Don't forget about COMMUTING miles vs BUSINESS miles. This tripped me up my first year with an S corp. The miles from your home to your primary business location are considered commuting and are NOT deductible, even with an accountable plan. Only miles from your office to client locations, between different work sites, or for other business purposes can be reimbursed. I lost about 30% of my claimed mileage last year because I incorrectly included commuting miles in my reimbursement request. Had to amend returns and it was a huge headache.

One thing I'd add to this great discussion - make sure you're properly documenting the BUSINESS PURPOSE for each trip, not just the mileage. The IRS requires more than just "business meeting" in your records. For each business trip, you should document: - Date and time - Starting and ending locations with addresses - Business purpose (specific client name, type of meeting, etc.) - Total miles driven - Any personal stops (which you'd subtract from business miles) I learned this the hard way during an audit a few years ago. The IRS agent wasn't satisfied with generic entries like "client meeting" - they wanted to see "Meeting with Johnson Construction to discuss Q1 project timeline" or "Picked up materials for Smith renovation at Home Depot." Also, since you mentioned using Gusto for payroll, they have expense reporting features that can help you track and submit mileage reimbursements properly. You can set up recurring monthly submissions so you don't have to do everything at year-end like you're planning for this year. Good luck with your first year as an S corp!

The real question here is how deeply OP wants to be involved. There are basically three paths: 1. Pretend you never saw anything (risky if they ever get caught and the IRS thinks you knew) 2. Confront them directly and try to convince them to come clean through voluntary disclosure (IRS has programs for this) 3. Report them through the whistleblower program There's no easy answer here but remember that willful tax evasion at this scale is a felony. This isn't "oops I forgot to report some income" - this is deliberate, sustained criminal behavior. Think carefully about your own liability and what you can live with morally.

This is such a heartbreaking situation, and I can only imagine the stress you're going through. Finding out about family members committing serious crimes puts you in an impossible position. One thing I haven't seen mentioned much is the statute of limitations aspect. For tax fraud, the IRS generally has 6 years to assess additional taxes, but there's no statute of limitations for willful tax evasion or fraud. This means your father could potentially face consequences going back decades, which makes the situation even more serious. I'd strongly echo the advice about consulting with a tax attorney who specializes in criminal tax defense. They can help you understand not just your family's exposure, but also your own potential liability for having knowledge of ongoing tax crimes. There's something called "willful blindness" where simply ignoring obvious criminal activity can sometimes create legal issues. The hardest part is that doing nothing isn't really a neutral choice here. If this eventually comes to light through an audit or other investigation, the fact that you knew and said nothing could be viewed negatively. But reporting family members for crimes that could result in prison time is an unimaginably difficult decision. Whatever you decide, document everything you've discovered and keep those records secure. You may need them regardless of which path you choose.

I'm so sorry for your loss and the additional stress this tax situation is adding during an already difficult time. Given everything you've described, an OIC for the estate sounds very promising. The key factors working in your favor are: 1. **Property condition documentation**: The severe damage, pest infestation, and structural issues you described significantly reduce the actual marketable value of these assets, regardless of their assessed values. 2. **Estate-only liability**: As others mentioned, you won't be personally liable for your father's tax debt - this is strictly an estate matter. 3. **Reasonable collection potential**: The IRS will evaluate what the estate could realistically generate in cash, not theoretical values. I'd recommend taking these immediate steps: - Document everything with photos and get written assessments of repair/cleanup costs - Obtain current appraisals that reflect the actual condition and marketability - Calculate all selling costs (realtor fees, closing costs, outstanding property taxes) - File the OIC using Form 656-L specifically for estates Given the condition you've described, there's a real possibility the mobile home has negative net value once cleanup and disposal costs are factored in. This could actually strengthen your OIC position significantly. The fact that your father struggled with addiction issues is also relevant for the hardship narrative - the IRS does consider circumstances that led to the tax situation when evaluating offers. Don't lose hope. Many estates in similar situations have successfully negotiated reasonable settlements that allow heirs to retain some assets while satisfying the IRS's collection requirements.

