Great question! I've been through this exact situation and learned a lot from trial and error. The key thing to remember is that the IRS wants to see a "reasonable basis" for your deduction percentage, not necessarily perfect precision. Here's what I'd recommend based on my experience: 1) **Do some basic tracking first** - Even just 2-3 weeks of rough estimates will give you a defensible foundation. You don't need to log every call, just general patterns. 2) **Consider your work type** - If you're self-employed or work remotely, higher percentages might be justified. If you have a traditional office job, probably stick to lower percentages unless you can document heavy business usage. 3) **Keep it simple but documented** - Write down your methodology. Something like "Tracked usage for 3 weeks in March 2024, found approximately 45% business use, rounded to 50% for simplicity" is perfect documentation. 4) **Be conservative rather than aggressive** - It's better to claim 40% when you might justify 55% than to claim 70% when you can only justify 50%. The 50% you mentioned isn't unreasonable at all, but having even minimal documentation to back it up will give you peace of mind. I've never been audited on phone expenses, but knowing I could explain my reasoning definitely helps me sleep better at tax time!

I've been dealing with this same issue for my consulting business, and what worked best for me was creating a simple weekly log for about a month. Instead of tracking every single call or text, I just noted at the end of each day roughly how much of my phone usage was business-related. What I found helpful was dividing my phone activities into categories: calls/texts, email, apps (like calendar, note-taking, business research), and internet browsing. Then I estimated percentages for each category and weighted them based on how much time I typically spend on each. For example, maybe 70% of my calls are business, but only 30% of my texting and 40% of my internet browsing. When I averaged it all out over the month, I landed at about 55% business use, so I claim 55% of my phone bill. The documentation I keep is just a simple one-page summary showing my methodology and the results from that tracking month. It's been three years now and I feel confident I could defend that percentage if needed. The peace of mind is worth the small effort upfront!

I'm dealing with this same issue right now! My 2-partner LLC has always filed paper returns and I was shocked to learn about the mandatory e-filing requirement. What's frustrating is that the IRS instructions aren't super clear about this change. I had to dig through multiple sources to confirm that yes, even tiny partnerships like ours must file electronically now regardless of revenue or number of partners. I'm currently comparing different software options and it's definitely an unexpected expense. Has anyone found good resources for understanding exactly what documents we need to gather before starting the e-filing process? I want to make sure I'm fully prepared before purchasing software since most of these are one-time use purchases. Also wondering - do most of these software packages handle estimated tax payments for partners too, or is that separate? Our CPA used to handle that coordination but now that we're doing it ourselves I want to make sure we don't miss anything important.

Just to add another perspective - I was in a similar situation with my 3-partner LLC and initially tried to find workarounds to avoid the e-filing requirement. After calling the IRS (which took forever) and researching extensively, I can confirm there really aren't any exceptions for small partnerships based on size or revenue. The good news is that once you bite the bullet and get set up with e-filing software, the process is actually faster and more accurate than paper filing. I was surprised how much the software caught potential errors and guided me through sections I used to struggle with. One tip that helped me: if you have your previous year's paper return as a PDF, most software can extract data from it automatically. This saved me hours of manual data entry. Just make sure the PDF is clear and readable - if it's a poor scan, you might need to enter things manually anyway. The penalty for paper filing isn't worth the risk. Better to invest in proper software now than deal with IRS notices and fines later.

I'm dealing with a very similar situation right now! My mother passed away 8 months ago and we're still waiting on probate court to finalize some asset transfers. We also filed for the extension on Form 706, but I had the same confusion about whether we'd need to file again next year. Reading through these responses has been incredibly helpful - I had no idea about the difference between Form 706 and Form 1041. We definitely have some rental income coming in from her properties, so it sounds like we'll need to handle the 1041 annually while the estate is being administered. The portability election information is also really valuable - my parents were married so we'll need to make sure we don't miss that opportunity. It's frustrating how complicated this process is when you're already dealing with grief and family dynamics. Thanks to everyone who shared their experiences!

I've been through this exact situation with my father's estate in 2022, and I completely understand the confusion and stress you're experiencing. The timing issues with Suffolk County probate are unfortunately all too common - we had similar delays that pushed everything back by months. One thing I wish someone had told me earlier: even though you filed for the extension on Form 706, make sure you're keeping detailed records of all estate expenses during this extended administration period. Things like legal fees for the probate delays, property maintenance costs, and even storage fees for personal property can often be deducted on the 706, which can significantly reduce the estate tax liability. Also, since your brother is just now being appointed as executor, he should immediately obtain a new EIN for the estate if one wasn't already obtained. This will be needed for opening estate bank accounts and for any future Form 1041 filings if the estate generates income during administration. The good news is that once you file that Form 706 (hopefully with your extension), you're essentially done with estate tax filings unless there are subsequent distributions that require amended returns - which is rare. The key is getting it filed correctly the first time with proper valuations and taking advantage of all available deductions. Hang in there - the administrative burden does eventually end, and having this community to ask questions makes a huge difference in navigating the process.

If you're going to file separately to try to save on the PTC repayment, be aware of these downsides: - No student loan interest deduction - No Lifetime Learning Credit - No Earned Income Credit - Reduced IRA contribution limits - Lower capital loss deduction limit - Lower standard deduction than joint filing - Higher tax rates kick in at lower income levels - Child and dependent care credit limitations I'm a tax preparer and often see couples who think filing separately will save them money, but end up paying MORE overall because they lose so many benefits. Run the full calculation both ways before deciding!

As someone who went through this exact situation last year, I'd strongly recommend running the numbers both ways before deciding on your filing status. The alternative calculation on Form 8962 is definitely your friend here - it allows you to split the year based on your marriage date. For the 8 months before marriage (January-August), your husband can use his individual income of $25,000 for PTC calculations. For September-December, you'll need to use the combined $120,000 income, which will likely trigger repayment for those months since you're well over the 400% FPL threshold. One thing to consider that others haven't mentioned - if your husband had qualifying life events during the year (like the marriage), he should have reported this to the marketplace to adjust the APTC going forward. Since that didn't happen, you're dealing with the reconciliation now. Also worth noting: the repayment cap might apply to your situation if your income is between 200-400% of FPL for any portion of the year. For 2023, this cap could limit your repayment to around $1,550-$2,800 depending on your exact circumstances. Don't let TurboTax be your only calculation - consider getting the forms and doing the math manually or with a tax professional who specializes in ACA issues. The software sometimes misses nuances in these complex situations.

Has anyone tried using the IRS Taxpayer Assistance Centers for help with business returns? I know they primarily focus on individual taxes, but I'm wondering if they could help with a simple inactive 1120 filing.

I went through this exact same situation with my dormant LLC that got converted to a corporation right before COVID hit. One thing I learned that might help - if your corporation truly has had zero activity since formation, you may want to check if your state considers it "never commenced business" which could affect both your state and federal filing requirements. For the federal 1120, paper filing is definitely your cheapest option at zero cost beyond postage. Make sure to check Box G on page 1 if this is a final return, or leave it unchecked if you plan to potentially reactivate later. The IRS actually processes tons of these zero-activity corporate returns, so don't worry about it being unusual. Also worth noting - if you're planning to stay inactive for multiple years, the ongoing compliance costs (both federal and state) might exceed the cost of dissolution and reformation later. Delaware franchise taxes alone can add up quickly for dormant entities.