department and request a copy of the Manufacturer s'Statement of Origin for your vehicle. They should be able to provide it within a few days. If they give you any pushback, mention that you need it for tax documentation purposes. The MSO will show the VIN exactly as Kia recorded it in their system, which should match what they reported to the IRS for hybrid tax credit eligibility. This could be the key to resolving your VIN mismatch issue with the IRS.
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Oliver Schmidt
Just wanted to add one more resource that helped me with my hybrid credit appeal - the IRS has Publication 535 which specifically covers business deductions, but more importantly for your situation, they have a lesser-known document called "Appeals Mediation Guidelines" that you can request when filing Form 12203. When I was dealing with my denied electric vehicle credit (similar situation), I discovered that you can specifically request "fast-track mediation" on your Form 12203 if the disputed amount is under $25,000. This process is designed to resolve cases within 40-60 days instead of the typical 6+ months for regular appeals. The key thing I learned is to be very specific about WHY you believe the IRS determination was incorrect. Don't just say "I qualify for the credit" - explain exactly what documentation proves your vehicle qualifies, when you purchased it, and why their VIN verification system may have failed to match your car properly. Also, since you mentioned the dealership couldn't help initially, try contacting your car manufacturer's customer service directly. They often have a tax credit verification department that can provide official documentation showing your specific VIN qualifies for the credit during your purchase period.
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