That's terrifying! I'm not looking at partnership yet, but what questions should I be asking when the time comes to make sure I don't get blindsided? And should I have both a CPA and attorney review any practice buy-in?

You absolutely should have both a healthcare-specialized CPA and attorney review any practice buy-in agreement before signing. The key questions to ask include: How are accounts receivable valued and taxed? Is the buy-in structured as stock or asset purchase? What's the allocation between goodwill (capital gains tax rate) versus other assets (ordinary income tax rate)? What retirement plan obligations am I assuming? Always get a pro forma tax return showing the estimated tax impact of the transaction before proceeding. Many physicians focus only on the monthly payment amount without understanding the tax consequences, which can sometimes double the effective cost of the buy-in.

This is really important. I got individual disability insurance during residency (cheaper when you're young) with specialty-specific language. My colleague waited until attending salary and not only pays 3x what I do, but had developed mild hypertension by then, resulting in a policy exclusion for any cardiac-related disability. Terrible situation to be in as a surgeon.

Exactly right. Purchasing disability insurance during residency or fellowship is one of the smartest financial moves physicians can make. The premiums are significantly lower when locked in at a younger age, and you're more likely to qualify for clean coverage without exclusions before developing the common health issues that come with age and medical practice stress. The specialty-specific language is absolutely critical. The difference between a policy that pays if you can't perform your specific surgical specialty versus one that only pays if you can't work as any type of doctor can literally be millions of dollars over your career. It's one area where physicians should never cut corners or delay.

Does checking box B on Form 8949 trigger any kind of audit or extra scrutiny from the IRS? I need to make this adjustment but I'm worried about raising red flags.

Checking box B on Form 8949 doesn't increase your audit risk. It's a legitimate adjustment that's specifically designed for situations like this where the reported basis is incorrect. The IRS is very familiar with RSU basis adjustments, especially for tech employees. What actually increases audit risk is not reporting these transactions properly and having discrepancies between your 1099-B and your tax return. By correctly documenting the basis adjustment, you're actually reducing your chances of future notices or audits because everything is clearly explained and properly reported.

I got first-time penalty abatement for mine last year. Call the IRS and specifically ask for "first-time penalty abatement" if you haven't had any penalties in the past 3 years. They waived about $900 in penalties for me, though I still had to pay the interest.

You know what, this might be exactly what happened! I just pulled up the previous owner's info from our closing documents and it shows they owned the home for over 30 years. They were definitely senior citizens. So their assessment might have been frozen or reduced for years while property values increased around them?

That's almost certainly what happened then. Many states have "senior freeze" programs that cap or greatly reduce tax increases for elderly homeowners, especially those who've been in their homes a long time. When the property sells, the new assessment reflects current market value without those protections. Your neighbors who haven't had recent sales might still be benefiting from various exemptions or assessment caps that keep their taxes lower. It's not that you're being targeted unfairly - you're just seeing the true current tax rate while others might be protected by various programs. Since you're relatively new owners, make sure you've applied for any homestead exemptions available in your area. You typically need to own and occupy the home as your primary residence to qualify, but it can provide significant savings.

I did my own appeal last year and got my assessment reduced by $32k! Just gathered sales data for similar homes in my neighborhood that sold for less than my assessment value. Photos help too if you have issues with your property (drainage problems, cracked foundation, etc). You def don't need a lawyer for the basic appeal process.

Thanks for mentioning Form 4852 - I didn't know that was an option! Does it work the same for 1099-MISC as it does for W-2s? And did you still need to attach an explanation letter or did the form itself cover everything?

Form 4852 works for both W-2s and 1099s, though it's more commonly used for W-2s. The form itself includes sections where you explain the discrepancy and how you calculated the correct amount. I still attached a short explanation letter with mine just to be extra clear, along with copies of my invoices and bank statements showing the actual payments received. Better to provide too much documentation than not enough when you're contradicting what's been reported to the IRS.

I work in government accounting and can confirm this happens ALL THE TIME. Our fiscal year is different from the calendar year and our ancient software regularly messes up 1099s because of December/January payment processing. Always worth asking if this is what happened.

That's a really good point about self-discipline. Did you work while getting your degree? I'm considering working part-time in a tax preparation office while studying to get some practical experience alongside the theory.

I worked full-time at a regional accounting firm while getting my degree, and it was definitely challenging to balance both. The upside was that I could immediately apply what I was learning to real client situations, which reinforced the concepts. Working part-time at a tax prep office while studying is an excellent idea. Tax season will be intense, but you'll gain invaluable practical experience that will make the academic concepts click. Plus, having that experience on your resume alongside your Masters will make you much more marketable when you graduate.

Most programs I've seen don't focus on specific software but rather on tax concepts and research skills. They might use CCH or RIA for research databases, but the actual tax preparation software varies. My program had optional workshops for UltraTax and ProSeries, but it wasn't part of the core curriculum.