Full Compliance, LLC

Full Compliance, LLC ProActive Tax Planning & Consulting | IRS Representation | Tax Preparation | Accounting

Full Compliance, LLC specializes in IRS Representation, Tax Preparation, Tax Consulting and Accounting Services. We pride ourselves on providing our clients with competent, professional tax and business advice. We will bring an unparalleled depth of knowledge to your business and personal financial affairs.

📉 Most tax-loss harvesting happens in December. That's also when it's least effective.The mechanics:Tax-loss harvesting ...
06/24/2026

📉 Most tax-loss harvesting happens in December. That's also when it's least effective.

The mechanics:
Tax-loss harvesting means selling a position at a loss to realize the loss for tax purposes — using it to offset realized gains (and up to $3K of ordinary income annually for individuals).

The wash sale rule: if you buy a "substantially identical" security within 30 days before or after the sale, the loss is disallowed for tax purposes.

Why mid-year is structurally better:
➡️ Wash sale window: a loss harvested in June clears fully by July, well before year-end portfolio rebalancing
➡️ Replacement window: you can rotate into a non-identical replacement for 31+ days, then move back if desired
➡️ Strategic time horizon: losses harvested early offset gains realized later in the year, with full coordination
➡️ Avoids the December rush, when illiquid positions become impossible to exit at reasonable prices

This is portfolio architecture, not last-minute scrambling. The advisor who only mentions loss harvesting in November is reactive. The advisor who modeled your gain/loss position in June is proactive.

🔷 We coordinate tax-loss harvesting with portfolio managers year-round.

🏦 If you've realized a large capital gain in 2026 — from a business sale, real estate sale, concentrated stock liquidati...
06/23/2026

🏦 If you've realized a large capital gain in 2026 — from a business sale, real estate sale, concentrated stock liquidation, or carry distribution — Opportunity Zone (OZ) investments are worth examining.

How they work:
You roll the realized gain into a Qualified Opportunity Fund (QOF) within 180 days. The gain is deferred from federal taxation until December 31, 2026 (under the current statutory framework — the program has been modified and the rules continue to evolve, so always verify current treatment with your advisor).

Beyond deferral:
➡️ If the QOF investment is held for 10+ years, post-investment appreciation can become permanently tax-free.
What it requires:
✓ Realized capital gain (not ordinary income)
✓ Investment in a qualified fund within the 180-day window
✓ Real underlying investment thesis (the OZ status is the wrapper; the investment still has to make sense)
✓ Long horizon to capture the appreciation benefit
What it doesn't do:
✗ Convert ordinary income into deferred gain
✗ Allow late investment (180 days is a hard window)
✗ Guarantee a good investment (many OZ funds have underperformed; due diligence matters)

⏰ OZ planning is highly time-sensitive. The clock starts at the date of the gain.

🔷 Recognized a large gain? We model OZ deferral as part of capital gains strategy.

⚖️ The Qualified Business Income (QBI) deduction allows pass-through business owners to up to 20% of qualified business ...
06/22/2026

⚖️ The Qualified Business Income (QBI) deduction allows pass-through business owners to up to 20% of qualified business income from federal taxable income.

It sounds simple. The optimization isn't.

The complications:
➡️ Above certain income thresholds (~$394K MFJ in 2026), the deduction phases out for "specified service trade or businesses" (SSTBs) — law, medicine, accounting, consulting, financial services, etc.
➡️ Above the same thresholds, non-SSTB businesses face a W-2 wage limit (deduction limited to 50% of W-2 wages paid OR 25% of W-2 wages + 2.5% of UBIA of qualified property).
➡️ Below the thresholds, most pass-throughs simply get 20% off — no further analysis needed.

What this means architecturally:
🏛️For a high-income SSTB owner, QBI may be unavailable — pushing entity strategy decisions (C-Corp election? S-Corp salary recalibration? Spousal income split?).
🏛️For a high-income non-SSTB owner, the W-2 wage limit makes payroll levels strategically relevant — pay too little, lose the deduction.
🏛️For most owners below the thresholds, the deduction is automatic — but architecture decisions can keep you under the threshold and preserve it.

