One practical thing to consider - are you planning to continue the business with Tony's heirs? If they inherited his 50% interest, you should review your operating agreement ASAP. Many partnership agreements have buy/sell provisions that trigger upon death. This could impact whether you even need to worry about the step-up basis if you're required to buy out their interest at the agreed value.

I'm sorry for your loss, Chris. This is a complex situation that requires careful planning beyond just the tax implications. One important point that hasn't been mentioned yet - you'll want to determine Tony's basis in his partnership interest at the time of death. His heirs will receive a stepped-up basis in their inherited partnership interest equal to the fair market value of that interest ($340,000 based on the 50% share of the $680,000 property value). However, this is separate from the partnership's election under Section 754. The stepped-up basis for the heirs applies to their partnership interest, while the Section 754 election creates a special basis adjustment for the partnership's assets. Also, consider the timing carefully. You have until the due date of the partnership return (including extensions) for the year of Tony's death to make the Section 754 election. But as others mentioned, check your operating agreement first - there may be mandatory buyout provisions that could change your entire approach. Given the complexity and the significant dollar amounts involved, I'd strongly recommend consulting with a tax professional who specializes in partnership taxation before making any elections or decisions.

Logan, this is such a common experience that there should honestly be a class on this in high school! Your situation is totally normal - going from $3,000 gross to around $2,000 take-home is pretty standard for your income level. One thing that might help is to think of your gross salary as what your employer pays for you, not what you actually get to keep. Between federal taxes, state taxes (if applicable), Social Security, Medicare, and any benefits you signed up for, that $1,000 difference isn't unusual at all. My advice: 1. Get a copy of your paystub and review every single line item 2. Figure out which deductions are mandatory vs optional 3. Consider using a paycheck calculator online to verify your numbers are correct 4. If you're over-withholding on taxes, you can adjust your W-4 to get more per paycheck (but be careful not to underwithhold) The silver lining? If you're getting a big tax refund each year, that means you're essentially giving the government an interest-free loan. Better to keep that money in your pocket throughout the year and invest it or pay down debt. Once you understand your paystub, you'll feel way more in control of your money!

Welcome to the working world, Logan! That paycheck shock is like a rite of passage - we've all been there. Your math is actually spot on for what to expect at $36k/year. Here's a reality check that helped me: your employer isn't just paying you $36,000. They're also paying the employer portion of Social Security and Medicare taxes (another 7.65%), plus unemployment insurance, workers compensation, and potentially matching your 401k contributions. So you're actually more expensive to employ than your base salary. The silver lining? Once you understand your paystub, you can optimize it. I discovered I was paying for benefits I didn't need and was over-withholding on federal taxes. After adjusting my W-4 and dropping some optional coverage, I got an extra $200/month without changing my gross pay. Pro tip: take a photo of your paystub and post it here (blur out personal info obviously) - this community is great at helping people decode all those mysterious deduction codes. Most people find at least one thing they can adjust to get more take-home pay. You've got this! The first few months of budgeting on your actual take-home pay are tough, but once you adjust your expectations and optimize your deductions, it gets much more manageable.

This is such a great question and I'm glad you're being so thorough about tracking your mileage from the start! As someone who runs a mobile veterinary assistant business, I went through this exact same confusion when I first started. The key thing that helped me understand it was learning that for truly mobile businesses like pet sitting, the IRS doesn't treat your first and last trips of the day as "commuting" because you don't have a regular workplace to commute TO. Your workplace is literally wherever your clients are located. Since pet sitting services can only be performed at the pet owner's home, every single trip from your house to a client location is considered business travel, not personal commuting. This is true even without claiming a home office deduction - they're completely separate tax issues. I've been deducting all my home-to-client mileage for three years now, and during my tax review last year, my CPA specifically praised this approach for mobile animal care businesses. She explained that the IRS actually expects businesses like ours to have high mileage because travel is an inherent part of how we deliver our services. Keep doing exactly what you're doing with the detailed tracking! That spreadsheet of dates, clients, and mileage will be your best friend come tax time. Those miles really add up - my mileage deduction saved me about $4,200 in taxes last year alone. You're being smart to get professional confirmation from your CPA, but I'm confident they'll tell you the same thing we're all saying here. Mobile pet care businesses are in a special category when it comes to mileage deductions!

