Just to add another perspective on timing - if you're still working at age 73+ and participating in your current employer's 401(k), you might be able to delay RMDs from that specific 401(k) until you actually retire (assuming you don't own 5% or more of the company). This is called the "still working exception." However, this only applies to your current employer's plan - you'd still need to take RMDs from IRAs and previous employers' 401(k)s. If you have old 401(k)s sitting around, you might want to consider rolling them into IRAs for easier management, but be aware this would subject them to the normal RMD rules without the still-working exception. This won't help with your 2024 RMD situation since that's from an IRA, but it's something to keep in mind for future planning if you're still employed.

One important detail to clarify about the tax year reporting - while your March 2025 withdrawal will be reported on your 2025 tax return, make sure you understand how this affects your quarterly estimated tax payments if you make them. Since you'll have potentially two RMDs worth of income in 2025 (your delayed 2024 RMD plus your regular 2025 RMD), you may need to adjust your estimated payments to avoid underpayment penalties. The IRS expects you to pay taxes throughout the year, not just when you file your return. If you decide to take your 2024 RMD in December 2024 instead, you could spread this tax burden more evenly and potentially avoid having to make large estimated tax payments in 2025. Just something to factor into your planning beyond just which tax return the income appears on.

Great question! I've dealt with this exact decision before. Based on your situation with investment income and a side business, I'd lean toward the EA. Here's why: EAs have more comprehensive training specifically in federal tax law - they either pass a rigorous 3-part IRS exam or have 5+ years of IRS experience. For investment income and business taxes, this deeper knowledge base can be really valuable for identifying deductions and handling complexities you might not even know exist. CRTPs are great for straightforward returns, but your side business adds layers that benefit from someone with broader training. Plus, if any issues come up later, EAs can represent you fully before the IRS, while CRTPs have very limited representation rights. That said, don't ignore experience! An EA who's been practicing for 20 years with business clients will likely serve you better than a newly certified one, regardless of credentials. Ask both preparers about their specific experience with small businesses and investment income situations like yours. You might also want to get quotes from both and see if the price difference justifies the additional credential value for your specific situation.

As someone who's worked with both types of tax professionals, I'd definitely recommend going with the EA for your situation. The combination of investment income and a side business creates potential complexities that benefit from the more comprehensive federal tax training that EAs receive. The key difference is that EAs must demonstrate mastery of the entire tax code through their exam or IRS work experience, while CRTPs focus more on basic tax preparation skills. With a side business, you'll want someone who really understands business deductions, quarterly payments, potential self-employment tax implications, and how your business income interacts with your investment income. Also worth considering - if you plan to grow that side business or your investments become more complex over time, establishing a relationship with an EA now means you won't need to switch preparers later when your taxes inevitably get more complicated. That said, definitely ask both preparers specific questions about their experience with small businesses similar to yours and how they handle investment income reporting. The right fit matters more than credentials alone.

I'm dealing with a very similar situation right now! My brother and I co-own a rental property that we inherited, but only he's been reporting the income. After reading through all these responses, I'm convinced we need to get this fixed ASAP. The point about the IRS treating co-owned rental properties as partnerships by default is something I didn't know. I always thought you had to formally register a partnership, but apparently just owning property together for profit automatically creates one for tax purposes. I'm particularly interested in the experiences shared about amended returns. It sounds like as long as you're proactive about fixing it and can show the total income was being reported (just incorrectly), the IRS is generally reasonable. The strategy of filing all amendments simultaneously to show it's a correction rather than tax avoidance makes perfect sense. One thing I'm still unclear on - when you file as a partnership with Form 1065, does the property itself need an EIN (Employer Identification Number)? Or can you file the partnership return using one of the owner's SSNs? This might be a basic question, but I want to make sure I understand all the steps involved before I start this process.

Thank you everyone for sharing your experiences - this thread has been incredibly helpful! As someone who's been stressing about a similar multi-owner rental situation, reading about the actual outcomes when people corrected these filing mistakes is really reassuring. The consensus seems clear: co-owned rental properties should file as partnerships with Form 1065 and issue K-1s to each owner, regardless of who handles the mortgage or manages the property. What I found most valuable was learning that the IRS generally treats voluntary corrections favorably, especially when you can demonstrate the total income was being reported (just incorrectly allocated). A few key takeaways I'm noting for my own situation: - Get an EIN for the partnership (free from IRS website) - File amended returns simultaneously for all owners to show it's a correction - Document everything about ownership percentages and property management - Consider working with a tax professional for the amendment process The timing advice about fixing this sooner rather than later really resonates. It sounds like 2025 is the perfect time for the original poster to restructure everything properly since they're already planning to change their profit distribution method. Has anyone dealt with state tax implications when making these corrections? I'm wondering if state returns need to be amended as well, or if most states just follow the federal partnership structure automatically.

