Just wanted to chime in as someone who's been through this exact situation with my small construction business. Yes, you can absolutely deduct your iPhone as a business expense for your LLC! Since you're using it for legitimate business activities like customer calls, posting ads, and managing operations, the IRS considers this a valid deduction. The percentage calculation doesn't have to be overwhelming - I kept a simple log for about 3 weeks noting business vs personal usage and found I was using my phone about 75% for business. Now I deduct that percentage of both the phone cost and monthly service bills. One thing that really helped me was setting up a separate business Apple ID for work-related apps and downloads. It makes it easier to track business usage and adds another layer of documentation. Also, since you mentioned using your business credit card for the purchase - that's perfect! It creates a clean paper trail. Keep your receipts, document your usage pattern, and you should be all set. The IRS is pretty reasonable about mixed-use items like phones as long as you have a legitimate business purpose and reasonable documentation to back up your percentage.

Absolutely! Your iPhone is definitely deductible as a business expense for your LLC. Since you're using it for legitimate business activities like customer calls, posting ads, managing payroll, and photographing inventory, the IRS recognizes this as a valid business deduction. The key is determining what percentage is business vs personal use. You don't need to track every single interaction - just make a reasonable estimate based on your typical usage patterns. For a used RV dealership where you're constantly communicating with customers and managing operations, your business percentage is probably quite high. I'd recommend keeping a simple log for 2-3 weeks to establish your business usage pattern. Track things like business calls, time spent on work-related apps, posting ads, taking inventory photos, etc. Many small business owners are surprised to find they use their phones 70-80% for business once they actually document it. Since you mentioned using your business credit card for the purchase, that's perfect - it creates a clean paper trail. Remember that this deduction applies to both the initial iPhone purchase and your ongoing monthly service bills. Just multiply your total phone costs by your business use percentage. Keep good records of receipts and your usage documentation. The IRS is generally reasonable about mixed-use items like phones as long as you have legitimate business purposes and can support your percentage calculation.

I'm going through something similar right now with my grandmother's estate. Got a CP2000 notice about 8 months after she passed for a missing 1099-B from some stock sales. The amount they're claiming is around $4,300. What's been helpful for me is understanding that this is actually pretty common - the IRS systems don't automatically know when someone passes away, so these notices can keep generating for months or even years after death. The key thing I learned from my estate attorney is that your personal liability as executor is very limited as long as you acted in good faith. Since you mentioned the estate was already settled without probate, that suggests it was a smaller estate that qualified for simplified procedures. In most states, if you distributed assets to beneficiaries without knowing about this tax debt, you're protected under "good faith executor" provisions. I'd definitely recommend responding to the notice rather than ignoring it, even though it's stressful. Include a copy of the death certificate and a simple letter explaining that the estate has been closed and distributed. Most of the time, the IRS will just close these cases when they realize there are no assets left to collect from. The peace of mind from handling it properly is worth the effort, and it protects you from any potential complications down the road.

I'm dealing with a very similar situation and want to share what I've learned from my experience and research. When my uncle passed last year, we received a CP2000 notice about 10 months later for approximately $8,200 in unreported income from a 1099-MISC we never received. The most important thing to understand is that the IRS has specific procedures for deceased taxpayers, and as an executor, you have certain protections under tax law. Here's what I discovered: 1. **Personal Liability Protection**: As long as you distributed estate assets in good faith without knowledge of the tax liability, you're generally protected from personal liability under IRC Section 6901. The key word is "knowledge" - if you didn't know about this debt when you closed the estate, you're typically not personally responsible. 2. **Proper Response**: Don't ignore the notice. Respond within the timeframe specified (usually 30 days) with a letter explaining that the taxpayer is deceased, the estate has been closed and distributed, and there are no remaining assets. Include a certified copy of the death certificate. 3. **Form 56**: Consider filing Form 56 to officially notify the IRS of your role as executor and that the fiduciary relationship has ended. This creates an official record that can protect you. 4. **Documentation**: Keep records of everything - when your father passed, when the estate was distributed, when you received the CP2000, and all correspondence with the IRS. In my case, after sending the proper documentation via certified mail, the IRS placed the account in "currently not collectible" status within about 8 weeks. The peace of mind was absolutely worth taking the time to respond properly rather than hoping it would just go away. You're not alone in this - these situations are more common than you might think, and the IRS does have procedures to handle them appropriately.

Random tip from someone who's been through this - make sure your husband is taking before and after pictures of everything he fixes up! Not only is this good for sales listings, but if you ever get audited, having visual proof of the improvements made can help justify the expenses. The IRS can be picky about hobby vs business classification for flipping activities.

Great question! I went through this exact same confusion when I started my furniture flipping side business. Here's what I learned works best in TurboTax: The initial purchase price of the motorcycles/tools should definitely go under "Cost of Goods Sold" - these are your inventory items that you're buying specifically to resell. For the repair parts and materials he's purchasing to fix them up, those go under "Materials and supplies" in the expense section. This includes things like replacement parts, paint, cleaning supplies, etc. One thing that really helped me was keeping a simple spreadsheet for each item - purchase price, repair costs, selling price, and profit. This makes it super easy when you're entering everything into TurboTax and gives you great records if you ever need them. Also don't forget about other deductible expenses like gas/mileage for picking up items, any selling fees (eBay, Facebook Marketplace, etc.), and even a portion of your phone bill if he uses it for business calls. These little things add up! The key is treating this as a legitimate business from day one with good record keeping. That way there's no question about hobby vs business classification with the IRS.

anybody else notice how the irs website be acting like its running on windows 95 or sumthing? 🤡

Same thing happened to me last week! Filed on Feb 10th and my transcript was completely blank for like 3 days straight. I was panicking thinking I messed something up but then boom - everything showed up on day 4. The IRS processing system is just slow af during tax season. Your transcript looks totally normal for something that's still being processed. Just gotta be patient (easier said than done I know lol

This is a great question and the answers here have been really thorough! Just to add one more perspective - I've noticed this rounding thing with my refunds for years but never really thought about it until now. What's interesting is that sometimes my refund would be a few cents higher than expected, and other times a few cents lower. Now I understand it's all about how the various numbers on my return get rounded before the final calculations. For anyone else wondering about this, I found that looking at the actual PDF of your submitted tax forms (which most tax software lets you download) will show you exactly what numbers were sent to the IRS - all in whole dollars. That way you can see the "official" calculation that the IRS used versus what the software showed you during preparation. Definitely not worth stressing over a few cents, but it's good to understand why it happens!

This thread has been incredibly informative! As someone who's been filing taxes for over a decade, I'm embarrassed to admit I never really paid attention to this rounding thing until reading all these responses. I just went back and checked my last few years of refunds, and sure enough, they're all whole dollar amounts even though my tax software always showed cents in the calculations. It's one of those things that's so obvious once it's explained, but I just assumed the IRS was super precise with cents like banks are. The explanation about each line item being rounded individually before final calculations makes perfect sense too. I can see how that would lead to small differences between what your tax software displays during preparation versus the final amount the IRS processes. Thanks to everyone who shared their expertise here - this is exactly the kind of practical tax knowledge that should be more widely understood!