One thing nobody's mentioned yet - there are different rules if your annual business income is over $27 million (average of last 3 years). If you're over that threshold, you're considered a "tax shelter" and subject to different bonus depreciation rules. Also, the bonus depreciation rules are different depending on when you placed the properties in service. The 2017 tax reform made big changes: - 100% for property placed in service after 9/27/2017 through 2022 - 80% for 2023 - 60% for 2024 - 40% for 2025 - 20% for 2026 - 0% after 2026 Make sure your CPA considers these phase-out periods!

Be careful with DIY cost segregation! I tried to do my own for my rental last year based on some percentages I found online, and ended up getting audited. The IRS wanted to see a formal engineering report to back up my allocations. If you're going to do this, either use one of the specialized services mentioned or get a real cost segregation study from a qualified firm. The few thousand you'll spend on proper documentation is worth it compared to dealing with an audit and potential penalties.

One thing nobody mentioned yet: Form 1139! Instead of filing an amended return (1120X), C corporations can file Form 1139 "Corporation Application for Tentative Refund" for capital loss carrybacks. The BIG advantage is that the IRS processes these much faster - you can get your refund in 90 days instead of waiting 6+ months for an amended return to process. BUT - and this is crucial - Form 1139 must be filed within 12 months of the end of the tax year in which the loss occurred. For a 2022 loss, if your tax year ended December 31, 2022, you would have had to file Form 1139 by December 31, 2023. If you missed that window, then you're back to the amended return route.

Just wanted to add a crucial timing consideration that could save you significant money: Since you're dealing with substantial penalties and interest that continue to accrue, I'd strongly recommend filing your Form 1120X as soon as possible - don't wait until closer to the October 2025 deadline. Even though you have until then to file the amended return, every month you delay means more penalties and interest accumulating on that $170,000 balance. Once you file the 1120X claiming the capital loss carryback, the IRS will stop the penalty clock on any tax liability that gets eliminated by the carryback. Also, make sure to include a detailed statement with your amended return explaining the capital loss carryback calculation and referencing the specific losses from your 2022 return. This helps the IRS processor understand exactly what you're doing and can prevent delays or requests for additional documentation. Given the complexity and dollar amounts involved, this definitely seems like a situation where professional help would be worthwhile to ensure everything is done correctly the first time.

One important thing nobody's mentioned yet - if you use the physical presence test, you need to file Form 2555 with your tax return. Make sure you fill out Part III (Physical Presence Test) completely, not Part II (Bona Fide Residence Test). Also, remember that the FEIE only applies to earned income (salary, wages, self-employment), not investment income. And the max exclusion for 2022 was $112,000, but it's prorated if your qualifying period doesn't cover the whole year.

For your 2022 situation, the physical presence test is definitely your best option since you moved abroad mid-year. You'll need to count 330 full days in any 12-month period - I'd suggest using March 3, 2022 to March 2, 2023 as your qualifying period. A few key things to watch out for: travel days to/from the US don't count as full days abroad (you need to be outside the US for the entire 24-hour period), but partial days at the beginning/end of your qualifying period can count if you were already abroad or stayed abroad. Since you mentioned taking vacations and visiting the US twice, make sure to carefully count those US days. Even if you went over the 35-day limit for US presence, you can still qualify as long as you have 330 full days outside the US within your chosen 12-month period. For 2022, your exclusion will be prorated based on how many days of your qualifying period fall within the tax year. So if your qualifying period is March 3, 2022 - March 2, 2023, you'd get about 304 days worth of the $112,000 exclusion for 2022 (roughly $93,400 max exclusion). Document everything well - keep all travel records, passport stamps, and proof of your Netherlands residence!

I went through this exact situation with my amended return last year! The key thing to understand is that there's no separate "amended return transcript" - everything shows up on your regular Account Transcript on the IRS website. You'll want to log into irs.gov, go to "Get Transcript Online" and pull your Account Transcript for the tax year you amended (so if you amended your 2022 return, look at the 2022 Account Transcript). Look for transaction code TC 971 which means they received your amended return, and TC 977 which means it's been processed. The "Where's My Amended Return" tool is honestly pretty useless - it rarely updates and gives minimal info. Unfortunately, the processing times right now are brutal - despite the official 16-week timeline, most people are waiting 6-8 months or even longer. I know it's incredibly frustrating, especially when you're anxious about the status, but at least checking the Account Transcript will give you a clearer picture of where things actually stand in the process.

I'm dealing with a very similar situation right now! Filed my amended return through TurboTax in April and have been going crazy trying to track the status. After reading through all these responses, I finally understand that I need to check my Account Transcript on the IRS website instead of relying on that useless "Where's My Amended Return" tool. Just logged in and found the TC 971 code showing they received it, but no TC 977 yet which means it's still processing. The 6-8 month timeline everyone is mentioning is absolutely insane - I had no idea it would take this long when I filed! TurboTax definitely doesn't prepare you for the reality of amended return processing times. Thanks to everyone who explained the transaction codes - this has been way more helpful than anything I could find on the official IRS site. Guess I'll just have to be patient and keep checking that Account Transcript every few weeks. Never using TurboTax for amendments again though!

Don't forget to keep detailed records of everything. As a contractor myself, I learned the hard way that it's not just about whether something is deductible, but being able to prove it if you're audited. For books and educational materials: 1. Save the receipts 2. Write the business purpose on the receipt (like "reference material for electrical work") 3. If it's a digital purchase, save the email confirmation 4. Take a photo of physical books with their covers visible as additional documentation It's also smart to have a separate credit card just for business expenses to keep everything clean and separate.

I'm surprised nobody mentioned the home office deduction! If you're reading these books and doing paperwork in a dedicated home office space, you might be able to deduct a portion of your rent/mortgage, utilities, internet, etc. Just make sure the space is used EXCLUSIVELY for business.