I think you might be overthinking this. Just enter the original purchase price, the sale price, and let TurboTax figure out the depreciation part. That's what I did last year when I sold my business truck and it worked fine.

Based on what you've described, this is definitely a situation where you need to be careful about calculating your adjusted basis correctly. Since you used the SUV 100% for business, you were required to take depreciation during those 7 months of operation - even if you didn't actually claim it on your tax return. For a $62k business vehicle, you likely would have been eligible for Section 179 expensing or bonus depreciation in the year of purchase, which could significantly affect your basis calculation. If you took the full Section 179 deduction, your adjusted basis would be close to $0, meaning the $39k sale would actually result in taxable income (depreciation recapture) rather than a deductible loss. However, if you only took regular MACRS depreciation over those 7 months, your adjusted basis would be much higher, resulting in a deductible business loss. The key is figuring out exactly what depreciation method you used (or should have used) when you originally purchased the vehicle. You'll need to look at your tax return from the year you bought the SUV to see how you handled the depreciation. This information is crucial for Form 4797 (Sales of Business Property) where you'll report the transaction. I'd strongly recommend consulting with a tax professional or CPA who can review your specific situation and prior year returns to ensure you calculate the basis correctly. Getting this wrong could result in significant under-reporting or over-reporting of income.

I went through this nightmare scenario about 6 months ago and want to share what ultimately worked after trying everything else mentioned here. The background check company kept rejecting all my documentation - letters from clients, email chains, bank statements, everything. What finally broke through was getting an official "Verification of Non-Employee Compensation" letter from my client's accounting department (not just HR or management). I had to specifically request this by name because it's a formal document type that accounting departments are familiar with for contractor relationships. The letter included: 1) My start date as a contractor, 2) Total compensation paid in the most recent tax year, 3) Statement that I'm classified as 1099 contractor, 4) Confirmation that no employment start/end dates exist because I'm not an employee. Having it come from their accounting department gave it more official weight. I also attached a one-page explanation referencing IRS Publication 15-A which clearly states what information is and isn't included on 1099 forms. The combination of the official accounting letter plus the IRS publication reference finally convinced them to accept my documentation. The key was using the specific terminology "Verification of Non-Employee Compensation" - accounting departments know exactly what this means and background check companies recognize it as legitimate employment verification for contractors.

This thread has been incredibly helpful! I'm currently dealing with a similar situation where my background check company is asking for employment verification that simply doesn't exist for my 1099 contractor work. Reading through everyone's experiences, it's clear this is a widespread issue that stems from background check companies being designed primarily for W-2 employees. The terminology "Verification of Non-Employee Compensation" that Andre mentioned is gold - I had no idea such a specific document type existed for contractor relationships. I'm going to try a combination of approaches: requesting that specific letter from my client's accounting department, creating a comprehensive packet with my 1099-NEC plus supporting documentation, and including references to IRS Publication 15-A to educate the background check staff. Has anyone found that certain background check companies are better than others at handling contractor documentation? I'm wondering if some are just more experienced with the gig economy than others, or if this is universally frustrating across all providers. Thanks to everyone who shared their solutions - it's reassuring to know this problem is solvable with the right approach and persistence!

I had this exact same problem two years ago! The ACH transfer method mentioned earlier is definitely your best bet for getting the full amount at once. However, if you're worried about the verification time, here's what I did: I called the Emerald Card customer service and explained that my tax preparer made an error by not using my preferred bank account. They were actually able to expedite the bank verification process to same-day when I explained it was due to preparer error. Make sure to have your bank routing and account numbers ready, and ask specifically for the "expedited verification due to preparer error" - that's the exact phrase that worked for me. The whole transfer completed within 24 hours instead of the usual 2-3 days.

Another option that worked for me last tax season: if you have a Zelle account linked to your regular bank, you can sometimes use the Emerald Card to send yourself money through Zelle. The daily Zelle limit is usually $2,500-$5,000 depending on your bank, which might be higher than the ATM limits. Just add the Emerald Card as a funding source in your Zelle app. I was able to transfer my entire $4,200 refund in two days this way. Not all banks support this with prepaid cards though, so you'd need to check if your bank allows it. The transfers are usually instant once set up, which beats waiting for ACH verification.

