@satoshipacioli
The Bitcoin Accounting Firm
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Recent Notes
Bitcoin price is down!!!!
Buy the dip!!!!
But also sell the dip? Might help lower your tax bill if you.
Check out our latest substack linked below that covers the Wash sale rule and how it relates to bitcoin
https://open.substack.com/pub/satoshipacioliaccounting/p/why-bitcoin-is-not-subject-to-wash?r=6l5wwc&utm_medium=ios
Buy the dip!!!!
But also sell the dip? Might help lower your tax bill if you.
Check out our latest substack linked below that covers the Wash sale rule and how it relates to bitcoin
https://open.substack.com/pub/satoshipacioliaccounting/p/why-bitcoin-is-not-subject-to-wash?r=6l5wwc&utm_medium=ios
Business owners: Are you missing out on this tax-saving opportunity? 🏠💼
The Augusta Rule lets you rent your home to your business for up to 14 days a year, tax-free. Your business deducts the expense, and you pocket the income without paying taxes on it.
Example: Rent your home for $1,000/day x 14 days = $14,000 tax-free income while reducing your business taxes.
This works for meetings, events, or trainings—but you must document everything and use a fair market rate.
Don’t leave money on the table. Let’s talk about how to make this work for you!
The Augusta Rule lets you rent your home to your business for up to 14 days a year, tax-free. Your business deducts the expense, and you pocket the income without paying taxes on it.
Example: Rent your home for $1,000/day x 14 days = $14,000 tax-free income while reducing your business taxes.
This works for meetings, events, or trainings—but you must document everything and use a fair market rate.
Don’t leave money on the table. Let’s talk about how to make this work for you!
🚨 Stop! Don’t fall for misleading tax advice on social media 🚨
The IRS is warning taxpayers about viral “tax hacks” that promise huge refunds but can lead to delayed refunds, audits, steep penalties, and even criminal prosecution. Scammers and misinformed influencers are pushing bad advice to get likes and clicks while putting your finances at serious risk.
🔍 Top scams to watch out for:
• ❌ “Self-Employment Tax Credit” – This credit doesn’t exist. Scammers misuse Form 7202, which applied only for COVID-19 sick and family leave credits in 2020-2021. It’s not valid for 2023 or 2024.
• ❌ Fuel Tax Credit – This credit is for qualifying business purposes like farms or aviation fuel, not for the gas in personal vehicles. Most individuals do not qualify, yet scammers push this to inflate refunds.
• ❌ Fake income or withholding – Scammers encourage filing false W-2s with fake income and withholding to generate large refunds. This is fraud and can result in audits, fines, and criminal charges.
• ❌ “Claim of Right” Deduction – Promoters advise taxpayers to deduct their wages as “necessary expenses,” which has no legal basis and will result in IRS scrutiny.
• ❌ Fictional household employees – A scam where taxpayers invent employees and misuse Schedule H to claim false sick leave credits.
💡 The bottom line:
If it sounds too good to be true, it probably is. Viral videos and influencers promoting “free money” or secret tax tricks are spreading misleading or outright fraudulent advice. Falling for these schemes can delay refunds, trigger IRS audits, or result in fines and even federal prosecution.
✅ What should you do instead?
1️⃣ Follow trusted sources: Visit www.IRS.gov or follow official IRS social media accounts for accurate information.
2️⃣ Consult a tax professional: A qualified, licensed tax expert can help you navigate tax season safely and maximize legitimate credits.
3️⃣ Fact-check before you act: Don’t take financial advice from someone “talking in their car or kitchen.” Do your research first.
4️⃣ Report scams: Protect yourself and others by reporting tax fraud and suspicious preparers to the IRS or Treasury Inspector General.
💡 Remember: Social media may be entertaining, but it’s not the place for reliable tax advice. Protect your refund, your finances, and your peace of mind by seeking trustworthy, verified sources this tax season.
The IRS is warning taxpayers about viral “tax hacks” that promise huge refunds but can lead to delayed refunds, audits, steep penalties, and even criminal prosecution. Scammers and misinformed influencers are pushing bad advice to get likes and clicks while putting your finances at serious risk.
🔍 Top scams to watch out for:
• ❌ “Self-Employment Tax Credit” – This credit doesn’t exist. Scammers misuse Form 7202, which applied only for COVID-19 sick and family leave credits in 2020-2021. It’s not valid for 2023 or 2024.
• ❌ Fuel Tax Credit – This credit is for qualifying business purposes like farms or aviation fuel, not for the gas in personal vehicles. Most individuals do not qualify, yet scammers push this to inflate refunds.
• ❌ Fake income or withholding – Scammers encourage filing false W-2s with fake income and withholding to generate large refunds. This is fraud and can result in audits, fines, and criminal charges.
• ❌ “Claim of Right” Deduction – Promoters advise taxpayers to deduct their wages as “necessary expenses,” which has no legal basis and will result in IRS scrutiny.
