plan: D-40 dated 1099 statuses, D-41 contributed property basis, P3 settled-in-design defaults

Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com>
Claude-Session: https://claude.ai/code/session_01T3gXMVt7XJPi6ens1or9Dj

plan/served.md

@@ -949,6 +949,8 @@ The first company keeps working between phases.
 
 **Defect 18:** `not_reportable{reason}` is distinct from `undetermined`.
 
+**Settled in design (2026-10-20; each design's reviewed recommendation, told to the owner, who may revisit any):** party totals count a member's entry by what moved their capital (so "all" equals the members' equity statement and "cash" means what it means on the K-1); money is cash, cards, the members' financing and loans, and a liability credit never counts as paying that liability's own creditor (defect 24, found in design: accruals through other liabilities counted twice, fixed here); a report asked for without dates covers this fiscal year so far, everywhere, and an account's register opens on it with "Show all dates" one click away; P&L accounts without a tax category warn by default (header accounts exempt), and the first company's books are fully categorized at the P3 cutover and then set to refuse; a new account named like a sibling (ignoring capitals), or holding a nine-digit number, is refused; `books.show` refuses options its target ignores; an asset's acquired date comes from the entry it is linked to; a month of depreciation skipped is caught up in the month the run is made (an immaterial miss; a material one is restated, ASC 250).
+
 **Tests and accept:**
 - A named regression test per defect, built from its 2026-10-16 reproduction (anonymized fixture).
 - Each of those regression tests is also written as a bookspec example (P13, D-34) as it is built: the rule it shows, its source, the setup, the events and the exact expected results. They are the spec's first examples.
@@ -1321,6 +1323,8 @@ The owner decisions of 2026-10-16 (at the top of this document) replace the form
 | D-37 | Schedules (P3, defect 9; owner, 2026-10-20) | **New schedules spread by day** (D-11 confirmed: a 12-month policy from March 15 posts 13 entries, a small first and last month; existing schedules keep equal months). **An equal-months schedule must start on the 1st of a month**, for prepaid expenses and deferred revenue alike (asked "what would a CPA/CFO say?": revenue is never recognized before it is earned, ASC 606-10-25-23, so equal-month revenue must start on the 1st; prepaid expenses could take a full first month as an immaterial convention, but one rule for both is simpler and never early). |
 | D-38 | Odd cents everywhere alike (P3, defect 17; owner, 2026-10-20) | **The members' equity statement, the K-1 worksheet and the viewer split not-yet-closed earnings the same running way as the closes** (cumulative, largest remainder), so a member's capital on a given day never moves by a cent when its month is later closed. |
 | D-39 | Pushing the format upgrade (owner, 2026-10-20: "at first open, but not limited to 'once', I think we should push users harder into the format upgrade") | **After an update that needs a newer books format, the app asks for the go-ahead (after a verified backup) at every open until it is given**, the viewer shows a standing notice, and `books.start` puts the upgrade first among its next steps. Declining never stops the books opening on the old format; nothing is upgraded without the owner's yes. |
+| D-40 | 1099s (P3, defects 23, 12 and 18; owner, 2026-10-20) | **A bank payment with no method recorded counts toward 1099s** (presumed check, ACH or transfer; debit-card payments are tagged as card). **Anthropic, PBC is recorded "not reportable: a corporation (Delaware public benefit corporation, from the public record)"**; Namecheap, Apple and OpenRouter "a corporation by name" (Treas. Reg. §1.6041-3(p)(1)), USPS "the United States" (§1.6041-3(p)(3)); Google LLC stays undecided until a W-9 shows what it is. **Needs attention asks only about vendors paid in a way that could need a 1099.** **A vendor's 1099 status is dated** (owner: "I think legally this has to be 2 dated statuses, right? If someone incorporates on Dec 30 …"): each status carries the date it takes effect (the W-9's date, or a tax election's effective date), and the worksheet applies the status in force on each payment's date. A payee that incorporates is a new legal person (a new vendor record with its own W-9); an LLC electing corporate taxation keeps its EIN and changes status on the election's date: dated statuses cover both. A status changed for a closed year warns. |
+| D-41 | The contributed devices' tax basis (P3, defect 13; owner, 2026-10-20) | **Depreciable basis is the lower of fair market value and the member's adjusted basis at conversion** (Treas. Reg. §1.168(i)-4(b); Pub. 946, property changed from personal use): $5,100 for the four, the CPA to confirm at year end. **§704(c) method: traditional**, recorded now and confirmed with the CPA before the first Form 1065 (for members filing jointly every method gives the household the same tax). **The four devices' values on 2026-10-15 are the books' amounts** ($1,650; $1,025 plus AppleCare+ $25; $1,675; $750), citing entries 14, 19, 16 and 17. **New P3 item: the K-1 worksheet reports tax-basis capital** (Form 1065 instructions, Item L, since 2020), the contributed property at its §723 carryover basis, beside the book figures. |
 
 ### 10.2 Deferred