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Hellblazer187 posted:Oh, that's actually kind of, like, possible for a small practice. I don't need or want much. Since I don’t think you’re in the PNW I can’t help you out directly with financing but it would be worth talking to someone at a local bank that does SBA 7(a) financing. I’d recommend staying away from a larger institution (Wells, Chase, BofA) because they aren’t great at helping you through a transaction but Live Oak Bank might be a good starting point since they’re the largest SBA lender in the country.
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Apr 13, 2021 18:55
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There are some remote firms on AccountingPracticeSales Dot Com but they're all like 400k and up, and I don't have 40k lying around. Plus I don't want that much. If I was buying a non-remote practice I'd probably buy in Florida, and there are some there that are the size I could conceivably buy. Probably not going to happen, starting from scratch seems more likely for me, even if it means living lean for 2-3 years and taking odd jobs/teaching english to stay afloat. Assuming I don't get fired, after my July and November bonuses I should have a full year of living expenses saved up.
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Apr 13, 2021 19:02
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I'm about to buy a house that has a 1M price. If I sell some investments, I can buy the house with cash. If I do this, I have to pay taxes on 1M of income. Alternatively, I can get a mortgage and I sell the investments as I go, which means I get a break on taxes, but then I have to pay interest. How can I calculate which approach is better? I have really good credit, so I'm likely to get a good mortgage rate.
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Apr 13, 2021 20:33
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School of How posted:How can I calculate which approach is better? with a calculator School of How posted:How do I find a good accountant? I don't think taxes should be your primary concern right now, the downside risk of your crypto holdings should be your primary concern. You're talking about leveraging speculative investments that have a considerable amount of volatility and downside risk. You should not be taking out a loan with the expectation that you will pay it off some other day with proceeds from speculative investments. edit: on second thought, if you had any significant crypto trading activity in 2020, taxes probably should be your primary concern right now, rather than posting about home purchase financing/future tax avoidance strategies Blotto_Otter fucked around with this message at 21:50 on Apr 13, 2021 |
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Apr 13, 2021 20:48
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Blotto_Otter posted:with a calculator What I mean is, imagine a graph with the x-axis being size of a mortgage loan, and the y-axis being total interest on that loan. That plot makes a curve. On the same graph there is another line with the x-axis being income and the y-axis being tax. At some point those two curves intersect at some x value. Behind that intersection it cheaper to just get a mortgage, and above the intersection is cheaper to just pay the high income tax bill (or vice versa). Its my hunch that accountants must get asked this kind of question often. I can't be the only person in recorded history to find myself in this situation.
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Apr 13, 2021 22:25
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School of How posted:What I mean is, imagine a graph with the x-axis being size of a mortgage loan, and the y-axis being total interest on that loan. That plot makes a curve. On the same graph there is another line with the x-axis being income and the y-axis being tax. At some point those two curves intersect at some x value. Behind that intersection it cheaper to just get a mortgage, and above the intersection is cheaper to just pay the high income tax bill (or vice versa). Its my hunch that accountants must get asked this kind of question often. I can't be the only person in recorded history to find myself in this situation. As an example, if you paid a million dollars in cash for a house five years ago you lost another million dollars by not being in equities instead.
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Apr 13, 2021 22:29
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School of How posted:I'm about to buy a house that has a 1M price. If I sell some investments, I can buy the house with cash. If I do this, I have to pay taxes on 1M of income. Alternatively, I can get a mortgage and I sell the investments as I go, which means I get a break on taxes, but then I have to pay interest. How can I calculate which approach is better? I have really good credit, so I'm likely to get a good mortgage rate. Interest rates 0%. Tax rate is between like 18-32% since I don't have my printed bracket sheet printed next to me because I'm at a Hooters. Don't have to do calculations to solve this grift problem.
