If you're buying clothes that aren't your size and specifically for professional use, those ARE deductible! I'm a theatrical costume designer and face similar issues. The key difference is that you're not buying these as "clothing" but as "professional supplies" or "production costs" for creating your portfolio. Make sure you're categorizing them correctly on your Schedule C. Also, don't forget you can deduct: - Transportation costs to/from shoots - Equipment (steamer, styling kits, etc) - Software for managing your portfolio - Reference materials (fashion magazines, books) - Portion of your home used exclusively for inventory storage Get a good accountant who understands creative fields ASAP!

Great thread! As someone who's been through multiple IRS audits for my creative business, I want to emphasize the importance of the "business purpose" test. The IRS will look at whether your clothing purchases have a genuine business purpose beyond personal use. For fashion stylists, you're in luck because your profession inherently requires purchasing clothing as "raw materials" for your creative work - similar to how a painter buys paint or a photographer buys lighting equipment. The fact that these items happen to be clothing doesn't automatically disqualify them. Key documentation tips from my audit experience: - Keep a business journal noting the creative concept/theme for each shoot - Photo evidence showing the items being used professionally - Client emails or contracts referencing specific styling requirements - Inventory tracking showing items stored separately from personal wardrobe The IRS auditor actually commended my documentation approach because it clearly demonstrated business intent rather than personal shopping disguised as deductions. Don't let the general "clothing isn't deductible" rule scare you away from legitimate business expenses!

I wish the tax code wasn't so unnecessarily complicated!! Why can't points just be points and deductions just be deductions? My freind got audited over this exact issue and the IRS agent didn't even understand it. He kept changing his answer!!!!

This is exactly the kind of situation where documentation is everything. I went through something similar last year with an $820k mortgage and $8,200 in points. The key thing I learned is to keep meticulous records of exactly how much of your loan went toward the home purchase vs. any improvements. Since you mentioned $50k went to renovations, that could actually work in your favor. The IRS treats home improvement debt differently - it's not subject to the same $750k cap as acquisition debt. So you'd potentially have $780k subject to the limit (not the full $830k), which would increase your deductible percentage. My advice: get your closing statement, contractor receipts, and any other documentation organized now. When your tax person gets back, they'll be able to properly allocate the points between acquisition debt and improvement debt. This could save you several hundred dollars in additional deductions. Don't just assume you're limited to the simple ratio calculation - the improvement portion changes everything.

your identity might have been compromised. check your credit reports asap

This happened to my sister too! The IRS has been automatically enrolling people in the IP PIN program if they detect any suspicious activity on your SSN, even if you never requested it. You can also try going to an IRS Taxpayer Assistance Center in person - sometimes they can issue you an IP PIN on the spot if you bring proper ID. Just make sure to make an appointment first!

Anyone else find it ridiculous that tax software makes these basic things so complicated? My dad used to do his taxes with pencil and paper in like an hour. Now we need AI tools and special phone services just to figure out why TurboTax is demanding forms we don't have!

I had this exact same problem last year! The key thing to understand is that TurboTax sometimes gets "stuck" on requiring a 1095-A if there's any indication earlier in your return that you might have had marketplace coverage. Here's what worked for me: 1. Go back to the very beginning of the health insurance section (not just where you're stuck) 2. Look for the initial question about your insurance source - make sure it says "employer-provided" or "job-based coverage" 3. If you see any mention of "marketplace," "exchange," or "premium tax credits" selected, change those 4. There's also usually a question about whether you received advance premium tax credits - make sure that's marked "No" The 1095-B from your employer insurance is basically just for your records - you typically don't need to enter any information from it into your tax return. Once you fix those initial selections, TurboTax should stop asking for the 1095-A entirely. If you're still stuck, try using the "start over" option just for the health insurance section rather than your whole return. Good luck!

Just adding another point - don't forget that if you've previously taken depreciation on your home (like if you've used part of it for a home office or as a rental), you'll have to recapture that depreciation when you sell, even if you're under the $250k/$500k exclusion. The IRS calls this "unrecaptured Section 1250 gain" and it's taxed at a maximum rate of 25%. I learned this the hard way and ended up with an unexpected tax bill even though my total gain was under the exclusion amount!

Great discussion everyone! I just wanted to add a few key points that might help clarify things for anyone else in a similar situation: 1. **Standard deduction vs. home sale expenses**: As Isabella correctly explained, selling expenses like realtor commissions aren't itemized deductions - they adjust your cost basis. This means you get the benefit regardless of whether you take the standard deduction or itemize. 2. **Keep ALL documentation**: Even if you think you're well under the exclusion amount, keep receipts for selling expenses, improvement costs, and any other relevant paperwork. The IRS can audit up to 3 years after filing, and having proper documentation makes everything much smoother. 3. **Timing matters for improvements**: Pre-sale improvements made within 90 days of selling can often be added to your basis if they were done specifically to make the house more marketable. But don't confuse improvements (which add value) with repairs/maintenance (which just restore the property to good condition). 4. **Consider professional help**: While the $250k/$500k exclusion covers most homeowners, complex situations like depreciation recapture, partial business use, or very high gains might warrant consulting a tax professional to ensure you're handling everything correctly. The bottom line for your situation, Malik, is that your selling expenses will likely reduce any taxable gain regardless of taking the standard deduction, and you'll probably qualify for the full exclusion anyway!