Has anyone here actually tried claiming a portion of major home repairs when they have a home office? I use about 15% of my house exclusively for my freelance work and file a Schedule C. Would that mean I could deduct 15% of something like a repipe as a business expense?

I went through something very similar when I bought my first home last year - $38k furnace and HVAC replacement right after closing. It's such a gut punch when you're already stretched thin from the down payment and closing costs! One thing I learned that might help: even though you can't deduct the repipe as a personal expense, make sure you're thinking long-term about your tax strategy. Since you mentioned wanting to rent out a room, if you do decide to go that route in the future, you could potentially convert that portion of your home to rental use. At that point, you might be able to depreciate the business portion of improvements you've already made. Also, definitely keep every single receipt and document related to this repair. Not just the main invoice, but any permits, inspection reports, before/after photos, everything. When you eventually sell the house (even if that's decades from now), having this documentation will be crucial for proving the increase to your home's basis and potentially saving thousands in capital gains taxes. The 0% APR credit card strategy you mentioned is actually pretty smart for the short term. Just make sure you have a solid plan to pay it off or refinance before that promotional rate expires!

You absolutely need to find a CPA or tax professional who specifically handles partnership taxation - this isn't something every tax preparer is equipped to handle properly. Look for someone who has experience with: - Partnership K-1 preparation and filing - Equity compensation in LLCs/partnerships - Section 83(b) elections and profit interests - Multi-state partnership issues (if applicable) You can search for "partnership tax specialist" or "business tax attorney" in your area. Many firms that work with startups and small businesses will have this expertise. You can also ask for referrals from your state CPA society. A good specialist should be able to review your profit interest agreement, assess whether your 83(b) election was filed correctly, and create a plan to correct your tax treatment going forward. They should also be able to advise on the international tax implications if you do move abroad while holding these interests. Don't settle for someone who seems uncertain about partnership taxation - this area has too many nuances and potential pitfalls. The cost of getting proper professional help upfront will be much less than dealing with IRS issues or audit problems later. Also, when you do find a specialist, bring copies of ALL your equity documents, your 83(b) election filing receipt, and any correspondence about the profit interests. The more complete information they have, the better advice they can provide.

This situation is more common than you might think, and you're smart to address it now rather than letting it continue. Based on what you've described - especially the 83(b) election filing - you almost certainly should be treated as a partner rather than an employee for tax purposes. The key issue is that when you receive profit interests in an LLC, you become a partner in the partnership, which fundamentally changes your tax status. Partners don't receive W-2s or have taxes withheld - instead, they receive K-1s and typically make quarterly estimated payments. Here's what I'd recommend for your immediate situation: 1. **Don't file yet using just the W-2** - this could lock in the incorrect treatment and make corrections more complicated later. 2. **Get professional help first** - find a CPA who specializes in partnership taxation. This isn't standard tax prep territory, so make sure they have specific experience with profit interests and partnership issues. 3. **Gather all your documents** - profit interest agreement, 83(b) election filing confirmation, any other equity-related paperwork. Your tax professional will need these to assess your situation properly. 4. **Talk to your employer after you understand the issue** - approach them with solutions, not just problems. They probably don't realize the tax implications and will appreciate guidance on how to fix it. Regarding your future plans to potentially give back the units or move abroad - both are definitely possible, but the international tax implications of being a US partnership partner while living abroad can be quite complex. Address the current year first, then work with your professional to plan the best long-term strategy. The good news is that since taxes were being withheld and paid, you're not in a "no taxes paid" situation, which is what the IRS really cares about. This is fixable with the right professional guidance.

Congratulations Emma! What an incredible win! I can totally understand the mix of excitement and terror you're feeling right now - that's completely normal when facing a windfall with significant tax implications. From what I'm seeing in the advice here, you definitely have good options. The key thing to remember is that even in the worst-case tax scenario (let's say 35-40% combined federal and state), you're still looking at keeping a $30k+ asset that you got for free. That's life-changing money! Here's what I'd suggest as your next steps: 1) Get the exact fair market value the sweepstakes company will report on your 1099-MISC, 2) Get quotes from 3-4 Audi dealers on what they'd pay for the car right now, 3) Calculate your estimated tax liability with a tax professional or reliable software, and 4) Get pre-approved for an auto loan using the car as collateral. This gives you all the information you need to make an informed decision. You could keep the car and take a loan to pay taxes, sell it immediately and pocket the difference, or find some middle ground approach. Whatever you do, don't walk away from this prize out of fear! With proper planning, this should be one of the best things that ever happened to you financially. The tax burden is real, but so is the incredible opportunity you've been given.

