Tax Recapture Opportunities — TPJG Financial Framework

1. Commission SOP 2. Transaction Workflow 3. Tax Trends 4. Tax Recapture 5. IRIS/Income 6. PLEX/Capital Master Framework

2025 Tax Strategy Snapshot (TaxAlchemy)

Baseline AGI

~$390K

W-2 + S-Corp K-1

Total Deductions

~$356K

Film + CostSeg + SEP + Education

Projected AGI After

~$34K

Massive reduction

Projected Refund

$40-50K

Up from $32K baseline

TaxAlchemy Investment

$50K

ROI: ~$300-350K in deductions

Active Tax Recapture Strategies (2025 Return)

1. Immortals Film Investment

$214,000 deduction

Investment: $50K ($45K from HELOC X5919 + $5K from Amex DG X1009) | Confirmed: Dec 11, 2025
Mechanism: Film production tax deduction — accelerated depreciation under IRC 181/bonus depreciation
Status: Investment locked for 2025. LLC docs and portal access pending. K-1 expected Q2 2026 — extension required
ROI: $50K invested → $214K deduction at ~35% effective rate = ~$75K tax savings = 150% return on investment

2. Creek Drive Cost Segregation

~$67,000 deduction

Property: Creek Drive (AirBNB) | Placed in service: 2024
Bonus Depreciation: 60% rate (2024 placed-in-service year, NOT 100%)
Status: Forms submitted to Hakeem (TaxAlchemy specialist). Report generation began Jan 2026.
Blocker: Asset detail listing needed — cost seg provider requires it to establish property basis
Action: Joe must upload asset detail listing + depreciation calc to Canopy

3. SEP IRA Contribution

~$50,000 deduction (saves ~$17.5K tax)

Maximum: ~$50K (based on S-Corp net income)
Mechanism: Bookkeeper records as 2025 expense + liability, can be funded with 2026 cash
Deadline: Tax filing deadline (including extensions)
Status: Joe deciding by April 15 — hesitant to use 2026 cash for 2025 deduction
Current retirement: Schwab Simplified x6856 ($20,815) + Schwab ROTH x6547 ($14,317) = $35,132 total

4. Crypto/Mastermind Education Expense

$25,000 deduction

Original plan: Crypto mining | Changed to: $25K mastermind/education expense
Mechanism: S-Corp business expense that reduces K-1 distribution amount
Status: Confirmed — to be entered in QuickBooks as S-Corp expense
Impact: Reduces S-Corp net income by $25K, lowering the K-1 and AGI

5. S-Corp Health Insurance

$5,508 deduction

Mechanism: >2% S-Corp shareholder-employee health insurance premium
Form: 1040 Line 17 (above-the-line deduction)
Status: Active — recorded in Actions sheet
Note: NOT a Schedule C deduction, NOT an S-Corp expense — personal deduction on 1040

6. HELOC Interest (Investment Property Portion)

~$20,000 deduction

HELOC: HW X5919, $312K at 10.75%, ~$20K annual interest
Mechanism: Investment interest deduction under IRC 163 (portion allocated to investment property)
Status: Year-end statement needed — Joe must provide to Tanner
Tracing: Portion allocated to CreekHouse investment = deductible against rental income (Schedule E)

7. IRIS LOC Interest

~$3,000 deduction

LOC: HW EPIC LOC X1791, $25K at 11.5%, ~$3K annual interest
Mechanism: Investment interest expense (Form 4952)
Limitation: Deductible only to the extent of net investment income
Status: Trackable from LOC Tracker sheet

Total 2025 Tax Recapture Summary

Strategy	Deduction	Est. Tax Savings (35%)	Status	Blocker?
Immortals Film	$214,000	$74,900	Confirmed	K-1 pending Q2
Creek Drive Cost Seg	$67,000	$23,450	In progress	Asset listing needed
SEP IRA	$50,000	$17,500	Decision pending	April 15 deadline
Crypto/Mastermind	$25,000	$8,750	Confirmed	—
HELOC Interest	~$20,000	$7,000	Docs needed	Year-end statement
S-Corp Health Ins	$5,508	$1,928	Active	—
IRIS LOC Interest	~$3,000	$1,050	Trackable	—
TOTAL	~$384,508	~$134,578