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Apr 13, 2021 22:44
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I refuse to learn how to account for anything Bitcoin related and nobody can make me
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Apr 13, 2021 23:08
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Good Citizen posted:I refuse to learn how to account for anything Bitcoin related and nobody can make me It's literally exactly the same as stock sales. Except most of the time it's trading a stock for another stock. So you gotta know the price of both at the exact moment the transaction happened. The real answer to doing crypto taxes is "pay bitcoin.tax whatever they charge and just import everything there." Personally if I had a bunch of crypto, a fake thing, and I could turn that into a house, which is a real thing, I'd probably do that immediately without being too concerned about taxes. I feel like getting a house out of the deal before everyone realizes how stupid crypto is and it turns into nothing is probably a good idea. But I'm risk averse enough to to think "1 soul for 1 lower middle class career" is a good bargain so I became a CPA. YMMV. Hellblazer187 fucked around with this message at 23:25 on Apr 13, 2021 |
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Apr 13, 2021 23:17
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Hellblazer187 posted:It's literally exactly the same as stock sales. Except most of the time it's trading a stock for another stock. So you gotta know the price of both at the exact moment the transaction happened. PwC’s new guidance suggests that companies account for crypto as intangible assets on the balance sheet with all the impairment implications that entails. gently caress that and gently caress all crypto
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Apr 13, 2021 23:19
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School of How posted:What I mean is, imagine a graph with the x-axis being size of a mortgage loan, and the y-axis being total interest on that loan. That plot makes a curve. On the same graph there is another line with the x-axis being income and the y-axis being tax. At some point those two curves intersect at some x value. Behind that intersection it cheaper to just get a mortgage, and above the intersection is cheaper to just pay the high income tax bill (or vice versa). Its my hunch that accountants must get asked this kind of question often. I can't be the only person in recorded history to find myself in this situation. nope, never been done before, you're the first. you should probably ask about this with the CPA you've got doing your taxes, because you got a CPA to do your taxes after you became a crypto millionaire, right e: Hellblazer187 posted:Personally if I had a bunch of crypto, a fake thing, and I could turn that into a house, which is a real thing, I'd probably do that immediately without being too concerned about taxes. I feel like getting a house out of the deal before everyone realizes how stupid crypto is and it turns into nothing is probably a good idea. don't listen to this nerd. crypto is very real and definitely not a highly volatile speculative investment that provides no utility or intrinsic value, it will definitely be worth even more a few years from now and you should avoid all taxes by hodling forever and definitely not cashing it out as soon as possible Good Citizen posted:PwC’s new guidance suggests that companies account for crypto as intangible assets on the balance sheet with all the impairment implications that entails. gently caress that and gently caress all crypto Blotto_Otter fucked around with this message at 23:33 on Apr 13, 2021 |
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Apr 13, 2021 23:24
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Good Citizen posted:PwC’s new guidance suggests that companies account for crypto as intangible assets on the balance sheet with all the impairment implications that entails. gently caress that and gently caress all crypto Oh, I've never had a company with crypto, just individuals. But lmao.
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Apr 13, 2021 23:25
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Yes there is a number where the lifetime interest on a hypothetical mortgage equals the income taxes paid on hypothetical gains, and you could probably work out a rough tax cost X for reducing mortgage interest by Y. But I really don’t see how this is helpful information. As someone else already pointed out, what matters is the shift in your portfolio and the rate of return on real estate vs other investments, which no one knows for certain. If we’re actually talking about crypto gains then my accountant answer is holy poo poo buy the house and be happy. Mush Mushi fucked around with this message at 23:33 on Apr 13, 2021 |
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Apr 13, 2021 23:30
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Blotto_Otter posted:
Who is PwC to question the Master of Coin 
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Apr 13, 2021 23:37
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Mush Mushi posted:Who is PwC to question the Master of Coin Seriously, dudes can’t even get the oscars right
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Apr 13, 2021 23:59
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No Wave posted:The reason there isn't a firm answer is you aren't including the most important variable, Z, which is the rate of return on your investments and nobody responsible will give you a real number for that because it's such a giant financial decision. I believe my investments is in a bubble, and I hope to sell as much as I can before the bubble pops. I was expecting the thread to respond with "No No No, you dumb idiot, never ever ever buy a house in cash you stupid moron". The fact that people are acting like buying a house in cash is a reasonable thing to do, pushes me to that option. My next question is this: I did the math, and if I sell 1.6M worth of investment, after taxes, I'll take home exactly 1M which is enough to buy the house in cash. The problem is that I currently live in Texas, which has no income tax, so my effective tax rate is 37%. The entire point of selling is to buy a house in another state, which has an income tax. My effective tax rate in the other state will be 42%. The difference is like 82K. How can I make sure the 1.6M sell get counted as having been done under my Texas residency, and not counted as being done under a time I'm living in the other state? Either way I have to pay almost 600K to Nancy Pelosi, which I know I'm not able to avoid.
