Quick question - if I use the gift money to buy business assets that need to be depreciated (like equipment over $2500), does anything change? Or do I still just depreciate normally even though the money came from a gift?

Great question! I went through something very similar when my grandmother gave me $2000 for my freelance graphic design business. The key thing to remember is that the IRS looks at the substance of the transaction, not just the label. Since your uncle gave you this money as a gift with no expectation of receiving anything in return (no services, products, or repayment), it remains a personal gift to you regardless of his suggestion about how to use it. This means: 1. You don't report it as business income on Schedule C 2. Your uncle won't owe gift tax (well under the $18,000 annual exclusion) 3. You can absolutely use it to purchase business equipment and deduct those expenses normally The beautiful thing is that legitimate business expenses are deductible regardless of the funding source - whether it's gift money, personal savings, a business loan, or revenue from the business itself. Just make sure to keep good records showing both the gift (that Venmo screenshot you mentioned is perfect) and any business purchases you make with it. This way if you're ever questioned, you can clearly demonstrate the gift nature of the funds and the business purpose of your expenditures.

One thing to watch out for with BC PST - if you're providing digital products or services, the rules can be different than for physical goods. I learned this the hard way last year. For digital services sold to BC customers, you generally need to charge PST. But the same digital service sold to customers outside BC (including US) is PST-exempt. Check out the BC gov website's bulletin PST 107 for the specific rules on telecommunications services which includes digital products. Don't make the same mistake I did and assume digital = exempt!

Quick heads up for anyone with BC small businesses - make sure you're also keeping track of where YOUR suppliers are located. If you're buying stuff from other provinces or internationally, different input tax rules apply. For example, I was buying software from an Ontario company and they were charging me HST, which affects how I claim input tax credits compared to GST. And when I buy from US suppliers, there's no GST/HST charged but I might pay duties or import taxes depending on what I'm buying. Tracking this stuff from day one saves massive headaches at tax time!!

Just a heads up on the Mach-E purchase - make sure you're tracking ALL your business mileage starting day one. I made the mistake of being casual about it when I first got my vehicle for my real estate business, and it caused me headaches at tax time. I recommend getting a mileage tracking app that automatically logs your trips. You'll need to categorize each trip as business or personal. For realtors, business mileage includes driving to showings, open houses, meeting clients, checking on properties, etc. Also, keep all documentation from the purchase - especially anything showing the vehicle's eligibility for the EV credit. The IRS has been known to question these claims.

One thing nobody has mentioned yet - if you're buying the vehicle in December, make sure it's actually placed in service before year-end if you want the deductions for this tax year. "Placed in service" means actually using it for business purposes, not just purchasing it. Also, take photos of your odometer when you first get the vehicle and whenever you use it for business in those first few weeks. This documentation can be super helpful if questions come up later.

You're absolutely making the right decision by not getting involved in this situation. As someone who's seen similar scenarios play out, I can tell you that "bank account issues" is often code for more serious financial problems that you definitely don't want to inherit. Beyond all the excellent points about tax complications and bank policies that others have raised, there's another angle to consider: if your sister's inheritance gets mixed up with your finances in any way, it could potentially complicate things for both of you down the line. Inheritance money sometimes gets scrutinized during divorces, bankruptcy proceedings, or other legal situations. The cleanest approach is always to keep financial transactions separate and transparent. Your sister received the inheritance, so she should be the one to deposit it. If her current bank won't work with her, literally any other bank will open an account for someone with a $25,000 deposit to make. You're being a good sister by wanting to help, but sometimes the best help is steering someone toward handling their financial affairs properly rather than taking shortcuts that could cause bigger problems later.

As someone who's been through estate administration, I want to echo what others have said about your sister handling this herself. There's really no legitimate reason she can't deposit or cash an inheritance check made out to her name. Most inheritance checks come from estate attorneys or financial institutions, and these can typically be cashed at the issuing bank even without an account. Yes, there will be fees, but that's much simpler than creating potential tax complications for both of you. The "bank account issues" explanation is concerning. Even if her account is overdrawn or frozen, she could open a new account at a different bank with proper ID and the inheritance documentation. Banks are generally very willing to work with people who have legitimate inheritance funds to deposit. I'd also suggest she contact the estate attorney or executor who issued the check if she's having trouble. They deal with these situations regularly and can provide guidance on the proper way to handle the funds. Don't put yourself at risk trying to solve her banking problems - this needs to be handled through proper channels.

I'm so sorry for your loss, Sunny. Dealing with taxes while grieving is incredibly difficult, and you're asking exactly the right questions. Yes, you can file as Head of Household for the year your wife passed away since she died before July 1st. The IRS considers you unmarried for the entire tax year in this situation, and since you're supporting your children who live with you, you meet the HOH requirements. A few additional things to keep in mind: - When filing your wife's final return, write "DECEASED" and the date of death across the top - You'll sign her return as "Filing as surviving spouse" - Make sure to claim any income she earned up to her date of death on her final return - Consider whether any of her medical expenses paid after death might be deductible on either return The separate filing approach you're considering is completely valid - her final return as married filing separately, and yours as HOH. This gives you flexibility with deduction choices too. Don't hesitate to consult a tax professional who has experience with widower situations if you need additional guidance. There are often overlooked deductions and credits that can help during this transition. Take care of yourself during this difficult time.

I'm deeply sorry for your loss, Sunny. Losing a spouse is incredibly difficult, and having to navigate tax complications during such a challenging time adds another layer of stress. Based on your situation, you're absolutely on the right track. Since your wife passed away in February (before July 1st), you are indeed considered unmarried for the entire tax year for Head of Household purposes. With two qualifying children living with you that you're supporting, you definitely meet the HOH requirements. Your approach of filing her final return as married filing separately while you file as HOH is completely valid and often makes sense when there are complicating factors that make joint filing difficult. A couple of important reminders for your wife's final return: - Include all income she received from January 1st through her date of death - You can claim any medical expenses you paid for her after death (within one year) on either her final return or yours, whichever is more beneficial - Don't forget to check if she had any estimated tax payments that need to be accounted for The HOH status will give you better tax rates and a higher standard deduction than filing single, which can provide some financial relief during this transition. And yes, you can absolutely choose different deduction methods - itemize on your return even if you take the standard deduction on hers. Take care of yourself and don't hesitate to seek professional help if the complexity becomes overwhelming. You're doing great navigating this difficult situation.