I'm surprised nobody has mentioned Form 8308 yet. When there's a sale or exchange of a partnership interest, the partnership has a filing requirement to report the transaction to the IRS using Form 8308 (Report of a Sale or Exchange of Certain Partnership Interests). This is required if there are Section 751 assets involved. Make sure the partnership's tax preparer is aware of this transaction so they can handle this reporting requirement correctly. I've seen partnerships miss this form, which can create problems later.

This is a really comprehensive discussion! I'm dealing with a similar situation right now and wanted to add one more consideration that might be relevant. If your client has been receiving guaranteed payments from the LLC (like for management services), make sure to clarify whether any portion of the sale proceeds might be attributable to those future guaranteed payments. Sometimes in these partner buyouts, part of the purchase price is actually compensation for giving up future guaranteed payments rather than just the equity interest itself. Any portion that's really compensation for guaranteed payments would be ordinary income, not capital gain. It's another layer to analyze beyond just the Section 751 hot assets. The partnership agreement and sale documentation should help clarify this, but it's worth discussing with your client to make sure the economic substance matches how the transaction is structured on paper. Also, if the selling partner has any outstanding loans to/from the partnership, those need to be factored into the overall transaction analysis too.

I want to echo what others have said about being really careful with the terminology here. "Tax exempt" status is very specific and most working people don't qualify for it. What you probably want to do is adjust your withholding allowances temporarily. One thing I'd add that hasn't been mentioned much - consider looking at your year-to-date withholding on your most recent paystub before making any changes. If you've already had a lot withheld this year, you might have more room to reduce withholding during your overtime period without owing at tax time. Also, since you mentioned this is warehouse work with overtime, remember that overtime pay is taxed at your regular rate, but the withholding might be calculated as if that higher paycheck amount was your normal pay all year (this is called "annualizing"). This can result in over-withholding on overtime pay, which is another reason why a temporary adjustment might make sense. Just make sure to put a calendar reminder to change your W-4 back after the holiday season ends, and maybe run the numbers through the IRS withholding calculator first to see what adjustment would be appropriate for your situation.

Great question! I see there's already some excellent advice here, but I wanted to add a practical tip that might help. Before making any W-4 changes, try using the IRS's own Tax Withholding Estimator tool on their website - it's free and designed specifically for situations like yours where income varies throughout the year. The tool lets you input your year-to-date earnings, expected overtime hours, and current withholding to calculate exactly how much you should adjust. This is especially helpful for warehouse/overtime workers because it accounts for the irregular pay patterns. One more thing - if your employer offers direct deposit, consider having the extra money from reduced withholding automatically transferred to a separate savings account earmarked for taxes. That way if you do end up owing a little at tax time, you'll have the money set aside and won't be scrambling. This gives you the best of both worlds: more cash flow during expensive holiday months, but still being prepared for tax season. Just remember what others have said about switching back your withholding in January - maybe set the reminder for mid-January so you have time after the holiday chaos settles down!

Has anyone been having issues with the Tax Pro Account portal lately? We switched to having our admin submit all our POAs online last month, but we've had several get stuck in "processing" status for weeks.

I've been dealing with this delegation question for months and finally got clarity from the IRS directly. Your assistant can absolutely submit Forms 2848 and 8821 through the portal using their own account, but there are some key points everyone should know: 1. The assistant doesn't need a PTIN, but they must indicate they're submitting "on behalf of" the practitioner during the upload process 2. You as the practitioner must still review and e-sign all forms before your assistant submits them 3. Keep detailed records of who submitted what and when - the IRS can audit your submission practices One thing I learned the hard way: make sure your assistant understands the common rejection reasons. We had a 40% rejection rate initially because of small errors like missing check boxes or incorrect entity classifications. Now we use a standard checklist and our success rate is over 95%. The online submissions are definitely faster than mailing to CAF - usually processed within 5-7 business days versus 4-6 weeks by mail. Just make sure you have proper internal controls documented in case the IRS ever questions your procedures.

