Just wanna add that you should be careful about "reimbursing" yourself too much at once if you do it in 2025. I made this mistake - had a ton of 2023 miles I didn't reimburse until January 2024, then tried to take it all at once along with my regular 2024 mileage. My accountant warned me that large, unusual reimbursements can trigger extra scrutiny. Might be worth spreading it out over a few months if the amount is significant.

Just to add another perspective - I've been dealing with similar timing issues in my consulting business. One thing that helped me was creating a simple spreadsheet that clearly separates "when the expense occurred" vs "when I paid/reimbursed myself." This makes it crystal clear for both my records and any potential IRS questions. For your December 2024 miles, I'd recommend documenting it something like: "Business mileage incurred: December 2024 | Reimbursement date: February 2025 | Tax year for deduction: 2025." This way there's no confusion about the timeline. Also, since you mentioned money was tight in December, you might want to consider what others have suggested about claiming the mileage directly on your 2024 Schedule C instead of doing a formal reimbursement. That way you could still get the deduction for 2024 without having to actually move cash around. Just make sure your mileage logs are detailed enough to support the deduction!

Has anyone used TurboTax for reporting something like this? I'm trying to figure out where exactly to enter all this information when I file.

Great thread! I'm going through a similar situation with my converted van. One thing I wanted to add that might help others - make sure to keep photos of your conversion process, not just receipts. When I sold mine last year, having before/during/after photos really helped demonstrate to my tax preparer (and potentially the IRS) that these weren't just repairs but actual improvements that transformed the vehicle's use. Also, consider getting a professional appraisal if your gain is substantial. For my van, I had it appraised both before major improvements and after completion. This created a clear paper trail showing how the improvements added value, which made filing much more straightforward. The distinction between repairs and improvements can be tricky, but generally if you're adapting the vehicle for a completely different purpose (school bus to RV), most of your conversion work should qualify as capital improvements. Just document everything well!

Wait I'm confused about something. If I sell a jacket I bought for $50 five years ago and sell it for $40 this year, isn't that technically a capital loss? Can I deduct that loss somewhere on my taxes?

I went through this exact situation last year and wanted to share what I learned! You're absolutely right that this is essentially an online garage sale situation, not a business. The $600 threshold is correct - that's why they asked for your SSN verification. You'll likely receive a 1099-K, but don't panic! The key thing to remember is that you're only taxed on actual profit, not the gross sales amount. Since you're selling personal clothing items for less than you originally paid (which is almost always the case with used clothes), you won't owe taxes on this income. When you get the 1099-K, you'll report it in TurboTax, but then you'll also enter your cost basis (what you originally paid for the items) to show there was no taxable gain. Don't include the shipping fees in your taxable calculation - those are just pass-through costs. Focus on the actual item sale prices versus what you originally paid. Even without receipts, you can make reasonable estimates of your original purchase prices. A vintage band t-shirt you sold for $25 probably cost you $15-30 originally, a jacket you sold for $40 might have cost $60-80 new, etc. The IRS accepts reasonable estimates for personal items. The most important thing is NOT to just report the full $815 and pay taxes on it - that would mean paying taxes on money that isn't actually taxable income!

One thing to consider that nobody's mentioned - the bank account situation. When I formed my S Corp, I was surprised at how much documentation banks wanted to open a business account. You'll need: - Articles of incorporation - EIN confirmation letter from IRS - Corporate bylaws (or operating agreement if LLC→S Corp) - Sometimes board meeting minutes showing authority to open accounts Also, some banks are MUCH easier to work with than others for small business S Corps. I tried Chase first and the process was a nightmare. Switched to a local credit union and had everything set up in 45 minutes.

Great question about S Corp conversion! I made this transition two years ago when my consulting income hit $450k and it was absolutely worth it. Here are some practical insights from my experience: **State Choice**: Between Colorado and Minnesota, Colorado generally has more favorable business tax rates. But since you're spending significant time in both states, you'll likely need to file returns in both regardless of where you incorporate. Consider consulting with a tax professional who understands multi-state tax issues. **Professional Team**: You'll definitely want to upgrade from just a tax preparer. I'd recommend: - A CPA experienced with S Corps (not just general tax prep) - Payroll service like Gusto or ADP (makes quarterly payroll much easier) - QuickBooks or similar for clean bookkeeping - Consider an attorney for initial setup if your situation is complex **Reasonable Salary**: For $520k revenue in tech consulting, depending on your profit margins, a salary in the $180-220k range would likely be defensible. The IRS looks at what someone with your skills and responsibilities would earn as an employee. Your CPA can help determine the sweet spot. **Additional Benefits**: Beyond SE tax savings, you'll get better retirement plan options (Solo 401k with higher contribution limits), potential health insurance deductions, and cleaner business/personal separation. One tip: Start the process now if you want S Corp treatment for 2024. The paperwork and IRS processing can take time, and you don't want to miss the election deadline. The administrative overhead is real but manageable with the right systems. At your income level, the tax savings should easily justify the additional costs and complexity.

This is exactly the kind of situation where maximizing your pre-tax retirement contributions can really pay off! As a fellow educator (I teach high school biology), I've been through this same calculation. One thing to consider is the timing of your contributions. If you're paid over 10 months like many teachers, you might want to front-load your 403b contributions earlier in the year to get a better sense of where your MAGI will land. This gives you more flexibility to adjust if needed. Also, don't forget about HSA contributions if either of your school districts offers high-deductible health plans with HSAs. Those contributions also reduce MAGI and you can use HSA funds for qualified medical expenses tax-free forever. With two college students, you might have some medical expenses that could benefit from this strategy. The key is running the numbers to see exactly how much you need to contribute to stay under that $160k threshold. Every dollar of education credits you preserve is worth way more than the tax deferral benefit of the retirement contribution alone!

As a California educator myself (elementary school principal), I can confirm that 403b contributions absolutely reduce your MAGI for education credit purposes. This saved my family thousands when my daughter was in college. One strategy that worked well for us was to calculate our projected MAGI early in the tax year, then adjust our 403b contributions accordingly. Since we're paid over 10 months, I increased my contribution percentage mid-year when I realized we were close to the phase-out threshold. Also worth noting - if you're over 50, don't forget about catch-up contributions! The additional $7,500 you can contribute to your 403b in 2025 can make a real difference in staying under that $160k MAGI limit for married filing jointly. With $24,000 in qualified expenses for two students, you're potentially looking at $5,000 in American Opportunity Credits if you can keep your MAGI in the right range. That's definitely worth optimizing your retirement contributions for!