Francetic Tax Resolution LLC - July 2021

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JULY 2021




Where I Find the Best Onion Rings in Wisconsin

In January of 2020, I went cold turkey on sugar. I made the decision after loading up on cookies and brownie squares at a conference, then getting sick as a dog from the sweets on the plane ride home. It took seven days for my stomach to recover. Once I felt human again, I decided, “That’s it, I’m off the stuff!” But there’s one unhealthy thing I’ll probably never be able to quit: deep-fried onion rings.

I’m not much of a cook, so I’ve never attempted to deep-fry onion rings at home. If you have and it’s worth risking the grease burns, let me know! When I was a kid, my mom used to buy frozen onion rings and bake them for us, but they were the breadcrumb-coated kind. I’ve made those a few times myself in the oven, and they just make me sad, so I’ve stopped buying them. If

I have to choose between staying home and eating breaded onion rings or going out and getting deep-fried ones, I’m going with option two, hands down.

I have a real penchant for onion rings, and there’s a particular kind I look for. When you pick up the perfect ring, it should

be golden brown and covered in bubbles of smooth batter. Every bite must have a satisfying, slightly greasy crunch. Above

At this point, you might be wondering, “Paul, why the heck are you spending an entire newsletter talking about onion rings?” Well, if you can believe it, June 22 was actually National Onion Rings Day. They

all, the perfect onion ring needs to be deep-fried.

Here’s the truth: Good onion rings just aren’t good for you. Some restaurants sell rings coated in breadcrumbs instead of batter to be a little bit healthier, but

really do have a holiday for everything. I don’t need an excuse to swing by Kopp’s Frozen Custard, but I take every reason I can get anyway. On June 22, I was right there at the shiny silver counter, putting in my order, and I’m still thinking about it. If you missed out on National Onion Ring Day last month, it’s not

I’m partial to splurging on the real deal: hot, fresh rings that come straight out of that delicious-yet-awful cooking oil. I’m not even ashamed.

In my connoisseur’s opinion, Kopp’s Frozen Custard in Milwaukee has the best onion rings in the state. Luckily for me, I have clients strategically located all around Kopp’s, so I can stop by for onion rings and a hamburger with the works at least once a week! If a craving hits while I’m at home, I’ll also settle for an order of rings from Culver’s in a pinch. (Where is your favorite spot to get onion rings? I’d love to know, just in case I’ve overlooked it. Send me an email or fill me in on our next call.)

too late to go grab a bite!

Paul Francetic




REGULATORY UNCERTAINTY IN THE U.S. Although criminal usage of cryptocurrency is rather miniscule today, how do you resolve issues with ransomware? One rule proposed by the U.S. government would require anyone holding crypto in a private digital wallet to undergo identity checks if they make a transaction of $3,000 or more. Many believe, however, that this isn’t a long-term solution. Jesse Powell, the CEO of Kraken, the world’s fourth-largest digital currency exchange, told CNBC that the U.S. is more “shortsighted” than other nations and “susceptible” to the pressures of incumbent legacy businesses, like banks, that “stand to lose from crypto becoming a big deal.” Technically, the Securities and Exchange Commission (SEC) regulates most crypto, but even Hester Pierce, a commissioner of the SEC, says, “We’ve seen other countries take a more productive approach to regulating crypto. Our approach has been to say no and tell people [to] wait … we need to build a framework that is appropriate for this industry.” In some ways, crypto is profitable like the stock market is, except you can also use it to purchase goods and services. While this regulatory framework isn’t clear just yet, the longer it takes to establish, the more the American public, like you, might lose out on these multibillion-dollar markets.

Even if you’re not familiar with cryptocurrency, you’ll notice one thing about its market trends — it has been trending higher and higher in the past decade. Then suddenly, in mid-April this year, Bitcoin and other cryptocurrencies plunged significantly in value. That’s because the U.S. government has started the conversation it’s been putting off for some time: Should cryptocurrencies be regulated and, if so, how? Here are some reasons the discussion needs to move forward. CRIMINAL USAGE OF CRYPTOCURRENCIES Is cryptocurrency still popular with criminals? A blockchain data firm Chainalysis reports that illicit activity made up 0.34% of all cryptocurrency transaction volume. That’s roughly 2% lower than in 2019. While the percentage has dropped for overall activity, Kim Grauer, head of research at Chainalysis, told NBC, “Still, ransomware was by far the biggest category in terms of activity growth (311% year over year), and we’re seeing an all-time high for dark-net market activity.” Ransomware is malicious software that hackers use to infect a computer, then demand a fee to unlock it. The bounty is typically paid in Bitcoin or other cryptocurrencies, which are difficult to trace.


Meet My Friend Mitch and His Business, Blacktop Barbershop!

What do you get when you combine an experienced barber, an old party bus, and a city full of people who need haircuts? Well, in Kenosha, you get Blacktop Barbershop, a salon on four wheels! I’m really excited to share this neat business with you this month. Blacktop is run by my friend and client Mitch Thomas, a barber with eight years of experience who was also one of the first graduates of our local barber program. You might have seen the bus around town. It’s a hot spot for haircuts, beard trims, and more and will even come to you for group haircuts. He has also just opened a brick-and-mortar location at 13200 Globe Drive in Mount Pleasant, it is about a quarter mile east of Interstate 94 off Highway 20. “I was just walking to my grandparents’ house one day after work, and Paul was in there talking to my grandparents,” Mitch remembers. “He seemed like a good guy right when I met him. Sometimes you meet people and you’re like, ‘I think I met this dude for a reason.’”

