Based on your situation, I'd strongly recommend considering bonus depreciation over Section 179 given that your business use is dropping to around 30% next year. Here's why: With Section 179, when your business use drops below 50%, you'll face recapture on the ENTIRE excess depreciation taken above what normal depreciation would have been. So you'd potentially recapture close to that full $14,000 amount. With bonus depreciation, the recapture is proportional to your business use reduction. If you go from 51% to 30% business use, you'd only recapture based on that 21 percentage point reduction, not the entire deduction. Given your specific numbers and the fact that you barely used the vehicle for business in 2023, here's what I'd consider: 1. **Bonus depreciation** - Better than Section 179 for your situation 2. **Partial bonus depreciation** - Maybe only take 30-40% of the allowable deduction now to minimize future recapture 3. **Standard mileage** - Simplest option, minimal 2023 deduction but no recapture headaches The standard mileage route might actually be smartest here since you had such minimal business use. You'd get about $8.50 deduction for 2023 (13 miles × $0.655) but avoid all the complexity and recapture risk. Sometimes the simplest path is the best one, especially when the "benefit" is really just borrowing from future tax years.

This is such a helpful thread! I'm dealing with a similar situation with my consulting business vehicle. One thing I'd add is that you might want to consider your overall tax planning strategy for both years, not just the vehicle depreciation in isolation. If you expect your income to be significantly different between 2023 and 2024, that could influence the decision. For example, if you're having an unusually high income year in 2023 due to a large project, taking the larger deduction now (even knowing you'll face recapture) might make sense if it pushes you into a lower tax bracket or helps with other income-based thresholds. Also, don't forget about state tax implications - some states handle depreciation recapture differently than federal, so the timing decision might have different impacts depending on where you're located. That said, given your minimal 2023 business use, the standard mileage approach really does seem like the cleanest solution. Sometimes avoiding complexity is worth more than maximizing every possible deduction, especially when you're essentially just shifting the tax burden between years rather than actually saving money.

Another option: you can actually get your wage and income transcript directly from the IRS website which will show any 1099s filed for you. Go to IRS.gov and search for "Get Transcript Online." If nothing shows up for that company, they probably haven't filed it yet. Also, keep in mind you're supposed to get your 1099s by January 31st. If companies don't comply, they can face penalties. The IRS actually takes this seriously because they want the tax revenue from contractors.

Had this same problem last year. What I did was file Form 8919 "Uncollected Social Security and Medicare Tax on Wages" along with my return. This is for when you were treated as an independent contractor but should actually have been an employee. The benefit is you only pay the employee portion of FICA taxes (7.65%) instead of the full self-employment tax (15.3%). Check out the criteria on the form - if you were essentially working like an employee (they controlled your schedule, provided equipment, etc.), this might apply to you and save you some money.

This is a really frustrating situation, but you're handling it the right way by documenting everything and filing with the labor board. From a tax perspective, you're actually in a straightforward position - you only need to report the income that's actually shown on your W-2 for 2024, regardless of what you should have been paid. One thing I'd add to the great advice already given: make sure to keep copies of ALL your documentation (timesheets, pay stubs, communications with your employer) in multiple places - digital copies, physical copies, maybe even email them to yourself. If this drags out or if your employer tries to retaliate, having bulletproof documentation will be crucial. Also, don't let your employer intimidate you about this. What they're doing is wage theft, plain and simple, and it's illegal in every state. The fact that they're claiming it's for "break times" or that you were "rounding up" when you have documentation proving otherwise shows they know they're in the wrong. Stay strong and keep fighting for what you're owed!

I went through something very similar with a previous employer who was consistently "adjusting" my hours downward. One additional thing to consider - if your employer has been doing this systematically, they may also owe you interest or penalties on the unpaid wages, depending on your state's laws. When you file your complaint with the labor board, ask specifically about penalty wages (sometimes called "waiting time penalties") that might apply if your employer willfully withheld wages. In some states, employers can be required to pay additional compensation equal to your daily wage for each day the wages remain unpaid, up to a certain maximum. Also, keep an eye on your next few paychecks to make sure your employer doesn't retaliate by further manipulating your hours or suddenly finding reasons to reduce your shifts. Document everything going forward too - retaliation for filing wage complaints is illegal and can strengthen your case significantly. The tax advice others have given is spot on - just report what's on your W-2 this year, and any settlement will be taxable when you actually receive it. But don't let the potential tax implications discourage you from pursuing what you're rightfully owed. $1,718 is nothing to sneeze at!

Has anyone tried negotiating an Offer in Compromise? I've heard you can settle for pennies on the dollar but not sure if that's just marketing hype from those tax relief companies.

I went through something similar with about $25k in back taxes a couple years ago. Here's what I learned: 1. **Don't panic** - The IRS actually wants to collect what you owe, so they're motivated to work with you rather than let it sit unpaid. 2. **Start with an installment agreement** - For your amount ($28k), you can likely get a 72-month payment plan online. That would be roughly $390/month, but you can often negotiate lower payments if you can show financial hardship. 3. **Consider Currently Not Collectible status** if you truly can't afford payments right now. This pauses collection activities while you get back on your feet financially. 4. **File any missing returns immediately** if you haven't already - the IRS can't work with you on payment plans until all required returns are filed. 5. **Avoid most tax relief companies** - they charge thousands for what you can do yourself. The legitimate ones that might be worth it are few and far between. The key is being proactive. Once you have an agreement in place, the stress drops dramatically. I was able to get my monthly payment down to something manageable and even got some penalties waived for first-time non-compliance. Don't let this consume you - there are definitely solutions available.

I went through something very similar when I sold my Magic: The Gathering collection last year. Had about $8,000 in sales but definitely sold most cards at a loss from what I originally paid. Here's what I learned: You're right that you generally won't owe income tax on personal items sold at a loss, but you still need to handle the 1099-K properly. I created a simple spreadsheet with three columns: Item Description, Estimated Original Cost, and Sale Price. For items where I couldn't remember exact prices, I used current retail prices from when I bought them (you can often find historical pricing data online for video games). The key is being reasonable and consistent with your estimates. Don't lowball the sale prices or inflate the original costs, but honest estimates based on your memory and research are acceptable. I also took photos of my collection before selling and kept screenshots of completed eBay listings as additional documentation. When tax time came, I reported the 1099-K income but offset it by showing these were personal items sold at a loss. No issues with the IRS at all. The important thing is having some documentation of your thought process, even without original receipts.

Great question! For video game historical pricing, I found PriceCharting.com to be incredibly helpful - they have historical data going back years for most games. You can also check Wayback Machine snapshots of GameStop, Best Buy, or Amazon for retail prices from specific time periods. For really old games, I looked at forums and collector sites that discussed original MSRP. Regarding the offset, I used Schedule 1 and reported the 1099-K amount on line 8i "Other Income" with a description like "eBay sales - personal items." Then I attached a statement showing my cost basis calculations and noting these were personal items sold at a loss, so the net taxable income was $0. Some tax software makes this easier than others - TurboTax let me add explanatory text, but with other software I had to attach a separate document. Since your collection is worth $13,500, I'd definitely recommend keeping detailed records and maybe even consulting with a tax professional for the first year you do this. The documentation approach I described worked well for my $8K situation, but with your higher dollar amount, having professional guidance on the proper reporting method could save you headaches later. The key is being thorough and transparent about your methodology.