Thanks for mentioning this! I didn't even think about the asset list. Do you know if there's a standard format for this? And for the customer concentration report, did you just create a spreadsheet or is there a more official way to present that information?

For the asset list, I just created a simple spreadsheet with columns for: description, date acquired, original purchase price, current estimated value, and condition (excellent, good, fair, etc.). Nothing fancy, but buyers appreciated the organization. The customer concentration report was also just a spreadsheet showing my top 10 customers, what percentage of revenue each represented, how long they'd been customers, and brief notes about the relationship. My broker actually said these simple documents made a huge difference in buyer confidence because they showed I was organized and transparent.

Is there an easy way to calculate this? I've owned my S-corp for 12 years and honestly have no idea what my current basis is.

I used H&R Block last year with about $200k in RSUs and they completely missed some important details. The preparer didn't understand that I needed to report the sales of vested RSUs as capital gains transactions with the correct cost basis. Ended up filing an amended return later with a different tax service. Would not recommend for anything beyond basic RSU situations.

That's not correct for RSUs. The 83(b) election applies to restricted stock awards (RSAs), not restricted stock units (RSUs). With standard RSUs, you can't make an 83(b) election because there's nothing to elect - you don't actually receive the shares until they vest, so there's no ownership to claim early. Some companies offer early-exercisable options or RSAs where an 83(b) makes sense, but for standard RSUs, this isn't applicable. Important distinction that could cause tax issues if misunderstood.

Thanks for bringing this up - I honestly wasn't sure if I should have been getting a W-2 or 1099. My job involves framing houses and doing general construction work. I use their tools, work on their schedule, and they tell me exactly what to do and how to do it. Does that sound more like an employee situation?

Based on what you've described, you sound much more like an employee than an independent contractor. The key factors the IRS looks at include: who controls when and how you work, who provides tools and equipment, how you're paid (regular wages vs. project-based), and whether the work is a key part of the business. Using their tools, working on their schedule, and having them direct your work are all strong indicators of employee status. Construction workers doing the core work of a construction company are typically employees unless there's a specific arrangement that gives the worker significant independence.

Did you run into any issues with the IRS after filing this way? I'm in a similar situation and worried they'll come after me for something that wasn't my fault.

Thanks for explaining this! I'm confused about the "incremental cost" part though. How exactly is that calculated? Does the IRS provide specific comparisons somewhere of EV vs gas vehicle costs?

The incremental cost calculation is indeed one of the more confusing aspects. The IRS hasn't provided an official database of comparisons, which leaves it somewhat open to interpretation. Generally, you'd need to identify a comparable gas-powered vehicle with similar features and capacity, then calculate the price difference. For many passenger vehicles and light trucks, the 30% calculation usually results in an amount exceeding $7,500, so you'll often just get the maximum $7,500 credit. The incremental cost calculation becomes more relevant for specialty commercial vehicles where the EV premium might be less pronounced or for vehicles over 14,000 lbs where the higher credit limit applies.

Did you have to make any modifications to the truck to qualify it as a business vehicle? I've heard some people say you need commercial insurance or special registration for it to count.

I haven't considered electing to be treated as a corporation - could you explain a bit more about when that might be advantageous for investment activities? Would the corporate tax rates be better than the withholding rates in some cases? And would I still need to file Form 5472 if I made that election?

Making an election to be treated as a corporation (Form 8832) can sometimes be advantageous because U.S. corporate tax rates might be lower than the withholding rates applied to foreign persons, especially for certain investment types. For example, while dividends are typically subject to 30% withholding (or lower with tax treaties), the corporate income tax rate is 21%. Yes, you would still need to file Form 5472 if you made the election, as it applies to 25% foreign-owned U.S. corporations. However, instead of filing a pro-forma 1120, you'd file a regular Form 1120 as an actual tax return. Another benefit is that a corporation can potentially claim deductions against income that might not be available to a foreign person receiving passive income. The downside is increased compliance requirements and potential for double taxation if you eventually distribute earnings to yourself. The optimal structure really depends on your specific situation, investment amounts, and how your country's tax treaty interacts with U.S. tax law.

I've had an account with Interactive Brokers for my foreign-owned Delaware LLC for about 3 years now. They're definitely more accommodating to international structures than many other brokerages. The documentation requirements were still extensive, but their system is set up to handle foreign ownership situations. They also have good systems for handling tax withholding based on tax treaty status.