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Just to add some clarity about special depreciation allowance vs. Section 179 since I see some confusion in the responses. They're related but different: Section 179 allows you to immediately expense (deduct) the cost of qualifying property rather than depreciating it over several years. For 2023, the limit was $1,160,000. The special depreciation allowance (also called bonus depreciation) was 80% for 2023 and applies after Section 179 deductions. So if you bought $50,000 of qualifying equipment and took $30,000 as a Section 179 deduction, you could then apply 80% bonus depreciation to the remaining $20,000. For vehicles specifically, there are luxury auto limits that cap how much you can deduct. For passenger vehicles placed in service in 2023, the max combined Section 179 and depreciation is generally $20,200 for the first year. The key thing OP should verify is that these limits were properly applied in their tax software. The software should have done this automatically, but it's always good to double-check when claiming substantial deductions.
Could you explain how this works with the business-use percentage? If my car cost $30,000 and I use it 60% for business, am I applying the limits to the full cost or the business portion? The IRS publication makes my head spin.
You always apply the business-use percentage first, then apply the limits to that amount. So in your example: $30,000 vehicle cost Ć 60% business use = $18,000 business portion Then you apply the first-year limit (which was $20,200 for 2023) to that $18,000 business portion. Since $18,000 is less than the limit, you could potentially deduct up to the full $18,000 in the first year through a combination of Section 179 and bonus depreciation, assuming you have enough business income to support the deduction. If your business portion had exceeded the limit (say, if your car cost $50,000 with 60% business use = $30,000 business portion), then you'd be capped at the $20,200 limit for the first year. The remaining undeducted basis would then be depreciated over the remaining recovery period using regular MACRS depreciation in future years.
Has anyone addressed what happens if you claim special depreciation allowance and then in a later year your business use drops below 50%? This happened to me and it created a real tax headache. I claimed Section 179 and bonus depreciation when my business use was 70%, but two years later my business use dropped to 30%. I had to recapture some of the excess depreciation I'd taken and pay tax on it. The IRS calls this "listed property" recapture. Basically, if business use drops below 50% during the recovery period, you have to recalculate depreciation as if you had used the straight-line method from the beginning and pay tax on the difference. Just something to be aware of if you think your business use percentage might drop significantly in future years.
That's a really important point! I got burned by this exact situation. My tax software didn't warn me about it at all. Do you know if there's a form that specifically handles this recapture calculation? I'm trying to figure out how to properly report my situation now.
whatever happens to warner, i bet his sentence will be WAY lighter than what would happen to any of us!! my brother forgot to report $2000 of side gig income and the irs came after him like he was al capone lol... meanwhile this dude hides MILLIONS and will probably get house arrest in his mansion š the whole system is rigged for the rich. they make the tax laws complicated on purpose so regular people mess up and get penalized while billionaires hire fancy lawyers to find all the loopholes. just watch, he'll get some minimal sentence and be back to counting his beanie baby billions in no time.
While I understand your frustration, there's an important distinction here. Your brother's situation was likely considered tax negligence (failing to report income), while Warner's case involves willful evasion through hiding money in offshore accounts. They're different categories of tax issues with different legal frameworks.
This case really highlights how the wealthy can afford to play games with the tax system that regular people can't. Warner had the resources to set up complex offshore structures and hide millions, while most of us are just trying to figure out basic deductions without getting in trouble. What bothers me most is the emotional courtroom display. I've seen plenty of cases where average taxpayers facing penalties were scared and remorseful too, but they don't get the same sympathy from the system. The fact that he's a billionaire crying about consequences for deliberately hiding money feels pretty tone-deaf. I'm curious if this case will actually lead to any meaningful changes in how the IRS prioritizes enforcement. Seems like they spend way too much time going after small mistakes while cases like this take years to develop. The resources needed to investigate complex offshore schemes are probably why so many wealthy tax evaders get away with it for so long.