• ❌ Fictional household employees – A scam where taxpayers invent employees and misuse Schedule H to claim false sick leave credits.
💡 The bottom line:
If it sounds too good to be true, it probably is. Viral videos and influencers promoting “free money” or secret tax tricks are spreading misleading or outright fraudulent advice. Falling for these schemes can delay refunds, trigger IRS audits, or result in fines and even federal prosecution.
✅ What should you do instead?
1️⃣ Follow trusted sources: Visit www.IRS.gov or follow official IRS social media accounts for accurate information.
2️⃣ Consult a tax professional: A qualified, licensed tax expert can help you navigate tax season safely and maximize legitimate credits.
3️⃣ Fact-check before you act: Don’t take financial advice from someone “talking in their car or kitchen.” Do your research first.
4️⃣ Report scams: Protect yourself and others by reporting tax fraud and suspicious preparers to the IRS or Treasury Inspector General.
💡 Remember: Social media may be entertaining, but it’s not the place for reliable tax advice. Protect your refund, your finances, and your peace of mind by seeking trustworthy, verified sources this tax season.
November & December are prime months for tax planning. Here are 15 ways to save now and in the future:
1️⃣ Max out retirement contributions – Contribute the max $23,000 to traditional or Roth 401(k)s. Traditional reduces taxable income; Roth builds tax-free retirement savings.
2️⃣ Mega Backdoor Roth – Some workplace plans allow after-tax 401(k) contributions that can be rolled into a Roth IRA or Roth 401(k). Save even more for retirement with tax-free growth potential.
3️⃣ Backdoor Roth – For high earners, contribute to a non-deductible traditional IRA and convert it to a Roth IRA. Ensure you have no pre-tax IRA balances by Dec 31 to avoid pro-rata taxes.
4️⃣ Donate appreciated shares – If donating to charity, give appreciated shares instead of cash to avoid capital gains taxes. Repurchase the shares to reset your cost basis and reduce future taxable gains.
5️⃣ Qualified Charitable Distribution (QCD) – If you’re 70½+, donate directly from your IRA (up to $105,000). This satisfies RMDs, avoids taxes on the distribution, and lets you take the standard deduction.
1️⃣ Max out retirement contributions – Contribute the max $23,000 to traditional or Roth 401(k)s. Traditional reduces taxable income; Roth builds tax-free retirement savings.
2️⃣ Mega Backdoor Roth – Some workplace plans allow after-tax 401(k) contributions that can be rolled into a Roth IRA or Roth 401(k). Save even more for retirement with tax-free growth potential.
3️⃣ Backdoor Roth – For high earners, contribute to a non-deductible traditional IRA and convert it to a Roth IRA. Ensure you have no pre-tax IRA balances by Dec 31 to avoid pro-rata taxes.
4️⃣ Donate appreciated shares – If donating to charity, give appreciated shares instead of cash to avoid capital gains taxes. Repurchase the shares to reset your cost basis and reduce future taxable gains.
5️⃣ Qualified Charitable Distribution (QCD) – If you’re 70½+, donate directly from your IRA (up to $105,000). This satisfies RMDs, avoids taxes on the distribution, and lets you take the standard deduction.
Who’s a Good Fit for an S-Corp? 🤝
S-Corps shine for:
✔️ Small-to-medium businesses with steady profits.
✔️ Owners actively working in the biz who want to save on taxes.
✔️ Anyone okay with handling the paperwork and payroll.
But they’re NOT ideal if:
❌ You’re chasing big investors.
❌ You’ve got foreign partners or need multiple stock types.
Got steady cash flow? This might be your sweet spot.
S-Corps shine for:
✔️ Small-to-medium businesses with steady profits.
✔️ Owners actively working in the biz who want to save on taxes.
✔️ Anyone okay with handling the paperwork and payroll.
But they’re NOT ideal if:
❌ You’re chasing big investors.
❌ You’ve got foreign partners or need multiple stock types.
Got steady cash flow? This might be your sweet spot.
The Downsides of S-Corps 😬
Not everything’s sunshine and tax savings. Here’s the deal:
⚠️ Strict Rules: Max 100 U.S. shareholders, and only one type of stock allowed.
⚠️ Admin Work: Meetings, minutes, payroll, filings.
⚠️ “Reasonable Salary” Rule: The IRS expects owner-employees to pay themselves a fair wage (yes, even if profits are tight).
Make sure the benefits outweigh the hassle for your business.
Not everything’s sunshine and tax savings. Here’s the deal:
⚠️ Strict Rules: Max 100 U.S. shareholders, and only one type of stock allowed.
⚠️ Admin Work: Meetings, minutes, payroll, filings.
⚠️ “Reasonable Salary” Rule: The IRS expects owner-employees to pay themselves a fair wage (yes, even if profits are tight).
Make sure the benefits outweigh the hassle for your business.