Don't forget about insurance! If the damage was from a hit-and-run, did you file an insurance claim? If your deductible is less than $860, it might be worth filing. Your insurance rates might go up slightly, but that could still be better than paying the full $860 out of pocket.

As someone who's been driving rideshare for several years, I can confirm what Maya and others have said - the $860 mirror repair unfortunately can't be deducted separately when using the standard mileage deduction. The IRS is pretty clear that the standard mileage rate covers ALL vehicle operating expenses, including unexpected repairs from accidents. However, Logan makes an excellent point about potentially switching to actual expenses for this tax year if you haven't filed yet. Since you use the car 100% for business and started with standard mileage, you have the flexibility to switch to actual expenses this year if it results in a larger deduction. With an $860 repair plus all your other car expenses (gas, insurance, registration, etc.), it might be worth calculating both ways. Just make sure you have detailed records of ALL your car expenses if you go the actual expense route - the IRS requires much more documentation for this method. And definitely explore the insurance angle that Mikayla mentioned - even if your rates go up slightly, it could still save you money overall.

Watch out with TaxAct - they've been gradually increasing prices the past few years. My first year was super cheap, but by year 3 they had nearly doubled in price. Still cheaper than TurboTax but the gap is closing. The tax software companies all seem to do this "introductory pricing" thing.

Great breakdown! I've been procrastinating on my taxes partly because of TurboTax's ridiculous pricing increases. Your side-by-side comparison is exactly what I needed to see. Quick question - did you notice any difference in the audit protection or customer support between the two? TurboTax always pushes their "audit defense" add-on but I'm wondering if that's just another way to extract more money from customers. Also, for anyone else considering the switch - make sure to download/save a copy of your previous year's return before you lose access to your old tax software account. Learned that the hard way when I switched between services a few years back and needed my prior year info for comparison. The $100+ savings you found would easily cover a nice dinner out to celebrate getting your taxes done! 🎉

Don't panic yet! I've handled several S-Corps owned by trusts. Here's my checklist: 1. Get a complete copy of the trust document 2. Verify if it's a grantor trust (most living trusts are) 3. If grantor trust, confirm the grantor is a US citizen/resident 4. Check if ownership actually transferred (many clients say they did things their attorney hasn't actually completed yet) 5. If it's not a qualifying trust, file Form 2553 with a QSST or ESBT election 6. Document everything in case you need to request inadvertent termination relief Most living trusts are qualifying shareholders as grantor trusts. The biggest issue is often just documentation and making sure the proper tax ID is used on K-1s.

Just wanted to add one more thing that helped me in a similar situation - make sure to document the exact date of the stock transfer to the trust. This becomes critical if you end up needing to file for inadvertent termination relief or if the IRS questions the timing of any elections. Also, even if it turns out to be a qualifying grantor trust (which sounds likely based on your description), you'll want to make sure the K-1s for 2024 are issued correctly. If the transfer happened in August, you might need to issue separate K-1s - one to the individual for January-August and one to the trust for August-December, depending on how the stock certificates were handled. One last tip: if this client has other business entities or is considering the family management company you mentioned, this trust structure could actually work in your favor for future estate planning. Worth discussing with their attorney once you get the current situation sorted out!

Look at Box 16 on your K-1 too! That's where a lot of these items affecting basis are itemized. Your K-1 should have codes and amounts for each item that increases or decreases your basis. For example, Code A is for tax-exempt interest, Code B is for other tax-exempt income, Code C is for nondeductible expenses. If you add up all the positive items and subtract all the negative items from your ordinary business income, you should get the amount on that last line of Schedule K.

Glad to see you figured it out! Box 16 of the K-1 is definitely the key to understanding that final Schedule K line. For anyone else reading this thread who might have similar issues, here's a quick summary of what typically causes differences between ordinary business income and that last line: 1. Non-deductible expenses (Code C) - like the non-deductible portion of meals, penalties, life insurance premiums 2. Health insurance premiums for >2% shareholders 3. Separately stated items like charitable contributions 4. Tax-exempt income (rare for most small businesses but can happen) 5. Depreciation adjustments and Section 179 expenses The IRS instructions for Schedule K can be confusing, but remember that not every dollar of income or expense affects shareholder basis the same way. When in doubt, always cross-reference with your K-1 Box 16 - it breaks everything down by code so you can see exactly what's included in that summary line. Good luck with the rest of your return, Paolo!

My correction took exactly 58 days to process in 2023, just shy of the 60-day estimate. You might consider requesting a taxpayer advocate if your PCS move creates a financial hardship. The criteria for hardship assistance includes imminent military moves where unresolved tax issues could cause significant difficulty. You'll need to complete Form 911 and provide documentation of your PCS orders. The advocate service can sometimes expedite processing in cases with firm deadlines like military relocations.

I'm dealing with a similar situation right now! Filed my amended return 3 weeks ago and the uncertainty is killing me. What really caught my attention was @Jacob Smithson mentioning the Military Tax Expert Line - I had no idea that existed! As someone who's also facing a PCS move, that sounds like exactly what I need. Has anyone else used that specific number? I've been calling the regular IRS line and getting nowhere. Also wondering if anyone knows whether the type of correction matters for processing time - mine was for unreported 1099-INT income, so hopefully that's on the simpler side?