What CRM do you use that works well with Liberty's systems? I'm looking at purchasing a franchise but want to make sure I can maintain relationships with my existing client base from my previous tax practice.

I use Zoho CRM which has worked well for us. Liberty doesn't have any specific integration with it, but they don't need to - I just export client data from their system at the end of each day and import it into Zoho for marketing and relationship management. They're fine with this approach as long as all actual tax work happens in their system. I was able to import my previous client base into Zoho before I even opened my franchise, which helped tremendously with my first-year numbers. Just make sure you're transparent with your franchise rep about what you're doing and get written approval to be safe.

That's good to know! What scanner model did you end up using? We're still using the recommended ones and they're terrible with multi-page documents.

Thanks for bringing this up! I've been making quarterly payments but didn't know about the QBI deduction. With my income being around $40k, would I qualify for the full 20%? And does filing as head of household affect the QBI calculation at all?

At your income level of around $40k, you would qualify for the full 20% QBI deduction with no reductions or phase-outs. The QBI limitations don't kick in until much higher income levels (over $170k for single/HOH filers). Filing as head of household doesn't directly affect the QBI calculation, but it does affect your overall tax situation positively. The HOH status gives you better tax brackets and higher standard deduction, while the QBI is calculated based on your qualified business income from self-employment. They work separately but combine to reduce your total tax burden.

What kind of proof did they ask for? I'm worried about this exact situation.

Thank you for bringing this up - that's really important info! My immigration status is actually something I'm working on separately. Do you know if there's any downside to being classified as a resident alien for tax purposes? Like does it create any complications for immigration applications later?

There's generally no downside to being classified as a resident alien for tax purposes when it comes to future immigration applications. In fact, having a consistent tax filing history is usually seen as a positive factor when applying for permanent residency or citizenship. What immigration officers typically look for is that you've been properly filing and paying taxes according to your correct status. If you're physically present enough to qualify as a tax resident, then filing as a resident alien is exactly what you should be doing. The important thing is consistency and honesty in your tax filings. The only potential complication would be if you were trying to maintain nonresident status in the US for some specific tax treaty benefit. But for someone in your situation who has been here continuously for 22-23 years, filing as a resident alien is appropriate and won't create immigration complications.

Not everyone can "just become a citizen" - there are tons of complicated situations where someone might have been brought here as a child but doesn't have a straightforward path to citizenship. DACA recipients, for example, or people who fell out of status because of paperwork issues beyond their control. Plus, citizenship applications are expensive AF and take forever. My friend just spent over $4,000 on the process including lawyer fees.

Does it matter if the losses are short term or long term when you're offsetting gains? Like can I use long term losses to offset short term gains?

Great question! The IRS has specific rules about how losses and gains offset each other. First, short-term losses are used to offset short-term gains, and long-term losses are used to offset long-term gains. If you have excess in either category, then you can use them to offset the other type. For example, if you have $10k in short-term losses but only $5k in short-term gains, you'd first offset those short-term gains completely. Then you'd have $5k in short-term losses remaining, which could be used to offset long-term gains. If you still have excess losses after offsetting all gains, you can deduct up to $3,000 against other income, and carry forward any remaining losses to future years.

This doesn't answer OP's question at all. They're clearly asking about taxable accounts where capital gains matter. Not everyone can fit all their investments into tax advantaged accounts especially at higher income levels where contribution limits are an issue.

Thanks for mentioning Section 179! I do have some shelving units and a computer system I use exclusively for the business. Would those qualify? And what's the max I can deduct this way?

Those shelving units and computer

Exactly this! I made this same mistake my first two years in business. The IRS doesn't care what you do with your profits - reinvest them, pay debt, whatever. They care about revenue minus deductible expenses. Paying down loan principal isn't a deductible expense.