This thread has been incredibly helpful! As someone who's been buying and selling vintage collectibles for a few years now, I can confirm everything that's been said about the collectible tax rates. One additional point that might be useful - if you're dealing with multiple collectibles sold throughout the year, you might want to consider bunching your sales into years when your overall income is lower. Since collectibles are taxed at your ordinary income rate (capped at 28%), strategic timing can really make a difference. For example, I had a big bonus year where I was temporarily in the 32% bracket, so I held off selling some collectibles until the following year when I was back down to 24%. Saved me 4% on the gains, which added up to real money. Also, if you're serious about collecting comics or other items as investments, consider keeping a detailed log of market research, time spent researching purchases, and any educational materials you buy about collecting. While you can't deduct these as business expenses if you're treating it as investment activity, having detailed records shows the IRS that you're approaching this seriously as an investment rather than just a hobby.

Great question about comic books! I've been collecting and occasionally selling comics for about 5 years now, and your understanding is spot on. The collectible capital gains rate is indeed your ordinary income tax rate capped at 28%. One thing I'd add that hasn't been mentioned much - make sure you understand what constitutes your "basis" in the comics. It's not just what you paid for the comic itself. You can also include: - Shipping costs when you bought them - Sales tax you paid - Professional grading fees (CGC, CBCS, etc.) - Authentication costs - Any restoration work (though this can be tricky territory) I learned this the hard way when I sold a key Silver Age comic last year. I had paid $800 for it, plus $50 shipping, $30 grading fee, and about $15 in sales tax. So my basis was $895, not just the $800 purchase price. When I sold it for $1,400, I only owed taxes on $505 in gains instead of $600. Also, keep digital copies of all your receipts and document the condition when you bought them. The IRS can be pretty particular about collectibles since values are often subjective. Having a paper trail makes everything much smoother if you ever get audited. Good luck with your comic collecting adventure! The vintage market has been really strong lately.

Does anyone know if theres a diff between "exemptions" and "allowances"? My hr dept still uses an old form that says exemptions but everyones talking about allowances and the new W4... so confused right now lol.

Hey Everett! I was in almost the exact same situation last year - 24, single, making around $45k. The confusion is totally understandable since they changed everything recently. Here's what I learned: forget about "exemptions" - that's old terminology. The current W-4 (redesigned in 2020) doesn't use allowances or exemptions anymore. Instead, it asks specific questions about your situation. For someone like you (single, one job, $42k), you'd typically just fill out Steps 1 (personal info) and 5 (signature). That's it. This gives you standard withholding that should get you close to breaking even at tax time. If you want to factor in your student loan interest deduction, you could add that estimated amount in Step 4(b) "Deductions" to reduce your withholding slightly and get a bit more in each paycheck. The key is finding the sweet spot where you don't owe much or get a huge refund. At your income level, even a $1,500 refund means you're missing out on $125/month that could go toward paying down those student loans faster. But you also don't want to owe more than you can handle come April. I'd recommend starting with the basic form (just Steps 1 and 5) and see how your first few paystubs look, then adjust if needed.

Does anyone know if there's a penalty for submitting the W-8BEN late? I'm in a similar situation with Chase and just realized I never responded to their letter from 2 months ago...

For students on F-1 visas, this is actually a really common mixup! Banks often don't train their staff well on the different tax forms for international students vs other account holders. Since you mentioned you opened the account in mid-March and are on a student visa, you're most likely a non-resident alien for tax purposes (assuming you've been in the US for less than 5 years). This means the W-8BEN was probably the correct form, but there might have been an error in how it was filled out. The good news is that for such a small amount of interest, any withholding issues are minimal. I'd recommend calling BOA's international banking department directly - they're usually much more knowledgeable about these forms than regular branch staff. Ask them specifically what was wrong with your original W-8BEN submission and whether you need to provide additional documentation beyond the passport copy. Don't stress too much about the timing - while 30 days is preferred, banks deal with late submissions all the time, especially for international students who might not be familiar with US banking requirements.

