Just make sure when you do sell it that you get proper documentation from the buyer. I sold some gold coins at a local shop and they didn't give me any paperwork, which made tax reporting a nightmare. Find a reputable dealer who will provide a receipt with the date, amount, and description of what was sold.

One thing to keep in mind is that you'll need to report this on Form 8949 and Schedule D when you file your taxes. Since it's a collectible, make sure to check the appropriate box indicating it's subject to the 28% rate rather than regular capital gains rates. Also, regarding your basis documentation - if you truly can't find any records from when you received it, you could reach out to your uncle to see if he has any documentation of when he purchased it or what he paid. Sometimes the gifter keeps better records than the recipient. If that doesn't work, using historical gold prices from reputable sources like COMEX or major precious metals dealers for the approximate date you received it would be a reasonable approach for establishing your basis. Just remember that the IRS can ask for documentation during an audit, so whatever method you use to establish your basis, make sure you can explain and justify it with reasonable evidence.

This is exactly the kind of confusion I had when I started my consulting business alongside my regular job! You're absolutely correct that the same principles apply to single filers - there's no special rule that makes this different for married couples. I've been successfully using Section 179 deductions from my side business to offset my W-2 income for three years now. The key thing to understand is that when you file your tax return, all your income sources flow to the same 1040 form. Your Schedule C business loss (created by Section 179 deductions exceeding your 1099 income) directly reduces your adjusted gross income, which includes your W-2 wages. A few practical tips from my experience: - Document everything meticulously, especially business use of equipment - Keep your business and personal expenses completely separate - Consider spreading large purchases across tax years if it makes sense for your overall tax strategy - Make sure you're genuinely trying to make a profit, not just buying equipment to reduce taxes The IRS doesn't care whether you're single or married for this purpose - they care that you're operating a legitimate business and following the rules. Sounds like you're already thinking about this correctly!

This is such a common source of confusion! You're absolutely right that the same rules apply to single filers - there's nothing special about being married that changes how Section 179 works with mixed income sources. I went through this exact situation when I started my freelance writing business while keeping my day job. What helped me understand it was thinking of it this way: your tax return is like one big bucket. All your income (W-2, 1099, investment income, etc.) goes into that bucket, and all your legitimate deductions come out of it. Section 179 is just another deduction that reduces your total taxable income. The reason you see so much focus on married couples is because it's a popular tax planning strategy - one spouse might have a profitable business while the other has W-2 income, and they can optimize their combined tax situation. But the underlying mechanics are identical for single filers. Just make sure your side business is legitimate and you're using any equipment you deduct primarily for business purposes. The IRS cares much more about whether you're following the rules than whether you're single or married when you're following them! One practical tip: consider the timing of major equipment purchases. Since Section 179 lets you deduct the full cost in the purchase year, you might want to time big purchases for years when you have higher income to offset.

This is such a common situation for creative freelancers! You're definitely not alone in being confused about the tax obligations. The good news is that you're addressing it now rather than letting it pile up for more years. One thing I'd add to the excellent advice already given - make sure you're keeping detailed records of not just your income, but also your business expenses. Things like Adobe Creative Suite subscriptions, Wacom tablet styluses, online course fees for improving your art skills, and even a portion of your internet bill can potentially be deducted as business expenses. Since you mentioned you're getting paid through Venmo, I'd strongly recommend switching to a more business-friendly payment method like PayPal Business or Stripe for future commissions. These platforms make it much easier to track your income and provide better documentation for tax purposes. Plus, they look more professional to clients. For the income you've already earned in previous years, you might want to consider filing amended returns if the amounts were significant. The IRS is generally more lenient if you voluntarily correct past mistakes rather than waiting for them to find discrepancies.

As a digital artist who went through this exact same panic a few years ago, I can tell you that you're handling this the right way by addressing it now! The IRS actually appreciates when people come forward voluntarily rather than trying to hide income. One thing I haven't seen mentioned yet - consider setting aside 25-30% of your commission income going forward for taxes. Since you're already employed full-time, your art income will likely be taxed at your marginal rate plus self-employment tax, so it adds up quickly. I learned this lesson the hard way during my first year! Also, keep in mind that the IRS has a "hobby vs. business" test. Since you're consistently earning income and treating this seriously, you should be fine. But document your business activities - save client communications, keep a log of time spent on projects, and maintain professional practices. This helps establish that you're running a legitimate business, not just pursuing a hobby. For record-keeping, I use a simple spreadsheet with columns for date, client, project description, amount earned, and payment method. Takes 2 minutes per transaction but saves hours during tax season. You can also photograph receipts for business expenses with your phone - just make sure they're clear and organized by category. The learning curve is steep at first, but once you get systems in place, it becomes routine. You've got this!

I think most people are overlooking something important - the $47,000 in renovations mentioned in the original post. Those receipts are GOLD when calculating your adjusted basis! Make sure you've kept meticulous records of EVERYTHING you've done to improve the property. Not just the obvious renovations, but also: - Roof repairs - HVAC upgrades - Plumbing or electrical work - Window replacements - Landscaping improvements (if they add value) - Deck or patio additions I had a client who nearly forgot about $23,000 in windows and insulation they'd added over the years. That significantly reduced their taxable gain. Also, don't forget to include closing costs from when you purchased as part of your basis, and selling costs (commissions, etc.) as deductions from the sale price.

As someone who works in real estate tax consulting, I want to emphasize a key point that might provide additional peace of mind: the FIRPTA withholding requirement has specific safe harbors built in precisely for situations like yours. Since you're selling your primary residence and the sales price is likely under $1.1 million (based on your mention of the $500k capital gains exclusion being relevant), there's actually a buyer's exemption that can apply. If the buyer is acquiring the property as a residence and the purchase price is $1.1 million or less, they're not required to withhold under FIRPTA even if you were considered a foreign person (which you're not as a green card holder anyway). This creates a double layer of protection in your situation. However, I'd still recommend getting the proper documentation from your title company to avoid any confusion or delays at closing. One practical tip: when you compile those renovation receipts, organize them chronologically and create a simple spreadsheet showing the date, description, and amount for each improvement. This will make things much smoother for both the closing and your tax return preparation. The IRS loves organized documentation, and it shows you're taking the reporting requirements seriously.

Has anyone mentioned the potential built-in gains tax implications yet? If the S Corp had appreciated assets at the time of conversion, there could be tax consequences that offset some of the charitable deduction benefit.

This is a complex transaction that requires careful documentation and planning. In addition to the excellent points already raised about appraisals, AGI limitations, and private inurement, I'd strongly recommend your client consider getting a formal legal opinion on the conversion structure. One thing I haven't seen mentioned is the potential impact on any existing S Corp elections or tax attributes. If the S Corp had NOL carryforwards, suspended losses, or other tax attributes, these would typically be lost in the conversion process. Also, make sure the conversion was done properly under state law - some states have specific procedures for converting profit entities to non-profits that must be followed exactly. The IRS has been increasingly scrutinizing these types of conversions, especially when substantial value is involved and the former owner maintains control. I'd also suggest reviewing Revenue Ruling 2004-51 and the regulations under Section 501(c)(3) regarding private benefit restrictions. Given the complexity and audit risk, this might be worth bringing in a specialist in exempt organization law for a second opinion.