I went through this same verification process about 6 months ago and completely understand your concern about scams! Here's what helped me feel confident it was legitimate: The real Letter 5071C will have: - Official IRS letterhead with the Department of Treasury seal - Your correct name, address, and the last 4 digits of your SSN - Reference to your specific tax year (2023) and filing status - The exact website: idverify.irs.gov (no variations) - Phone number 800-830-5084 for the Identity Protection Specialized Unit The verification process itself asks questions only you would know - things from your previous year's tax return (specific line amounts) and credit report information like previous addresses, loan details, etc. It took me about 15 minutes once I had my 2022 return and ID ready. If you're still unsure about the letter's authenticity, you can call the main IRS line at 800-829-1040 and ask them to confirm whether they sent you a 5071C letter. They can verify it without you having to give any sensitive info to a potentially fake number. My refund was released about 3 weeks after I completed the verification, so there is light at the end of the tunnel!

I got the exact same letter about 3 months ago and totally understand your paranoia - my first instinct was that it had to be a scam too! But it turned out to be completely legitimate. Here's what helped me verify mine was real: The letter had the official IRS letterhead with Treasury Department seal, referenced my specific 2023 tax return, showed the last 4 digits of my SSN, and directed me to idverify.irs.gov (exactly that URL - no variations). The phone number matched what others have mentioned: 800-830-5084. When I did the online verification, they asked very specific questions about my 2022 tax return (exact amounts from certain lines) and credit-related info like previous addresses and account details. It was actually pretty straightforward once I had my documents ready - took about 25 minutes total. The Fresno address you mentioned is definitely legitimate - that's one of their main processing centers. If you're still worried, you can always call the main IRS customer service line at 800-829-1040 first to confirm they actually sent you a 5071C letter before proceeding with verification. My refund was released exactly 21 days after I completed the verification process. Hang in there - it's stressful but totally worth getting through!

I went through this exact same frustrating situation last month! The rejection notice can be really misleading because it makes it seem like you definitely need a 1095-A when the real issue is usually just a wrong checkbox in your tax software. Here's what worked for me: I had to go back and systematically review every single health insurance question in my tax prep software. The culprit ended up being a question buried in the ACA section about whether I was "potentially eligible" for premium tax credits. I had clicked "yes" thinking it was asking hypothetically, but the software interpreted that as me actually claiming credits. Once I changed that answer to "no" (since I have employer coverage), the software stopped asking for the 1095-A entirely. My return was accepted on the very next attempt after being rejected twice before. The key is being very literal with these questions - if you had employer insurance all year and never actually purchased anything through Healthcare.gov or your state marketplace, then the answer to ANY question about marketplace coverage, premium tax credits, or advance payments should be "no." Don't overthink the eligibility part - just focus on what you actually had and received. Good luck! This is such a common issue during tax season and it's definitely fixable once you track down that one problematic question.

I had this exact same problem last year and it was driving me absolutely crazy! The rejection notice makes it sound like you're definitely missing a required form, but 99% of the time it's just a checkbox error in your tax software. Here's my suggestion: Go through your tax software's health insurance section methodically and look for ANY question that mentions marketplace coverage, premium tax credits, or advance payments. The tricky ones are usually worded like "Were you eligible for premium tax credits?" or "Could you have purchased insurance through the marketplace?" Even if you just browsed Healthcare.gov out of curiosity but never bought anything, answering "yes" to certain questions can trigger the 1095-A requirement. Since you confirmed with the marketplace that you don't have coverage through them, make sure every single health insurance question reflects that you had non-marketplace coverage (employer, private, etc.). The good news is once you find that one wrong checkbox and fix it, your return should be accepted immediately. Don't let the IRS phone system frustration get to you - this is totally fixable within your tax software!