Great thread! I wanted to add one more important consideration for your specific situation, Lena. Since you mentioned you're expecting about $1 million in taxable income from your partnership, you should be aware of the Section 179 income limitation. For 2025, the Section 179 deduction begins to phase out when you purchase more than $3.05 million in qualifying property during the year, and it's completely eliminated if you exceed $4.27 million. But more importantly for most people, your total Section 179 deduction cannot exceed your taxable income from all active businesses. In your case with $1M in income, this shouldn't be a problem, but it's something to keep in mind. Also, since you mentioned you own two accounting firms, make sure you're considering the aggregate income from both businesses when calculating your eligible deduction amount. One last tip: If you're considering multiple vehicle purchases, remember that the $28,900 SUV cap applies per vehicle, not per taxpayer. So if you bought two qualifying SUVs, you could potentially take up to $57,800 in Section 179 deductions (subject to your business use percentage for each).

This is such a comprehensive discussion! I wanted to add one more consideration that might be relevant for your situation, Lena. Since you're dealing with a high-value luxury vehicle like the Mercedes EQS SUV, you should also be aware of the luxury auto limitations that can interact with Section 179. Even though the Section 179 SUV cap is $28,900 for 2025, if your vehicle falls under the luxury auto rules (which vehicles over $64,300 typically do), there are additional depreciation limitations that can affect your total first-year deduction when combining Section 179 with bonus depreciation. For luxury vehicles in 2025, the first-year depreciation cap (including Section 179 and bonus depreciation combined) is around $21,560 for passenger automobiles, though SUVs over 6,000 lbs GVWR are generally exempt from these luxury auto limits - which is actually another advantage of choosing qualifying heavy SUVs. Since your Mercedes EQS SUV meets the weight requirement, you should be able to take the full $28,900 Section 179 deduction plus 80% bonus depreciation on the remaining business-use portion without hitting the luxury auto caps. This is one of the key reasons why many business owners specifically choose SUVs over 6,000 lbs - they avoid both the luxury auto limitations and can access the more favorable depreciation treatment. Just make sure to confirm the exact GVWR specification with the dealer, as sometimes different trim levels of the same model can have slightly different weights that might affect eligibility.

This is exactly the kind of strategic thinking that can make a huge difference in your FAFSA results! Your approach of maxing out retirement contributions is spot-on - those accounts are completely excluded from the FAFSA asset calculation. One additional consideration: since you mentioned you have 5 paychecks left this year, make sure your employer's payroll system can handle the increased contribution amounts in time. Some companies need advance notice for significant 401k changes, especially near year-end when they're processing annual limits. Also, regarding your RV loan payoff strategy - that's smart because it reduces your cash assets (which count against you) while eliminating debt (which doesn't help you on FAFSA anyway since consumer debt isn't considered). Just make sure the timing works with your cash flow needs. The timing of your mutual fund sales is crucial too. You want those gains to show up in the tax year before your child's sophomore year FAFSA if possible, since FAFSA looks at the "prior-prior year" tax return. This way the income bump won't affect aid calculations until later in college when you've already benefited from the asset sheltering. One last thought - consider whether any of those mutual fund positions have losses you could harvest first. You can offset gains with losses while still accomplishing your goal of moving assets to retirement accounts.

Your strategy is really solid! I went through this same process two years ago with my oldest. One thing I'd add - don't forget about the American Opportunity Tax Credit (AOTC) when planning your income levels. You can claim up to $2,500 per student for the first four years of college, but it starts phasing out at $80K AGI for single filers ($160K for married filing jointly). Since you're looking at around $106K taxable income after retirement contributions, you should still qualify for the full credit. But it's worth keeping in mind for future years - sometimes it makes sense to manage your retirement withdrawals or Roth conversions to stay under the AOTC phase-out thresholds while your kids are in school. Also, regarding your question about distributions not counting as income for FAFSA - be careful here. While retirement account balances don't count as assets, any distributions you take (including both contributions and earnings) DO count as income on the FAFSA. So if you need to tap those accounts during college years, it will affect aid eligibility for the following year. The beauty of your current plan is that you're sheltering assets NOW while your child is applying, but you're not planning to take distributions until much later when FAFSA won't matter anymore.

One thing to be really careful about with C Corp wind-downs is the accumulated earnings tax (Section 531). If the IRS determines that you've been accumulating earnings beyond the reasonable needs of the business just to avoid dividend distributions, they can hit you with a penalty tax on top of everything else. This is especially relevant for single-shareholder C Corps that have been inactive but sitting on retained earnings. For your specific situation with $25K in loan repayments and $10K in E&P, document everything meticulously. The IRS will want to see that the loans were legitimate business transactions with proper terms from the start. If you're planning to wind down completely, consider doing it in phases over multiple tax years to spread out the tax impact rather than taking everything in one year and potentially pushing yourself into higher tax brackets. Also, don't forget about state tax implications - some states have their own rules about C Corp distributions and dissolutions that might differ from federal treatment.

