Might be a stupid question but I just started with Instacart... does mileage include driving to the store or only from store to customer? Also what app does everyone use for tracking? I'm just using my car's odometer and writing it down but there's gotta be a better way lol

Great question! I was making the same mistake when I started doing gig work. The mileage deduction doesn't give you cash back - it reduces your taxable income dollar-for-dollar. So if you made $220 and have $177.55 in mileage deductions, you only pay taxes on $42.45 instead of the full $220. One thing to keep in mind though - you'll still owe self-employment tax (Social Security and Medicare) on your net profit, which is currently 15.3%. But even with that, the mileage deduction is huge for gig workers because it accounts for all your vehicle costs rolled into one simple rate. Make sure you're tracking every single business mile! From your house to the first pickup, between deliveries, and back home at the end of your shift. Those miles add up fast and can save you hundreds or even thousands in taxes.

One thing to consider that hasn't been mentioned yet - make sure your second home actually qualifies as a personal residence for tax purposes. For the mortgage interest to be deductible as a second home (rather than as a rental property), you need to use it for personal purposes for either: 1) More than 14 days during the year, or 2) More than 10% of the number of days it was rented at fair market value Also, watch out for the alternative minimum tax (AMT) if you're a high earner. Sometimes mortgage interest deductions can push you into AMT territory which reduces their benefit.

Just a heads-up - I learned this the hard way. The mortgage interest statement (Form 1098) you receive from your lender doesn't necessarily reflect what's actually deductible. My second home is under an LLC for liability protection, and this created complications with my mortgage interest deduction.

Has anyone else run into issues with their premium tax credit calculation changing mid-year? I set up my S-corp reimbursement based on my initial APTC amount, but then my estimated income changed, and suddenly I'm getting a different credit amount. Do I need to adjust my reimbursements retroactively?

This is exactly the kind of complex situation where getting professional guidance is crucial. I went through something similar last year with my S-Corp and learned the hard way that the timing of when you report income versus when you receive reimbursements can really matter. One thing I'd add to the great advice already given - make sure you're coordinating with your accountant on the timing of any income adjustments that might affect your APTC eligibility. If your S-Corp income fluctuates significantly during the year (which is common), it can impact both your premium tax credit amount and how much you should be getting reimbursed. Also, keep detailed monthly records of exactly what you paid out-of-pocket versus what the APTC covered. This documentation becomes really important at tax time when you're reconciling everything on Form 8962. The IRS wants to see that there's no double-dipping between the business deduction and the personal tax credit. Have you considered doing a mid-year projection with your accountant to see which approach (taking APTC monthly vs. claiming it all at tax time) would work better for your specific income situation?

Has anyone dealt with their state's abandoned property laws when dissolving? I'm in a similar situation, and was told that if you can't repay all the shareholder loans, the unpaid portion might need to be reported as abandoned property to the state after dissolution. Seems crazy but my accountant mentioned it.

One thing to consider that hasn't been mentioned yet is the timing of your dissolution. Since you have substantial outside basis ($135K) and are only getting $7K back, you'll have a significant capital loss. Make sure you understand the capital loss limitations - you can only deduct $3K per year against ordinary income, with the remainder carried forward. Given the size of your loss, this could take decades to fully utilize unless you have capital gains to offset it against. Also, regarding the debt vs. distribution question - since you're the sole shareholder, the tax result is essentially the same. However, from a documentation standpoint, I'd recommend treating the $7K as a partial loan repayment and then formally canceling the remaining debt. This creates a cleaner paper trail showing you attempted to collect what you could before forgiving the balance. Don't forget to file Form 966 within 30 days of adopting the plan of liquidation, and make sure your final 1120S properly reflects the debt cancellation income (even if excluded under Section 108) and the corresponding basis adjustments on your K-1.

Anyone know if leasing is better than buying for tax purposes? I've heard conflicting things.

One thing I don't see mentioned here is the importance of proper business purpose documentation. I made the mistake of thinking a basic mileage log was enough, but during an audit the IRS wanted to see detailed records of WHY each trip was business-related, not just where I went. For Section 179 vehicle deductions, you need to be extra careful about proving legitimate business use. I started keeping a simple voice memo app on my phone to record the business purpose of each trip right when it happens - "visiting client Johnson to review quarterly reports" or "picking up supplies for the Peterson project." Takes 5 seconds but creates a contemporaneous record that's much more defensible than trying to recreate it later. Also, don't forget that if you're using the vehicle for both business and personal use, you need to track EVERYTHING - not just the business trips. The IRS will want to see your total mileage to verify your business use percentage is accurate.