Has anyone actually been audited when using personal cards for business? All this advice sounds good in theory but I'm wondering about real experiences.

I've been using a personal card for my freelance business expenses for over two years now, and I can confirm what others have said - the IRS really doesn't care about the card type. During my recent interaction with a tax professional, they emphasized that the key is maintaining clear separation in your accounting records. What I've found helpful is using a dedicated personal card ONLY for business expenses, even though it's technically a personal card. This makes reconciliation much easier in QuickBooks and gives you a clear paper trail. I also keep a simple spreadsheet with business purpose notes for each transaction, which takes maybe 5 minutes per week but gives me peace of mind. The audit risk doesn't increase just because you're using a personal card - it increases if your expense patterns look unusual for your industry or if you can't properly document business purposes. As long as you're disciplined about record-keeping and only deducting legitimate business expenses, you should be fine regardless of card type.

A big consideration that hasn't been mentioned yet is state taxes! Capital gains are treated differently state-by-state, and some states have their own brackets/systems that don't align with federal. I live in California and the state taxes were actually a bigger factor in my decision than federal because we tax capital gains as ordinary income. Might be worth checking your state's rules too.

Something else to consider - if you're thinking of buying a house or applying for any major loans in early 2025, keeping your reported 2024 income lower might help with your debt-to-income ratio on applications. Lenders typically look at your last 1-2 years of tax returns.

Has anyone used TurboTax for reporting home sales after divorce? I'm in a similar situation and wondering if it handles the quitclaim situation correctly or if I need to use a CPA this year.

I went through a very similar situation a few years ago and can confirm what others have said about the basis calculation. The key thing to remember is that divorce-related property transfers don't create taxable events, so your cost basis remains the original $370k purchase price plus any qualifying capital improvements you made. One thing I'd add is to make sure you document everything properly on Form 8949 and Schedule D. You'll need to show the sale price ($640k), your adjusted basis (original cost plus improvements), and calculate your capital gain. Since you lived in the home as your primary residence, you should qualify for the $250k capital gains exclusion as a single filer. The payment you made to your ex ($25k based on the $420k valuation) was essentially buying out their ownership interest, but it doesn't affect your tax basis. Keep those divorce documents though - they support that the transfer was part of a divorce settlement under IRC Section 1041. If you haven't already, gather up any receipts for major home improvements during your ownership period. Things like HVAC replacements, flooring, kitchen/bathroom renovations, etc. can add up and reduce your taxable gain significantly.

Aaron, based on all the discussion here, it really sounds like MFS is your best bet given your PSLF timeline. Just wanted to add one more consideration - make sure you document everything when you switch filing statuses! Keep copies of your tax returns, any correspondence with your loan servicer, and track your qualifying payment counts carefully. I'd also suggest reaching out to your loan servicer BEFORE you file to let them know you're changing from single to MFS. This way they can update your payment calculation as soon as your new tax info is available, rather than you having to chase them down later like some folks mentioned. With only 12-15 months left until forgiveness, you're in the home stretch! The temporary payment reduction from filing separately will definitely be worth more than the tax benefits you're giving up. Just make sure both you and your wife understand which deductions each of you can claim so there are no surprises come tax time.

Aaron, based on all the great advice here, filing MFS with your wife claiming the house definitely seems like the right move for your situation. The $960 difference ($1,389 vs $425) is significant, especially with PSLF so close. One thing I'd add - make sure you submit your updated tax info to your loan servicer ASAP after filing. They often take 2-3 months to process the change, and you want to maximize those lower payments before forgiveness kicks in. Also, keep detailed records of everything since servicers can be... challenging to work with. Since you're in Pennsylvania, the state tax impact should be minimal given their flat rate structure, but definitely double-check those numbers too. You're in a great position with PSLF almost done - this filing strategy should help you squeeze out every bit of savings in these final months!

OP, one thing nobody's mentioned is state taxes. Even while these unreimbursed employee business expenses are suspended at the federal level through 2025, some states still allow them. For example, California, New York, and several other states still permit deducting these expenses on your state tax return. So make sure you check your state's rules - you might get at least some tax relief that way until the federal deduction potentially returns in 2026.

I'm a tax professional who works with commission-based salespeople regularly, and I want to clarify a few important points about your situation. First, you're absolutely correct that as a non-statutory employee, you cannot file Schedule C. However, the classification itself might be worth examining - the fact that you work 100% on commission, use your own vehicle extensively, and work from home could potentially support an independent contractor classification depending on other factors in your employment relationship. For your current situation, here's what I'd recommend: 1) Document everything meticulously - mileage logs, home office measurements, all business expenses. Even though you can't deduct them federally right now, this creates a paper trail. 2) Check your state tax laws - many states still allow unreimbursed employee business expense deductions. 3) Definitely explore the accountable plan option that Zoe mentioned - this is often the best solution for commission salespeople. Regarding your home office, make sure it's used exclusively for business to qualify when deductions become available again. For the vehicle, keep detailed mileage logs showing business vs. personal use (though you mentioned 100% business use). The suspended deductions are scheduled to potentially return in 2026, so maintaining good records now will position you well if that happens.