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Apr 14, 2021 04:53
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Hmmm. Good luck!
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Apr 14, 2021 05:43
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Mush Mushi posted:Yes there is a number where the lifetime interest on a hypothetical mortgage equals the income taxes paid on hypothetical gains, and you could probably work out a rough tax cost X for reducing mortgage interest by Y. But I really don’t see how this is helpful information. As someone else already pointed out, what matters is the shift in your portfolio and the rate of return on real estate vs other investments, which no one knows for certain. Accountant Megathread - I really don’t see how this is helpful information
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Apr 14, 2021 13:40
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School of How posted:I believe my investments is in a bubble, and I hope to sell as much as I can before the bubble pops. I was expecting the thread to respond with "No No No, you dumb idiot, never ever ever buy a house in cash you stupid moron". The fact that people are acting like buying a house in cash is a reasonable thing to do, pushes me to that option. Do you have any basis in these assets? Generally basis will be what you paid to buy them, or if you received them as a gift whatever that person paid for them, or if you received them as inheritance the market value on the date of death. Have you held any of them longer than one year? Both of these items change the tax calculation pretty significantly. For million+ dollar transactions, talk to a CPA that you pay money to, not goons on the internet. Generally speaking when you change residency, things that happen before the residency change aren't taxed in the new state. Seriously, go take like $500 and schedule a consultation with a CPA in the new state and arrange things with him or her. I've seen so many people save $500 on a consultation fee and cost themselves $25,000+.
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Apr 14, 2021 14:04
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Hellblazer187 posted:I've seen so many people save $500 on a consultation fee and cost themselves $25,000+. yeah but how could I possibly afford a $500 consultation fee when I'm about to be out $600k to Nancy Pelosi and the Demonrats, randos on the internet are cheaper and eventually one of them will tell me what I want to hear https://twitter.com/nytimes/status/1382332559795888131 Bernie is survived by Harry Markopolous, the forensic accountant who did just a little bit of math one day and realized Madoff was running a Ponzi scheme, and was then ignored for almost a decade because nobody wants to listen to the accountant telling everyone that the party is about to end and the hangover is going to be incredible
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Apr 14, 2021 15:34
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It's a bitch to track crypto basis on your own because trading one crypto for another is a taxable event and tends to involve really annoying fractions of shares which all may have dif basis depending on when acquired, so if you shift around between different coins often it's nearly impossible to properly track your basis I'm a big fan of cointracker.io to track crypto cap gains/income, I only use the free version and it works well enough for tracking/reporting my personal ish (full disclosure I have NOT dropped 7 figures into the volatile chaos of crypto, at that point you may have to pay for the subscription or whatever,but assume it would track well all the same)
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Apr 14, 2021 15:59
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black.lion posted:It's a bitch to track crypto basis on your own because trading one crypto for another is a taxable event and tends to involve really annoying fractions of shares which all may have dif basis depending on when acquired, so if you shift around between different coins often it's nearly impossible to properly track your basis I like bitcoin.tax better, but yeah. Use one of the bigger exchanges, and import the data to one of those tools, print out a gain report, and import into software of your choosing.
