Something I haven't seen mentioned yet is that if your business is an LLC or S-Corp, the rules get even more complicated. I'm a CPA and see clients make this mistake constantly. If you're structured as an S-Corp and buy the vehicle personally instead of through the business, you lose the deduction entirely. And if you do buy it through the business but use it personally without reporting it as a fringe benefit, you're setting yourself up for serious tax issues.

My Tesla Model X qualified as a business expense for my real estate business because it weighed over 6k pounds. I was able to deduct about $45,000 in year one using Section 179 and bonus depreciation since I use it 75% for business (showing properties). But beware - you have to maintain DETAILED records. I use an app that tracks all my drives and categorizes them as business or personal. If you can't prove your business use %, the IRS will disallow the whole deduction and charge penalties.

Anyone have a recommendation for good tax software that handles self-employment taxes well? I've been using FreeFileWhatever but it gets confusing with all the schedules.

Just wanted to add something that might help with the quarterly payment calculations - the IRS safe harbor rule can be really useful for self-employed folks. If you pay at least 100% of last year's total tax liability (or 110% if your prior year AGI was over $150,000), you won't face underpayment penalties even if you end up owing more at filing time. This is especially helpful when your self-employment income varies throughout the year. You can use last year's numbers as a baseline for your quarterly payments and then adjust up or down based on how your current year income is tracking. Also, remember that your quarterly payments are due on the 15th of January, April, June, and September (not every three months like you might expect). The IRS has specific due dates that don't follow a regular quarterly calendar. One more tip - if you're just starting with self-employment, consider opening a separate savings account just for taxes. I transfer about 25-30% of each payment I receive into that account to cover both the self-employment tax and federal income tax. Makes it much easier to handle the quarterly payments and avoid scrambling for cash when they're due.

One thing to keep in mind with multiple state W2s: check if your employer correctly allocated your state unemployment insurance and other state-specific payroll taxes after you moved. I had an issue where my company kept withholding for my old state for 2 months after I moved, and I had to get that corrected.

Don't you also need to worry about "statutory residency" in some states? I think some states consider you a full-year resident if you're there for more than 183 days even if you moved.

If you're really stuck, you can also log back into your H&R Block account and look at the actual depreciation schedule they created last year. Sometimes it's easier to see it there than on the actual tax forms. Go to your account, look at last year's return, and there should be a section for "Depreciation Worksheets" or something similar that shows a breakdown year by year. Just FYI - I found FreeTaxUSA's rental property section to be pretty good once you get past this initial hurdle of entering the prior year stuff. Much more straightforward than H&R Block in many ways!

I switched from TurboTax to FreeTaxUSA last year and ran into the exact same issue with my rental property! One thing that helped me was to look at the actual depreciation worksheet that H&R Block generated, not just the forms. When you log into your H&R Block account, there should be a detailed depreciation schedule that shows the breakdown year by year - this made it crystal clear what the cumulative amount was. Also, double-check that you're looking at the right property if you have multiple rentals. I almost entered the wrong depreciation amount because I was looking at the wrong property's line on my Schedule E. The Form 4562 Box 22 that others mentioned is definitely the right place to look for the cumulative prior-year depreciation amount. FreeTaxUSA's interface for rental properties is actually pretty intuitive once you get past this initial setup. Good luck with the switch - you'll definitely save money compared to H&R Block's fees!

Has anyone considered just calling Energy Transfer's investor relations department directly? I had a similar question about their preferred units last year and they sent me a detailed breakdown of what portion of distributions typically creates UBTI. It varies year to year but they could give you historical percentages.

Thanks everyone for sharing your experiences - this has been incredibly helpful! Based on all the responses, it's clear I did mess up by not researching this beforehand. The consensus seems to be that preferred MLP units generate UBTI just like common units when held in an IRA. I'm going to take a multi-pronged approach: first, I'll call Energy Transfer's investor relations to get their historical UBTI breakdown as Maria suggested. Then I'll contact my IRA custodian to understand their process for handling Form 990-T filings and any associated fees. Given what Zoe mentioned about the $300 filing fee plus potential taxes, I'm seriously considering moving these holdings to my taxable account before the UBTI becomes a bigger issue. The tax-deferred nature of MLP distributions in a regular brokerage account actually sounds more advantageous than dealing with UBTI complications in my retirement account. Has anyone here successfully transferred MLP units from an IRA to a taxable account, or would that be considered a distribution that triggers immediate tax consequences?