Don't overlook state taxes in your decision! I'm in California where S-corps pay an $800 minimum tax PLUS 1.5% tax on net income. This significantly reduced my S-corp advantage compared to federal-only calculations. Meanwhile, my friend in Texas with similar income saves much more with S-corp because no state income tax impacts the equation.

Based on your income range ($135-250k), I'd lean toward S-corp over the partnership route, but with some important caveats. The partnership strategy your advisor suggested is risky - a 70/30 split with your wife as "inactive" partner would likely face serious IRS scrutiny, especially at your income level. Here's why: the IRS requires partnership allocations to have "substantial economic effect," meaning profits must reasonably match actual contributions. Unless your wife is contributing significant capital, expertise, or documented work hours, that 70% allocation won't hold up in an audit. For S-corp, yes there are payroll complexities, but at your income level the math usually works out favorably. You'd need to pay yourself a reasonable salary (probably $80-120k based on typical 1099 contractor rates), with the remainder as distributions not subject to self-employment tax. My recommendation: run actual numbers for both scenarios including ALL costs - payroll administration, state taxes, compliance fees, etc. Many people underestimate these hidden S-corp costs. Also consider your long-term plans - S-corp structure becomes more valuable as income grows and if you plan to have employees eventually. Whatever you choose, document everything thoroughly from day one. The IRS is increasingly scrutinizing both family partnerships with unequal splits and S-corps with unreasonably low salaries.

This is like buying a concert ticket through StubHub versus directly from the venue - there's always that middle-man fee and delay! I did this last year with H&R Block and my refund came 2 days after the official DD date. My friend who used TurboTax with the same setup got hers 4 days after. Another who used a local preparer waited almost a week. Honestly, next year I'm just paying the prep fee upfront. The peace of mind knowing exactly when my money will arrive is worth it. Plus, when you do the math, you're essentially paying extra for what amounts to a very short-term loan. I was so relieved when I finally got my money though!

This is such a helpful thread! I'm in the exact same situation this year - took an advance and had the prep fees deducted from my refund. Reading everyone's experiences, it sounds like I should expect my money 2-5 days after the official DD date shows up on Where's My Refund. What I'm curious about is whether anyone has experience with what happens if there's an issue during that intermediate step. Like, what if the preparer's bank has a processing error or delay? Are we just stuck waiting with no recourse, or is there someone we can actually contact to get updates? Also, for those who mentioned tracking tools - has anyone found one that actually shows the money moving through each step in real-time? It would be so much less stressful to know "okay, IRS sent it, now it's at the preparer's bank, now it's headed to my account" rather than just guessing where it is in the pipeline. Thanks for all the insights everyone - this community is saving my sanity during tax season!

Have you considered selling the working piece for parts and scrapping the broken one? I had a similar situation with some CNC equipment. My tax guy said that if I sold it for significantly less than the depreciated value, I could actually claim a loss on the transaction. The key was documenting the fair market value properly and getting a professional appraisal to support the reduced value.

I went through something very similar with manufacturing equipment last year. One thing that really helped was getting a formal assessment from a certified equipment appraiser to document the actual condition and fair market value of both pieces. In my case, the appraiser determined that the "working" piece of my set had significantly diminished value because it couldn't function without its counterpart. This helped establish that both pieces had suffered a loss in value due to the failure of one component. The appraisal cost me about $400, but it saved me thousands in recapture taxes because I was able to demonstrate that the fair market value of the entire system had dropped below my remaining basis. This allowed me to treat it as a casualty loss rather than a sale with recapture. Make sure to get the appraisal done soon though - the IRS wants to see that the valuation reflects the condition at the time of the loss, not months later. Also keep all your repair estimates and documentation about why the equipment can't be economically repaired.

Have you tried checking your transcript on the IRS website instead of relying solely on SBTPG? Sometimes the transcript will show a direct deposit date that's more accurate than the SBTPG portal. You can access it at irs.gov/transcripts and look for code 846 which indicates the refund issue date. Another option is to call SBTPG directly at 800-901-6663 to confirm the account number they have on file matches yours exactly. Sometimes the refund gets rejected due to a mismatch and bounces back to them, starting the process over.

This is such a relatable situation! I went through the exact same anxiety last year waiting for my SBTPG funded status to actually hit my account. Based on what I've learned from experience and this community, here's what I'd suggest: 1. **Timeline expectation**: 24-72 hours is normal, but weekends and holidays don't count as business days 2. **Check your bank**: If it's been 3+ business days, call your bank to see if there's a pending deposit or security hold 3. **Verify account info**: Double-check that your routing and account numbers match exactly what SBTPG has on file 4. **IRS transcript**: Check your IRS transcript online for code 846 to see the actual refund issue date For your medical expenses, I completely understand the urgency. If you're past the 72-hour mark, definitely contact both SBTPG customer service and your bank. Sometimes banks hold larger deposits for verification, especially if it's your first tax refund to that account. The "blood through arteries" analogy is perfect - there really are multiple checkpoints these funds have to pass through! Hang in there, it should resolve soon.

One thing nobody's mentioned yet - this might also depend on your accounting method. We're a solar company that uses accrual basis accounting, and our CPA has us handle these fees differently than our cash-basis competitors do. With accrual accounting, you might be recognizing revenue and expenses in different periods than when cash actually changes hands, which can affect how these origination fees are treated.

As someone who's been dealing with solar financing for several years, I can confirm that the accounting method discussion is actually quite relevant to how these transactions are structured. While the customer's ITC calculation is indeed based on what they paid, the way we as installers account for and present these costs can affect whether they're considered part of the qualified expenditure. For example, if we're using accrual accounting and recognize the origination fee as a cost of goods sold in the same period as the system sale, it's easier to justify including it in the total system price for ITC purposes. Cash basis companies might handle this differently, especially if there's a timing difference between when they pay the fee and when the customer's system is installed. The key is maintaining consistent documentation that shows these costs are part of delivering the solar system to the customer, not separate financing expenses. I'd recommend having your accountant review how you're presenting these fees in your contracts to ensure they align with your accounting treatment.