Does anyone know if capital loss carryovers from previous years are also split between short-term and long-term for tax calculation purposes? I've got about $12k in carryover losses from last year's crypto crash.

The confusion about where the different tax rates get applied is totally understandable! I went through the same thing when I first started dealing with capital gains. What really helped me was understanding that Form 1040 is essentially just the "summary" document - it shows your total income from all sources, including the combined capital gains from Schedule D. But the actual tax calculation happens in the background using those worksheets that others mentioned. Think of it this way: Schedule D does all the heavy lifting of separating your short-term vs long-term gains and calculating the net amounts. Then, when it comes time to actually compute your tax liability, the IRS tax calculation process (whether done by software or manually using the worksheets) knows to apply ordinary income rates to any short-term gains and the preferential rates (0%, 15%, or 20% depending on your income level) to long-term gains. If you're doing your taxes manually, you'd use the "Qualified Dividends and Capital Gain Tax Worksheet" in the Form 1040 instructions if you have net long-term capital gains. But if you're using tax software, it handles all of this automatically behind the scenes - you just need to make sure you're entering your transactions with the correct dates so it can properly classify them as short-term or long-term.

I'm dealing with this exact same anxiety right now! My transcript shows my refund was mailed 3 days ago and I'm already starting to obsessively check the mailbox. Reading through all these experiences is so reassuring - it sounds like 7-10 business days is pretty standard, so I need to chill out a bit 😅 Definitely signing up for that USPS Informed Delivery tonight after seeing so many people recommend it! Also super helpful to know about the plain white envelope - I was totally expecting something that looked more official. Thanks to everyone for sharing their timelines, this community is amazing for helping ease the stress of waiting for these checks!

I completely understand that anxiety! I just went through this exact situation a few weeks ago. My transcript showed my refund was mailed on February 20th and I was checking my mailbox like a maniac every single day. It ended up arriving exactly 7 business days later, which was right in that normal timeframe everyone keeps mentioning. The USPS Informed Delivery that people are recommending here is absolutely worth setting up - it saved me so much stress because I knew exactly when it was coming. Also want to echo what others said about the plain envelope - mine came in a basic white Treasury envelope that I almost overlooked in a pile of junk mail! You're definitely still within the normal range, so try not to stress too much. The waiting is the worst part but it'll show up soon!

From an audit perspective, the IRS is primarily concerned with unreported income rather than legitimate business refunds and returns. The fact that you're keeping detailed records of all refunds and equipment returns puts you in a strong position. One thing that might help is maintaining a simple reconciliation document that shows: Total Bank Deposits - Refunds Issued - Equipment Returns = Reported Gross Income. This creates a clear paper trail that explains the discrepancy. Also, consider using separate bank accounts for your business if you haven't already - it makes these kinds of reconciliations much cleaner and reduces the chances of mixing personal and business transactions that could complicate things further. The key is being able to substantiate every transaction with proper documentation. As long as you can explain where every dollar came from and went to, you shouldn't have anything to worry about.

I went through something very similar last year with my consulting business. Had multiple clients who paid deposits then cancelled, plus some equipment purchases I had to return. The deposit vs. income discrepancy was making me lose sleep! What really helped was creating a monthly reconciliation spreadsheet that tracked: client deposits, refunds issued, equipment purchases, equipment returns, and net income. I also kept a folder (both physical and digital) with all refund receipts, return confirmations, and email correspondence about cancellations. When I filed my taxes, I included a brief explanatory note with my return outlining the situation. My accountant said this was a smart move because it shows you're aware of the discrepancy and have legitimate reasons for it. The IRS hasn't contacted me about it, but if they ever do, I have everything documented. The peace of mind was worth the extra bookkeeping effort. Your situation sounds totally legitimate - just make sure you keep those refund and return records organized!

So how do you even calculate the value if some rewards are in points or gift cards? Like I got 50000 points on Fetch that I turned into a Target gift card. Do I report the gift card value or the points value? And when do I report it - when I earn the points or when I redeem for the gift card?

I'm dealing with a similar situation right now! I've been using Swagbucks, InboxDollars, and a few other sites since getting laid off in January. Making around $150-200 a month mostly in Amazon and Walmart gift cards. What's been tricky for me is keeping track of everything since some sites give you points first, then you redeem for gift cards later. I started a simple spreadsheet with columns for: Site Name, Date Redeemed, Gift Card Type, Dollar Value. One thing I learned is that even though we're getting gift cards instead of cash, the IRS treats them the same as cash income for tax purposes. But like others mentioned, if your total income for the year stays under the standard deduction ($13,850 for single filers), you probably won't owe any federal taxes even though you still need to report it. Since you mentioned this is your only income right now, you'll probably be fine tax-wise, but definitely keep good records. I use my phone to screenshot every redemption confirmation email - makes it way easier when tax time comes around. Hang in there with the job search! These reward sites are a lifesaver when you're between jobs.

One aspect that hasn't been covered yet is the importance of getting proper permits and meeting local building codes, which it sounds like you're already planning to do. This is crucial not just for safety, but also for tax purposes - the IRS wants to see that any business structure meets legitimate building standards. Since you're a general contractor handling the work yourself, make sure you document your material costs separately from what your labor would typically cost. Even though you mentioned not including your labor costs in the deduction (which is correct), having that documentation helps establish the fair market value of the improvement. Also consider having the structure professionally appraised once complete, especially if it's a significant investment. This creates a solid basis for your depreciation calculations and can be helpful if you ever face questions about the valuation. The fact that your wife's business is currently paying commercial rent actually works in your favor here - you'll have a clear comparable for establishing fair market rent if you go the rental route between you as homeowner and her LLC as tenant.

Great question about documentation! For material costs, definitely get formal receipts/invoices from your suppliers even with contractor pricing - the IRS cares more about legitimate business documentation than whether you got a discount. Keep everything organized by date and category (lumber, electrical, plumbing, etc.). As for banking, I'd strongly recommend opening a separate business account specifically for this project. It makes tracking infinitely easier and creates a clear paper trail that separates these expenses from personal purchases. Even if it's technically going through your personal finances initially, having that dedicated account shows intentional business record-keeping. One more tip since you're doing the work yourself - take progress photos throughout construction with timestamps. This visual documentation can be incredibly valuable for substantiating the scope and timeline of the work if you ever need to defend your depreciation schedule or prove the business nature of the improvement. The combination of proper permits, professional appraisal after completion, detailed material receipts, and photo documentation creates a really solid foundation for whatever tax approach you ultimately choose.