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Just wanted to add another perspective on this vehicle depreciation question. I've been driving for gig apps for about 3 years now and have dealt with this exact situation. The key thing to understand is that the $20,200 first-year limit for 2025 is indeed a combined ceiling - you can't exceed it regardless of how you split between Section 179 and bonus depreciation. However, there's a strategic consideration most people miss: if your business income is lower in a given year, Section 179 might be limited by your taxable income, while bonus depreciation generally isn't. For your $52,000 vehicle, assuming 100% business use, you'd be looking at that $20,200 maximum for year one. The remaining $31,800 would be depreciated over the following years using regular MACRS depreciation. One thing I learned the hard way - keep meticulous records of your business vs personal mileage from day one. I use a simple spreadsheet where I log my odometer reading at the start and end of each work session. Takes 30 seconds but saved me during a correspondence audit last year. Also, consider talking to a tax professional who specializes in gig work. The vehicle depreciation rules are complex, and getting it wrong can be costly. The peace of mind is worth the consultation fee.
This is really helpful, especially the point about Section 179 being limited by taxable income while bonus depreciation isn't. I hadn't considered that angle before. Quick question - when you say "regular MACRS depreciation" for the remaining amount, is that calculated over 5 years for vehicles? And does the luxury auto limit apply to those subsequent years too, or just the first year? I'm also curious about your spreadsheet method for tracking mileage. Do you just record start/end odometer readings, or do you also note the specific business purpose for each session? Trying to figure out the minimum level of detail I need to maintain to stay audit-proof.
Yes, vehicles are depreciated over 5 years under MACRS, and the luxury auto limits do apply to subsequent years too - they're just lower amounts. For 2025, after the first year limit of around $20,200, you'd be looking at roughly $4,900 for year 2, $2,950 for year 3, and about $1,775 for years 4 and 5. These amounts get adjusted annually for inflation. For my mileage tracking, I keep it simple but thorough. My spreadsheet has columns for: date, start odometer, end odometer, total miles, and business purpose (like "DoorDash shift" or "Uber driving"). I don't get super detailed about individual trips, but I do note which app(s) I was primarily using that day. The IRS wants to see that you have a contemporaneous record (meaning you logged it when it happened, not reconstructed it later), so I update mine at the end of each work session. One pro tip: I also take a photo of my odometer at the beginning and end of each month, just as backup documentation. It's saved me when I had a few gaps in my daily logs.
This is such a timely question! I just went through this exact scenario with my tax preparer for my 2024 return using a vehicle I bought for my delivery work. One thing that really helped me understand the limits was realizing that the IRS treats passenger vehicles (under 6,000 pounds) differently than heavier commercial vehicles. The annual depreciation limits exist specifically to prevent people from taking huge deductions on luxury cars used partially for business. For your $52,000 vehicle, the math would work like this for 2025: You can take a maximum of $20,200 in the first year (this is the combined limit for Section 179 + bonus depreciation). You could structure this as $12,200 Section 179 plus $8,000 bonus depreciation, or any other combination that doesn't exceed $20,200 total. The remaining $31,800 ($52,000 - $20,200) gets depreciated over the next 4 years using the annual limits, which are much smaller amounts each year. One strategy my tax preparer suggested was to elect out of bonus depreciation entirely if I expect higher income in future years, since it would allow me to spread the deductions more evenly. But for most gig workers wanting maximum deductions upfront, taking the full $20,200 first-year limit makes sense. Definitely keep detailed mileage logs from day one - that business use percentage is crucial for all these calculations!
Thanks for asking this important question! Here's what you need to know about HOH status: ⢠HOH requires a qualifying dependent (child, parent, or relative) ⢠Must pay more than 50% of household expenses ⢠Must be considered unmarried (single, divorced, etc.) ⢠Same address doesn't automatically disqualify dual HOH ⢠But requires proof of separate economic households Without dependents, they'll file as Single. With dependents, they'll need clear documentation showing separate household maintenance.
This is a tricky situation that trips up a lot of people! The key thing to remember is that Head of Household status isn't about who lives where - it's about financial responsibility and dependents. If your brother and his girlfriend don't have any qualifying dependents (kids, elderly parents they support, etc.), then they both need to file as Single. No exceptions. If one or both DO have qualifying dependents, then it gets more complex. They'd each need to prove they're maintaining separate households within the same residence AND paying more than half the cost of keeping up their respective "households." This means separate grocery bills, utilities split in a documentable way, etc. Given that you mentioned needing to know ASAP and wanting to avoid an audit, I'd strongly recommend going the conservative route: file them both as Single unless there are clear qualifying dependents AND you have rock-solid documentation of separate household expenses. The IRS tends to scrutinize dual HOH claims at the same address pretty carefully. Better safe than sorry when it comes to filing status!
Has anyone used the TurboTax iPad app for filing with rental property income? Im worried it might be too basic for handling depreciation schedules and expense tracking compared to the desktop version.
