I've been operating from a mixed-use property for about 18 months now and wanted to share a few additional considerations that might help with your decision. One thing that really caught me off guard was the utility allocation complexity. While the square footage method works for rent, utilities can be trickier because business operations often use disproportionately more electricity, heating/cooling, etc. I ended up installing separate meters for my office area, which made the deduction calculation much cleaner and gave me better audit protection. Also, if you're planning to have clients visit your space, make sure to factor in the "principal place of business" rules. The IRS has specific requirements about whether your home office qualifies as your main business location, which can affect your deduction eligibility. One unexpected benefit I discovered: having a legitimate mixed-use setup actually helped me qualify for certain small business grants and programs that required a physical business address. Some programs don't accept P.O. boxes or virtual offices, so having a documented business space was really valuable. My recommendation would be to start simple - personal lease, clear physical separation of spaces, meticulous record keeping from day one. You can always optimize the structure later as your business grows and you better understand your actual usage patterns. Good luck with the new venture!

I've been in a similar mixed-use situation for about 2 years now and wanted to add a few thoughts based on my experience. One thing I discovered that might be helpful: if you're planning to deduct vehicle expenses for business trips that start from your mixed-use location, the IRS treats your home office as your "business location" for mileage deduction purposes. This means trips from your office to client meetings, supply runs, etc. can be fully deductible business miles rather than commuting miles. Also, regarding the lease structure question - I initially signed personally but later had my LLC assume the lease when my landlord was willing to do a lease assignment. This gave me the flexibility to start simple but transition to cleaner business accounting as my operations grew. Not all landlords will allow this, but it's worth asking about when negotiating. One record-keeping tip that's saved me time: I use a simple smartphone app to log my office usage and take timestamped photos of my workspace setup monthly. It takes about 5 minutes but creates a consistent documentation trail that shows exclusive business use over time. The CPA meeting you mentioned is definitely the right move - they can help you model out the tax implications of both lease structures based on your specific business projections and personal tax situation.

Whatever you do, avoid those "Tax Relief" places that advertise on the radio! I made that mistake and paid $3000 upfront only to discover they just filed basic paperwork I could have done myself. Total ripoff.

I went through this exact situation about 18 months ago - 5 years unfiled, similar amount owed. Here's what I learned: 1. Don't panic about the amount you think you owe. My "rough calculation" was way off because I hadn't accounted for legitimate business deductions and the standard deduction increases over those years. 2. Start with getting your IRS transcripts immediately - you can request them online at irs.gov. This will show you exactly what income the IRS has on file for each year. 3. Look for an Enrolled Agent rather than a CPA if possible. EAs specialize specifically in tax issues and IRS representation. The National Association of Enrolled Agents website has a "find an EA" tool. 4. When interviewing professionals, ask specifically about their experience with multiple years of unfiled returns and how they handle penalty abatement requests. A good professional should mention First Time Penalty Abatement and reasonable cause arguments. 5. Be prepared to pay the professional fees upfront - legitimate tax professionals don't work on contingency like those scammy relief companies. The whole process took about 4 months for me, but getting it behind me was such a relief. You're smart to handle this proactively rather than waiting for the IRS to come after you.

Those codes are actually pretty standard! Code 150 just means your return was processed and accepted into the system. Code 766 represents credits applied to your account (like withholdings or refundable credits), and 768 specifically shows the Earned Income Credit if you qualified for it. The fact that you're seeing these codes is actually a good sign - it means your return is in the system and being processed. What you really want to watch for is code 846, which will show your actual refund issue date. Until you see that, you're still in the processing queue. Two months does feel like forever, but unfortunately it's not uncommon right now. The IRS is dealing with a huge backlog. Keep checking your transcript weekly - once that 846 code appears with a date, you'll know exactly when to expect your refund. Hang in there! 🤞

Those codes are totally normal! 150 means your return was accepted and processed, 766 shows credits applied to your account (like tax withholdings), and 768 is the Earned Income Credit if you qualified. These are all good signs that your return is moving through the system. The waiting is brutal, I know! Two months feels like forever but it's unfortunately pretty typical right now with all the backlogs. The key code to watch for is 846 - that's when they actually issue your refund and you'll see the exact date. Keep checking your transcript weekly, and once you see that 846 code pop up, you'll know your refund is finally on its way! Don't lose hope - your return is definitely in the system and processing. 🤞

As someone who's dealt with similar work expense questions, I'd definitely recommend the employer route first before worrying about tax deductions. Construction companies are usually pretty responsive to safety-related requests, especially when you can point to potential liability issues. You might also want to document your sunscreen purchases and keep receipts just in case the tax laws change after 2025 when some of those suspended deductions might come back. Even if you can't use them now, having good records could be helpful later. Another thought - if you end up having any skin issues from sun exposure at work, those medical expenses might be deductible if they're significant enough. Not that anyone wants to deal with that, but it's worth knowing your options.

I work for a tax preparation service and see questions like this all the time. The unfortunate reality is that as a W-2 employee, you're pretty much out of luck for deducting the sunscreen under current tax law. The Tax Cuts and Jobs Act really limited options for unreimbursed employee expenses. However, I'd strongly encourage you to approach this from the workplace safety angle that others have mentioned. In California's extreme heat, employers have heightened responsibilities under Cal/OSHA regulations. You could frame this as a heat illness prevention measure - prolonged sun exposure contributes to heat-related illnesses, and sunscreen is a basic protective measure. I'd suggest putting together a brief proposal for your supervisor highlighting: 1) The cost-effectiveness of bulk sunscreen vs individual purchases, 2) Potential liability reduction for the company, and 3) How it fits into existing safety protocols. Most construction companies would rather spend a few hundred dollars on sunscreen than deal with workers' comp claims or OSHA citations. If they refuse, at least keep detailed records of your purchases. Tax laws could change, and having good documentation never hurts.

my sister in PA got hers in like 5 days im so jealous rn

This happens literally every year and we never learn lol. NY always slower than molasses in January smh