It turns out Mitch needed my help with a tax problem! I fixed it up for him, and when he started Blacktop Barbershop this January, I helped him with the ins and outs of the business’s accounting and taxes. Mitch is like family to me now, and I’ve even featured him on my Saturday morning radio show (listen at 7 a.m. on 1050 WLIP-AM). “Paul has helped my anxiety through it all by helping me with things I don’t understand,” Mitch says. “Just having him has made the process so much easier on the taxes, accounting, and business side. I know how to cut hair, but he has been helping me like crazy with that [other] stuff … He has been clutch for me. I definitely recommend him to anyone I know who runs a business.” You might have seen Blacktop parked in front of the Civil War Museum in Kenosha, or Saint Anne’s Church parking lot in Pleasant Prairie, or the Frank Boucher Kia car dealership in Racine. Whenever the bus goes, shaggy-haired people follow and come out looking sharp. I love the concept of Blacktop, unique in this part of the country. To learn more

about Mitch, visit or his Facebook page,





A net operating loss (NOL) typically happens in a business or farm situation when your expenses are greater than your income, which means you’re left with a negative number when you finish your tax return. If this happens to you, you have two options for how to handle the negative amount. You can automatically carryback the loss five years (IRS), or two years (state), and use the loss to offset income from one or more of the preceding years. This strategy should result in a refund of the tax you paid in the carryback years. You can waive the carryback option and only carryforward the loss to future years by including a special irrevocable election with the tax return reporting the loss. WHY WOULD YOU CHOOSE TO ONLY CARRYFORWARD A LOSS? This option is a great choice if you’re anticipating much higher income in the future years than you had in the previous five years (in other words, you’ll be in a higher tax bracket). HOW DOES A CARRYFORWARD WORK? NOL carryforwards are easy. There are no special forms to mail in, and the running tally is carried forward to each future year until the loss is fully used up, which must happen within 20 years. HOW IS THE NOL CARRIED BACK? To carryback a loss, you need to prepare a Form 1045 (Schedule B) or an amended tax return. This can’t be e-filed — it has to be sent in with a paper copy of the tax return, along with any K-1s showing income or losses for the year in question. For example, I just completed a 2020 tax return for a client who had an $80,000 NOL from his Schedule C and partnership. In 2019, he had $148,000 of taxable income because he withdrew $146,000 from his IRA to invest in his partnership. After the loss is carried back to 2019, he will qualify for a $21,000 IRS refund and a $6,600 state refund. NOLs can be complicated to calculate, so if you have any questions about how to do it, please reach out to me, and I can walk you, your friend, or your family member through the process.


Inspired by


4 cups of fresh corn, cut from 5 cobs

• • • • • • •

1/2 tsp ground cumin 1/2 tsp smoked paprika Salt and pepper, to taste

• • • • • • •

1 tbsp olive oil

1/2 red bell pepper, chopped

2 tbsp sour cream 2 tbsp mayonnaise

1/2 red onion, diced

6 green onions, chopped

1/2 cup fresh cilantro, chopped 1/2 cup cotija or feta cheese, crumbled

1 jalapeno, diced 1/2 avocado, cubed

1/4 cup fresh-squeezed lime juice


1. In a cast-iron skillet over medium-high heat, add oil and corn. Cook, stirring occasionally, for 3–5 minutes or until corn starts to char. 2. Add the corn to a large bowl and let cool for 5 minutes, then add the remaining ingredients and stir together until well combined. Taste and adjust seasoning. 3. The salad pairs well with grilled entrees and can be refrigerated in an airtight container for up to 4 days.








Listen to Paul Saturday mornings at 7 a.m. on channel 1050 WLIP-AM or stream online at!

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Paul’s Go-To Spots for the Best Onion Rings in Wisconsin

What’s the Deal With Cryptocurrency Regulation?

Meet Kenosha’s First Mobile Barber


July Tax Tip

Mexican Corn Slad


The Smartphone Dilemma


Most smartphones are only supported by the manufacturer for a set period of time, and once that time is up, support will be unavailable for that phone. Support includes everything from operating system updates to security flaw patches. Although it varies greatly between manufacturers and even service providers, updates usually roll out every few months. Apple is one of the most generous supporters of its older devices. It typically offers updates on devices that are 4–5 years old. While older devices can sometimes struggle to run newer updates, this commitment means you can keep your device for a longer period of time. On the Android side, Samsung also tends to support its devices for several years, often up to four years for its flagship devices. Despite that, for most brands the magic number is three years. So, once you notice that your device is no longer updating, what are you supposed to do? Are you expected to drop upward of several hundred

dollars (or more) on a new phone? Or do you just “deal with it” and accept that your device is no longer receiving critical security updates? If your device still runs well — it does everything you expect it to, it has decent battery life, and the screen is in good shape — there might not be a reason to immediately buy a new phone. Many security experts say if you stick to a handful of apps and your usage is consistent from day to day, your risk is low. If your device is showing its age and/ or you rely heavily on your phone for work and communication, the risk may be higher. Regardless, it’s a good idea to update your smartphone in regular intervals. We can all complain about planned obsolescence, but access to current updates and security patches is definitely beneficial. With so many cybersecurity risks out there, it’s better to not fall behind in these technological times.



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