Do you literally just write down your odometer reading before and after each shift? Is there an app that's better for tracking? I just started with DoorDash and want to make sure I'm tracking correctly from the beginning.

You can track miles either by recording odometer readings or using an app. I personally use the Stride app (it's free) which tracks my miles via GPS while I'm working. At the end of the year, it gives me a report of all my business miles. Some other good options are Everlance, MileIQ, or even just a simple spreadsheet where you log the date, starting point, ending point, purpose of trip, and total miles. The key is consistency - track every work trip and keep the records for at least 3 years in case of audit. Whatever method you choose, just make sure you're tracking from day one - those miles really add up and can save you a ton on taxes!

So I definitely need Schedule C regardless, but I might not owe the self-employment tax if my net profit (after mileage and expenses) is under $400? That's really helpful to know! The mileage deduction alone might bring me under that threshold since I did put a lot of miles on my car for those deliveries. I'm going to track down all my gas receipts and see if I have any notes about the miles I drove too. Thanks everyone for the great advice. I feel much less confused about how to handle this on my taxes now!

Can you explain the 1031 exchange a bit more? Does it completely eliminate the depreciation recapture or just postpone it? And are there time limits for finding the next property?

A 1031 exchange doesn't eliminate depreciation recapture - it postpones it. The depreciation you've taken gets factored into your new "basis" in the replacement property. There are definitely time limits - you have 45 days from the sale of your property to identify potential replacement properties (in writing), and you must close on the new property within 180 days of selling the old one. You also need to use a qualified intermediary to hold the funds between sales - you can't touch the money yourself. And the replacement property must be of equal or greater value to defer all tax. These exchanges can be complex, but when done correctly, they're one of the most powerful wealth-building tools for real estate investors.

That's painful! Did you try talking to a tax professional about filing amended returns for the years you could still amend (usually last 3 years) to at least get some benefit from the depreciation you were taxed on?

Thanks for the warning! Just checked and yes, the refund was just deposited yesterday. That's part of what made me panic when I realized my mistake today. I'll definitely set that money aside until this gets sorted out. Do you remember how long your amendment took to process? I've heard it can take months.

My amendment took about 14 weeks to process last year. It might be different now tho since irs processing times change all the time. The good thing is that they'll send u a letter confirming they received your amendment within a few weeks, so at least you'll know it's in their system. My best advice is to file the amendment ASAP and include a really clear explanation. I think mine took longer because I didn't explain things well and they had to send me a letter requesting more info. Definitely use the explanation section on the 1040X to clearly state you used 1095-A instead of 1095-B by mistake.

Are you sure about not being able to e-file amendments? I thought they started allowing that a couple years ago. I e-filed an amendment last year through TurboTax.

That's brilliant! I never thought about the library. There's a pretty big public library about 15 minutes from my office. Do you know if they typically just have the common forms or would they have something specific like W2 Copy A?

Libraries typically focus on the forms that individuals need (1040, schedules, etc.) rather than business forms like W2 Copy A. However, larger libraries with business resource centers might have them or can tell you where to get them locally. Your best bet is probably the SCORE office if you have one nearby. They specifically support small businesses and usually have more specialized business tax forms or connections to get them quickly.

Can confirm this works. But watch out for the "trial" subscriptions that auto-renew! I did this last year and ended up getting charged for 3 months of payroll service before I noticed and cancelled.

9 That's a really good point! How exactly do you "group" or "not group" activities on your tax return? Is that something on a specific form or schedule?

3 You'd indicate the grouping of activities on Form 8582 (Passive Activity Loss Limitations) and how you report the income on Schedule E versus Schedule C. The key is making sure rental activities stay on Schedule E as passive income (not subject to self-employment tax) rather than having them rolled into Schedule C business income (which is subject to SE tax). Your tax software might not flag this issue, so it's worth specifically asking your accountant about it. The IRS has specific tests for "material participation" and "real estate professional" status that determine how the income is classified.

2 Series LLCs are only available in certain states, and the tax treatment can get complicated. I use one in Texas for my 7 properties. The IRS hasn't given definitive guidance on Series LLCs, but generally they're still treated as pass-through entities that don't change the character of rental income. The FICA exemption should still apply as long as your rental activities remain passive.

16 Thanks for the info! I'm in Illinois which apparently does have Series LLCs. I'll look more into the state-specific rules, but good to know it shouldn't change the FICA situation as long as I'm still doing passive rental activities.