I'm going through almost the exact same situation with Gig Worker Solutions/Anchor Financial! Filed my SETC amendment in January, got all the same promises about advances and transcript verification, and now they're giving me the runaround about "third parties" not funding anyone who filed before April 1st. What's really frustrating is that they kept moving the goalposts - first it was transcripts, then it was formatting issues with the transcripts, then it was review time, and now suddenly there are funding restrictions they never mentioned before. It feels like they're just stalling. I've already revoked my POA with the IRS and filed complaints with the BBB and CFPB. The CFPB complaint at least got them to respond, though it was mostly generic corporate language about "reviewing policies." One thing I discovered - when I called the IRS directly (took forever to get through), they confirmed that my amendment is progressing normally and there are no issues on their end. The agent even mentioned they've been getting a lot of calls about these advance companies lately, which makes me think this is a widespread problem. At this point I'm just waiting for the IRS to process everything directly. It's slower but at least I know I'll actually get my money without someone taking a 20% cut. Hang in there - sounds like we're all in the same boat with these companies!

I went through something very similar with Anchor Financial earlier this year. Filed my SETC amendment in March and got caught up in the same cycle of excuses - first they needed transcripts, then the transcripts were formatted wrong, then they needed review time, and finally the "third party funding restrictions" excuse. What really opened my eyes was when I started tracking all their promises in writing. I had emails saying I'd get my advance "within 2 business days" from April, then May, then June. When I compiled all of this and sent it to them asking for an explanation of the contradictions, they suddenly stopped responding to my calls altogether. The turning point for me was revoking the POA and working directly with the IRS. Yes, it takes longer, but at least you know exactly where you stand. When I finally got through to an IRS agent, they confirmed my amendment was processing normally and said these advance companies have been a major source of confusion for taxpayers this year. My advice: document everything, revoke that POA immediately, and file complaints with both CFPB and your state's attorney general office. The attorney general complaint actually got more traction for me than the BBB. Most importantly, check your IRS transcript weekly to make sure they haven't tried to redirect your refund to their accounts - I've heard of that happening even after POA revocation. You'll get your money eventually, just directly from the IRS without giving these companies their cut. Hang in there!

Not to complicate things more, but the Tax Cuts and Jobs Act added a limitation on excess business losses for non-corporate taxpayers (Section 461(l)). For 2023, this limits business losses to $289,000 for single filers ($578,000 for joint filers). Any excess gets carried forward. So if your business losses are huge, you might hit this limitation before you can offset all your capital gains. Just something to keep in mind if you're dealing with large numbers.

Great question about capital vs ordinary losses! I went through this exact situation when I started my consulting business. One key point that might help clarify things: ordinary business losses from Schedule C (sole prop) or pass-through entities like LLCs are much more flexible than capital losses. They can offset ANY type of income - W2 wages, capital gains, interest, dividends, etc. - without the $3,000 annual limitation that applies to capital losses. So yes, your $13k LLC loss can absolutely offset capital gains from your investments, and there's no specific order required. The loss just reduces your total taxable income on your 1040. For your deferral question - if your business losses exceed all your income in a year, the excess becomes a Net Operating Loss (NOL) that you can carry forward indefinitely under current rules. However, there are annual limitations on how much NOL you can use each year (generally 80% of taxable income). One thing to watch out for: make sure you understand the "material participation" rules. If the IRS considers your business activity "passive" (meaning you don't actively manage it), then those losses can only offset passive income, not your W2 or capital gains. The interaction between different loss types can get complex, so definitely consider consulting a tax professional for your specific situation!

Has anyone successfully argued that a triple-net lease is actually a "business activity" rather than a "rental activity" for §469 purposes? I read somewhere that when the landlord has minimal services provided (as in a NNN lease), it's harder to argue it's not a rental activity subject to the passive loss limitations.

Great discussion here! One thing I'd add is to be very careful about the timing of your grouping election. As Andre mentioned, this generally needs to be done on your original return for the first year you're engaged in both activities. If you've already filed returns treating these as separate activities, it may be too late to group them unless you can demonstrate a material change in circumstances. Also, regarding the cost segregation study - while it can create significant depreciation deductions, make sure you're considering the potential depreciation recapture implications down the road if you ever sell the property. The accelerated depreciation from cost seg will be subject to recapture at ordinary income rates up to 25%. For documentation purposes, I'd recommend keeping detailed records of: 1) The business necessity of the rental property for your S-Corp operations, 2) Fair market rent analysis to support your rental rates, 3) Time records if you're trying to qualify as a real estate professional, and 4) Evidence of the integrated nature of the two activities. The IRS tends to scrutinize self-rental arrangements pretty closely, so having solid documentation will be crucial.

I went through this exact same situation last year! The key is persistence and documentation. Since your benefits department isn't responding, I'd recommend escalating to your CFO or whoever oversees retirement benefits at the executive level. In the meantime, start documenting everything - save all your 401(k) statements showing the excess contribution, keep records of every call attempt to benefits, and screenshot any emails you've sent. This creates a paper trail showing you're trying to resolve it in good faith. The 415(c) limit violation won't go away on its own, and waiting too long could result in additional penalties. If you absolutely can't get your employer to cooperate before tax season, you may need to consult with a tax attorney or CPA who specializes in retirement plan corrections. They can sometimes work directly with plan administrators when employers are unresponsive. Don't let this drag on - the IRS takes these limits seriously, and the longer it goes uncorrected, the more complicated (and expensive) the fix becomes!

I had a very similar situation with my 401(k) provider last year - the runaround between HR and the plan administrator is unfortunately common. Here's what finally worked for me: First, send a certified letter (not just email) to your benefits department with a clear subject line like "URGENT: 415(c) Excess Contribution Correction Required." Include your name, employee ID, the exact excess amount ($38), and request immediate action. Certified mail creates a paper trail and shows you're serious. If that doesn't work within a week, escalate to your company's legal or compliance department if they have one. 415(c) violations can create liability for the company, not just you, so mentioning "fiduciary responsibility" and "plan compliance" often gets attention quickly. As a backup plan, some 401(k) providers will accept a written request directly from you if your employer won't act, though they prefer employer authorization. Ask your provider specifically about their "participant-directed correction" procedures. The correction deadline is typically April 15th of the year following the excess contribution, so you still have time but don't wait much longer. Document everything and stay persistent - this is fixable but requires someone to actually do their job!

Has anyone considered just ignoring the expense imbalance entirely? If you're truly 50/50 partners, then why not just have EVERYTHING be a partnership expense regardless of who incurs it? Seems like you're overthinking this.

One approach that worked well for my restaurant partnership might be relevant here. We had a similar imbalance where my partner handled all the vendor relationships (lots of travel and entertainment) while I managed operations locally. We structured it as a combination of guaranteed payments for the predictable higher expenses (like estimated annual travel costs) and an accountable plan for the variable ones. This gave us tax certainty while maintaining fairness. The key was quantifying the expected expense differential upfront. We estimated my partner would incur about $15K more in business expenses annually, so we set up a $15K guaranteed payment to them at the beginning of each year. Then both partners submit actual expenses for reimbursement through the accountable plan. This way, the partnership gets all the deductions, expenses are properly documented, and there's no surprise imbalance at year-end. Your CPA can help you estimate the differential and structure the guaranteed payment amount.