Farrier here too! The way my accountant explained it to me: since our trucks are essentially mobile workshops and we have legitimate home offices where we maintain equipment and do business tasks, the drive to first client and from last client counts as business miles. BUT - and this is important - if you stop for personal errands on your way to the first client or on your way home from the last, those portions become personal miles. So if you drop kids at school or grab groceries on your way, make sure to separate those. I track everything with MileIQ and it's been a lifesaver. Worth every penny because it automatically detects drives and lets me classify them with a swipe. Last year I legitimately claimed over 22,000 business miles!

Great question about actual expenses vs standard mileage! I've been doing farrier work for about 8 years and have tried both methods. Here's what I've learned: The standard mileage rate (67 cents per mile for 2024) is usually better for most farriers unless you're driving a really expensive truck or have unusually high maintenance costs. The standard rate already includes gas, insurance, maintenance, depreciation, etc. However, if you're hauling a heavy trailer with anvil, forge, and all your equipment, or if you drive a large diesel truck that gets poor mileage, actual expenses might work out better. You'd need to track everything - gas, oil changes, repairs, insurance, registration, depreciation, etc. The catch is that once you choose actual expenses for a vehicle, you're stuck with that method for the life of that truck. With standard mileage, you can switch back and forth each year. I'd suggest calculating both ways for a month or two to see which gives you better deductions. Most farriers I know stick with standard mileage because it's so much simpler to track and usually comes out ahead anyway. Also remember - whichever method you choose, you can still deduct tolls and parking fees separately on top of either the mileage rate or actual expenses!

Question - if a trust has zero income for the year, do you still need to file a 1041? Our family trust just holds some property but didn't generate any income last year.

Great question! I went through this exact situation last year. As others have mentioned, you don't need the grantors to file personal 1040s just for your trust filing purposes. However, I'd recommend getting a clear understanding of whether your trust is actually a "grantor trust" or not - this makes a huge difference. If it's a standard irrevocable trust (not a grantor trust), then the trust files its own 1041 and issues K-1s to beneficiaries for any distributions. The grantors' personal income levels are irrelevant to the trust's filing requirements. One thing to watch out for: even if the grantors don't normally need to file because of low income, if they receive distributions from the trust that push them above the filing threshold, they'll need to file to report the K-1 income. But that's their responsibility, not yours as trustee. Make sure you have the trust's EIN and keep good records of all trust income and distributions. The 1041 filing requirements are based on the trust having $600+ in gross income OR any taxable income, regardless of the grantors' situation.

Just want to add another data point - I'm a physician with a similar setup (S Corp, contracted with one hospital system), and I pay $400 quarterly for filing + $1200 annually for my business return. Total yearly accounting costs around $2800. My CPA handles all quarterly estimated tax payments, payroll, reasonable compensation documentation, retirement account coordination, and gives me quarterly planning meetings. That $1650 quarterly fee you're paying would be $6600 annually JUST for quarterly filings, not including your annual returns!

That pricing is absolutely excessive for your situation. I'm a tax preparer who works with several single-member S Corps in healthcare, and your CPA is charging you about 4x what's reasonable. For a straightforward S Corp like yours - one income source, no employees, minimal complexity - quarterly filings should take 30-45 minutes max once everything is set up. Even at $275/hour, that's $125-200 per quarter, not $1650. The fact that they're quoting the same fee for future quarters (when there's no setup work) is a red flag. A reputable CPA would explain that first-quarter costs are higher due to initial setup and client onboarding, with subsequent quarters being significantly less. I'd strongly recommend getting quotes from other CPAs who specialize in small professional service businesses. Many offer flat-fee packages for simple S Corps that would save you thousands annually. Don't let them take advantage of you being new to business ownership.

Does anyone know how long amendments are taking to process these days? I filed a 1040X back in November for 2022 and still haven't heard anything.

Just to add some reassurance - I was in almost the exact same situation last year when I forgot to include rental income from a small duplex I own. Filed my original return in early March, realized the mistake a few days later, and immediately filed a 1040X. The key things that worked for me: 1. Filed the amendment right away (didn't wait for original return processing) 2. Included payment for the additional tax owed with the amendment 3. Used certified mail to send it so I had proof of delivery The IRS processed my amendment without any issues, and because I got it filed and paid before April 15th, there were no penalties or interest charges. The whole process took about 4 months to complete, but the important thing was getting it submitted quickly. Don't stress too much about it - honest mistakes happen and the IRS understands that. Just get your 1040X filed ASAP with payment included and you'll be fine!

The key thing missing from this whole conversation is the home office deduction. If u have a qualifying home office, then u can deduct miles from home to work sites because ur traveling from one business location to another. Without a qualifying home office, ur always "commuting" to the first location. So before worrying about vehicle deduction, make sure u have a legitimate home office (used regularly and exclusively for business). My accountant verified this saved me like $3800 last year on my taxes.

Great discussion everyone! As someone who's been self-employed for 5 years, I want to emphasize something that really helped me understand this: think of it as WHERE your business day starts, not what kind of vehicle you have. If you work from home (with a qualifying home office), your business day starts at home - so driving to clients/jobs is business travel. If you rent office space or have a shop, your business day starts there - so driving TO that location is commuting, but driving FROM there to other business locations is deductible. The "100% business vehicle" thing is a red herring - it just means you use that vehicle only for business purposes (never personal trips). It doesn't magically turn commuting miles into business miles. The IRS cares about the PURPOSE of the trip, not the vehicle. One more tip: if you're borderline on whether your home office qualifies, it's worth consulting a tax professional. The deduction potential is huge, but the IRS requirements are specific and strictly enforced.