This is such a comprehensive thread! As someone who just started their EIN application process for a small woodworking business, I'm relieved to learn that the initial industry classification isn't set in stone for tax purposes. I was stressing about whether to pick "manufacturing" vs "retail" since I both make custom furniture and sell pre-made items at farmers markets. One thing I'm curious about - for those of you who switched your Schedule C business classification to better reflect your actual activities, did you notice any difference in how the IRS processed your returns or triggered any additional scrutiny? I want to make sure I classify correctly from the start but don't want to overthink it if it really doesn't matter much practically speaking.

As someone who's been running a small laser engraving business for about two years now, I can confirm what others have said about the EIN industry classification being mainly for statistical purposes. I initially selected "retail" when I first got my EIN because I was primarily selling finished products, but when I started doing more custom work and buying raw materials in bulk, my accountant helped me switch to "manufacturing" on my Schedule C. The real game-changer for me was getting organized with expense tracking early on. I wish I'd known about proper inventory management from the start - it would have saved me hours during tax season trying to reconstruct my material costs. For anyone just starting out, I'd recommend setting up a simple system to track your raw material purchases and usage from day one, regardless of which industry classification you choose initially. Also, don't forget about indirect expenses like electricity for running your equipment, storage costs for materials, and even vehicle expenses if you're delivering products to customers or picking up supplies. These can add up to significant deductions that are easy to overlook!

Wow, this thread has been absolutely invaluable! As someone who just started my own HVAC business last month and bought a work van, I was completely confused about whether I could take Section 179 since the van is titled in my personal name. Reading through everyone's experiences and advice has given me so much clarity. The key takeaways I'm getting are: 1) Single-member LLC filing Schedule C means the vehicle ownership doesn't matter for tax purposes, 2) Documentation is absolutely everything - especially tracking BOTH business and personal use, 3) Setting up proper systems from day one (business credit card, mileage app, clean records) is worth the effort, and 4) Getting professional guidance on complex situations like the EV credit interaction is smart money spent. I'm particularly grateful for the real audit experiences that Niko and others shared. Knowing that showing complete mileage records (including personal use) actually strengthens your case rather than weakens it is counterintuitive but makes perfect sense. I would have definitely made that mistake! One question for the group - for those using mileage tracking apps, do you find they work reliably for multiple stops throughout the day? My HVAC work often involves 3-4 service calls per day with short drives between locations, and I'm wondering if the apps handle that kind of frequent stop-and-go usage well, or if manual tracking might be more accurate for that type of work pattern. Austin, thanks for asking the original question that sparked this amazing discussion. You've helped way more people than just yourself with your EV truck situation!

This thread has been incredibly comprehensive! I've been running a small landscaping business for about 6 months and just purchased a used F-250 that I'm using about 85% for business. Reading through all the experiences shared here has really clarified the Section 179 eligibility for personally-owned vehicles. One aspect I haven't seen mentioned yet is depreciation recapture if you ever sell the vehicle. Since Austin mentioned this is his first year with Schedule C, it's worth noting that if you take Section 179 or bonus depreciation and later sell the truck for more than its depreciated value, you'll owe taxes on that "recapture." This doesn't change whether you should take the deduction now, but it's good to understand the full picture. Also, for construction and landscaping businesses specifically, I've found that keeping a small notebook in the truck for quick mileage entries works as great backup to the apps. When you're covered in mud or your hands are dirty, it's easier to jot down "Site A to Site B - 15 miles" than trying to use your phone. You can always transfer to the app later. The advice about taking photos at job sites is spot-on too. I started doing this after reading Niko's audit experience, and it takes literally 2 seconds but creates such strong documentation of legitimate business purposes for each trip. Austin, definitely take advantage of that EV credit combined with Section 179 while both are available - it's a great time to be investing in business equipment!