Has anyone used TurboTax for reporting small amounts of foreign interest income? Does it automatically generate Schedule B when you input foreign interest, or do you have to know to add it yourself?

I've been dealing with a similar situation for years and can confirm what others have said here. The most important thing is that you've been properly reporting the income on your 1040 - that shows good faith compliance with tax obligations. The Schedule B requirement for foreign interest is indeed a technicality that many people miss, but since you've reported all income correctly, the IRS isn't going to come after you for a few dollars of properly-taxed foreign interest. The disclosure aspect is important, but it's separate from your tax liability. Going forward, definitely include Schedule B and check "Yes" on Part III about having foreign accounts. This gives the IRS the transparency they're looking for. Don't lose sleep over amending previous returns - focus your energy on getting it right from now on. One tip: when you do file Schedule B going forward, make sure to report the interest in the foreign currency amount converted to USD using the average exchange rate for the year. Keep records of the conversion rates you used.

Has anyone tried using the simplified home office deduction method instead? It's $5 per square foot up to 300 sq feet, so maximum $1,500 deduction. Seems easier than tracking all these expenses, but I'm not sure if it's worth it for a larger detached space.

This is such a helpful thread! I'm dealing with a similar situation with my converted shed office. One thing I want to add that might help others - when you're calculating that square footage percentage, make sure you're measuring the *interior* finished space, not the exterior dimensions of the building. I initially calculated using the outside measurements of my shed (12x16 = 192 sq ft) but my accountant corrected me to use the interior space after insulation and drywall (about 11x15 = 165 sq ft). It seems minor but it actually changed my percentage from about 8% to 6.5% of my total property. Also, if anyone is wondering about insurance coverage, I had to add a rider to my homeowners policy specifically for the business use of the detached structure. The cost of that rider is also deductible as a business expense since it's 100% related to the office use.

I'm dealing with reference number 1242 as well and wanted to share what finally worked for me after weeks of trying. Instead of calling the main number repeatedly, I used the automated callback feature which saved me hours of waiting on hold. You can request a callback through the IRS website or by staying on the line when you call - they'll call you back when an agent is available rather than making you wait. Also, I discovered that having your Adjusted Gross Income (AGI) from your prior year return ready is crucial - they use this to verify your identity before discussing reference number 1242. The whole process took about 3 callback attempts over 2 weeks, but each callback was successful in reaching an actual person. Hope this helps others who are struggling with the same issue!

I'm dealing with reference number 1242 too and this thread has been incredibly helpful! I've been stuck in the same cycle of calling and getting hung up on. Reading everyone's experiences, it sounds like the automated callback feature is definitely the way to go instead of trying to wait on hold. I'm going to try requesting a callback first thing Monday morning with all my documents ready - my 2022 return, Social Security number, and prior year AGI from line 11. It's reassuring to hear from Leo and others that this is usually just routine verification and gets resolved once you can actually speak to someone knowledgeable. The persistence and specific tips shared here (like calling at 7 AM, having exact AGI ready, allowing unknown numbers for callbacks) are exactly what I needed to hear. Thanks everyone for sharing your experiences - it really helps to know we're not alone in dealing with this frustrating but ultimately resolvable issue!

Slightly off-topic, but make sure you're looking at Total Cost of Ownership, not just the tax benefits. I got excited about the Section 179 deduction last year and bought a $65K truck for my real estate business, thinking I was "saving" a ton on taxes. What I didn't fully account for was: 1) Higher insurance costs (almost $200/month more than my previous vehicle) 2) Terrible fuel economy (I'm spending about $350 more per month on gas) 3) Higher maintenance costs 4) More expensive parking due to the larger size Yes, I got a nice tax deduction, but over 5 years, my TCO is WAY higher than if I'd bought something more modest. The tax tail shouldn't wag the business dog.

Great discussion here! As someone who works in tax preparation, I wanted to add a few practical points that might help Miguel and others considering this decision: First, timing matters more than people realize. Section 179 deductions must be taken in the year the vehicle is "placed in service" - meaning when you start using it for business. If you buy in December but don't start using it until January, you might miss out on a full year of deduction benefits. Second, there are income limitations on Section 179. If your business income is below the deduction amount, you can't create a loss with Section 179 (though you can carry forward unused amounts). This is different from bonus depreciation, which can create losses. Third, for catering specifically, consider whether you actually need a 6,000+ lb vehicle. A well-equipped cargo van might serve your business better and still qualify for significant deductions, while being much more practical for navigating to catering venues and customer locations. Finally, remember that business use percentage applies to EVERYTHING - not just the purchase price, but insurance, fuel, maintenance, etc. If you're honest about your usage being 70% business, that percentage applies to all vehicle-related deductions going forward. The tax benefits are real, but make sure the vehicle choice makes business sense first!

Great question about heavy truck depreciation! Just to add some clarity to the excellent responses already given - you're right that bonus depreciation is 60% for 2024, and both trucks you're considering (Ram 3500 and Silverado 3500) definitely qualify for full Section 179 treatment since they're over 6,000 lbs GVWR. One key point that might help with your decision: you can actually combine both methods strategically. For example, you could take $50k under Section 179 and then apply 60% bonus depreciation to the remaining $22k (which would be $13,200), giving you a total first-year deduction of $63,200. This approach can be useful if you want to preserve some Section 179 allowance for other equipment purchases later in the year. Also, yes - you can absolutely continue deducting operating expenses (fuel, maintenance, insurance, etc.) regardless of which depreciation method you choose. These are separate from the asset depreciation and are fully deductible as ordinary business expenses. The IRS has Publication 946 which explains all the depreciation rules in detail, but honestly, given the complexity and the amount of money involved, I'd strongly recommend consulting with a tax professional who can run the numbers based on your specific business income and tax situation. They can help you optimize the timing of deductions to maximize your tax savings.

For small business equipment depreciation, you'll want to look for either a CPA or an Enrolled Agent (EA) who specifically works with small businesses. EAs are federally licensed tax practitioners who can represent you before the IRS and often specialize in complex depreciation scenarios like yours. When interviewing potential tax pros, ask them specifically about their experience with Section 179 and bonus depreciation for heavy vehicles. A good test question is whether they know about the special rules for SUVs vs trucks over 6,000 lbs GVWR - if they immediately know that trucks are treated differently (no luxury auto limits), that's a good sign. Also look for someone who can do tax planning, not just preparation. You want them to model different scenarios and show you the multi-year impact of your depreciation choices, especially since you're planning multiple equipment purchases this year. The right professional should be able to optimize your deductions across all your equipment purchases to minimize your overall tax burden. Many small business CPAs offer initial consultations where they can quickly assess whether the potential tax savings justify their fees. Given that you're looking at $70k+ in equipment purchases, the consultation cost is usually well worth it.