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I'm a former small farm owner who went through something similar. For the Schedule F part of your return, make sure you have records of ALL your expenses - feed, seed, equipment maintenance, fuel, etc. The IRS tends to scrutinize farm losses, so having detailed records is key. Also, don't forget to look at your depreciation schedule for that equipment. If you've been depreciating farm equipment, you need to account for that properly on the amended return. That $2,500 in depreciation you mentioned could make a significant difference.
Thanks for the farm-specific advice! I do have all my receipts for feed, seed, and maintenance organized by month. I've also got my depreciation schedule from the previous year (2017) that shows the ongoing depreciation of my tractor and irrigation system. Do you think I need anything else specifically for the Schedule F part?
Make sure you have mileage records if you used a vehicle for farm purposes, and documentation for any home office space if you claimed that. Also, if you received any agricultural subsidies or payments from government programs, have those documents ready as well. One more thing - if you had any crop insurance proceeds or disaster payments in 2018, those need to be properly reported. The IRS often cross-references those payments, and discrepancies can trigger further review of your amended return.
Quick question - what tax software are you planning to use for the amended return? I know you mentioned it'll probably be paper, but some software can help you prepare the forms even if you have to mail them in.
Not OP but I'd recommend against using regular consumer tax software for this situation. Those substitute return corrections can get complex and most consumer software isn't really designed for them. Either use a professional or if you're doing it yourself, get the forms directly from the IRS website and fill them out carefully.
Regarding your TurboTax question - I switched from TurboTax to FreeTaxUSA three years ago and never looked back. They handle all investment stuff including capital gains, dividends, etc., for their basic price ($0 federal, around $15 state). I had about $22k in capital gains last year plus various dividends and interest, and FreeTaxUSA handled it all perfectly. TurboTax's "premium" requirements are mostly artificial paywalls they create to force you into higher tiers. Most tax situations including investments can be handled by much cheaper alternatives.
Has anyone done a side-by-side comparison? I'm nervous about missing something if I switch away from TurboTax since they have all my historical data.
I actually did run both TurboTax and FreeTaxUSA side by side the first year I switched, and they came up with identical refund amounts. The only real difference was the interface - TurboTax looks fancier but FreeTaxUSA gets the job done. You can always download your tax return PDFs from previous years and have those for reference. You'll need to manually enter some basic info the first time you use a new service, but after that initial setup, it's smooth sailing. The hundreds of dollars I've saved over the past few years has definitely been worth the small hassle of switching.
Don't forget to check your state tax rules too! Some states have different capital gains treatment than federal. For example, my state offers a capital gains deduction for certain in-state investments that I completely missed the first time I filed with investment income.
This is great advice! I'm in Massachusetts and discovered they have special rules for capital gains on collectibles that are different from federal. Almost missed it until my accountant caught it.
Don't forget you can also make a QCD (Qualified Charitable Distribution) directly from an IRA to your church if you're over 70.5 years old. This counts toward your RMD and you don't have to itemize to get the tax benefit since the money never hits your taxable income. My wife and I donate about $15k/year this way to our church and it works great!
Does the QCD approach mean I wouldn't have to worry about whether I'm over the standard deduction threshold? I'm 72 and taking RMDs, but was going to just take standard deduction since my church donation is only $10k.
Exactly right! With a QCD, you don't have to itemize to get the tax benefit. The money goes directly from your IRA to the church and never counts as income to you in the first place. It's a much better approach for people who are taking RMDs and wouldn't otherwise itemize. Your $10k donation would reduce your taxable RMD amount by $10k, which typically saves more in taxes than itemizing would, especially if you wouldn't exceed the standard deduction threshold otherwise. Just make sure your IRA custodian sends the money directly to the church - you can't take the distribution yourself and then donate it.
Has anyone tried using the IRS Tax Exempt Organization Search tool to verify their church is eligible before donating? I'm wondering if I need to check this for our church or if all churches automatically qualify.
Have you checked if they accidentally changed your filing status in their system? Same thing happened to me - I was suddenly getting tiny paychecks because payroll somehow changed my W-4 filing status from Single to Married Filing Separately, which completely messed up my withholding calculations. Worth checking if something similarly weird happened in their system!
I hadn't thought about checking that! Is there an easy way to see what filing status they have for me? Would it be visible somewhere on my paystub? I'm going to dig through everything tonight. Thanks for the suggestion - really hope it's something simple like that.
Check the withholding section of your paystub - there's usually a code or abbreviation that indicates your filing status. It might say "S" for single, "M" for married, or something similar depending on your payroll system. Some companies also have an employee portal where you can view your tax withholding settings. If you don't see it clearly on your stub, definitely call payroll and specifically ask them to verify your W-4 filing status in their system. Sometimes these changes happen during software updates or data migrations and nobody notices until the paychecks are affected.
Just a heads up - if you're working per diem, check to see if they started actually paying you the per diem as a separate line item instead of an hourly rate! When this happened to me, my company switched from paying one hourly rate to a lower hourly rate PLUS a per diem amount. The per diem portion is usually non-taxable, but the change in how it was structured totally messed up my withholding percentages.
This is really good advice. Per diem payments should actually be tax-free reimbursements for things like meals and lodging when you work away from your main location. They shouldn't be withholding taxes on true per diem payments at all!
Mikayla Brown
Quick tip from an accountant: One way to easily check if you're registered as a single-member LLC is to look at your Articles of Organization that you filed with your state. They should specifically mention whether you're filing as a member-managed LLC (which single-member LLCs usually are) or something else. Also, the way you file taxes (Schedule C) suggests treatment as a disregarded entity, but that's a tax concept separate from your legal structure. Just because you're treated as a sole proprietor for tax purposes doesn't mean you're exempt from BOIR filing requirements for LLCs.
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Sean Matthews
β’What about just calling the Secretary of State where you filed? Wouldn't they have that information too?
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Mikayla Brown
β’Yes, calling your Secretary of State's office is another good option. They keep records of all business entities registered in the state and can confirm exactly how your LLCs were registered. Many states also have online business entity search tools where you can look up your LLC and view your registration details. If you don't have copies of your Articles of Organization, most Secretary of State offices can provide copies for a small fee. This documentation is important to have in your records anyway, especially when completing regulatory filings like the BOIR.
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Ali Anderson
Does anyone know the deadline for this BOIR thing? I think I have the same situation with my rental property LLC and I've been ignoring all the news about it thinking it didn't apply to me lol
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Zadie Patel
β’The deadline depends on when your LLC was created. If your LLC was created before January 1, 2024, the deadline is January 1, 2025. If your LLC was created in 2024, you have 90 days from the creation date to file. Set a calendar reminder now because the penalties can be steep!
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