Posted on 04/14/2017 2:29:46 PM PDT by SteveH
you can be honest and trustworthy, and still give sh*tty advice.
use a very small portion of your windfall to consult an expert.
My accountant took care of everything but we did all the filings together.
The best advice you have gotten is to get a good accountant.
True, I was telling you what I encountered so each situation is different. Apparently what I encountered is also odd or doesn’t fit what you described.
You should NOT be in a position to panic, especially if you are holding back your funds just in case. That is why you get an accountant so he/she tells you what to do in advance and also the best way to deal with changes in circumstance.
With $125K that would be a tiny expenditure and investment in your peace of mind.
The most peculiar thing for me was that even though we filed using tax software that does the calculations (a package for accountants), the IRS refunded me about $500.
S-Corp is easy and relatively cheap. It has some unique advantages but consult your newfound accountant :)
there was only one remaining ambiguous situation and it involved a state tax break for an eco friendly water heater and installation which was charged though not separately itemized in a larger heating service bill. i used market estimates and lowered the result a bit to try to keep me out of trouble. the heating company accountants would not break down the bill when i asked them to (go figure). after wading through everything else and even recalling earlier advice of relatives working in the IRS, I was not that apprehensive. Any penalty will probably be much smaller than a $1+k accounting fee. Now I just wanna go out and buy a really fast and sexy male menopause machine. (No, not really. Just work on one of my pre-smog-control cars is good enough mental therapy, lol.)
If my current hobby ever takes off and becomes a self sustaining biz venture, then yeah! :-)
Just read publication 505.
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