Heads up - dont forget about the state credits too! Some states give extra $$ on top of the federal amount

Just wanted to add - if you're filing as head of household (which you probably qualify for as a single parent), that can also affect your income thresholds and potentially get you a better deal overall. Make sure you're using the right filing status when you calculate everything!

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.