Based on your situation, yes you can definitely deduct the router! Since you have a dedicated home office and use it exclusively for business, you have solid ground for this deduction. For a router, you'll likely want to use Section 179 to deduct the full cost this year rather than depreciating it over 5 years - it's simpler and makes more sense for smaller purchases like this. The mixed personal/business use is totally normal and expected. Just estimate what percentage is business use (sounds like it could be substantial given your work requirements) and deduct that portion. Keep your receipt and document your reasoning for the percentage - maybe track your usage for a week or consider business hours vs. total internet usage time. One tip: don't forget you can also deduct the business portion of your monthly internet bill ongoing, not just the router itself. Many self-employed folks miss that recurring deduction. Since you mentioned being careful about not crossing lines, you're taking exactly the right approach. The key is having reasonable estimates you can justify if asked, which it sounds like you definitely can given your dedicated office space and work requirements.

Great question! As a fellow self-employed person, I can confirm that router purchases are definitely deductible business expenses when you work from home. Since you have a dedicated home office and rely on internet for client work, you're in a strong position to claim this. A few things to keep in mind: - For most home routers (under $2,500), you can deduct the full cost this year using Section 179 expensing - Since you use it for both business and personal, calculate a reasonable business percentage - maybe based on work hours vs. total daily internet usage - Document your reasoning and keep that receipt! Don't forget about your monthly internet bill too - you can deduct the business portion of that every month going forward. That often adds up to more savings than the one-time router purchase. The fact that you're being thoughtful about staying within the rules shows you're on the right track. With your dedicated office space and legitimate business need for reliable internet, this is exactly the type of expense the deduction is meant for.

Former adult content creator here. Beyond the tax stuff, protect yourself legally: 1) Consider forming an LLC if your income gets substantial (over $10k/year). It's an extra layer of protection and can make your business name official. 2) Keep ALL income from this completely separate from your regular job income. Separate PayPal, separate bank account if possible. 3) Document EVERYTHING. Save screenshots of payments, keep detailed expense records, and maintain a business log. In case of audit, you need to prove this is a legitimate business. 4) Look into a VPN and privacy tools for online security. 5) Be careful with PayPal - they're known to freeze accounts associated with adult content. Some creators use alternative payment processors. Good luck and stay safe!

I haven't been through an audit personally, but I can share what I've learned from tax professionals about audits for small businesses like this: The IRS generally focuses on whether your income and expenses are legitimate and properly reported, not the specific details of what you're selling (as long as it's legal). During an audit, they'd want to see: - Records proving your reported income (bank statements, payment processor records) - Documentation for claimed business expenses - Evidence that you're treating this as a real business (separate records, business purpose for expenses) The key is maintaining professional records. Keep a simple business log noting dates, activities, and business purposes. For expenses, save receipts and note how each item relates to your business. If you're organized and honest in your reporting, an audit is more administrative than invasive. The IRS isn't interested in judging your business - they just want to verify you're paying the correct amount of tax. That said, this is why keeping everything completely separate from personal expenses and maintaining detailed records is so important. It makes any potential audit much smoother and less stressful.

Called the IRS yesterday about my still processing status. They said I need to verify identity. Don't wait like I did - call if ur stuck on still processing for more than 3 weeks!

This is super helpful! I've been dealing with the same confusion. My status changed from "processing" to "still processing" about 2 weeks ago and I wasn't sure if that was bad news. Based on what everyone's saying here, sounds like I should probably call the IRS soon to see if they need anything from me. Thanks for asking this question - really needed this clarification!

Is anyone else confused about why the OP received $1000 in distributions when their 1% share of the partnership showed a $5100 loss? How can the partnership distribute cash if it's operating at a loss?

This is a great example of how confusing K-1s can be for new partners! The key thing to remember is that partnership accounting follows the "conduit" theory - the partnership doesn't pay taxes, it just passes through its income and losses to the partners. Your $1,000 in distributions should be reported in Box 19 (code A) of your K-1, and these reduce your basis in the partnership rather than creating taxable income. The $5,100 loss you're seeing is your 1% share of the partnership's total loss, which likely includes depreciation on the rental property. Since you mentioned you're completely passive in this investment, your losses are subject to the passive activity loss rules under Section 469. This means you can only use these losses to offset passive income from other sources. If you don't have other passive income, the losses get suspended and carry forward until you either generate passive income or dispose of your entire interest in the partnership. Make sure to keep good records of your basis and any suspended losses - you'll need this information for future tax years and eventually when you sell or dispose of your partnership interest.

Just to add another perspective - make sure you understand the state tax implications too, not just federal. Some states have different rules for how they treat LLC income and business transitions. I had a similar situation where I thought I had everything figured out for federal taxes, but then got a surprise notice from my state tax authority because they had different requirements for reporting the business structure change. Each state can have its own rules about when income is attributed to you personally vs. the business entity. It's worth checking with your state's tax department or a local tax professional who knows your state's specific requirements.

This is a complex situation that definitely requires careful documentation. Based on what you've described, you'll likely need to file taxes for multiple periods with different business structures. For January-February (sole proprietor period), you'll report that income on Schedule C and pay self-employment taxes on it - even though you later moved the money to the LLC account. The IRS looks at when income was earned, not where it ended up. For the LLC period (March-May), you should receive a K-1 showing your share of the LLC's income/losses for those months. Make sure your former partner provides this to you, as the LLC is required to issue K-1s to all members who owned interests during the tax year. The transfer of your LLC ownership to your partner is also a taxable event that needs to be reported, even if you received no compensation. You may be able to claim a loss on this transaction depending on your basis in the LLC. I'd strongly recommend getting professional help with this since you're dealing with multiple business structures and ownership changes in one tax year. The cost of a tax professional will likely be worth avoiding potential penalties or missed deductions.