I learned this the hard way... kept all the profits in my S Corp thinking I wouldn't owe taxes until I took distributions. Got DESTROYED with a huge tax bill and no cash to pay it because all the money was still in the business account. Don't make my mistake!

This is exactly why proper planning is so important with S Corps! Since you're getting taxed on the profits regardless of whether you take distributions, you need to make sure you have enough cash flow to cover your tax liability. One strategy I've seen work well is to take quarterly distributions specifically to cover your estimated tax payments on the S Corp income. That way you're not stuck with a big tax bill and no cash to pay it like Keisha mentioned. Also, remember that if you're building reserves for business expenses, those retained earnings increase your basis in the S Corp, which can be helpful if you ever need to take losses or sell the business. But definitely don't let tax planning take a backseat to cash flow management - you'll need liquidity to pay those taxes!

Has anyone had issues with exchanges that don't record the time zone in their transaction exports? Most of my CSV exports just show dates without time zones and I'm not sure if they're using UTC or what.

This is such a helpful thread! I've been dealing with the same confusion about time zones for my crypto taxes. One thing I wanted to add - if you're keeping manual records, make sure to note not just the timestamp but also your physical location for any trades made while traveling. I learned this the hard way when I had to reconstruct my 2023 taxes after getting audited. The IRS agent specifically asked about a few trades I made during a business trip to Chicago right around New Year's. Thankfully I had kept travel receipts that proved where I was, but it would have been much easier if I had just noted my location in my trading spreadsheet from the beginning. Also, for anyone using DeFi protocols or DEXs, the same rules apply - it's based on your physical location when you initiate the transaction, not where the blockchain nodes are located. Just wanted to clarify that since I see a lot of confusion about this in other crypto tax forums.

Just a heads up - I'm from Spain too and distribute music through CD Baby. When I submitted my W-8BEN claiming the 0% rate, they rejected it the first time saying I needed to include my Spanish tax identification number (NIE) as well as get an ITIN from the US. Had to resubmit with both numbers.

I went through this exact same situation last year with my music royalties from Spain! The confusion about 0% vs 5% rates comes from different types of royalties being grouped together in some documents. For copyright royalties specifically (which includes music compositions), Spain does have a 0% withholding rate under Article 12 of the US-Spain tax treaty. The 5% rate you're seeing likely refers to industrial royalties or patents. A couple of important things I learned the hard way: 1. You absolutely need an ITIN to claim treaty benefits - the form will be rejected without it 2. Make sure to write "Copyright Royalties" specifically in line 10, not just "royalties" 3. Keep copies of everything because some distributors will ask you to resubmit the form annually The process took me about 4 months total (mostly waiting for the ITIN), but it was worth it to avoid that 30% withholding. Good luck with your $1,200 payment - that's a nice chunk of change to not lose to unnecessary taxes!

Don't forget about city/county tax jurisdictions! Depends on your state, but where I am we have state, county AND city sales taxes - all with different rates and filing requirements. Almost screwed myself over by only filing state taxes my first year.

As someone who's been through this exact confusion with my small bakery, I feel your pain! The biggest lightbulb moment for me was realizing that sales tax is literally just a collection service - you're collecting money on behalf of the state, not paying a tax on your business income. Think of it this way: when a customer pays you $10.80 for a $10 meal, you actually received $10 in revenue for your business and $0.80 that belongs to the state. That $0.80 should go straight to a separate "sales tax collected" account and get sent to the state exactly as collected. Your business expenses (food costs, delivery app fees, etc.) are completely separate and get deducted when you file your income tax returns, not your sales tax returns. Two totally different forms for two totally different purposes. Most states have pretty good online resources for new business owners - definitely worth checking your state's revenue department website for restaurant-specific guidance. Also, many states offer free workshops for new business owners that cover sales tax basics. Hang in there!

It might be worth asking your grandparents to spread out larger gifts if they're planning to give you more than the annual limit. My parents paid off $25,000 of my loans in one year and had to file a gift tax form even though they didn't owe any actual tax!

This is such helpful information for anyone dealing with family help on student loans! One thing I'd add is to make sure your grandparents are aware that the $18,000 annual exclusion is per recipient, per giver. So if they're also helping other grandchildren with education expenses, they need to track all their gifts to stay under the limits for each person. Also, it's worth keeping simple records of the payments even though you don't need to report them - just in case the IRS ever has questions down the road. A simple spreadsheet showing dates and amounts should be sufficient. Your loan servicer statements will also show where the payments came from, which provides good documentation. You're really fortunate to have such generous grandparents! This kind of help can save you thousands in interest over the life of the loans.