Emma, congratulations on your incredible win! I completely understand the panic you're feeling - I went through something very similar when I won a vacation package worth $12,000 a few years ago. The tax anxiety is absolutely real, but please don't let it scare you away from this amazing opportunity. Here's the reality check that helped me: even if you end up owing 35% in combined federal and state taxes (which would be on the high end), you're still looking at keeping a $36,000+ asset that you got completely free. That's an incredible windfall by any measure! My advice is to take a deep breath and get organized with the facts. Contact the sweepstakes company tomorrow to get the exact fair market value they'll report. Then call a few Audi dealerships to get actual quotes on what they'd pay for the car. Having real numbers instead of estimates will help you make a clear-headed decision. One option nobody's mentioned: you could also consider keeping the car for a few months while you save up for the taxes. The tax payment isn't due until you file next year, so you have time to plan. You could even enjoy driving your dream car for a while before deciding whether to keep it long-term or sell it. Don't walk away from this! With some planning, this should be one of the best things that's ever happened to you financially. You've got this!

I went through this same situation just last month and wanted to add my experience to help ease your worries! Code 971 with $0.00 appeared on my transcript on February 18th, and I was completely stressed about it until I received the actual notice 11 days later. It turned out to be a CP11 notice - the IRS had made a small calculation error correction on my return, but because it didn't affect my overall tax liability or refund amount, the transcript showed $0.00. The notice was very clear about what they changed and confirmed that no action was needed from me since there was no financial impact. What I learned from this experience is that the $0.00 amount really is the key indicator that whatever's happening isn't going to hurt you financially. The waiting period is definitely the worst part because your mind starts imagining all sorts of problems, but in reality, most of these notices are pretty routine administrative communications. My refund processed normally and arrived on schedule despite the notice. Try to stay calm and just wait for the mail - you'll likely find it's much less concerning than the mysterious transcript code makes it seem!

I just wanted to chime in as someone who's been through this exact situation twice now! Code 971 with $0.00 appeared on my transcript both last year and again this filing season. The first time I was absolutely panicking and spent hours researching what it could mean. Turns out it was just a CP14 notice letting me know they had received my return and it was processing normally - completely routine. This year when I saw the same code, I knew not to worry. Sure enough, got another informational notice about 10 days later confirming everything was on track. The key thing I've learned is that $0.00 amount really does mean no financial changes to your return. If there were actual problems with taxes owed, adjustments to your refund, or penalties, you'd see specific dollar amounts listed. The waiting period is definitely anxiety-inducing, but try to remember that this code combination is actually pretty common and usually indicates standard IRS correspondence rather than anything serious. Keep checking your mail over the next week or two and you should get clarity soon!

This is such a common situation and it's great that you're thinking about doing things properly! I went through something similar last year and found that keeping meticulous records was key - I created a simple spreadsheet tracking every payment with date, amount, and hours worked. One thing I'd add to the great advice already given: consider having a gentle conversation with the family about the benefits of proper classification. Many families don't realize they can claim the Child and Dependent Care Credit (up to $3,000 for one child) if they report your wages properly. Sometimes when they see the tax benefits they get, they're more willing to do things legally. Also, if you do end up filing Schedule C, remember you can deduct work-related expenses like mileage for taking kids to activities, supplies you buy for crafts/activities, and even a portion of your phone bill if you use it for work communication. These deductions can help offset some of that higher self-employment tax burden. Good luck with the new position - it sounds like a great opportunity!

I'm dealing with a very similar situation right now! Just wanted to add that if you do end up reporting this as self-employment income on Schedule C, make sure you understand the quarterly estimated tax payment schedule. The IRS expects you to pay taxes throughout the year, not just at filing time. The due dates are usually April 15th, June 15th, September 15th, and January 15th of the following year. Since you're starting next month, you'll want to calculate what you owe for the second quarter and get that payment in by June 15th. I use Form 1040ES to calculate my quarterly payments - it's basically a worksheet that helps you estimate your annual income and figure out how much to pay each quarter. The general rule is to pay 25% of your expected annual tax liability each quarter, but there are safe harbor provisions if your income varies. One thing that caught me off guard was that you need to pay both income tax AND self-employment tax in your quarterly payments. The self-employment tax alone is 15.3% of your net earnings, so don't forget to factor that in when setting aside money from each payment. Good luck with the new position - having steady income is so important for things like apartment applications!