Just to add another consideration - if you do decide to work with this filmmaker, make sure you understand exactly what kind of "documentary" they're making and how your property will be portrayed. Even if the tax deduction angle doesn't work out, you want to protect your property's reputation as a vacation rental. I'd suggest asking for details about the project, getting a copy of their insurance certificate, and having them sign a proper location release agreement. Some documentaries can be controversial, and you don't want your property associated with something that could hurt your future bookings. Also, consider the wear and tear from film equipment - even a one-day shoot can be surprisingly hard on a property with lights, cameras, and crew members moving around. You might want to factor that into whatever rate you ultimately decide to charge them, tax implications aside.

One thing I haven't seen mentioned yet is the potential state tax implications. While everyone's focused on federal tax rules (which correctly don't allow deductions for donating property use), some states have their own charitable deduction rules that might differ from federal guidelines. Also, depending on your state's business license requirements, you might need to report any rental activity regardless of whether you charge full rate, reduced rate, or nothing at all. Some states require vacation rental operators to maintain certain records and file reports even for "donated" use. I'd definitely check with your state's tax authority or a local tax professional familiar with vacation rental regulations in your area. The federal rules are clear, but state compliance can be trickier and varies significantly by location.

I'm in almost the exact same situation and have been researching this for weeks! What I've learned is that you absolutely CAN use 529 funds for living expenses when your student lives at home, but the key is understanding the "cost of attendance" concept. Here's what I found out: Even though your child isn't paying rent to a landlord, the IRS recognizes that housing a college student involves real costs. You can withdraw up to whatever your school publishes as their "off-campus room and board" allowance in their official cost of attendance figures - this becomes your maximum tax-free withdrawal amount for housing expenses. For documentation, I've been keeping: - Official enrollment verification each semester (showing at least half-time status) - The school's published cost of attendance document - Records of household expenses that benefit my student (portion of utilities, groceries, internet, etc.) The beauty is you don't need to create artificial rent agreements or transfer specific amounts to your child. Just document that you're covering legitimate housing costs up to the school's published allowance. I'd suggest checking your college's financial aid website for their official cost of attendance breakdown - that's your roadmap for how much you can safely withdraw.

I went through this exact situation two years ago with my son who was living at home during his sophomore year. The key insight that saved me a lot of stress was realizing that the IRS doesn't require you to prove specific dollar-for-dollar expenses - you just need to stay within the school's published off-campus housing allowance and maintain reasonable documentation. What worked for me was creating a simple monthly tracking system. I kept a basic spreadsheet showing my son's proportional share of household costs (mortgage interest, utilities, groceries, internet) and made sure the annual total stayed well below his school's published room & board allowance of $11,200. I never had to create fake rental agreements or transfer money back and forth. The most important thing I learned: Get the school's official Cost of Attendance document and keep it with your 529 records. That document is your protection - as long as your withdrawals don't exceed the published off-campus allowance and your student is enrolled at least half-time, you're on solid ground. I've never been audited, but I feel confident that my simple documentation approach would hold up if questioned. One tip: I also kept screenshots of my son's student portal showing his enrollment status each semester, just to have that verification easily accessible. Much easier than requesting official transcripts later if needed.

Honestly this tax preparer pricing makes me so mad! They're just putting numbers into glorified TurboTax! I used to pay $350+ but switched to doing them myself. Takes an afternoon but saves hundreds.

I'm a tax preparer and wanted to give some insight on the pricing you're seeing. Those quotes ($375-525) are actually very reasonable for your situation. Here's what goes into that cost beyond just "entering numbers": 1. **Business income analysis** - We review all your business expenses, categorize them properly, calculate home office deductions if applicable, and ensure you're taking all legitimate deductions while staying audit-compliant. 2. **Investment transaction complexity** - Long-term stock holdings often involve basis adjustments, dividend reinvestments, or corporate actions that affect your tax liability. Getting this wrong can be costly. 3. **First-time homeowner benefits** - There are several deductions and credits you might qualify for that software doesn't always catch. 4. **Professional liability** - Most preparers carry E&O insurance and will represent you if there are issues with your return. That said, if you're detail-oriented and have time to research, tax software has gotten quite good. Just make sure you understand the implications of each decision, especially around business deductions. A mistake there can trigger an audit or cost you thousands in missed savings.

Make sure you're using the right calculation for your SEP contribution. It's not exactly 25% of your Schedule C profit. There's a specific deduction you can find on the IRS website for self-employed individuals. If you use tax software like TurboTax, it should calculate this for you automatically when you enter your income.

Great question! I was in a similar situation last year with my freelance writing income. You absolutely can have both - I contribute to my employer's 401k AND opened a SEP IRA for my side business income. One thing I learned the hard way: make sure you understand the timing. You can actually make SEP IRA contributions up until your tax filing deadline (including extensions), so you have until April 15th for 2024 contributions. This gave me flexibility to see exactly how much I earned from freelancing before deciding on my contribution amount. Also, don't forget that SEP IRA contributions reduce your self-employment tax basis too, not just your income tax. So if you contribute $5,000 to your SEP, you'll save on both income tax AND the ~15% self-employment tax on that amount. The key is keeping good records of your photography business expenses throughout the year - the more legitimate business expenses you have, the lower your net profit, and the less self-employment tax you'll owe overall. Good luck with your photography business!

Quick tip from someone who got audited over farm expenses: Keep detailed records of EVERYTHING. The IRS loves to question whether small farms are actual businesses or just hobbies, especially if you show losses. Document your efforts to make the operation profitable (marketing, business plan, etc). My audit was a nightmare but could've been avoided with better record-keeping.

This is exactly the kind of question I had when I started my small vegetable farm! Your neighbor is absolutely right - Schedule F deductions are business expenses that work completely separately from your personal itemized deductions. Here's the key distinction: When you itemize personal deductions (medical expenses, charitable donations, state taxes, etc.) on Schedule A, those have to exceed your standard deduction to be beneficial. But Schedule F is for business income and expenses from farming operations. You report your farm revenue, subtract your legitimate business expenses, and the net result flows to your main tax return as business income. So yes, you can claim all your legitimate farm expenses on Schedule F (feed, seeds, equipment, fuel, repairs, etc.) AND still take the standard deduction for your personal expenses. They're two completely different sections of your tax return. Just make sure to keep detailed records and ensure your farm operates with a genuine profit motive. The IRS can reclassify hobby farms if they show losses too frequently. Good luck with your farming venture!