Yes, you likely can deduct the full cost of your business equipment purchased in 2023! The IRS provides two main options for this: 1. **Section 179 Deduction** - This allows you to deduct the full purchase price of qualifying equipment in the year you bought it (rather than depreciating it over several years). For 2023, the limit is $1,160,000, which should easily cover your heat presses, label printer, vinyl cutter, and computer. 2. **Bonus Depreciation** - For 2023, 80% bonus depreciation is available for qualified business assets, which would cover your equipment. To qualify for these deductions: - The equipment must be used for business purposes more than 50% of the time - The equipment must be put into service during the 2023 tax year When filing: - You'll need to complete Form 4562 (Depreciation and Amortization) - Keep detailed records of all purchases including receipts, dates, and business use Since you're a new business owner, I'd recommend consulting with a tax professional who can help ensure you're maximizing your deductions correctly based on your specific business situation. They can also help determine which method (Section 179 or bonus depreciation) would be most advantageous for your circumstances.

Great advice from Lena! I'd like to add a few important considerations for your 2023 equipment purchases: **Keep meticulous records** - Make sure you have receipts, invoices, and can document when each piece of equipment was "placed in service" (actually used for business). The IRS is strict about this. **Mixed-use items** - If you use that computer for both business and personal purposes, you can only deduct the business percentage. Keep a log of business vs. personal use. **State tax implications** - While federal tax allows these deductions, check your state's rules as they may differ from federal Section 179 or bonus depreciation rules. **Consider timing** - Since you're asking in 2025 about 2023 purchases, if you haven't filed your 2023 return yet, you still have time to claim these deductions. If you already filed without claiming them, you might need to file an amended return (Form 1040X). **Alternative Minimum Tax (AMT)** - For very large deductions, there could be AMT implications, though this is less common for small businesses. The equipment you mentioned (heat presses, vinyl cutter, label printer) sounds like a custom printing or embroidery business - these are definitely legitimate business assets that should qualify for the full deduction!

Just wanted to add my recent experience to help others in similar situations! I received my amended return via direct deposit about 3 weeks ago. My 846 code showed up on a Tuesday, and the money actually hit my account on that exact same day - which surprised me based on what I'd been reading about typical wait times. I think the key factor might be which bank you use. I have my account with a credit union that tends to process ACH transfers pretty quickly. My friend who banks with a larger national bank had to wait 4 business days after her 846 date for the same type of deposit. For anyone still waiting, I'd definitely recommend setting up account alerts if your bank offers them rather than constantly checking your balance. The money will show up when it shows up, and the alerts saved my sanity during the waiting period. The direct deposit for amended returns is absolutely legitimate now - just be prepared for the timing to vary more than regular refunds.

I'm currently in the exact same boat as the original poster! Just saw my 846 code appear this morning with a Friday date, and I've been obsessively checking my bank account every hour. Reading through everyone's experiences here has been incredibly helpful and reassuring. It's amazing how much conflicting information is out there about amended returns and direct deposits. My tax preparer told me it would definitely be a check, but clearly that's outdated information. Based on what everyone's shared here, it sounds like the 3-5 business day window after the 846 date is pretty realistic to expect. I'm particularly grateful for the tips about watching for additional codes after the 846 and setting up bank alerts instead of constantly refreshing my account. This community has been way more informative than anything I could find on the IRS website. Will definitely report back once my deposit comes through to add another data point for future people in this situation!

Just want to point out that if you do decide to withdraw from your 401k, remember that the plan administrator will usually withhold 20% for federal taxes, which might not be enough depending on your tax bracket. So you'd need to withdraw more than just the amount you owe the IRS to account for the taxes on the withdrawal itself.

I was in a very similar situation last year and ended up going with the estimated payment route rather than touching my 401k. Here's what I learned: even though you're over 59.5 and won't face the early withdrawal penalty, the tax implications can be tricky. The biggest issue is that you'll need to withdraw MORE than the $5,400 you owe because the withdrawal itself becomes taxable income. Plus, depending on your current tax bracket, that additional income could push you into a higher bracket for the year. I'd strongly recommend calculating both scenarios before deciding. For the estimated payment, you can still make the Q4 payment by January 15th through the IRS website - it's actually pretty straightforward once you set up an account. And if your income was uneven this year (sounds like it might have been), look into Form 2210 and the annualized income method - it could save you from underpayment penalties on earlier quarters. The peace of mind from keeping your retirement savings intact and growing was worth it for me, even with a small penalty.

Has anyone tried doing this calculation on TurboTax? I've got a similar situation with about $8K in carried over losses from last year and $11K in gains this year, but TurboTax seems to be applying my losses weirdly. It's only using part of my carryover.

This is a great question that trips up a lot of people! The key thing to understand is that the $3,000 annual limit only applies when you're using capital losses against ordinary income (like your salary). When you have actual capital gains, you can use your entire capital loss carryover to offset those gains without any annual limit. In your specific case with $13.5K loss carryover and $16K gains, you would indeed subtract the full $13.5K from your $16K gains, leaving you with only $2.5K in net capital gains to be taxed on this year. No remaining loss would carry forward to Y3 since you've used it all up. The IRS designed it this way because capital losses and gains are considered "like-kind" - losses from selling investments should be able to fully offset gains from selling investments. The $3K limit is really just a consolation prize when you don't have any gains to offset against. Make sure you're correctly categorizing your carryover losses as short-term vs long-term though, as the netting rules do matter for determining your final tax rate on any remaining gains.

Has anyone used TurboTax for reporting with HIFO? I've got about 50 transactions across Coinbase and Kraken, and I'm wondering if it's worth paying for their premium version or if I should use something else entirely.

Another important consideration with HIFO is that it can create some unexpected complications if you're planning to hold crypto long-term. Since you're always selling your highest-cost basis coins first, you might inadvertently be selling newer purchases that haven't reached the one-year holding period for long-term capital gains treatment. This means you could end up with more short-term gains (taxed as ordinary income) instead of long-term gains (lower tax rates). Also, if you ever need to demonstrate a clear investment strategy to the IRS, constantly cherry-picking the highest cost basis assets might look like you're purely focused on tax avoidance rather than following a consistent investment approach. The IRS prefers methods that reflect actual investment decisions rather than purely tax-motivated choices. For your 50 transactions, make sure whatever software you use can generate the detailed Form 8949 that shows each specific transaction with dates and cost basis - the IRS will want to see this level of detail if they ever audit your crypto reporting.