The optimization happens before year-end. Not at return time.

🔷 QBI optimization is layer 5 of our framework.

⌛If you've realized a large capital gain in 2026 — from a business sale, real estate sale, concentrated stock liquidatio...
06/21/2026

⌛If you've realized a large capital gain in 2026 — from a business sale, real estate sale, concentrated stock liquidation, or carry distribution — Opportunity Zone (OZ) investments are worth examining.

How they work:
You roll the realized gain into a Qualified Opportunity Fund (QOF) within 180 days. The gain is deferred from federal taxation until December 31, 2026 (under the current statutory framework — the program has been modified and the rules continue to evolve, so always verify current treatment with your advisor).

Beyond deferral:
➡️ If the QOF investment is held for 10+ years, post-investment appreciation can become permanently tax-free.
What it requires:
✓ Realized capital gain (not ordinary income)
✓ Investment in a qualified fund within the 180-day window
✓ Real underlying investment thesis (the OZ status is the wrapper; the investment still has to make sense)
✓ Long horizon to capture the appreciation benefit
What it doesn't do:
✗ Convert ordinary income into deferred gain
✗ Allow late investment (180 days is a hard window)
✗ Guarantee a good investment (many OZ funds have underperformed; due diligence matters)

OZ planning is highly time-sensitive. The clock starts at the date of the gain.

🔷 Recognized a large gain? We model OZ deferral as part of capital gains strategy.

To the dads who show up, provide, and plan for the future, today is for you.Happy Father’s Day from all of us at Proacti...
06/21/2026

To the dads who show up, provide, and plan for the future, today is for you.

Happy Father’s Day from all of us at Proactive Tax Advisors.

Stay proactive.

📊 For the right business owner, a defined benefit (DB) plan is the largest annual deduction in the tax code.How it works...
06/20/2026

📊 For the right business owner, a defined benefit (DB) plan is the largest annual deduction in the tax code.

How it works: instead of a contribution-based limit ($72K SEP, $72K Solo 401(k)), a DB plan defines a future benefit at retirement age — and an actuary calculates the contribution required to reach it.

For an owner age 55 with stable $500K+ income and few non-owner employees, the actuarially-determined contribution can run $150K–$300K+ per year. Every dollar is tax-deductible to the business.

When DB plans fit:
✓ Profitable business with stable income
✓ Owner 45+ (older = larger contribution limit)
✓ Few rank-and-file employees (or coordinated with them)
✓ Multi-year horizon (DB plans require sustained funding)
✓ Wants meaningful retirement deduction today

When they don't fit:
✗ Volatile income (you must fund the plan or face penalties)
✗ Many non-owner employees (non-discrimination rules create cost)
✗ Short business horizon
✗ Already over-funded retirement accounts

The trade-offs are real. The math is also real. For the right owner, DB plans alone justify a year of planning fees, many times over.

🔷 DB plan modeling is standard in our retirement architecture work.

📄Material participation grouping electionDocumentation is everything. Hours must be contemporaneously recorded. The IRS ...
06/19/2026

📄Material participation grouping election

Documentation is everything. Hours must be contemporaneously recorded. The IRS challenges Real Estate Professional Status (REPS) is one of the most powerful — and most challenged — elections in the code.

The default treatment: rental income is passive. Rental losses can only offset passive income. So a high-W-2 earner with a depreciation-rich rental portfolio cannot use those losses against their wages.

REPS changes that. With REPS, your rentals are non-passive. The losses are deductible against ordinary income — wages, business income, capital gains.

The catch: two strict IRS tests.

⚖️TEST 1 (50% test):
More than half of your personal services in trades/businesses for the year must be in real property activities you materially participate in.

⚖️TEST 2 (750-hour test):
More than 750 hours per year in those real property activities.