I used it last year for my two rental properties and it worked fine! The app walks you through all the same questions about income, expenses, depreciation, etc. The only slightly annoying part was viewing the Schedule E on the smaller screen, but you can pinch to zoom. Everything transferred correctly to my return.
I'm in a similar boat - had to sell our desktop computer last year and only have iPhones and an iPad now. From what everyone's saying here, it sounds like there are actually several good mobile options for filing taxes with more complex situations like ours. The TurboTax mobile app seems like the safest bet since you're already familiar with their interface and trust their results. I appreciate @Oliver Cheng explaining that it has all the same features as the desktop version - that's exactly what I was worried about missing. @Taylor To's recommendation of taxr.ai sounds intriguing too, especially the document scanning feature. That would save so much time compared to manually entering all those numbers from W-2s and 1099s. Though I'm curious about the cost comparison between that and TurboTax Deluxe. Ashley, given your specific needs with mortgage deductions, charitable donations, and education credits, I'd probably start with the TurboTax app since you know it works well for your situation. You can always download it and explore the interface before committing to purchase the Deluxe upgrade. The fact that you can switch between your iPhone and iPad seamlessly is a huge plus too. The filing deadline stress is real - but it sounds like you have some solid mobile options to choose from!
@Ethan Wilson thanks for that great summary! You really captured all the main options well. I'm leaning toward starting with the TurboTax app since I'm already familiar with their process and questions. The seamless switching between iPhone and iPad that @Oliver Cheng mentioned sounds perfect for my workflow. I'm definitely curious about the cost difference with taxr.ai too, especially if their document scanning really works as well as @Taylor To described. Might be worth checking out for next year if TurboTax works out this time around. The relief I feel knowing there are actually multiple good mobile options is huge! I was starting to panic thinking I'd have to find a computer somewhere or settle for a basic free filing option that wouldn't handle our deductions properly.
4 Hey, don't forget that IRA withdrawals themselves are taxable income (unless it's a Roth), separate from any gift tax issues! So you'll pay income tax on the withdrawal first, then potentially gift tax if you exceed the annual exclusion when giving it to your spouse.
18 That's such an important point that people miss! And if you're under 59½, there's usually a 10% early withdrawal penalty too, right? Does living overseas change any of that?
Yes, the 10% early withdrawal penalty still applies if you're under 59½, and living overseas doesn't change that rule. However, there are some exceptions to the penalty - like if you're using the money for qualified higher education expenses, first-time home purchase (up to $10K lifetime), or if you take substantially equal periodic payments under IRS Rule 72(t). But for most people just wanting to gift money to their spouse, they'd still face the penalty. It's definitely something to factor into the total tax cost before making the withdrawal!
Just want to add another consideration that might be relevant - if you're planning multiple years of transfers, you might want to spread them out strategically. Since the annual exclusion resets each year, you could potentially transfer $175,000 this year and another $175,000 next year (assuming the limit stays the same or increases with inflation adjustments). Also, timing matters for IRA withdrawals if you're doing this over multiple years. Once you hit 73, you'll have required minimum distributions (RMDs) that might affect your withdrawal strategy. If you're planning ahead, it might be worth calculating whether it makes sense to do larger transfers now while you have more control over the timing and amounts. One more thing - keep good records of everything! Gift tax returns and documentation become really important for estate planning purposes down the road, especially with the current high lifetime exemption amounts potentially changing in the future.
Samantha Johnson
This happened to me too! The IP lockout is real - I think it's because the IRS system treats multiple attempts from the same household/network as suspicious activity. What finally worked for me was waiting the full 24 hours, then using my mobile data instead of home wifi. Also double-check that you're entering your SSN, filing status, and refund amount exactly as they appear on your return - even small differences can trigger the lockout. It's ridiculous that their own system blocks legitimate taxpayers from checking their status!
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Ella Harper
ā¢This is super helpful! I had no idea about the mobile data trick. Going to try that right now since I've been stuck on this for days. It's honestly crazy that we need these workarounds just to access basic info about our own tax refunds. The IRS really needs to get their act together š
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Chloe Martin
This is such a frustrating issue! I've been dealing with the same thing - it's like their system assumes you're trying to hack it just for checking your own refund status. One thing that helped me was making sure I was entering the exact refund amount from line 35a of my 1040 form (not the rounded amount). Also try checking at different times of day - I noticed the system seems less glitchy early in the morning before 8am EST. The whole IRS web infrastructure really needs an overhaul, it's 2025 and we're still dealing with these basic technical issues!
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Jordan Walker
ā¢Yes! The exact refund amount thing is so important - I was off by like $1 because I rounded and it kept locking me out. Also totally agree about checking early morning, seems like fewer people are hitting their servers then. It's honestly embarrassing that in 2025 we're still dealing with a government website that works worse than most online shopping sites from 10 years ago š¤¦āāļø
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