Hey there! I totally understand the panic - I went through this exact same situation when I got a job offer in the Netherlands with only 3 weeks notice. Here's what saved me: For South Korea specifically, you'll need a "Certificate of Tax Compliance" (also called a tax clearance certificate) which is different from regular tax transcripts. This document proves you don't owe any back taxes to the IRS. You can request it using Form 4506-T, but make sure to check the right box (usually box 8) and specify that you need it for international employment purposes. Since you're in California, you have some good options for expedited apostille services. The Secretary of State office in Sacramento does same-day apostilles if you can get an appointment, or there are several apostille service companies in LA and SF that can handle the in-person submission for you. One thing that really helped me was calling the IRS directly to confirm exactly what documents I needed before requesting anything. The wait times are brutal, but it's worth it to avoid getting the wrong documents apostilled (which would cost you precious time to redo). Also, start researching Form 2555 (Foreign Earned Income Exclusion) now - you'll need it for next year's taxes and understanding it early will help you plan better financially for your new adventure abroad! You've got this! The paperwork stress is temporary but landing your dream job overseas is amazing. Congratulations!

I completely feel your panic! I went through this exact situation last year when I got a surprise job offer in Singapore. Here's what I wish someone had told me: First, breathe - you CAN get this done in time! For South Korea, you'll specifically need a "Certificate of Tax Compliance" (not just regular transcripts). Request this using Form 4506-T and make sure to check box 8. When you submit the form, write "FOR INTERNATIONAL EMPLOYMENT - SOUTH KOREA" in the special instructions section so they format it properly for apostille. Since you're in California, here's your fastest path: Request the tax documents online through the IRS website (much faster than mailing Form 4506-T). While waiting for those, immediately book an appointment at the Sacramento Secretary of State office for apostille service - they do same-day processing but appointments fill up fast. Pro tip: Call ahead to confirm exactly what your employer needs. Some companies also require a "letter of good standing" from the IRS, which is a separate document. Better to find out now than after you've apostilled the wrong things! For your future taxes, yes you'll still file US taxes but Form 2555 (Foreign Earned Income Exclusion) will likely save you thousands. You can exclude up to $120,000 of foreign earnings for 2025. You've got this - the stress is temporary but working abroad is life-changing! Feel free to ask if you need more specific guidance on any of these steps.

I went through this exact same situation two years ago with my business pickup truck and wanted to share some additional insights that might help. The math everyone has explained is absolutely correct, but there's one thing to double-check that could potentially help your situation: make sure you're including ALL costs in your original basis calculation. This includes not just the purchase price, but also sales tax, title fees, registration fees, and any immediate repairs or modifications you made when you first bought the vehicle for business use. For example, if you paid $1,200 in sales tax and $150 in title/registration fees when you bought the truck, your original basis would be $25,850 instead of $24,500. The business portion would then be $2,585 instead of $2,450, which could reduce your taxable gain slightly. Also, if you had any major repairs or improvements during the ownership period that extended the vehicle's life or increased its value, these might also be added to your basis (though routine maintenance cannot be). It won't eliminate the gain entirely, but every little bit helps when you're already taking a cash loss on the transaction. And definitely keep this experience in mind for future business vehicle purchases - the tax implications of mixed-use vehicles can be quite complex!

I'm a tax preparer and see this confusion all the time with mixed-use business vehicles. Everyone's math here is correct, but I wanted to add one important point that might help with future planning. If you're regularly using vehicles for business and plan to sell them, consider whether the actual expense method might work better for you than the standard mileage rate. With actual expenses, you have more control over your depreciation deductions and can potentially time them better relative to when you plan to sell. For example, if you know you'll be selling a vehicle in a few years, you might choose to take smaller depreciation deductions in the later years to avoid this exact situation where your adjusted basis drops too low. With the standard mileage rate, you're locked into the IRS's predetermined depreciation component each year. Also, just to confirm what others have said - make absolutely sure FreeTaxUSA has you completing Form 4797 Part III for this transaction. The vehicle expense section of Schedule C is NOT the right place for reporting the sale of a business asset. The sale should be reported separately as a disposition of business property. One last tip: if you have any other business equipment sales or dispositions this year, they can all be reported on the same Form 4797, and losses on other business property might help offset this gain.