5 Has anyone run into issues with the 4-year limit on the AOTC? My parents claimed it for me for 3 years already, and now I'm in my 4th year of college. I'm worried because I took a semester off, so technically I might need a 5th year to graduate. Will we lose out on the credit for my final year?

One thing to keep in mind is that the AOTC can only be claimed for the first four years of post-secondary education, and the student must be enrolled at least half-time in a degree program. Since you mentioned you're living at home and attending college full-time, you should be fine on the enrollment requirement. Also, make sure your mom knows that only "qualified education expenses" count toward the AOTC - this includes tuition and required fees, plus required books and supplies. Room and board, transportation, and optional expenses don't qualify, even if they're education-related. The fact that you both contributed to paying doesn't complicate things as much as you might think. The IRS treats all qualified expenses as if they were paid by the person claiming you as a dependent. So your mom can claim the full credit based on the total qualified expenses, regardless of who actually wrote the checks.

One strategy I don't see mentioned is differentiating between the PSL and the actual tickets. My CPA structured my ticket business so that I personally own the PSLs as an investment asset (since they can appreciate over time), while my LLC "rents" the right to purchase the annual tickets from me. This way, the LLC can deduct the full cost of the annual tickets plus a reasonable "rental fee" for using my PSLs, and I report that rental income personally. This creates some nice tax flexibility depending on my overall situation each year. When/if I eventually sell the PSLs, I'll be taxed at capital gains rates rather than ordinary income. My CPA said this approach works best when the PSLs have significant value like yours do at $80k.

This is exactly the kind of situation where proper planning upfront can save you thousands in taxes and headaches later. One thing I'd add to the excellent advice already given is to consider the timing of when you set up your LLC and start treating this as a business. If you retroactively try to claim business deductions for years when you were just casually selling tickets, that could raise red flags. But going forward, if you formalize the structure and start operating in a businesslike manner, you'll be in much better shape. Also, don't overlook the potential for other revenue streams once you have the LLC set up. Some of my clients have expanded into buying/selling other events' tickets, partnering with other season ticket holders, or even offering ticket management services. The infrastructure you set up for your football tickets can often support additional activities. Just make sure whatever you do, you're genuinely operating with profit motive and keeping detailed records. The IRS hobby loss rules are no joke, especially with high-dollar activities like this.

I think everyone is overlooking the major issue here - the business OWNS VANS! If you have company vehicles and employees, you should probably be looking at a more formal business setup beyond just home office deductions. Have you considered renting a small commercial space for your business? The tax benefits might actually be better, especially as you grow. When I expanded my pet business beyond just a home office, my accountant showed me that commercial rent was 100% deductible as a business expense, whereas home office has all these complicated calculations and limitations. Plus, with a separate location, I avoided bringing business liability onto my personal property.

Definitely form that LLC ASAP! With employees, company vehicles, and clients bringing their pets to your property, you're exposed to significant liability risks. An LLC will protect your personal assets if something goes wrong - dog bite, employee injury, vehicle accident, etc. Also, once you have the LLC, you might want to look into the Augusta Rule (Section 280A(g)). If your LLC "rents" your home for business meetings, client consultations, or employee training sessions, you can pay yourself up to 14 days of fair market rental value completely tax-free. This could be more advantageous than the home office deduction in some cases. For your current situation though, yes, that dedicated backyard space absolutely qualifies for the home office deduction as long as you maintain exclusive business use. Just make sure you're calculating based on total property square footage (house + entire yard) and keep meticulous records. The IRS loves to challenge home-based businesses with unusual setups, so documentation is everything.

Has anyone had success claiming WOTC for long-term unemployment recipients? I'm finding it really hard to get proper documentation proving they've been unemployed for 27+ weeks. What specifically counts as proof?

Just wanted to add some practical advice from someone who's been claiming WOTC for about 3 years now. The biggest mistake I see small business owners make is not asking the right questions during the hiring process. You can't just assume someone qualifies - you need to actually ask potential hires about their veteran status, unemployment history, SNAP benefits, etc. I created a simple questionnaire that I have all candidates fill out that covers the main target groups. It's not invasive, just straightforward questions like "Are you a veteran?" and "Have you been unemployed for 6+ months?" Also, keep really good records! The IRS can audit these credits, so document everything. I keep a file for each WOTC employee with their original application, the 8850 form, certification from the state, and all supporting docs. It's saved me headaches during audits. One more tip - don't forget about the credit for hiring people from rural renewal counties. It's one of the lesser-known target groups but if your area qualifies, it can apply to a lot more potential hires than you'd think.

My husband and I just went through an IRS audit for exactly this situation! Big warning: we ran into trouble because we were renting out too much of our home. The IRS agent cited the "dwelling unit used as a home" rules and said we were treating it more as a rental property than a personal residence. The key is making sure your personal use days exceed the greater of: 14 days or 10% of the total days it's rented. So if you rent portions of your home for 300 days, you need to personally use it for at least 30 days during the year. For duplicate expenses, keep detailed records showing you're paying both housing costs (mortgage/utilities at your tax home AND temporary housing during assignments). The IRS was particularly interested in seeing that we maintained utility services in our name even during rental periods. Also, a lot of travel nurse agencies don't handle state taxes correctly! Double-check their withholding - ours completely missed withholding for two states which created a mess.

This thread has been incredibly helpful! I'm a travel PT who's been struggling with similar tax home issues. One thing I'd add based on my experience - document EVERYTHING about your intent to return permanently to your tax home. The IRS looks closely at whether you truly intend your travel assignments to be temporary. Keep records showing you're actively planning your return: renewal of professional licenses in your home state, maintaining voter registration, keeping your kids enrolled in local schools if applicable, continuing relationships with local healthcare providers, etc. Also, for the state tax filing complexity you mentioned - I learned the hard way that some states have "convenience of employer" rules that can trip up remote workers. New York is notorious for this. Your husband should definitely check if any of the states you'll be in have these rules, as they might try to tax his entire income even if he's just temporarily there with you. One last tip: consider getting a tax professional who specializes in itinerant workers BEFORE you start traveling. The upfront cost pays for itself when you avoid mistakes that could trigger an audit or penalties later.