I'm so sorry for your loss, Amina. Dealing with a parent's tax debt on top of grief is incredibly overwhelming. The good news is that an OIC for your father's estate is definitely worth pursuing given what you've described. The IRS will evaluate the estate's "reasonable collection potential" - which is the actual cash the estate could generate, not just paper values. A few critical points for your situation: **Document everything immediately**: Take extensive photos of the mobile home's condition - the pest damage, structural issues, utility problems, debris piles. Get written estimates from contractors for cleanup, pest remediation, and repairs needed to make it marketable. These costs may actually exceed the property's value. **Professional appraisals**: Get current appraisals for both properties that account for their actual condition and marketability, not just theoretical values. **Consider environmental issues**: Given the neglected condition, there may be mold, asbestos, or other hazardous materials that would require expensive remediation before sale. **Calculate all selling costs**: Realtor fees, closing costs, outstanding property taxes, and cleanup costs all reduce what the estate would actually net from any sale. The fact that your father struggled with addiction is relevant for the hardship narrative - it helps explain how the tax situation developed. You mentioned already filing probate - this creates some time pressure since the IRS can file claims against the estate. I'd recommend moving quickly to get your OIC package together while you still have maximum negotiating flexibility. There's real hope here that you could settle for significantly less than the full amount owed.

Has anyone here used TurboTax for this kind of situation? I also get a car allowance from my employer AND use my car for my side business. Wondering if TurboTax handles this well or if I need to pay for a CPA this year.

I went through this exact situation last year with my consulting business and W2 job that provided a vehicle allowance. The key thing to understand is that you absolutely CAN claim depreciation on the business portion of your vehicle even while receiving a W2 stipend - they're completely separate tax situations. Here's what worked for me: I calculated my total business mileage (excluding the W2 job miles since that's covered by the stipend) and divided by total miles driven to get my business use percentage. For a $45k truck, if you use it 60% for your own business, you can depreciate 60% of the cost. Keep detailed mileage logs with dates, destinations, and business purposes. I use a simple spreadsheet that tracks: date, starting odometer, ending odometer, destination, and whether it's personal, W2 job, or my business. This documentation is crucial if you're ever audited. One more tip - consider whether your truck qualifies as a heavy vehicle (over 6,000 lbs GVWR) because you might be able to take a larger Section 179 deduction in the first year instead of spreading depreciation over several years. Just make sure your business use percentage stays above 50% to qualify.

The key distinction everyone's mentioning about working vs. royalty interests is crucial here. Since you mentioned the trust "divides it up between all the relatives" and you're receiving monthly payments, this sounds like it could be structured as royalty interests rather than working interests. However, don't give up on QBI entirely yet. There's also Section 199A(c)(3)(B) which allows certain rental real estate activities to qualify for QBI if there's sufficient participation. While oil & gas royalties are different from rental real estate, some taxpayers have successfully argued that certain mineral extraction activities can qualify under similar principles. I'd recommend getting copies of the original lease agreements and trust documents to understand exactly what type of interest your husband's uncle held. Look for language about who bears the costs of extraction, development, and operations. If the trust or beneficiaries have any responsibility for these costs (even if minimal), you might have a stronger case for QBI treatment. Also, consider that even if the income doesn't qualify for QBI, you might still be able to deduct depletion allowances which can provide significant tax benefits for mineral interests.

Based on everyone's discussion here, it sounds like the classification of your husband's uncle's interest is really the determining factor. I'd suggest taking a systematic approach: 1. **Request specific documents from the trust administrator**: Ask for the original oil & gas lease agreements, the trust instrument itself, and any operating agreements. Don't let them give you vague answers - you need to see the actual legal documents. 2. **Look for cost-bearing language**: In the documents, search for any mention of the trust or beneficiaries being responsible for drilling costs, development expenses, operating costs, or production expenses. Even partial responsibility can indicate a working interest. 3. **Check the trust's tax returns**: The trust should file its own tax return (Form 1041). Ask the administrator if the trust reports any business income or if it only reports investment/passive income. This can give you clues about how the IRS views these payments. 4. **Document your findings**: If you discover any working interest components, make sure to keep detailed records. The IRS will want to see proof that this isn't just passive royalty income. Given that you received $3,200, even a partial QBI deduction could save you several hundred dollars in taxes. It's worth the effort to investigate properly rather than just assuming it's all passive income. The worst case is you find out it doesn't qualify, but at least you'll know for certain and can explore other deductions like depletion allowances.