Has anyone actually been audited for vehicle deductions? I've been claiming my work van expenses for years and sometimes worry I'm doing it wrong.

Great question! I went through this exact same situation with my delivery truck a couple years ago. Here's what I learned: Since your box truck is likely over 6,000 lbs (most are), you can take advantage of Section 179 deduction which allows you to deduct the full $85k purchase price in the first year, even though you're financing it. This is often better than mileage deduction for expensive commercial vehicles. Key things to remember: - You can deduct the INTEREST portion of your loan payments as a separate business expense - Keep detailed records of business vs personal use percentage - Make sure to have documentation showing the truck's weight rating (over 6,000 lbs avoids luxury auto limits) - Track your business miles anyway for backup documentation I'd strongly recommend consulting with a tax professional since the depreciation rules can get complex, especially if you want to combine Section 179 with bonus depreciation. The savings on an $85k vehicle can be substantial if done correctly! Also keep receipts for all truck-related expenses (fuel, maintenance, insurance, etc.) since these are deductible regardless of which method you choose.

I'm going through this exact situation right now with property in Italy. My accountant says the key thing is the TIMING - you file Form 3520 in the tax year when you legally receive the property, not when the person died. So if Portugal's inheritance process isn't complete yet, you wouldn't file until it's done. Also, make sure you get a Form 8833 filled out to claim treaty benefits if the US has a tax treaty with Portugal. This can protect you from double taxation. My accountant is charging me $650 just to prepare these two forms!

This is such a complex area! I inherited a small apartment in France from my grandmother two years ago and made the mistake of not filing Form 3520 initially because I thought it only applied to cash gifts. The IRS eventually caught up with me through their automatic data matching systems. What saved me was being able to show "reasonable cause" for the late filing - I had documentation that I relied on incorrect advice from my original tax preparer. The key lesson is that Form 3520 applies to ALL foreign inheritances over $100k, including real estate, regardless of whether you plan to keep or sell the property. Since you're still going through Portugal's inheritance process, you have time to get this right. File Form 3520 for the tax year when legal ownership actually transfers to you (not when your father passed). Keep detailed records of the Portuguese inheritance proceedings to document the exact transfer date. And definitely get some form of valuation documentation - even if it's just comparable sales data from Portuguese real estate websites - to support whatever value you report.

A couple tips from someone who was in your position last year: 1. Get a dedicated business bank account ASAP if you don't already have one. Mixing personal and business funds is asking for trouble. 2. For your Schedule C, pay careful attention to inventory vs. expenses. If you're selling physical products, the items you buy for resale go in the Cost of Goods Sold section, not as regular business expenses. 3. If you've been using your personal vehicle for business, track those miles! That's a valuable deduction. 4. Don't stress too much about the LLC transition between states. As others mentioned, for federal taxes you're just reporting on Schedule C regardless.

Logan, you're definitely not alone in feeling overwhelmed - starting a business and handling taxes for the first time is genuinely stressful! But the good news is that your situation is pretty straightforward once you understand the basics. A few key points to ease your mind: **Entity vs. Tax Treatment**: Your LLC is just a legal wrapper - for taxes, you're still filing as a sole proprietor using Schedule C on your personal return. The IRS doesn't care which state your LLC is in for federal tax purposes. **Self-Employment Tax Reality Check**: Yes, you'll owe self-employment tax on your $5,500 profit (about $777 total). It's not optional, but it's also not as scary as it sounds. **Family Loan Handling**: That $15k is a loan, not income, so it doesn't affect your taxes. But do document it properly with a simple written agreement - even family loans should have basic paperwork. **Record Keeping**: Since you're using Stripe/Shopify, you probably have better transaction records than most new business owners. That's actually a huge advantage. One thing I'd add - consider making quarterly estimated tax payments for 2024 to avoid a big bill next year. With $5,500 profit, you probably won't owe penalties for 2023, but planning ahead helps. You've got this! The hardest part is often just getting started.

Don't overlook state requirements for nanny taxes! Each state has different rules and payment systems. For example, in my state (CA), I had to register as an employer with EDD separately from the federal system, and payments are made quarterly through a completely different portal. Also had to get separate workers comp insurance. Check your state's employment department website for household employer information.

Quick tip for anyone doing nanny taxes - get payroll software! I wasted SO much time trying to do this manually before I finally got NannyPay. It costs like $150 for the year and calculates all the withholdings automatically, tells you exactly when and how much to pay for quarterly taxes, and generates all the forms including W-2s at year end.

I dealt with a similar situation after Hurricane Laura damaged my roof and garage. One thing that really helped my case was getting a "scope of loss" document from a public adjuster who reviewed what my insurance company missed or undervalued. Even though I had to pay the adjuster, it was worth it because they found an additional $12k in damages that insurance initially overlooked. For your chimney situation, you might want to consider getting a structural engineer's assessment showing that removing the chimney versus rebuilding it creates a permanent decrease in your home's structural integrity and value. This could strengthen your FMV decrease argument beyond just the aesthetic/functional loss. Also, don't forget that you can deduct the cost of temporary protective measures you took immediately after the hurricane (like tarping, boarding up windows, etc.) as part of your casualty loss. These often get overlooked but they're legitimate disaster-related expenses. Just make sure everything was within a reasonable timeframe after the federally declared disaster.

I went through a very similar situation after Hurricane Michael hit our area. One crucial detail that hasn't been mentioned yet - make sure you understand the timing rules for casualty loss claims. Since yours was a federally declared disaster, you actually have the option to claim the loss on either your 2024 return (the year it happened) OR amend your 2023 return to claim it there, which could get you a refund faster. The key documentation you'll need beyond what others have mentioned is a detailed timeline showing when the damage occurred, when you received the insurance settlement, and when you made the decision to go with the wall replacement instead of full chimney rebuild. The IRS wants to see that you made reasonable efforts to restore the property but were financially unable to do so. For your specific situation with the chimney-to-wall conversion, I'd strongly recommend getting an appraisal or real estate professional's written opinion on how this impacts your home's resale value. A missing chimney can affect both the aesthetic appeal and functionality (no fireplace option for future buyers), which supports your FMV decrease calculation. One last tip - if you're planning to sell your home within the next few years, keep all this casualty loss documentation. It could affect your capital gains calculation since the casualty loss reduces your home's adjusted basis.