This is such a timely question! I'm actually in a similar boat - working in industry while studying for my CPA and dreaming of eventually opening my own practice. One thing I've been wondering about is whether volunteer work would help me get comfortable with tax software beyond what I use at work. Most volunteer programs use different software than what we have in corporate, right? I feel like getting familiar with multiple platforms could be valuable when I eventually need to choose software for my own firm. Also, has anyone found that volunteer work helped them understand the business side of tax preparation? Like client intake processes, documentation requirements, or how to structure initial consultations? I feel pretty confident about the technical tax stuff but the client management aspect seems like it would be a whole different skill set. Really appreciate everyone sharing their experiences here - this thread is giving me the push I need to start looking into VITA opportunities in my area!

I can't recommend volunteer tax work highly enough! I started with VITA about 5 years ago while working in industry and it completely transformed my understanding of practical tax preparation. The hands-on experience with real client situations is invaluable - you'll encounter scenarios that textbooks just don't cover. One thing I'd add to the great advice already here is to look into your state's volunteer tax assistance coordinator. Many states have centralized programs that place volunteers with various organizations beyond just VITA and AARP. I found opportunities through my state program to work with immigrant services organizations and small business development centers, which gave me exposure to more diverse tax situations. The client interaction skills you develop are just as important as the technical knowledge. You'll learn to quickly assess what documents are missing, spot inconsistencies in client information, and explain complex concepts in plain English. These are skills that will absolutely set you apart when you start your own practice. Also, don't underestimate the networking aspect. Other volunteers are often experienced tax professionals, CPAs, or EAs who can become valuable connections as you build your career. I'm still in touch with several people I met through volunteer work, and we refer clients to each other regularly now.

I'm in a similar situation with a shared apartment but hadn't thought about the exclusive use requirement that Sofia mentioned. Since you mentioned the second bedroom is "exclusively used" for your business, make sure you can truly prove that if audited. One thing I'd add to the great advice already given - keep detailed records of everything. Take photos of your office setup, save all rent receipts, and document that 13% square footage calculation with measurements and a floor plan sketch. The IRS loves documentation, especially for home office deductions. Also, double-check your state tax rules too. Some states have different requirements or don't allow the federal home office deduction, so you might need to calculate things differently for state vs federal returns. For your van parking expense, definitely keep that separate on Schedule C as others suggested. That $125/month adds up to $1,500 annually, which is a solid business deduction you don't want to dilute by mixing it into your home office calculation.

One additional consideration for your situation - since you're splitting rent 50/50 with your partner, make sure you're clear on who can claim what if your partner also works from home or has any business use of the apartment. Only one person can claim the home office deduction for a specific space, so if there's any overlap in business use areas, you'll need to coordinate to avoid both of you claiming deductions for the same square footage. Also, keep in mind that if you ever move or your living situation changes, you'll need to recalculate everything based on your new space and rent amounts. The 13% calculation is specific to your current apartment layout and rent split. For record-keeping, I'd recommend creating a simple spreadsheet tracking your monthly rent payments, the calculated office percentage, and your van parking expenses separately. This makes it much easier when tax time comes around and you need to total everything up for the year. Plus having organized records like this can be a lifesaver if you ever face an audit. The advice about checking state tax rules is crucial too - some states like New York have specific limitations on home office deductions that differ from federal rules, so definitely verify what applies in your state.

Has anyone considered the self-employment tax implications here? If you put the equipment rental on Schedule C, you'll pay an additional 15.3% SE tax on the net income, which you wouldn't pay if it's on Schedule E. This made a HUGE difference in my situation - I had about $20k in equipment rental income, and putting it on Schedule C vs E was about a $3k difference just in SE tax! Something to consider if you're right on the edge between active and passive involvement.

Great discussion here! As someone who went through a similar situation with inherited equipment, I wanted to add a few practical considerations that might help with your decision. One thing I learned the hard way is that if you're planning to rent this equipment regularly (3-4 times monthly as you mentioned), you'll definitely want to look into commercial liability insurance. Your personal or existing business insurance likely won't cover equipment rental activities, and construction equipment carries significant liability risk. Also, since you mentioned the equipment is unrelated to your IT consulting, consider whether mixing it into your existing LLC is the best approach. While you CAN have multiple business activities under one LLC, there are liability and operational reasons why you might want to keep them separate. If someone gets injured using your construction equipment, you don't want that to potentially impact your IT consulting business. From a tax perspective, given your level of planned involvement (website, maintenance, delivery), Schedule C definitely seems appropriate. Just make sure you're prepared for the self-employment tax implications that Aurora mentioned - it's a real cost to factor into your pricing. One last tip: start tracking your time spent on equipment rental activities from day one. The IRS loves documentation about your level of involvement if they ever question your Schedule C classification.

Does anyone know if TaxSlayer Pro is any good? It's way cheaper than the others mentioned and I'm on a tight budget starting out. Also wondering about liability - should I make friends/family sign something saying they're responsible for providing accurate info?

Great discussion here! As someone who went through this exact situation a few years ago, I'd add a couple things. First, definitely get that PTIN - it's free and protects you legally. Second, consider getting Enrolled Agent (EA) credentials if you plan to do this regularly. It's not required for basic prep work, but gives you more credibility and allows you to represent clients before the IRS if issues come up. For software, I started with Drake Basic and it was perfect for handling the mix of personal, rental, and small business returns you're describing. The learning curve isn't too bad coming from an accounting background. Also, don't forget to track your own expenses for this side work - software costs, continuing education, office supplies, etc. are all deductible if you're doing this as a business activity (which the IRS might consider it to be given the service trades you mentioned). One last tip: set clear boundaries early about what you will and won't do. I learned the hard way that once you help someone, they expect you to be their permanent tax person and answer questions year-round!

Doesn't this all become moot if you're taking the standard deduction anyway? With the current standard deduction being so high ($13,850 for single filers in 2023), most people aren't itemizing anymore, right? So would the mortgage interest and property tax deductions even matter?

Congrats on your upcoming closing! As someone who went through this exact decision last year, I'd strongly recommend tenancy in common for your situation. Even though you're splitting everything 50/50 now, TIC gives you flexibility if your financial situations change down the road. One thing that really helped us was setting up a separate joint account just for house-related expenses (mortgage, property taxes, insurance, repairs) where we each contribute our percentage monthly. This makes tracking everything for taxes super clean and eliminates any confusion about who paid what. Since you both make similar incomes around $85k, you'll want to run the numbers on whether either of you will be itemizing deductions. With a $430k house, your property taxes and mortgage interest combined might push at least one of you over the standard deduction threshold, especially if you're in a higher tax state. Even if only one of you itemizes, you can still both benefit from the deductions based on your ownership percentages and actual payments. The two-week timeline is tight, but your title company should be able to handle the TIC paperwork without any issues. Just make sure to specify the exact ownership percentages you want on the deed!