I think everyone is overthinking this. If the amount isn't huge, just deduct it this year on Schedule C and move on. The IRS isn't going to come after you for being generous to them in prior years by paying more tax than required. The tax court has ruled many times that the IRS can't force you to go back and amend prior returns.

I'd definitely recommend going the Form 3115 route that others have mentioned. I had a similar situation with my landscaping business where we missed claiming depreciation on some equipment purchased in 2020. What really helped me was understanding that the Form 3115 method actually protects you better than an amended return. When you file Form 3115, you're following an established IRS procedure for correcting accounting methods, which gives you more defensible ground if there are ever questions. The Section 481(a) adjustment lets you catch up all that missed depreciation in one shot on your current return. Just make sure you calculate it correctly - I'd suggest double-checking the asset classifications and recovery periods. For salon equipment, most items are likely 7-year property under MACRS, but some might qualify for 5-year treatment. One tip: keep really good documentation of the original purchase dates and costs. If you're ever questioned about the timing, you'll want to be able to show exactly when each piece of equipment was placed in service. The IRS is generally reasonable about these corrections when everything is properly documented and you're using the right forms.

Random question - if I've already certified in Robinhood but was confused about this, should I try to redo the certification? Or am I fine since I now understand what it actually means?

This is such a helpful thread! I've been dealing with the exact same confusion across multiple brokerages. It's frustrating that these financial institutions use such unclear language when asking for tax certifications. What I've learned from reading everyone's responses is that there's a critical distinction between: 1. The financial institution's FATCA reporting obligations (what Robinhood's form is about) 2. Your personal FATCA reporting obligations on Form 8938 (completely separate) The certification you're making to Robinhood is essentially saying "As a US person, you don't need to report my US account under FATCA." This doesn't affect whether you need to report foreign assets on your tax return. I think all brokerages should be required to use clearer language like "I certify that this account is exempt from FATCA reporting requirements" instead of making it sound like you're claiming a personal exemption from all FATCA obligations. The current wording creates unnecessary anxiety about committing perjury when you're actually just providing routine account classification information. Thanks to everyone who shared their experiences and resources - this has been incredibly clarifying!

Maybe consider keeping it until you've at least paid off the loan? Since you're underwater, you'd have to come up with cash to pay off the remaining loan balance if you sell. Plus, with the depreciation recapture, you might end up with a tax bill too. Sometimes holding an asset a bit longer can make the math work better.

This is a tough spot to be in! One thing to consider that might help with the cash flow issue is timing the sale strategically. If you're expecting higher income this year, you might want to wait until early next year to sell so the depreciation recapture income hits in a potentially lower tax bracket year. Also, since you're underwater on the loan, you could explore trading it in toward a more fuel-efficient business vehicle rather than selling outright. The dealer might roll the negative equity into the new loan, and if you buy another qualifying business vehicle, you could potentially take advantage of bonus depreciation again on the new purchase to offset some of the recapture tax hit. Just make sure to keep detailed records of business use percentage for both vehicles if you go that route. The IRS gets pretty picky about business vehicle deductions, especially on luxury vehicles like the GLE.

Has anyone actually successfully filed a superseding return electronically? I'm seeing mixed info here. The IRS publication says superseding returns can be filed electronically but it sounds like the Free File system might reject it as a duplicate filing anyway?

I actually went through this exact situation last year with Free File fillable forms. Here's what I learned from experience: The Free File fillable forms system will almost certainly reject your superseding return electronically because their duplicate detection system can't distinguish between a duplicate filing error and an intentional superseding return. The system just sees that you've already filed and blocks it. What worked for me was using the Free File fillable forms to prepare my superseding return completely, then printing it out and mailing it. The key steps are: 1. Complete your entire corrected return in Free File fillable forms 2. Print the complete return (all forms and schedules) 3. Write "SUPERSEDING RETURN" in red ink at the very top of Form 1040 4. Mail it to the processing center for your state before the deadline (including extensions) Make sure you include ALL the same forms and schedules as your original return, even if they didn't change. The superseding return completely replaces your original filing, so it needs to be complete. One important note - if you're expecting a larger refund, the IRS will typically send you the difference. If you owe more, you'll need to pay the additional amount. The superseding return essentially cancels out your original return as if it never existed. The postmark date is what counts for meeting the deadline, not when the IRS processes it, so don't wait too long to mail it if you're getting close to April 15th!

Has anyone else had this issue with the residency calculator in TurboTax? I entered all my info (F1 status, dates, etc) and it told me I was a full-year resident even though I only hit the substantial presence test in September. When I tried H&R Block instead, it said I was dual-status. Super confused now!

I went through the exact same confusion last year! The key thing to understand is that when you become a tax resident mid-year due to the substantial presence test, you have two options: 1. **Dual-status filing**: You're a nonresident for Jan 1 - May 14, then a resident for May 15 - Dec 31. You'd file Form 1040NR for the nonresident portion and Form 1040 for the resident portion. 2. **First-Year Choice election**: You can elect to be treated as a full-year resident, which lets you file just one Form 1040 and take the standard deduction. The reason you're seeing conflicting information is that different sources emphasize different options. Your university software is probably assuming you'd benefit from the First-Year Choice election (which is often true for students), while other sites are giving you the default dual-status rule. For the Social Security taxes, that's separate from income tax residency - once your 5-year F1 exemption expires, you owe Social Security taxes on ALL wages earned after that date, regardless of which filing status you choose. I'd suggest running the numbers both ways to see which gives you a better outcome. The First-Year Choice usually works better if you have significant income throughout the year and want to take the standard deduction, but dual-status might be better if you have large scholarship amounts that qualify for treaty benefits during the nonresident period.