Roll forward to 2026
What next year's preparer inherits — with its history — and the plan for 2026 estimates. Everything links back to the 2025 evidence.
2026 federal estimates
Safe harbor: 110% of 2025 total tax (81,962 in the workpaper) = 90,160, in four installments of 22,540:
2026-04-15 · 22,540
2026-06-15 · 22,540
2026-09-15 · 22,540
2027-01-15 · 22,540
Pay the lesser of 90% of 2026 tax or 110% of 2025 total tax (2025 AGI over 150,000), in four equal installments. Withholding on Ngozi's wages counts toward these.
2026 California estimates
110% of 2025 California tax (18,874) = 20,761.40:
2026-04-15 · 6,228
2026-06-15 · 8,305
2027-01-15 · 6,228
Lesser of 90% of 2026 tax or 110% of 2025 tax (2025 California AGI 150,000 or more). Only California-source income is taxable by California after the move. Consider the 90%-of-2026 option: only the Sacramento rental and Ridgeline's California share will be taxable.
Carried forward
| capital loss short | 0 | engine v3 carryovers_out |
| capital loss long | 0 | engine v3 carryovers_out |
| passive 1450 fremont | 0 | engine v3 carryovers_out |
| passive 1200 barton hills | 0 | engine v3 carryovers_out |
| minimum tax credit from 2025 amt | 3,871 | engine v3 carryovers_out |
| charitable | 0 | engine v3 carryovers_out |
| section 179 | 0 | engine v3 carryovers_out |
| ira nondeductible basis ngozi | 0 | engine v3 carryovers_out |
| scorp stock basis end | 0 | engine v3 carryovers_out |
| ridgeline capital account end | 63,660 | engine v3 carryovers_out |
| sep contribution not deductible for 2025 | 2,786 | engine v3 carryovers_out |
| California basis difference SAC-APPL | 241.92 | FTB 3885A |
| California basis difference STU-PRINTER | 11,360 | FTB 3885A |
| California basis difference STU-CAMERA | 13,040 | FTB 3885A |
| California basis difference STU-WORKST | 6,000 | FTB 3885A |
Assets continuing into 2026
| Asset | Method | Cost | Federal basis left | California basis left |
|---|---|---|---|---|
| SAC-BLDG 1450 Fremont Way - building | SL / mid-month | 364,000 | 278,515 | 278,515 |
| SAC-APPL 1450 Fremont Way - appliances | Federal: 100% bonus in 2021; CA: 200DB half-year | 4,200 | 0 | 241.92 |
| SAC-ROOF 1450 Fremont Way - roof replacement | SL / mid-month | 18,000 | 15,572.71 | 15,572.71 |
| STU-LAPTOP Laptop (2022) | Section 179 | 2,800 | 0 | 0 |
| STU-PRINTER Studio equipment - printer | 100% special depreciation | 14,200 | 0 | 11,360 |
| STU-CAMERA Studio equipment - camera | 100% special depreciation | 16,300 | 0 | 13,040 |
| STU-WORKST Studio equipment - workstation | 100% special depreciation | 7,500 | 0 | 6,000 |
Plan for next year
• No California residency in 2026: California taxes only California-source income (the Sacramento rental, Ridgeline's California share).
• Minimum tax credit from the 2025 AMT may be usable (Form 8801).
• Erik's SEP contribution limit depends on 2026 net profit.
• Oregon composite tax 1,580 paid April 2026 by Woodworks: a 2026 state tax deduction (included in 2025 box 16D).
• Minimum tax credit from the 2025 ISO AMT (engine 3,871 before our corrections) - Form 8801.
• SEP: excess about 4,326 to withdraw or carry.
• Woodworks basis now 0: any 2026 distribution in excess of 2026 income is capital gain - get the K-1 early.
• Theo's SSN corrected in the household record (666-74-3390): fix next year's organizer.
• Ask for EFTPS confirmations for every estimate (Q4 was remembered, not documented).
Open items carried
No notes marked to carry forward.
• Outside filing still undecided: FinCEN Form 114 (FBAR) 2025 - Sparbanken Norrland
• Outside filing still undecided: Form 3520 for 2023 - inheritance from Birgitta Lindqvist (foreign person, >100,000)
• Outside filing still undecided: Forms 1099-NEC for Lindqvist Studio contractors (Quintero 4,800, Patel 2,600)
• Outside filing still undecided: Ada's own 2025 Form 1040 (checked 'can be claimed as a dependent')
• Outside filing still undecided: Lindqvist Family Woodworks 1120-S and Oregon composite
• Outside filing still undecided: Ridgeline Fund 1065 and Arizona composite (no partner filing needed)
• Outside filing still undecided: FTB: transfer the 3,500 2024 credit (paid 09/15/2025) to 2025
• Outside filing still undecided: SEP-IRA excess contribution - withdraw before due date or Form 5329
• Judgment to revisit: Filings outside this return identified — open
• Judgment to revisit: Personal share removed from shared costs — open
• Judgment to revisit: Equipment cost and method — pass
• Judgment to revisit: Information returns the business owes — open
• Judgment to revisit: HVAC replacement: repair or improvement? — open
• Judgment to revisit: Woodworks stock basis rolled forward independently — pass
• Judgment to revisit: Form 8867 due diligence for CTC / ODC — open
• Judgment to revisit: California estimates agree to the FTB account — open
• Judgment to revisit: California AMT on the ISO exercise — open