Partnerships, Crypto, and More | Tax Sherpa Live - 2024-08-13

In this full episode of Tax Sherpa Live aired on August 13, 2024, Neal McSpadden, the founder, and chief tax strategist at TaxSherpa, discussed a variety of vital tax topics geared toward solopreneurs, small business owners, and independent contractors. This session is filled with valuable insights and actionable advice that can help you optimize your tax strategies and achieve financial freedom.

Key Topics Covered

New Community Launch

I have actually been thinking about this since 2016. Maybe 2017 as far as how to turn, what we do and just the giant masses of information in my head into something that people can actually consume.

Neal discusses the exciting launch of their new community platform, providing a more structured and accessible way for people to consume TaxSherpa's content and tools. He describes the different levels of the new community and shares his longstanding vision for making tax information more accessible.

https://taxsherpa.com/explorer

Understanding 1099-K Changes

Neal delves into the significant changes in the 1099-K reporting requirements and their implications. He explains how the new rules may affect a wide range of taxpayers and the steps needed to ensure compliance.

Common Errors in Form 1065 Filings

There are lots of issues with partnerships

Neal addresses common errors and oversights in Form 1065 filings for partnerships, including issues with self-employment tax, guaranteed payments, and capital accounts. This discussion provides insights into how partnerships can avoid these pitfalls and ensure accurate tax reporting.

Advanced Tax Planning Techniques

Yes, is the answer, but there's all kinds of different tax strategies

Neal confirms the implementation of sophisticated tax planning techniques for high-net-worth individuals and corporations in his experience. He also shares an example of saving a client $6 million with one advanced strategy.

Tax Implications of Divorce

This gets sticky.

Neal discusses the complex tax implications of divorce, especially concerning who should claim a child as a dependent. He outlines the IRS rules, court rulings, and practical solutions for dealing with these situations.

State Tax Filing for Partnerships

Yeah. So there's different methods

Neal explains different methods for state tax filings for partnerships operating in multiple states. He highlights the importance of proper allocation methods based on payroll, profit, and property to ensure accurate tax reporting.

Handling Property Contributions in Partnerships

You contribute property at the contributor's basis.

Neal advises on how to handle property contributions in partnerships, emphasizing correct reporting on tax returns. He explains the concept of basis and how it applies to these situations.

Addressing S Corporation Shareholder Issues

Neal discusses steps to resolve issues when the IRS questions an S corporation due to an ineligible shareholder. He provides a quick overview of eligible shareholders and warns of the consequences of improper structuring.

Understanding Stock Options and RSUs

Stock compensation can get all kinds of squirrely depending on how it's done

Neal clarifies the tax implications of receiving stock options and RSUs from an employer. He explains the difference between ordinary income and capital gains taxation in these scenarios.

Reporting Cryptocurrency Transactions

It's complicated and how it's to be reported depends on what you're doing.

Neal advises on the complexities of reporting cryptocurrency transactions. He outlines different scenarios such as capital gains, receiving payments, and various DeFi activities. He highlights the importance of accurate reporting to avoid IRS issues.

Exploring the Business Design Calculator

Neal reveals a new business design calculator that helps small business owners quickly analyze their revenue targets and expense structures. This tool aims to provide clarity and aid in strategic planning.

Join the Tax Sherpa Explorers Community

Our mission as always is to make more money and to keep it

Neal invites everyone to join the TaxSherpa Explorers community for free. This community provides valuable resources, templates, and tools to help small business owners and entrepreneurs manage their taxes and grow their businesses efficiently.

https://taxsherpa.com/explorer

Join Us Live Next Time and submit your questions in the Explorer community!