Quick question - I'm in a similar situation but I've been renovating my rental for 8 months now. Can I deduct all the renovation expenses even though the property isn't rented yet?

One thing I haven't seen mentioned yet is the importance of establishing the "placed in service" date properly for IRS purposes. Since you're doing renovations while living there, you'll want to document the exact date when the property becomes available for rent - this could be when you finish renovations, move out, and list it for rent. Keep records of when you complete the work, when you stop using it as your personal residence, and when you first advertise it. The IRS can be picky about this date since it affects when depreciation starts and how you allocate expenses between personal use and rental use. Also, since you mentioned staying in one bedroom - make sure you're clear on the business vs personal use percentages. If you're using 1/3 of the house personally, you can only claim rental deductions (including future depreciation) on the remaining 2/3. This gets tricky during the renovation period since you might argue the personal use is temporary and solely for renovation convenience, but the IRS generally looks at actual use patterns.

Don't forget that even if you can justify the mileage deduction, you need to be keeping REALLY good records to survive an audit. The IRS is super picky about mileage logs. You need date, starting location, ending location, miles driven, and business purpose for EVERY trip. There are some good apps that can help track this automatically.

This is a really complex situation, but I think you're on the right track with your thinking. The key distinction here is that you're not just commuting to work - you're operating a legitimate equipment rental business that happens to serve the same client as your W-2 job. Since your vehicle serves as mobile storage and transport for rental equipment that generates 1099 income, you have a strong business purpose for those miles. The fact that you never report to a central office and are sent directly to different locations each day further supports this. I'd recommend keeping detailed logs that clearly document: 1. Equipment being transported each day 2. Business purpose of each trip (equipment delivery/pickup/transport) 3. How your vehicle storage is essential to your rental business operations 4. Any instances where you make separate trips solely for equipment purposes The IRS will likely want to see that your mileage deductions are reasonable and directly tied to your Schedule C business activities. Since you're receiving both equipment rental income AND a car stipend on 1099, you'll want to report all that income and then offset it with legitimate business expenses including the appropriate portion of your mileage. Consider consulting with a tax professional who has experience with mixed W-2/1099 situations like yours - the documentation and allocation methods you use now could save you major headaches if you ever get audited.

yall need to chill fr once u got 846 its basically money in the bank

@Isabella Costa I totally get the anxiety! I had the exact same codes last year - 766, 768, and then the 846 DDD. The good news is once you see that 846, you're basically golden! Mine came through exactly 2 days after the DDD showed up on my transcript. The 766/768 codes just mean your ACTC and EIC credits are included in your refund amount, which is normal. You should see everything hit your account as one lump sum on or around your DDD. Hang in there, you're so close! 💪

The key distinction here is that you're not just adding some business activities to a personal trip - you're being forced to change your entire travel method specifically because of business equipment requirements. This creates a stronger case for deducting the incremental costs. I'd recommend documenting everything thoroughly: get quotes for what flights would have cost, keep all driving-related receipts (gas, hotels, meals during travel), and most importantly, document why the equipment was essential and couldn't be shipped or transported any other way. Client emails or contracts showing the equipment requirements would be valuable supporting evidence. One thing to consider is whether you could potentially ship the equipment separately and still fly yourself. If shipping isn't viable due to timing, fragility, or cost, make sure to document why. This helps establish that driving was truly the only reasonable business option, not just a preference. The IRS generally allows deductions for additional costs incurred solely due to business necessity, but they'll want to see clear evidence that the extra expense was unavoidable for legitimate business reasons.

I've been through similar situations with mixed personal/business travel, and the documentation is absolutely critical. One thing I learned the hard way is to also keep contemporaneous records - don't try to recreate the business justification months later when you're doing taxes. For your specific situation with the equipment transport, I'd suggest taking photos of the bulky equipment and documenting its dimensions/weight to show why flying wasn't practical. Also get written confirmation from the airline about their baggage restrictions and any special shipping requirements that would apply. The IRS Publication 463 has specific guidance on travel expenses, and it does allow for deducting additional costs when the method of transportation is dictated by business needs rather than personal preference. The key is proving that driving wasn't a choice but a necessity. One more tip: if you're doing any actual work during the drive (like client calls during stops), log those too. It helps establish that the travel time itself had business components, not just the destination work.

Just as a heads up - the fantasy platforms typically only issue 1099s when you win over $600 FROM A SINGLE PLATFORM. So if you won $1,500 from each of 4 different sites, you might not get any 1099s even though your total is $6,000. The $600 threshold is per-platform, not in total across all platforms. But as others said, you still need to report it all!

This is really helpful info everyone! I'm actually in a similar boat - won about $4,200 across DraftKings and FanDuel last year with no 1099s. Reading through all these responses, it sounds like I need to report it as "Other Income" on Schedule 1, Line 8z, and I can potentially deduct my entry fees if I itemize. One question I haven't seen addressed - do I need to worry about quarterly estimated tax payments for this year if I expect similar winnings? I'm usually a W-2 employee who gets refunds, but this gambling income might change things. Should I be setting aside money throughout the year or adjusting my withholdings? Also really appreciate the state tax reminder from @Mateo Sanchez - definitely need to check California's requirements since they can be pretty strict about additional income reporting.