Has anyone actually received conflicting advice from USCIS vs IRS on this? My wife is in adjustment of status too and our immigration lawyer told us one thing while our tax guy said something completely different!

I went through this exact same situation last year! The confusion is totally understandable because immigration status and tax status are two completely different things. Since you've been physically present in the US since June 2021, you actually already qualify as a resident alien under the substantial presence test (you'd have way more than the required 183 days). But even if you didn't meet that test, being married to a US citizen gives you the option to elect resident status for tax purposes under Section 6013(g). For your employer's HR department, tell them you're a "resident alien" for tax purposes. You'll complete your W-4 as a resident, and they'll withhold taxes normally. You won't need Form 8843 - that's only for nonresident aliens. You and your husband should file jointly using Form 1040. If this is your first year making the resident election, you'll need to attach a statement to your return signed by both of you declaring the election. The joint filing will almost certainly save you money compared to filing separately. Your pending adjustment of status doesn't affect any of this - tax residency and immigration status are completely separate determinations. Hope this helps clear things up!

A lot of people don't realize that Form 8879 isn't actually sent to the IRS - it's just kept by your tax preparer for their records. It's the authorization form that allows them to e-file on your behalf. The IRS doesn't even receive it directly. So any letter you're getting isn't related to Form 8879 itself, but rather to the return that was filed or amended after you signed that form.

I can relate to your panic - getting any letter from the IRS is nerve-wracking! Based on what you've described, it sounds like your accountant filed an amended return (Form 1040-X) to correct some issues with your original filing, and the letter you're receiving is most likely just the IRS acknowledging they got it. This is totally normal procedure. When the IRS receives an amended return, they typically send an acknowledgment letter (usually a CP21B notice) within 2-3 weeks just to let you know they received it and are processing it. It's not a sign of trouble - just their standard way of confirming receipt. The Form 8879 you signed is completely separate - that's just the authorization form that allowed your accountant to electronically file your return. The IRS doesn't even receive that form directly. I'd suggest calling your accountant to confirm they filed an amendment and ask them to explain what corrections were made. They should have been clearer about this process upfront, but don't worry - acknowledgment letters for amended returns are routine!

One thing I'd add is to be very careful about the business purpose requirement. The IRS has been scrutinizing these arrangements more closely lately, especially when it's a single-owner S corp renting the owner's residence. Make sure your meetings have a genuine business purpose that couldn't reasonably be conducted elsewhere - like confidential strategic planning, board meetings with sensitive information, or client meetings requiring privacy. I've seen cases where the IRS challenged rentals for routine staff meetings that could have been held at the regular office. Also, spread your 14 days throughout the year rather than clustering them together, as that looks more natural and less like tax avoidance. Document everything meticulously - meeting agendas, attendee lists, business outcomes, and photos if possible.

I've been researching the Augusta Rule for my S corp as well, and one critical aspect I haven't seen mentioned yet is the impact on your homeowner's insurance. When you start using your residence for business meetings, even just 14 days a year, you may need to notify your insurance company or potentially add a business rider to your policy. Some insurers could deny claims if they discover undisclosed commercial use of the property. Also, for those tracking fair market rates, I've found it helpful to document not just the rental rate but also what specific amenities justify that rate - things like high-speed internet, presentation equipment, catering facilities, or privacy features that make your home particularly suitable for business use. This additional documentation can really strengthen your position if the IRS questions your rental rate during an audit. One more consideration: if you're planning to do this strategy long-term, consider how it might affect a future sale of your home. While the Augusta Rule income is tax-free, you'll want clean documentation showing the business use was minimal and temporary to avoid any complications with the home sale exclusion under Section 121.

Just to add another perspective - I understand the frustration of wanting to avoid tax complications for what seems like a simple withdrawal of your original investment. Unfortunately, the tax code doesn't work that way since it's based on transactions, not account balances. One thing that might help is thinking about it differently: you're not really "withdrawing your original investment" - you're selling an asset that has appreciated in value. The $1350 you put in bought you shares of Apple stock, and now those shares are worth $1375. When you sell them, you're disposing of an asset for more than you paid, which creates taxable income. If you're really concerned about the tax reporting burden, you might consider just holding onto the stock for now if you don't urgently need the money. That way you avoid the taxable event entirely until you're ready to deal with the tax implications. But if you do need the cash, just know that reporting a $25 capital gain is pretty straightforward and won't add much complexity to your tax return.

One thing I haven't seen mentioned yet is that you might want to check if your state has any additional capital gains tax requirements. While the federal side is straightforward with reporting that $25 gain, some states have their own rules or forms for investment income. Also, if this is your first time dealing with investment taxes, it's worth noting that Robinhood usually makes their tax documents available by mid-February. You don't need to estimate or calculate anything yourself - they'll provide the exact figures you need for your tax return on the 1099-B form. The silver lining is that once you go through this process once, you'll understand how it works for future trades. And honestly, for a $25 gain, we're probably talking about $3-6 in actual taxes depending on your bracket, so the financial impact is pretty minimal even if the reporting requirement feels annoying.

Quick question - does anyone know if leasing vs buying changes this calculation? My S corp is in a similar loss situation but I'm looking at leasing options instead.

I went through this exact situation with my marketing agency last year! When you're already projecting a loss, bonus depreciation is definitely the way to go over Section 179. The key difference is that Section 179 can't create or increase a business loss, so it won't provide any additional tax benefit in your friend's situation. With bonus depreciation (80% for 2023, 60% for 2024), she can still take the large first-year deduction even though the business is operating at a loss. Those excess losses will carry forward to future years when the business is hopefully profitable. For Honda vehicles, you're right to focus on the 6,000 lb GVWR threshold. The Odyssey typically doesn't qualify in any trim, but the Honda Pilot (especially Touring and Elite trims) usually exceeds 6,000 lbs. The Honda Passport also often qualifies. Just make sure to check the exact GVWR on the manufacturer's label - it's usually on the driver's side door frame. One other consideration: if she expects the business to be profitable in the near future, she might want to consider whether spreading the depreciation over several years with regular MACRS might be more beneficial to match deductions with higher-income years. But if cash flow is tight and she needs the immediate tax benefits, bonus depreciation is still the better choice over Section 179 in a loss situation.