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Apr 14, 2021 16:16
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Yeah I've never tried bitcoin.tax I use binance.us and it links into cointracker.io flawlessly so, like, if it ain't broke I guess? It'll literally print you out Form 8949 with your ish filled in already
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Apr 14, 2021 17:10
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hey another quick question - does anyone feel like they got dumber this year? Like my brain just doesn't work the same anymore. I don't even know if I'm smart enough to be an accountant anymore. I almost feel like doing manual labor for a year except my body is tired too. Is this depression?
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Apr 14, 2021 18:12
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Hellblazer187 posted:Do you have any basis in these assets? Generally basis will be what you paid to buy them, or if you received them as a gift whatever that person paid for them, or if you received them as inheritance the market value on the date of death. Have you held any of them longer than one year? Both of these items change the tax calculation pretty significantly. Actually, the stash I plan on selling came as payment for building a freelance software project for a well known cryptocurrency exchange. They paid me in BTC in 2014, and I've just held it all this time. So the basis for it is I guess $0. I agree it's best to pay for an accountant if there's millions involved, but up until this point my tax situation has been very simple and I've always just used turbotax. I think if I choose a bad accountant the result could be even worse than if I had just gone with turbotax, so how do I find a good accountant? Just pick up the phone book and call the first name that comes up?
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Apr 14, 2021 20:01
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Hellblazer187 posted:hey another quick question - does anyone feel like they got dumber this year? Like my brain just doesn't work the same anymore. I don't even know if I'm smart enough to be an accountant anymore. I almost feel like doing manual labor for a year except my body is tired too. Is this depression? Same and yes. This is important to identify before you sell yourself to enhance an Asian school's prestige. Not to dissuade you from that path, but the expat population (wherever english teach is found) is going to be extremely same.
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Apr 14, 2021 20:22
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Hellblazer187 posted:hey another quick question - does anyone feel like they got dumber this year? Like my brain just doesn't work the same anymore. I don't even know if I'm smart enough to be an accountant anymore. I almost feel like doing manual labor for a year except my body is tired too. Is this depression? Been feeling something similar. Between this, general tiredness, and the breathing problems I've been having since March/April 2020, sometimes I wonder if I got Covid early on, got very lucky with initial symptoms but am now dealing with long Covid. Then I remember it's probably mostly just stress-related, including the very real possibility that stress exacerbated my gastro-esophageal reflux that is causing the now-occasional breathing problems.
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Apr 14, 2021 20:48
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School of How posted:Actually, the stash I plan on selling came as payment for building a freelance software project for a well known cryptocurrency exchange. They paid me in BTC in 2014, and I've just held it all this time. So the basis for it is I guess $0.
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Apr 14, 2021 20:48
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scribe jones posted:nope! your basis is the value of the BTC when you received it in 2014. (and you remember to report that same amount as income back in 2014, right?) Oopsies
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Apr 14, 2021 20:59
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scribe jones posted:nope! your basis is the value of the BTC when you received it in 2014. (and you remember to report that same amount as income back in 2014, right?) Yup, scribe beat me to it. That was self employment income in 2014. On the plus side you're looking at long term gains, so that's better for you. Hire a CPA. mojo1701a posted:Been feeling something similar. Between this, general tiredness, and the breathing problems I've been having since March/April 2020, sometimes I wonder if I got Covid early on, got very lucky with initial symptoms but am now dealing with long Covid. bruh are you me. I did actually get sick in Feb 2020, I assumed it was a weird cold. I just slept for like a month. It's too bad there's not a way to test if I had Covid a year ago. (cutting carbs helped with reflux for me. I don't even have to go keto, I just can't really do big pizza/pasta nights or candy. Not that it always stops me). KirbyKhan posted:Same and yes. This is important to identify before you sell yourself to enhance an Asian school's prestige. Not to dissuade you from that path, but the expat population (wherever english teach is found) is going to be extremely same. I already am an expat. I sometimes miss the US and then sometimes I'm terrified of ever going back. Hellblazer187 fucked around with this message at 22:54 on Apr 14, 2021 |
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Apr 14, 2021 22:51
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So client had some unreported income in 2018 that the IRS picked up on, assessed increased tax, yada yada. I wrote a letter asking for abatement of penalties. Client just received CP3219A... talking about tax court. I've never seen this notice (only been doing this a few years) - is my client turbofucked? It appears they have not processed the letter I sent...