I've been following this thread and want to add some additional perspective as someone who's been running a mobile pet care business (dog walking and pet sitting) for over 6 years. Everything everyone is saying here is absolutely correct! The confusion often comes from general tax advice that doesn't account for the unique nature of mobile service businesses. For pet sitting, your service literally cannot be performed anywhere except at the client's location - this is what makes all the difference in the IRS rules. A few additional tips from my experience: - I use a simple mileage tracking app that automatically records my trips, which has been a lifesaver during tax season - Don't forget to track mileage for those quick trips to grab supplies between clients (pet stores, gas stations, etc.) - those add up! - If you ever need to return to a client's house later the same day (forgot keys, emergency visit, etc.), that's additional business mileage too The peace of mind is worth it - I've never had any issues with the IRS regarding my mileage deductions, and they typically represent about 25-30% of my total business expenses. Your detailed record-keeping approach is exactly right, and your CPA will definitely confirm what everyone here is telling you. You're asking all the right questions and being appropriately careful - that's going to serve you well as your business grows!

I went through this exact same situation about two years ago when I forgot to include a 1099-MISC for some consulting work. The stress is real, but you're handling it the right way by addressing it quickly! Just to reinforce what others have said - you only need to file the 1040X, not a new complete 1040. The 1040X is designed specifically for corrections like yours. Make sure to attach that 1099-NEC copy and clearly explain in Part III that you're adding previously unreported income. One thing I learned the hard way: if your side gig income puts you over $400 in net self-employment earnings, you'll also owe self-employment tax (Social Security/Medicare) on top of regular income tax. This is often overlooked but the 1040X will help you calculate it correctly. Don't forget to include Schedule SE if needed! The good news is that filing voluntarily shows good faith, and the penalties/interest won't be as scary as you're probably imagining. You've got this!

@Yara Nassar - I see you've gotten some excellent advice here! I went through almost the identical situation last year (missed a 1099-NEC for about $2,800 from freelance writing work). The anxiety is totally understandable, but you're doing the right thing by addressing it promptly. A few practical tips from my experience: - Double-check that you have all your other tax documents before filing the 1040X. This is a good opportunity to make sure you didn't miss anything else. - Keep detailed records of when you mailed/e-filed the amendment for your own peace of mind - The "Where's My Amended Return" tool mentioned earlier is your friend - bookmark it and check periodically Regarding the financial impact, others have given you good estimates. In my case with similar income, I ended up owing about $650 total (income tax + self-employment tax + minimal interest). Not fun, but definitely manageable. The relief you'll feel once you get that 1040X submitted is worth it. The IRS processed mine without any issues and I got my refund adjustment (yes, I actually got a small refund after corrections!) in about 18 weeks. You're handling this exactly right - don't let the stress get to you too much!

One thing I'd add is to consider opening a separate bank account just for your skin trading business. It makes tracking so much easier when tax time comes around, and it helps establish that this is a legitimate business activity rather than just a hobby. You can deposit your trading profits there and pay for new inventory purchases from that same account. Also, since you're dealing with digital assets that can be volatile in value, consider taking screenshots or saving records of market prices when you make transactions. This can help justify your purchase and sale prices if the IRS ever questions your reported profits. Steam's market history is helpful but having your own backup documentation never hurts. The business bank account will also make it crystal clear how much you're actually withdrawing for personal use versus reinvesting, which will help with your bookkeeping and Schedule C reporting.

Great advice already in this thread! One additional thing to consider is quarterly estimated tax payments. Since you're essentially running a small business, you might need to make estimated payments throughout the year rather than waiting until tax time. The general rule is if you expect to owe $1,000 or more in taxes when you file, you should be making quarterly payments to avoid penalties. Given that you mentioned reinvesting most profits to grow the operation, it's easy to forget that you still owe taxes on those profits even if the cash isn't sitting in your personal account. I'd recommend setting aside about 25-30% of your net profits for taxes (income tax + self-employment tax) and making those quarterly payments if your annual profit looks like it'll be substantial. The due dates are usually mid-January, mid-April, mid-June, and mid-September for the following year's taxes. Also, since you're dealing with Steam's mandatory 7-day hold period, make sure you're tracking when each transaction actually completes for tax purposes - it's the sale date that matters for when you recognize the income, not when you first list the item.