For W-2 earners with a full-time day job, qualifying personally is nearly impossible. Most successful REPS claims rest on:
➡️ A non-W-2 spouse meeting both tests independently
➡️ Aggregation election (Form group activities under §469(c)(7)(A))

REPS aggressively, and "I think my wife worked 750 hours" doesn't survive audit. Done right, it's transformative. Done wrong, it's a problem.

🔷 We structure REPS documentation as part of real estate engagements.

🏢 A building gets depreciated over 27.5 years (residential) or 39 years (commercial). That's the default.What a cost seg...
06/18/2026

🏢 A building gets depreciated over 27.5 years (residential) or 39 years (commercial). That's the default.

What a cost segregation study does:
A qualified engineer breaks the building into its component assets — and identifies pieces that can be reclassified to shorter recovery periods.
➡️ Carpeting → 5-year
➡️ Decorative lighting → 5-year
➡️ Cabinetry and millwork → 5-year
➡️ Specialized electrical → 7-year
➡️ Land improvements (parking, landscaping, fencing) → 15-year

These shorter-lived assets qualify for bonus depreciation in the year placed in service.
Sample math on a $2M commercial property:
➡️ Standard 39-year depreciation: ~$51K/year for 39 years
➡️With cost seg + applicable bonus depreciation: $300K–$500K+ accelerated into year one

The total deduction is the same. The timing is dramatically different.

🔑 KEY POINT: You don't have to do this in the year of purchase. A "look-back" study lets you capture missed depreciation on properties you've already owned for years — without filing an amended r eturn — via a Form 3115 change in accounting method.
Properties bought in 2024 or 2025? Still in play.

🔷 We coordinate cost seg studies as part of real estate strategy.

📊A Roth conversion moves money from a traditional (pre-tax) IRA to a Roth (post-tax) IRA. You pay tax today; the asset g...
06/17/2026

📊A Roth conversion moves money from a traditional (pre-tax) IRA to a Roth (post-tax) IRA. You pay tax today; the asset grows tax-free forever after.

The math is usually straightforward in a high-income year — you don't convert, because you'd pay 37%.

But "low-income years" hide in plain sight:
➡️ The year you sold a business and the gain is mostly capital, not ordinary
➡️ A sabbatical year between jobs
➡️ A retirement transition year before Social Security kicks in
➡️ A year you took a planned bonus deferral
➡️ A loss year offset by accelerated depreciation or NOL carryforward

In any of those years, the marginal bracket can drop dramatically. A $100K Roth conversion in a 24% year vs. a 37% year is a $13,000 immediate difference — for the same future tax-free dollars.

What makes it work:
✓ Multi-year income projection (the math requires it)
✓ Bracket awareness — "fill the bracket" without spilling into the next
✓ Coordinated with Medicare IRMAA thresholds (conversions raise MAGI)
✓ Withholding strategy (don't withhold FROM the conversion — pay tax from outside funds)

🔷 Most CPAs see the conversion form. Few plan it ahead.

We model multi-year Roth conversion strategy. DM for a sample.

🌴 SECURE 2.0 created a window most retirement savers haven't fully internalized.The standard catch-up contribution for a...
06/16/2026

🌴 SECURE 2.0 created a window most retirement savers haven't fully internalized.

The standard catch-up contribution for age 50+ in a 401(k), 403(b), or governmental 457(b) is $8,000 (2026).

For employees ages 60, 61, 62, and 63, the catch-up is enhanced to $11,250 in 2026. That's $3,250 of additional tax-deferred (or Roth) savings annually for four years — $13,000 over the window.

For business owners running their own 401(k), this is additional ceiling room. For W-2 employees over 60, it's a window most don't realize they have.

A few specifics worth noting for 2026:
➡️ The enhanced catch-up applies to 401(k), 403(b), governmental 457(b), and the federal Thrift Savings Plan
➡️ For SIMPLE plans, the enhanced catch-up at ages 60–63 is $5,250
➡️ New for 2026: catch-up contributions for high earners (>$150K F**A wages prior year) must be Roth contributions

🔷That last point catches people. Plan accordingly.

Retirement plan architecture is layer 3 of our framework.

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Coral Gables, FL
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