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Apr 14, 2021 23:47
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Client probably not turbofucked per se, but pay attention to the deadlines and refer him to a tax lawyer if it's really necessary. I don't remember the notice numbers but if the letter is one of those "this is in tax court now you have 60 days to do a reply" then you gotta get the petition in to the tax court. Depending on the amount in controversy it might be better to just pay the penalties than to hire a lawyer. If we're talking huge penalties Most tax court cases do settle so it might be worth fighting it. I'm assuming he's already paid the assessed tax due and the fight is just about the penalties? The IRS is really loving dogshit at processing correspondence this last year or two. I guess not their fault, and why they're hiring ten million new staff. But it's frustrating as hell on the practitioner side.
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Apr 15, 2021 01:06
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Tax actually hasnt been paid yet bc an agent I spoke with... in October said not to pay anything until they responded to the letter (which was in response to a cp2000) which I thought was odd, they also said not to file an amended return. Client is rdy to pay the tax Im just trying to burn off the penalty, its ~1k Maybe I should stop listening to IRS agents
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Apr 15, 2021 02:01
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black.lion posted:Tax actually hasnt been paid yet bc an agent I spoke with... in October said not to pay anything until they responded to the letter (which was in response to a cp2000) which I thought was odd, they also said not to file an amended return. Client is rdy to pay the tax Im just trying to burn off the penalty, its ~1k Record that poo poo bro.
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Apr 15, 2021 05:16
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Happy April 15, if you celebrate. Personally I’m gonna quit today.
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Apr 15, 2021 12:49
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This is the most anticlimactic ish ever - last year there was so much going on I didn't even notice, this year it's sad af... i should be on vacation tomorrow waaaaah Sounds like you have a good day lined up tho HWM!
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Apr 15, 2021 13:57
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black.lion posted:Tax actually hasnt been paid yet bc an agent I spoke with... in October said not to pay anything until they responded to the letter (which was in response to a cp2000) which I thought was odd, they also said not to file an amended return. Client is rdy to pay the tax Im just trying to burn off the penalty, its ~1k Yeah that's kinda weird. I'd almost always suggest paying the tax and then fighting the penalty. Or even paying both and fighting to get the penalty refunded. But for $1k it's almost certainly not worth going to any kind of tax lawyer to go to tax court or whatever.
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Apr 15, 2021 15:48
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Hellblazer187 posted:Yeah that's kinda weird. I'd almost always suggest paying the tax and then fighting the penalty. Or even paying both and fighting to get the penalty refunded. But for $1k it's almost certainly not worth going to any kind of tax lawyer to go to tax court or whatever. Yeah my usual go-to is pay the tax and then argue abt the penalty so it was sort of confusing when I saw we hadn't, like "past black.lion, what did you do?!" After looking through my notes (again from October lmao) it turns out we didn't pay the tax owed bc client wanted to set up a payment plan, and agent suggested that setting up a pmt plan for just the tax owed and NOT the penalties wasn't possible until penalties were dealt with... which I guess makes sense. Also turns out my office faxed a copy of the 2848 without my signature on it, which explains why they are ignoring my letter. So I'ma get a new POA that's properly executed and give them a call and see if I can get it sorted, thanks for the feedback y'all that was some major just-got-home-oh-god-what-is-this evening work anxiety
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Apr 15, 2021 16:04
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Something that occurred to me: how do you quit? I’m resigning today for a new job at another firm, and I guess I just email the partners?
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Apr 15, 2021 17:02
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Hurt Whitey Maybe posted:Something that occurred to me: how do you quit? I’m resigning today for a new job at another firm, and I guess I just email the partners? Open Microsoft word on your personal (not work) computer. Write everything you want to say to the partners. Then delete it. Then just google "template resignation letter" and send them that instead.
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Apr 15, 2021 17:07
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