This is exactly why I always tell people to be extremely careful with these chain tax services. Your experience highlights several major red flags that people should watch out for. The double billing issue you experienced is unfortunately not uncommon - I've seen this happen when preparers process payments incorrectly or when there are system glitches. Always keep detailed records of all payments and check your bank statements immediately after filing. The SSN error requiring you to come back and re-sign everything is particularly concerning because it suggests either poor training or rushed work. Professional tax preparers should be double-checking this basic information before you ever leave the office. Regarding the referral bonuses, this sounds like a classic case of using promotional offers to get customers in the door without proper systems to fulfill them. The fact that corporate just referred you back to the same franchise shows they're designed to avoid accountability. For anyone still dealing with similar issues: document everything (dates, employee names, conversations), keep all paperwork, and don't be afraid to escalate to state regulatory agencies. Many states have licensing requirements for tax preparers and can investigate complaints about fraudulent practices. Your story is a perfect example of why it's worth paying a bit more for a year-round professional rather than gambling with seasonal operations that prioritize volume over quality service.
I'm sorry to hear about your terrible experience with Liberty Tax - this is unfortunately a cautionary tale that many taxpayers need to hear. The combination of double billing, incorrect data entry, delayed refunds, and unfulfilled referral bonuses shows a pattern of poor business practices that goes beyond simple mistakes. What's particularly troubling is how they handled your personal information - leaving messages about YOUR tax details on someone else's voicemail is a serious privacy breach that could have legal implications. You might want to consider filing a complaint with your state's department of consumer affairs or attorney general's office about this specific incident. The fact that this dragged on for months with the same scripted responses suggests they were hoping you'd just give up. Unfortunately, many seasonal tax preparation franchises operate with minimal oversight and rely on customers not following through on complaints. For anyone reading this who's already used Liberty Tax or similar services: check your bank statements carefully for duplicate charges, verify all personal information before signing anything, and get written confirmation of any promotional offers like referral bonuses. If something goes wrong, document everything and don't accept vague promises about "the bookkeeper will handle it." Your experience reinforces why it's often worth paying more for a reputable, year-round tax professional who has a stake in maintaining their reputation rather than just maximizing volume during tax season.
Went through this exact nightmare last year! Tried to pay $4,500 through CK, got rejected THREE times, and ended up with a $67 late payment penalty because it took so long to sort out. š¤¦āāļø The irony of getting penalized while actively trying to pay... peak IRS experience right there! Eventually called them and paid over the phone. Took 45 minutes on hold but at least it went through.
I've been using Credit Karma Tax for the past three years and can share some insights on their payment limits. In my experience, the limits are indeed account-specific and not clearly disclosed upfront, which is frustrating when you're dealing with larger payments. For your $4,000 payment, I'd strongly recommend calling Credit Karma's support line first to confirm your specific limit before attempting the transaction. They can usually tell you your exact limit without you having to risk a failed payment. If you're running short on time before the deadline, here are a few backup options: ⢠IRS Direct Pay (no transaction limits, but there are daily limits) ⢠Electronic Federal Tax Payment System (EFTPS) - requires registration but handles large amounts ⢠Traditional bank bill pay services The key is having a backup plan ready because a rejected payment this close to the deadline could definitely result in penalties, and those add up quickly. Better to spend a few extra minutes confirming the limit than dealing with late fees later!
Beth Ford
Here's what to do if your refund doesn't show up on your Serve Card: Step 1: Check your tax transcript for code 846 with your refund amount Step 2: Verify the last 4 digits of the account number on your transcript match your card Step 3: Wait until 48 hours after your DD date before taking action Step 4: Contact Jackson Hewitt customer service (1-866-697-3783) Step 5: If they confirm they haven't received it, then contact the IRS Most people in your situation see their refund within 48 hours of the DD date. It's frustrating but very common with prepaid cards.
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Chloe Martin
I totally understand your frustration! I went through the exact same thing last year with my Serve Card. The waiting is absolutely nerve-wracking, especially when you need the money for something important like your apartment deposit. From what I've experienced and seen in this community, Jackson Hewitt Serve Cards are consistently 1-2 days slower than the official DD date shown on WMR. It's not that anything is wrong - it's just how their processing system works. Since your DD date is 3/17, I'd expect to see it hit your card by 3/19 at the latest. Try not to stress too much about checking every few hours (easier said than done, I know!). If you don't see it by Thursday, then it might be worth calling their customer service line. But based on what everyone else is saying, this delay is totally normal for Serve Cards this tax season.
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