Dan Chodan

[Dan Chodan @danchodan]

Court denies $5M ERC claims.

MA mental health clinic filed 3 qtrs of 2021. Claimed eligibility under suspension of operations. Court ruled it was exempt from state orders. General pandemic conditions are not orders. Any suspension was voluntary.

Northeast Health Services v. US

[Dan Chodan @danchodan]

@andreacpa0 PY + COLA

[Dan Chodan @danchodan]

@andreacpa0 @AccountingAsArt PY + COLA

[Dan Chodan @danchodan]

@andreacpa0 Sweet ponzi

[Dan Chodan @danchodan]

https://t.co/itVvocQzQu

[Dan Chodan @danchodan]

IRS allows common controlled exception to trigger 100% bonus on new OBBB Qualified Production Property.

Previously it seemed only the operating entity could qualify for QPP. Now this appears to open the door to most related entity lessors in self-rental situations.

[Dan Chodan @danchodan]

Trump accounts are not exciting. Contributions are not deductible. Earnings taxed at ordinary rates. Small seed $ and low limits.

But perhaps the more exciting play is Roth conversion after the growth period. Use low tax years at 18- college to convert Trump account to Roth IRA.

[Dan Chodan @danchodan]

30 years mortgages are just as bad as 50 year mortgages

[Dan Chodan @danchodan]

@BrooksBrownEA @LoganGrafTax @JoshYoungblood Evergreen
https://t.co/LXnZjTvuGC

[Dan Chodan @danchodan]

@cordes_tax EAs be like

[Dan Chodan @danchodan]

@ignatiuscpa "This assertion(suspension testimony) is contradicted by other record evidence showing that the company continued to grow, increased gross receipts, and hired new employees."

Higher receipts/profits are not fatal to ERC suspension necessarily, but they can tend to be a bad sign.

[Dan Chodan @danchodan]

Well, well, well...

The #OSHAargument fails in court.

No ERC for a construction company in NC arguing suspension on OSHA/CDC/state grounds.

Guidance is NOT an order, folks. And even if it were - you must then demonstrate the impact of that order to suspend operations.

[Dan Chodan @danchodan]

Yes, bad things happened to businesses due to covid.

But for ERC, a suspension must be due to a government covid order to qualify.

[Dan Chodan @danchodan]

This court didn't need to give us more. But we are given one more gem:

General Disruption is Insufficient

[Dan Chodan @danchodan]

@TheTaxNomad But like it or not, these will be around in the next five years and CPAs will need to understand them just like PTPs and oil/gas K1s.

[Dan Chodan @danchodan]

Long short portfolio tax strategy pitches are having a moment.

(Tax loss harvesting on steroids)

Perhaps there was a conference somewhere which kicked off every advisor? Gone from zero to 1000% this fall. If you haven't seen it yet, you will soon.

[Dan Chodan @danchodan]

@TheTaxNomad But aren't there cheaper, less risky avenues to doing some things?

The sales pitches are coming in hot but I reflexively slow down looking at tax- motivated investment strategies.

Sometimes it's just better to pay the tax.

[Dan Chodan @danchodan]

@rledbetterCPA Most seemed to be focused on capital losses on a 1099 structure only.

But yes have seen the K-1 structure pitched in this way. It's more convoluted, but don't believe it's a 469 issue. There is a specific carveout for trader funds to not be passive activities 1.469-1T(e)(6).