Has anybody calculated whether it's still worth adding your partner to your insurance after all these extra taxes? I'm doing the math and it seems like separate marketplace insurance might be cheaper once you factor in the tax hit.

Great breakdown from everyone! Just want to add that timing matters too - if you're adding your partner mid-year, the imputed income will be prorated for the months they're covered. So if you add them in July, you'd only have 6 months of imputed income added to your W-2. Also, don't forget that the imputed income affects more than just your federal taxes. It also increases your Social Security and Medicare tax liability since those are calculated on your total taxable income. In the original example with $630/month extra employer contribution, that's an additional $580 per year in FICA taxes (7.65% of $7,560). One last tip - if your company offers an HSA with your health plan, the increased coverage cost might make you eligible for higher HSA contribution limits since you'd be switching from self-only to family coverage. The extra tax-deductible HSA contributions could help offset some of the tax impact from the imputed income.

This is such a comprehensive discussion - really helpful for anyone dealing with precious metals taxation! I just wanted to add one more consideration that might be relevant for your situation. Since you mentioned the coin has appreciated nicely over the past several years, you might want to think about whether this sale fits into any broader investment or financial planning strategy. While the tax implications are important (and everyone here has covered those thoroughly), sometimes the timing of when to realize gains depends on your overall financial picture. For example, if you're planning any major purchases or have other financial goals coming up, the after-tax proceeds from this sale might be useful. On the other hand, if you don't need the cash immediately and believe gold might continue appreciating, the 28% collectibles rate is pretty steep compared to other investment options. Also, since you've been holding it for several years and clearly know how to store and maintain precious metals properly, you might consider whether this is a one-time sale or if you're thinking about adjusting your overall allocation to precious metals. The tax treatment will be the same for any future gold coin sales, so understanding the process now (which you clearly do based on all the great advice here) will serve you well. Either way, you seem very well prepared with documentation and understanding of the tax implications. Good luck with whatever you decide!

I've been following this discussion and wanted to share something that might be helpful for anyone dealing with precious metals taxation questions. While everyone has covered the tax implications really well (yes, you need to report even a single coin sale, and yes, it's subject to the 28% collectibles rate), I wanted to mention that if you're looking for personalized guidance on your specific situation, there are some good resources available. I recently used a service called TaxGPT (https://taxgpt.com) when I had questions about selling some inherited silver coins. What I liked about it was that it could analyze my specific situation - including the inheritance aspect, basis calculation, and state tax implications - and give me clear, personalized guidance rather than just general information. The tool walked me through exactly how to handle the inherited basis (stepped-up to fair market value at date of death), what forms I needed to file, and even helped me understand the record-keeping requirements. It was especially helpful because inherited precious metals have some unique considerations that general tax advice doesn't always cover well. For your situation with a straightforward purchase and sale, you probably have all the information you need from this discussion. But if you want to double-check your approach or get confirmation that you're handling everything correctly, it might be worth looking into specialized tax guidance tools that can account for the nuances of precious metals transactions. Either way, you're clearly well-prepared with your documentation and understanding of the process!

I went through this exact same situation last year with my 14-year-old daughter who had about $18 in capital gains from a stock split cash payment. After researching extensively and consulting with my CPA, here's what I learned: The IRS Publication 929 does provide some flexibility for "incidental" capital gains when using Form 8814. While the form doesn't explicitly mention regular capital gains, there's guidance that allows including small amounts that don't materially affect the tax calculation. For your $22 gain, I'd recommend including it on Form 8814 line 1a with your daughter's other unearned income. The key factors that support this approach: 1. The amount is less than 1% of her total income 2. It won't change her tax liability in any meaningful way 3. Filing a separate return would create unnecessary administrative burden Just make sure to keep good records showing the 1099-B and your reasoning for including it on Form 8814. In the unlikely event of any questions later, you can demonstrate that you made a reasonable interpretation based on the circumstances. The practical reality is that the IRS isn't going to scrutinize a $22 capital gain on a child's return, especially when it's clearly reported and the family is making a good faith effort to comply with the tax laws.

I just wanted to chime in as someone who's been through this exact scenario multiple times with my three kids over the years. The $22 capital gain from fractional shares is such a common situation now with so many brokerages handling stock splits this way. Here's my take after dealing with this probably 6-7 times: include it on Form 8814. I've never had any issues doing this, and I think the reasoning others have shared here is sound. The IRS has bigger fish to fry than a $22 capital gain on a child's return, especially when you're clearly trying to report everything properly. What I do is keep a simple spreadsheet each year documenting these decisions. For example: "2024 - Daughter Sarah - $22 LT capital gain from XYZ Corp fractional shares included on Form 8814 line 1a due to de minimis amount (0.9% of total unearned income)." Takes 30 seconds and gives you documentation if you ever need it. The key is being consistent and reasonable. If next year she has $500 in capital gains, then I'd file separately. But for these tiny amounts from fractional share payouts? Form 8814 all the way.

Has anyone actually gotten penalized for not paying FUTA as a solo S-corp? I've been operating for 3 years and honestly haven't been paying it because my accountant told me it wasn't necessary. Now im kinda worried...

I went through this exact situation when I started my S-Corp two years ago. You definitely need to pay FUTA tax even as the sole owner-employee - there's no exemption at the federal level like some states have for unemployment taxes. Here's what I learned: You'll file Form 940 annually and pay FUTA on the first $7,000 of your wages. Even though your state exempts you from state unemployment taxes, you should still qualify for the 5.4% credit in most cases, bringing your effective FUTA rate down to 0.6% instead of the full 6%. The key is making sure you're categorizing your state exemption correctly on Form 940. I'd recommend double-checking with a tax professional or calling the IRS directly to confirm your specific situation, but don't skip filing - the penalties for not filing Form 940 can add up quickly.

I'm dealing with a very similar situation right now - bought Bitcoin on Cash App years ago, transferred it to my hardware wallet, and then moved it to Coinbase to sell. Of course Coinbase has no idea what I originally paid for it. Reading through all these responses has been super helpful, especially the advice about Form 8949 with adjustment code B. I had no idea there was a specific code for basis reported incorrectly to the IRS. One thing I'm still wondering about - if I use Koinly to generate my tax report, will it automatically format everything properly for the 8949 with the right adjustment codes? Or do I need to manually transfer that information when I'm filling out my actual tax return? I want to make sure I don't mess up the formatting since this seems like the kind of thing that could trigger questions if it's not done exactly right. Also keeping detailed records from now on - wish I had known about this potential issue years ago when I first started moving crypto between platforms!

I went through this exact same headache last year with Kraken! Here's what worked for me: First, don't panic - the IRS actually expects these mismatches with crypto transfers between platforms. The key is being proactive about documentation. I created a simple spreadsheet showing: (1) Original purchase date/price from the first exchange, (2) Transfer date to the selling exchange, (3) Sale date/price, and (4) The actual gain/loss versus what the exchange reported. When filing, I used Form 8949 with code "B" for the basis adjustment just like others mentioned. But here's an extra tip that helped me sleep better at night - I also included a brief note in the "Description" column of Form 8949 saying something like "Crypto transferred from [original exchange] - basis adjusted per records." The most important thing is consistency. Whatever method you use to calculate your basis (FIFO, LIFO, etc.), stick with it across all your crypto transactions. I've been using this approach for two years now with no issues from the IRS. Keep those Koinly reports and any screenshots/confirmations of your original purchases. If you ever get questioned, having a clear paper trail showing the crypto's journey from purchase to sale makes everything much easier to explain.