This entire discussion has been a game-changer for my understanding of S-Corp vehicle taxation! I'm a new business owner with a small IT consulting firm, and I was stuck in the exact same mental loop as the original poster. What really helped me grasp the concept was the repeated emphasis that there's no "circular" accounting happening. The S-Corp spends real money on vehicle expenses and gets a legitimate business deduction for those actual expenditures. The personal use portion being added to my W-2 isn't creating a new wage expense deduction - it's simply ensuring I pay personal income tax on the benefit I received from the company's spending. I was getting confused because I kept thinking of the W-2 addition as somehow reducing the business deduction, but now I see they're completely separate tax treatments. The company deducts what it spent, and I pay tax on what I benefited from - no double counting either direction. Thank you to everyone who shared their experiences and explanations. This is exactly the kind of practical, real-world guidance that makes complex tax concepts finally make sense. I feel much more confident about handling this correctly going forward!

I'm a newcomer to S-Corp taxation and this thread has been incredibly helpful! I was struggling with the exact same PUCC confusion for my small landscaping business. The breakthrough moment for me was understanding that the S-Corp's vehicle expense deduction and the personal income reporting are two completely separate tax issues. My company spent actual money on gas, insurance, and repairs - that's a legitimate $100 business expense that gets fully deducted. The fact that I used the vehicle for a weekend trip worth $20 doesn't change the business deduction. It just means I need to pay personal income tax on that $20 benefit. I was overthinking it by trying to somehow "net out" the personal portion from the business expenses. But there's no netting involved - the business keeps its full deduction for what it actually spent, and I separately report the personal benefit I received. One question for the group - I've been tracking my mileage manually in a notebook. Are there any apps or digital tools that make this easier while still meeting IRS requirements for contemporaneous records? I want to make sure I'm documenting everything properly but also streamline the process as much as possible. Thanks to everyone for sharing their knowledge - this is exactly what I needed to understand this properly!

I'm going through this exact same frustration with my small business! Been trying to get through to the IRS for weeks about my EIN application with zero success. Reading through all these experiences has been incredibly eye-opening - it's clear the system is completely overwhelmed but there are definitely some proven strategies that work. The early morning calls to 800-829-4933 seem to be the most reliable approach, and I love how specific everyone's gotten with timing (7:01 AM, 7:02 AM to avoid the initial rush). What strikes me most is how many people had issues that required manual review - wrong business classifications, address mismatches, etc. Makes me wonder if the online system needs better validation to catch these issues upfront instead of creating weeks of delays. I'm definitely going to try the early morning call strategy with all my details organized, plus prepare a fax backup. It's ridiculous that we need multiple strategies just to follow up on a basic government service, but I'm grateful for this community sharing real solutions instead of just venting frustration. For anyone else still struggling - don't give up! These success stories prove there's light at the end of the tunnel if you persist with the right approach.

I just wanted to add one more alternative that worked for me after trying everything else mentioned in this thread! I was in the same boat - applied for my EIN for my freelance graphic design business 4 weeks ago and couldn't get through on any of the phone lines despite trying the early morning strategy multiple times. What finally worked was contacting my local IRS Taxpayer Assistance Center (TAC) in person. I know it sounds old-school, but I found my local office using the IRS website's office locator tool, made an appointment online, and brought all my EIN application documents with me. The in-person service was night and day compared to the phone experience. The representative looked up my application immediately, found that there was a technical glitch that had flagged it for manual review (something about the electronic signature not processing correctly), and resolved it on the spot. I walked out with my EIN printed on official letterhead! Most TAC offices require appointments now, but the wait time for an appointment was only about a week in my area - much better than the endless phone loop. Might be worth checking if you have a local office and you're continuing to strike out with phone calls. Just another option to consider if the early morning calling strategy doesn't work out for you!