Does anyone know if the standard mileage rate or actual expenses method is better for a high-mileage vehicle? I drive about 35,000 business miles a year in a 5-year-old Toyota.

I've been tracking my mileage for three years as a freelance graphic designer, and here's what I learned the hard way: the key is understanding your "tax home" vs your "principal place of business." If you work from a qualifying home office (where you regularly and exclusively conduct business), then trips from home to clients are deductible. But here's the catch - you need to meet the IRS requirements for a home office deduction, which means having a dedicated space used ONLY for business. For those without a qualifying home office, the first and last trips of the day are typically commuting (non-deductible), but everything in between clients is deductible business mileage. One tip that saved me during an audit: keep a simple log noting the business purpose of each trip. "Meeting with Client A" or "Picking up supplies for Project B" goes a long way with the IRS. They don't just want to see miles - they want to see legitimate business purposes. Also, be careful about the 100% business vehicle claim mentioned earlier. Unless you literally never use the car for personal trips (grocery store, doctor visits, etc.), the IRS will flag this. I learned to track personal vs business use religiously after getting questioned on this exact issue.

This thread has been incredibly helpful! I'm relatively new to self-employment and had no idea about the after-tax contribution option for Solo 401ks. Quick question about plan providers - for those who switched from providers that don't allow after-tax contributions (like Vanguard) to ones that do (like Fidelity), how complicated was the rollover process? I'm currently with a provider that doesn't offer this feature, but after reading about the potential for mega backdoor Roth conversions, I'm seriously considering making a switch. Also, @Santiago your point about the QBI deduction not reducing compensation for retirement purposes is huge - I've been calculating this wrong and probably missed out on contributions. Is there a good resource or publication that clearly outlines all these nuances for Solo 401k calculations? The IRS publications I've found are pretty dense and sometimes seem contradictory. One more thing - for anyone who's used both the tax analysis tools and direct IRS consultation, which approach gave you more confidence in your contribution strategy? I'm trying to decide if it's worth investing in both or if one approach covers all the bases.

This has been such an educational thread! As someone who just started my consulting business last year, I'm realizing I have a lot to learn about Solo 401k optimization. @Nora Brooks - your situation is very similar to mine, and it's reassuring to see the community consensus that your $2,770 calculation for after-tax contributions looks correct. I'm definitely going to check if my provider (currently with Charles Schwab) allows after-tax contributions. The QBI deduction clarification from @Santiago is absolutely crucial - I've been making the same mistake and reducing my compensation base incorrectly. That could easily be costing me thousands in potential contributions each year! One question I haven't seen addressed yet - for those making both regular Solo 401k contributions and after-tax contributions, do you need to track them separately for tax reporting purposes? I'm assuming the after-tax contributions don't reduce your current year taxable income like the regular contributions do, but want to make sure I understand the tax implications correctly. Also really interested in the mega backdoor Roth strategy that several people mentioned. If I'm understanding correctly, you make after-tax contributions and then immediately convert them to Roth to avoid taxation on any growth? That seems like an incredible way to get more money into Roth accounts beyond the normal IRA limits. Thanks to everyone for sharing their experiences - this is exactly the kind of real-world insight that's hard to find elsewhere!

Something no one has mentioned yet - have you considered using a Self-Directed IRA LLC (sometimes called a checkbook IRA) instead of ROBS? It might be better suited for real estate investments and doesn't require setting up a C-corp or dealing with the active business requirement. The downside is you can't personally benefit from the properties or be involved in day-to-day management, but for pure investment purposes it might be a cleaner structure. Just make sure you understand prohibited transaction rules because they're strictly enforced.

I've been following this discussion closely as I'm considering a similar structure. One thing I haven't seen mentioned is the potential impact of the Corporate Transparency Act (CTA) on ROBS structures. Since your C-corp would likely be considered a "reporting company" under the new beneficial ownership reporting requirements, you'll need to file FinCEN reports disclosing ownership information. This adds another layer of compliance but shouldn't affect the tax treatment of your ROBS. Also, regarding the LLC structure you mentioned - make sure you understand how the K-1 income will be treated at the C-corp level. Since C-corps don't get pass-through treatment, the rental income will be subject to corporate tax rates, and if you later want to access those funds personally, you'll face potential double taxation through dividends. Have you considered whether the rental income strategy makes sense given that corporate tax treatment, or would you be better off with a structure that allows pass-through taxation?

Has anyone used TurboTax for figuring this out? I'm wondering if it automatically calculates the limits or if I need to manually keep track of my SIMPLE IRA contributions when entering my traditional IRA info.

Great question! Yes, you're absolutely correct that SIMPLE IRA and traditional IRA contribution limits are completely separate. You can contribute the full $19,000 to your SIMPLE IRA and still contribute up to $7,500 to a traditional or Roth IRA for 2025 (assuming you're under 50). However, there's an important caveat: since you participate in a SIMPLE IRA (which is considered a workplace retirement plan), your ability to deduct traditional IRA contributions may be limited based on your income. For 2025, if you're single, the deduction phases out between $77,000-$87,000 of modified adjusted gross income. For married filing jointly, it's $123,000-$143,000. If your income is above these thresholds, you might want to consider a Roth IRA instead, which has higher income limits and provides tax-free growth. Just make sure to check the Roth income limits too - they phase out starting at $146,000 for single filers in 2025.

Guys, I've been carrying over capital losses for 4 years now after a really bad crypto investment in 2021. Quick tip - TurboTax doesn't always get the carryover right if you have complicated situations! Last year it somehow "lost" about $4200 of my long-term carryover and I had to manually correct it. Make sure you ALWAYS print out or save PDFs of: 1. Your complete tax return 2. Schedule D 3. The Capital Loss Carryover Worksheet 4. Form 8949 with all your transactions Then double-check the starting carryover amounts each new tax year. I learned this the hard way.

Great question about tracking capital loss carryovers! I've been dealing with this for a few years now after some unfortunate investment losses. One thing I'd add to the excellent advice already shared - make sure you understand the "netting" rules. If you have both short-term and long-term carryover losses, they get applied in a specific order against future gains. Short-term carryover losses first offset short-term gains, then long-term gains. Long-term carryover losses first offset long-term gains, then short-term gains. This matters because long-term gains are taxed at preferential rates, so using short-term losses against them first can actually be more tax-efficient. Also, regarding TurboTax - I've found it helpful to manually verify the carryover amounts by looking at the prior year's Schedule D before starting each new tax year. The software usually gets it right, but as others mentioned, it's not foolproof, especially if you're importing from different tax software or have complex transactions. One more tip: Keep detailed records of the original transaction dates for your losses. Even though the carryover loses connection to specific investments, you might need this info if the IRS ever questions the short-term vs long-term classification of your carryovers.