One thing I'd add to this excellent discussion is to consider the timing of when you actually receive the loan repayment funds versus when you take the dividend distribution. The IRS looks closely at the substance over form, so if you're taking both transactions simultaneously or very close together, they might view it as one large distribution rather than separate transactions. I'd recommend clearly documenting the loan repayment first, wait a reasonable period (maybe a quarter or two), then handle the dividend distribution separately. This creates a cleaner paper trail and reduces the risk of the IRS challenging the characterization of your transactions. Also, since you mentioned this is essentially a wound-down operation, make sure you're not triggering any personal holding company tax issues if you have significant passive income. With inactive C Corps, sometimes rental income or investment income can create unexpected tax complications that are separate from your distribution planning.

Great question! You're absolutely right that you should qualify for the 0% federal long-term capital gains rate. With your taxable income of $40,361, you're well under the $47,025 threshold for single filers in 2024. To verify you're not being charged federal tax on your $1,842 in long-term capital gains, check these specific places on your tax return: 1. **Form 1040, Line 7** - This shows your capital gains income 2. **Schedule D, Line 16** - This calculates your capital gains tax 3. **Form 1040, Line 16** - This is where capital gains tax would appear on your main form If you're truly in the 0% bracket, Line 16 on your 1040 should show $0 for capital gains tax, even though the gains are included in your total income. Most tax software will also have a "tax summary" or "detailed calculation" view that breaks down exactly how much tax you're paying on different types of income. Look for a section that specifically mentions "long-term capital gains tax" - it should show $0. You're correct that you'll still owe state taxes on these gains (assuming your state taxes capital gains), but federally you should be in the clear!

As someone who's been through this exact situation, I can confirm you're absolutely correct about qualifying for the 0% federal rate! Your math looks spot-on. One thing that really helped me was creating a simple spreadsheet to track my "tax bucket" throughout the year. I list my expected ordinary income, then track how much "room" I have left in the 0% capital gains bracket before hitting that $47,025 threshold. This way I can make strategic decisions about when to realize gains. Also, since you mentioned you're using tax software, most programs have a "what-if" scenario feature where you can add hypothetical income (like additional capital gains) to see how it affects your tax liability. This is super useful for year-end planning - you can see exactly how much more you could sell while staying in the 0% bracket. One last tip: if you do end up with gains that would push you slightly over the threshold, consider whether you have any capital losses you could harvest to offset them. Even small losses can help keep you in that sweet 0% bracket!

This thread has been incredibly helpful! As someone who's been on the fence about UHC's Apple Watch program, seeing all these real-world experiences has given me a much clearer picture of what to expect. A few things that really stood out to me: 1. The tax hit is significant but predictable if you plan for it 2. Documentation and staying on top of deadlines seems crucial for success 3. The program works best for people who are already active rather than those hoping it will motivate lifestyle changes One question I haven't seen addressed - has anyone used the Apple Watch's health data for anything beyond the UHC program requirements? I'm wondering if the detailed heart rate, sleep, and activity data might be useful for discussions with my doctor or for other health-related purposes that could add value beyond just meeting the wellness program goals. Also, for those who completed the program successfully, did you find that the health insights from the Apple Watch were genuinely helpful, or was it mainly just a way to get a discounted device? I'm trying to weigh whether the health benefits justify the complexity of the program versus just buying a watch outright. Thanks everyone for sharing such detailed experiences - this is exactly the kind of real-world perspective you can't get from UHC's marketing materials!

This has been such a comprehensive discussion! I'm a tax accountant who works with a lot of clients navigating these employer wellness programs, and I wanted to add one more perspective that might help folks making this decision. One thing I've noticed is that many people focus heavily on the immediate tax implications but don't consider the potential long-term health cost savings. Several of my clients who've gone through UHC's Apple Watch program have told me that the consistent health monitoring helped them catch issues early or motivated them to maintain better habits that reduced their healthcare costs over time. From a pure financial planning perspective, if the watch helps you avoid even one urgent care visit or catch a health issue early, the tax savings from reduced medical expenses could more than offset the initial tax hit from the imputed income. That said, I always advise clients to treat the wellness requirements as a serious commitment. I've seen too many people get excited about the "free" device and then struggle with the ongoing obligations. The key is being honest about your lifestyle and whether you can realistically maintain the activity levels for a full year. For anyone moving forward with this, I'd recommend keeping detailed records not just for UHC compliance, but also for your own tax planning. Health-related expenses can sometimes be deductible, and having comprehensive data makes it easier to identify potential tax benefits down the road.