One thing to consider is that the IRS allows you to use different inventory accounting methods for tax purposes like FIFO, LIFO, or specific identification. For a reseller with unique items (not identical products), specific identification usually makes the most sense. This means each item you purchase for resale has its own tracked cost basis. So in your example, the $12 sweater sold for $65 would be $53 profit, and the personal $60 sweater sold for $15 would technically be a $45 personal loss (not deductible against business income).

This is such a common challenge for resellers! I've been dealing with similar issues in my own small business. One thing that really helped me was creating a clear separation between "business purchases" and "personal items that later get sold." For business purchases, I maintain detailed records from day one - photos, receipts, storage location, listing attempts, etc. These clearly qualify for COGS treatment when sold or charitable deduction when donated unsold. For personal items that later get sold, I treat them completely separately. Like your $60 sweater example - that's a personal asset sale, not business inventory. The loss isn't deductible, but it also doesn't get mixed up with your business accounting. The gray area items (bought for business but used personally first) are the trickiest. I've found the best approach is to "convert" them out of inventory when you start personal use, then treat any later sale as personal. Document the conversion with a note about fair market value at the time. For damaged items like your laptop, if it was personal property, selling for parts is still a personal transaction. But this is where having that clear intent documentation from purchase really matters - it establishes whether something was ever business property to begin with. The key is consistency in your method and keeping contemporaneous records of your intent. Don't try to retroactively categorize things based on what's most tax-advantageous!

Here's the detailed breakdown of what you need to do: First, use taxr.ai to get a complete analysis of your transcript and see exactly what the IRS is seeing. It's literally $1 and will save you so much time trying to decode IRS notices. Then: 1. Contact CashApp support to fix account type 2. Get documentation of the error 3. File Form 1040-X 4. Include explanation letter 5. Attach all supporting docs I do tax resolution and see this ALL the time. Don't panic - its fixable!

I went through this exact same nightmare last year! CashApp randomly switched my account to business and I had no idea until I got hit with IRS letters. What worked for me was getting a tax professional to help with the amended return - they knew exactly what documentation to include. Also make sure you get a corrected 1099 from CashApp if possible. The whole process took about 4 months but I got it resolved without any penalties. Don't give up!

I'm dealing with a similar situation right now. Filed my 1040X in January and it's been radio silence ever since. The "Where's My Amended Return" tool has been stuck on "received" for over 8 weeks now. What's frustrating is that with regular returns, you at least get status updates like "being processed" or "refund approved." With amended returns, it's basically just "we got it" and then nothing until suddenly a check appears in your mailbox months later. I've been keeping a spreadsheet tracking when I check the status just so I don't go crazy checking it every day. From what I'm reading here, sounds like I need to prepare for a much longer wait than I initially thought. The timing with your PCS move in August is going to be tricky - definitely recommend setting up mail forwarding well in advance since you might still be waiting by then. Has anyone had luck getting more specific timelines by calling the IRS directly, or is it just the standard "16 weeks" response?

I'm going through this right now too and can share some recent experience. Filed my 1040X in late January after discovering I missed claiming some medical expenses. It's now been about 6 weeks and still showing "received" status. What I've learned from talking to other military families (I'm Army) is that the timeline really depends on complexity. Simple amendments like missed deductions seem to take the full 16+ weeks, but more complex ones involving multiple forms or business income can stretch even longer. Since you mentioned a PCS move in August, I'd definitely recommend: 1. Set up mail forwarding through USPS well before your move 2. Update your address with the IRS as soon as you know your new one 3. Consider having the refund sent to a trusted family member's address if timing gets tight The "Where's My Amended Return" tool really is pretty useless compared to the regular tracker. I check mine maybe once a week now instead of daily - saves my sanity. From what everyone's saying here, it sounds like we're all in for a long wait regardless of when we filed. Good luck with your move prep! At least dealing with the IRS gives us practice for all the other military bureaucracy we deal with regularly.

Has anyone used TurboTax for reporting regular options trading? I tried last year and it seemed to get confused with my LEAP options that crossed tax years.

Your strategy should indeed qualify each option for long-term capital gains treatment since you're holding each individual contract for over 12 months. The monthly cycling doesn't change the tax treatment of each position - the IRS looks at each option contract separately. However, I'd recommend keeping detailed records of your purchase and sale dates for each option, especially since you're dealing with LEAPs that cross multiple tax years. Make sure your broker is correctly reporting the holding periods on your 1099-B forms. One additional consideration: while 12 trades per year is unlikely to trigger trader status, you might want to document that this is an investment strategy rather than a business activity. Keep records showing this is part of your investment portfolio management rather than your primary source of income or a daily trading business. The 15% long-term capital gains rate you mentioned applies if your total taxable income falls within the 15% bracket range. Higher income levels face 20% long-term capital gains rates, so make sure you're planning for the correct rate based on your overall tax situation.

Don't forget to contact the IRS directly to flag this for them BEFORE you file taxes this year! We had a similar issue and filed our taxes normally, then got audited because someone else had already claimed education credits using the fraudulent 1098-T. Complete nightmare. File Form 14039 (Identity Theft Affidavit) ASAP.

This is definitely a red flag for identity theft, and I'm glad you're taking it seriously. In addition to all the excellent advice already given, I'd recommend your uncle also contact the Social Security Administration to report potential misuse of his SSN. They can place a fraud alert on his Social Security number which adds another layer of protection. Also, when you call Westfield State tomorrow, ask to speak with both their registrar AND their compliance/fraud department if they have one. Universities are required to have procedures for handling identity theft cases involving financial aid, so they should have a clear process to follow. Make sure to get everything in writing - ask them to email you confirmation of your conversation and what steps they're taking to investigate. One more thing - your uncle should consider signing up for IRS Identity Protection PIN (IP PIN) program once this is resolved. It's a free service that gives him a unique PIN each year that must be used when filing his tax return, which prevents fraudulent returns from being filed under his SSN.