As a tax professional, I want to emphasize that your approach is spot-on. The key is providing general information while maintaining clear boundaries about what constitutes tax advice. For promotional expenses specifically, the IRS does recognize these as legitimate business deductions under Section 162 when they serve a bona fide business purpose. Items like branded giveaways, promotional products distributed at trade shows, or marketing materials generally qualify. Your disclaimer language is good, but I'd suggest one small addition. Consider adding "Tax deductibility may be subject to limitations and specific IRS requirements" to help clients understand that even qualifying expenses might have restrictions (like the $25 limit per person for business gifts in some cases). I really like AstroAce's idea about a best practices checklist. You could create something that outlines general documentation standards without crossing into tax advice territory. Things like "maintain records of distribution dates, business events, and intended business purpose" are valuable guidance that any accountant would appreciate their clients already having organized. This approach positions you as a knowledgeable partner who understands the business implications of your services while respecting professional boundaries. That's exactly the kind of vendor relationship most businesses are looking for.

This has been such an insightful thread! As someone new to this community, I'm really impressed by the depth of knowledge and practical experience everyone has shared. I'm in a similar situation with my small consulting business - I often recommend software tools and services that have tax implications for my clients, but I've always been nervous about mentioning the potential tax benefits directly. Reading through all these responses has given me much more confidence about how to approach this properly. The key takeaways I'm getting are: 1. Use qualifying language like "may be" rather than definitive statements 2. Focus on business value first, tax benefits second 3. Always include strong disclaimers directing clients to their tax professionals 4. Consider providing general documentation guidance as a value-add I'm particularly interested in the documentation checklist idea that AstroAce and others mentioned. That seems like a great way to add value while staying in safe territory. For Omar's original question - it sounds like you're definitely on the right track with your Q&A approach. Just strengthen that disclaimer language as others have suggested, and you should be good to go. The fact that you're being this thoughtful about it shows you'll handle it responsibly. Thanks to everyone who contributed their expertise here - this is exactly the kind of practical guidance that makes online communities so valuable!

I went through this exact scenario two years ago and can confirm everything others are saying about the sequential processing. What I learned the hard way is that you should also make sure you have all your documentation ready for the amendment before your original return finishes processing. The IRS gave me a really tight window to submit supporting documents after they started reviewing my 1040-X, and I almost missed the deadline because I wasn't prepared. Also, if you're amending because you missed income (like a 1099), double-check that the payer actually submitted that form to the IRS - sometimes the processing delays give you time to discover the payer never filed it in the first place, which changes your amendment strategy completely.

This is really great information everyone! I'm actually in a very similar boat - filed my return two weeks ago and just discovered I forgot to include some side income from a small consulting job. Reading through all these experiences, it sounds like the consensus is crystal clear: wait for the original return to finish processing completely before filing the 1040-X. The sequential processing makes total sense from a systems perspective, even though it's frustrating timing-wise. I'm definitely going to pull my wage and income transcript like Mateo suggested to see exactly what's already reported to the IRS before I decide how to proceed with the amendment. Thanks for sharing all your real-world experiences - this is way more helpful than the generic advice you usually find online!

FYI - I work at a credit card company (not saying which one). We send out 1099-MISC forms for referral bonuses because we're required to by the IRS for any payment over $600. Some companies might ignore this rule for smaller amounts, but technically ALL referral bonuses are taxable income regardless of amount. Also, just wanna point out that some companies send 1099-NECs instead of 1099-MISC for referrals, which can be confusing. MISC is generally the correct form for one-time bonuses like this, while NEC is for when they're treating you more like a contractor.

Just wanted to share my experience since I was in a similar boat last year! I got a $950 referral bonus from my credit card company and was totally caught off guard by the 1099-MISC. Here's what I learned: Yes, you'll need to pay taxes on the full $1,150, but it's not as bad as it might seem at first. Like others mentioned, it goes on Schedule 1 as "Other Income" and you'll pay your regular income tax rate (not self-employment tax, which is a relief!). One thing that helped me was setting aside about 25-30% of the bonus amount right away for taxes - that way I wasn't scrambling come tax time. Your actual percentage will depend on your tax bracket, but it's better to overestimate and get a refund than be caught short. Also, make sure to keep that 1099-MISC form safe! You'll need it when filing, and the IRS already has a copy, so there's no hiding from it. The silver lining is that these kinds of bonuses are usually one-time things, so it won't affect your taxes every year. Good luck with your filing!

I've been receiving oil royalties for years and I've always reported them on Schedule E as rental income. My accountant says this is the standard practice for passive royalty owners. But I've never heard about depreciating by 20%... we've always used the depletion allowance instead which is typically 15% for oil and gas.

You're absolutely right about the confusion between depreciation and depletion! As a passive royalty owner, you should definitely be using depletion allowance, not depreciation. The 15% percentage depletion you mentioned is correct for oil and gas - it's much more beneficial than the 20% depreciation method since depletion isn't limited to your original investment basis. One thing to add about QBI and oil royalties: while most passive royalty income doesn't qualify for QBI, there are some rare exceptions. If you can demonstrate that you're materially participating in the oil and gas activity (which is very difficult to prove as a royalty owner), or if your royalties are tied to a working interest rather than just mineral rights, you might qualify. But for typical passive royalty situations like yours, the income is generally considered portfolio income rather than qualified business income. Also, make sure you're keeping detailed records of your depletion calculations year over year - the IRS scrutinizes oil and gas deductions pretty carefully, especially if you're claiming percentage depletion consistently.

Something no one has mentioned yet - have you considered using a Self-Directed IRA LLC (sometimes called a checkbook IRA) instead of ROBS? It might be better suited for real estate investments and doesn't require setting up a C-corp or dealing with the active business requirement. The downside is you can't personally benefit from the properties or be involved in day-to-day management, but for pure investment purposes it might be a cleaner structure. Just make sure you understand prohibited transaction rules because they're strictly enforced.

I've been following this discussion closely as I'm considering a similar structure. One thing I haven't seen mentioned is the potential impact of the Corporate Transparency Act (CTA) on ROBS structures. Since your C-corp would likely be considered a "reporting company" under the new beneficial ownership reporting requirements, you'll need to file FinCEN reports disclosing ownership information. This adds another layer of compliance but shouldn't affect the tax treatment of your ROBS. Also, regarding the LLC structure you mentioned - make sure you understand how the K-1 income will be treated at the C-corp level. Since C-corps don't get pass-through treatment, the rental income will be subject to corporate tax rates, and if you later want to access those funds personally, you'll face potential double taxation through dividends. Have you considered whether the rental income strategy makes sense given that corporate tax treatment, or would you be better off with a structure that allows pass-through taxation?