That's a great tip about insurance discounts! I hadn't even thought about that angle. Do you remember what documentation you needed to provide to your insurance company to get the discount?

I just needed to provide a copy of the installation certificate and proof of purchase. They sent an adjuster out to verify it was properly installed and connected to our natural gas line. The whole process was pretty simple - took about 2 weeks to get approved and the discount was applied to my next bill. Some companies might also want to see that it's been inspected by your local municipality, so make sure you have those permits in order too.

That's correct! If the primary purpose of the generator is to power medically necessary equipment, it can potentially qualify as a medical expense deduction. You'd need documentation from a doctor stating the medical necessity, and the expense would need to exceed 7.5% of your AGI when combined with other medical expenses. My mother has a similar situation with her CPAP machine and was able to deduct part of her generator purchase.

I've filed with Form 8960 for the past three years and haven't been audited. It's not a red flag by itself - lots of people pay NIIT. What matters more is large discrepancies between what you report and what the IRS already knows from your 1099s and other information returns. Just make sure all your investment income is properly reported, and the Form 8960 calculations are correct. And yes, put the amount from line 21 on Schedule 2, Part II, line 11 as everyone has said.

Thanks for the reassurance! That's helpful to know it's not automatically going to trigger extra scrutiny. I'll make sure all my 1099s match up with what I report.

This is such a good point! I was using the free version of [tax software] and kept looking for Form 8960 but couldn't find it anywhere. Ended up having to upgrade to the "premium" version which cost $70 more just to access this one form. Feels like a scam but I guess that's how they make their money.

This is so incredibly helpful and encouraging! I've been worried that my deafness would be a major obstacle, but you've made me see how it could actually be structured as an advantage. Would you mind sharing what transcription app you use for those video calls? And did you mention your hearing status upfront in your marketing or just your communication preferences?

I use Otter.ai for most transcription needs - it works really well for video calls and integrates with Zoom. I've also had good experiences with Microsoft's transcription tools which are built into Teams if your clients prefer that platform. I don't explicitly mention being hard of hearing in my initial marketing materials. Instead, I focus on the benefits of my communication style - "comprehensive written documentation," "efficient digital workflows," and "secure client portal communications." However, I am open about it once I'm in direct communication with potential clients. I frame it positively: "I've developed a streamlined communication system that ensures nothing gets missed and all advice is documented for your records." Most clients actually appreciate this approach, especially when they realize they can send questions at 10pm and get a thoughtful written response instead of playing phone tag.

Do most self-employed CPAs offer payment plans for clients? I'm wondering if that's something I should build into my business model from the start.

Wait, seriously? So if I buy $5000 of Bitcoin and it goes up to $5500 by the time I pay my supplier, I have to pay capital gains tax on that $500 increase? Even though I'm just using it to pay for inventory?

That's exactly right. The IRS views crypto as property, not currency. So when you use crypto to pay for business expenses, you're essentially "selling" your crypto for its fair market value and then using that value to pay your supplier. In your example, you'd have a $500 capital gain on the crypto transaction, but you'd also have a $5500 business expense deduction. So you're still coming out ahead tax-wise, but you do need to report both aspects of the transaction. This is why good record-keeping is extra important with crypto payments - you need to track both the business expense side and the crypto disposal side.

Does FBAR apply to crypto held on foreign exchanges? I've heard conflicting things about this.

Are you sure about that 3-year deadline? I thought if you're owed a refund, there's no penalty for filing late and you can do it anytime?

Yes, I'm 100% certain about the 3-year deadline for claiming refunds. The IRS gives you three years from the original filing deadline to submit a late return and still get your refund. After that window closes, any refund you were entitled to becomes government property - you lose it completely. This is different from owing taxes, where there's no deadline to file (though penalties and interest keep accumulating). But for refunds, it's a use-it-or-lose-it situation with a strict 3-year limit. Since 2022 taxes were originally due in April 2023, you have until April 2026 to claim any refund for that year.

That doesn't sound right. Most states only tax you for the portion of the year you were a resident. Did you try filing as a part-year resident?