Critical Action Items (Blocking Tax Filing)

Upload asset detail listing for Creek Drive to Canopy — blocks cost seg study completion
Provide year-end interest statements for all business credit cards to Tanner
Decide on SEP IRA contribution by April 15 ($50K saves ~$17.5K)
Enter TaxAlchemy $50K + Crypto $25K in QuickBooks (Tanner confirms placement)
File extension for 2025 return (K-1 for Immortals not available until Q2)

Prior Year Recapture Analysis (2017-2022)

What Could Have Been Claimed

Based on the 1040 data, several potential deductions may have been missed in prior years. Amended returns can be filed within 3 years (2023 return amendable until April 2027, 2022 until April 2026).

Year	Potential Missed Deduction	Est. Value	Status
2022	Home office deduction (if not claimed)	$1,500-$3,000	Review 1040
2022	Vehicle depreciation (actual vs mileage comparison)	$2,000-$5,000	Need prior CPA docs
2021	HELOC interest tracing to investment property	$15,000-$20,000	If not previously claimed
2020	COVID-era business loss carryback (CARES Act)	Variable	Check if applied
2019	Loss year (-$18,397) — was NOL carried forward?	$18,397	Critical to verify
All	Real Estate Professional Status (REPS) — passive loss unlock	Significant	If Joe qualifies (750+ hrs)

Key Question: 2019 Net Operating Loss

2019 showed -$18,397 net income. Under CARES Act, NOLs from 2018-2020 could be carried back 5 years for a refund. Was this NOL carried back to 2014-2018 (which had positive income)? If not, this represents a refund opportunity on amended returns. TaxAlchemy should verify.

Tax Recapture Pathway

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Step 1: Identify Strategies

TaxAlchemy enrollment ($50K). 7 strategies identified for 2025 return.

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Step 2: Execute Investments

Immortals Film ($50K confirmed Dec 11). TaxAlchemy membership active. Crypto education approved.

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Step 3: Gather Documentation

Asset detail listing for cost seg, year-end interest statements, reconciled P&L. Upload to Canopy.

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Step 4: Decide SEP IRA

$50K contribution decision by April 15. Can fund with 2026 cash. Saves ~$17.5K.

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Step 5: File Extension + Prepare Return

Extension for Immortals K-1 (expected Q2). Tanner prepares S-Corp (1120-S) and personal (1040).

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Step 6: Review Prior Year Amendments

Check 2019 NOL treatment, 2021-2022 HELOC interest, vehicle depreciation method. Amend if beneficial.

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Step 7: File + Collect Refund

Project refund: $40-50K. Apply to: HELOC paydown ($45K TaxAlchemy recoup), Amex DG paydown, savings.

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✓

Milestone: 2025 Tax Optimized

~$384K in deductions applied. $40-50K refund collected. Prior years reviewed for amendments. 2026 strategy initiated.

Cross-Analysis Results (3 Loops)

Loop 1 — Strategy Coordination Gaps

S-Corp P&L shows $172K net income vs $278K W-2 — discrepancy due to missing depreciation and interest on books
TaxAlchemy $50K membership fee may be double-counted (already in S-Corp $160K net, then listed again in tax summary)
Cost seg and film investment K-1 both pending — creates filing dependency chain

Loop 2 — Documentation Gaps

2024 return lacks depreciation schedule for AirBNB — asset detail listing is the blocker
Prior CPA documentation on auto/truck expense method (mileage vs actual) not transferred
EFTPS payments ($14,363) not reconciled to specific tax years

Loop 3 — Corrections Applied

FIX 1: Separated each strategy with investment amount, mechanism, status, and blocker clearly labeled
FIX 2: Added prior year review section (2019 NOL is the biggest potential recapture)
FIX 3: Added critical action items with clear blocking dependencies
FIX 4: Clarified that TaxAlchemy fee is already expensed in S-Corp — Sergey confirmed removal from separate line
FIX 5: 60% bonus depreciation rate corrected (not 100% — Creek Drive placed in service 2024)