This is a really helpful discussion! As someone new to the complexities of S-Corp retirement planning, I'm learning a lot from everyone's experiences. One question that comes to mind - has anyone dealt with the timing aspects of profit sharing contributions? I understand the S-Corp can contribute up to 25% of W-2 wages, but are there specific deadlines for making these contributions? Can they be made after year-end but before the tax filing deadline (with extensions), similar to SEP-IRA contributions? Also, given all the warnings about controlled group rules, it seems like getting a professional determination letter or opinion from a qualified plan attorney might be worth the investment upfront rather than risking an audit issue later. Has anyone gone that route for peace of mind? The medical practice structure described here sounds quite common, so I imagine there are established best practices that practitioners have developed over time.

As someone who recently navigated a similar situation with my own medical practice S-Corp, I wanted to share a few practical considerations that might help. First, regarding implementation timing - don't feel pressured to rush this for 2025. While your CPA mentioned potential tax savings, it's better to get the structure right than to hastily implement something that could create compliance issues later. The profit sharing option will still be available next year once you've properly evaluated all the moving parts. Second, I'd strongly recommend getting clarity on the exact W-2 amount from your wife's S-Corp before calculating contribution limits. The 25% limit applies to her S-Corp W-2 wages specifically, not to the guaranteed payments from the LLC. This distinction becomes important when you're maximizing contributions across multiple retirement vehicles. Finally, consider having a three-way conversation between yourself, your CPA, and the current 401k administrator. I found this approach eliminated a lot of back-and-forth and confusion about how the different contribution streams would work together. The administrator can often provide specific guidance on how to structure the employer contributions from the S-Corp level while coordinating with existing employee deferrals. Don't be embarrassed about asking your CPA for clarification - these multi-entity medical practice structures are genuinely complex, and even experienced professionals sometimes need to work through the details multiple times to get them right!

I went through this exact situation with my father's estate in 2022, and I want to reassure you that using the county tax assessment is absolutely a valid approach. Your numbers actually look really solid - a $235K assessment in 2021 and $243K sale in 2024 shows only about 1% annual appreciation, which is quite conservative and defensible. What I found most helpful was creating a simple one-page summary that included: the official county assessment document, a brief explanation of why I believed it reflected fair market value (in my case, recent comparable sales supported the assessment), and documentation of my county's assessment practices. One thing that gave me extra confidence was reaching out to a local real estate agent who provided me with a simple market analysis showing what similar homes sold for around my father's date of death. Even though it wasn't a formal appraisal, having that third-party perspective strengthened my documentation. The IRS really is reasonable about this - they understand that not every family gets a formal appraisal immediately after a death. As long as you can show you made a good faith effort to determine accurate value and your numbers pass the "smell test" (which yours definitely do), you should be fine.

I just wanted to jump in here as someone who recently went through this exact process with my uncle's property. Reading through all these responses has given me so much confidence that we made the right choice using the county assessment! One thing I discovered that might be helpful for your situation - many counties publish annual "sales ratio studies" that show how their assessments compare to actual market sales. I found ours buried on the assessor's website under something like "assessment accuracy reports." For our county, it showed that assessments were typically within 5-10% of actual sale prices, which really strengthened my documentation. Your situation sounds very similar to mine - we used a $198K county assessment from 2022 and sold for $205K in early 2024. The modest appreciation actually worked in our favor because it showed the assessment was realistic, not artificially low. I ended up creating a simple binder with the county assessment, printouts of comparable sales from Zillow/Realtor.com from around the date of death, that sales ratio study I mentioned, and a one-page summary explaining my reasoning. My tax preparer said it was some of the best inheritance documentation she'd seen - thorough but not overcomplicated. The peace of mind was worth the few hours of research. Your $235K to $243K progression over three years is going to look completely reasonable to anyone who reviews it!

Has anyone used TurboTax to try to claim this? I feel like it used to let me enter unreimbursed job expenses but now I can't find where to do it.

Just wanted to add some clarity here since there's been a lot of discussion about different options. The bottom line is that for most W-2 employees, you cannot deduct personal cell phone expenses on your federal tax return for 2024 - this has been suspended since 2018 and continues through 2025. However, there are a few legitimate options worth exploring: 1. **State returns**: Some states still allow these deductions even though federal doesn't. Check your specific state's rules. 2. **Employer reimbursement**: This is really your best bet. Document your work usage percentage and approach HR with a business case. Many companies will reimburse at least partially once they understand the cost. 3. **Mixed employment status**: If you have any self-employment income (1099 work, side business, etc.), you may be able to allocate a portion of phone expenses to Schedule C. For documentation, you don't need to log every single call and text. The IRS generally accepts reasonable estimates if you can show how you calculated your work vs. personal usage percentage. Keep records of your method and any supporting documentation. The key is being realistic about your work usage percentage and having a logical way to support that number if questioned.

Hello everyone, I’m planning to send Form 1120 (pro forma) and Form 5472 to the IRS, but I’m not sure which online fax service to use. Has anyone used Fax.Plus to fax documents to the IRS? What was your experience like? I’d really appreciate hearing your thoughts. Thanks!

Hello everyone, I’m planning to send Form 1120 (pro forma) and Form 5472 to the IRS, but I’m not sure which online fax service to use. Has anyone used Fax.Plus to fax documents to the IRS? What was your experience like? I’d really appreciate hearing your thoughts. Thanks!

Has anyone used TurboTax for reporting 1099-K for their casual sales? I'm in a similar situation and wondering if it walks you through estimating costs properly or if I need something more specialized.

I went through this exact situation two years ago with my vintage book selling. Here's what I learned from my CPA: The IRS actually has guidance for situations where exact records don't exist. You can use what's called "reasonable reconstruction" of costs. What I did was create categories based on where I typically shop and what I usually pay. For example: "Garage sale paperbacks: $0.25-$1.00 each" or "Estate sale hardcovers: $2-$5 each." Then I applied these ranges to my sales based on what I could remember about each item's source and condition. The key is being conservative and consistent. Don't inflate your costs, but don't shortchange yourself either. Document your methodology - write down how you arrived at your estimates. If you sold 50 books for $20 each that you estimate cost you $3 each on average, show that math. Also start keeping better records NOW. Take photos of items with any visible price tags when you buy them. Keep a simple log in your phone. The IRS is much more forgiving when they see you're making a good faith effort to track things properly going forward. For your $11,475 in sales, estimating $8,000-$9,000 in costs sounds reasonable based on your description. Just make sure you can explain how you arrived at that number if asked.