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I finance everything for my HVAC business and always take the full deduction in year 1. Just make sure you're actually using the bike primarily for business. If you're audited, the IRS will want to see evidence that it wasn't mainly for personal use. I keep a simple log on my phone with client visits, addresses, and whether I used my truck or my bike to get there. Also - if you're making good money, look into setting up a Solo 401k. That's been WAY more valuable for reducing my tax bill than any equipment deduction.
Totally agree on the Solo 401k! I started one last year and was able to contribute almost $20k as both the "employer" and "employee" - saved me thousands in taxes and it's actually saving for my future unlike expense deductions.
One thing I haven't seen mentioned yet - make sure you understand the recapture rules if you ever sell the bike or stop using it for business before it's fully depreciated. If you take the full Section 179 deduction now but then sell the bike in a couple years, you might have to "recapture" some of that deduction as ordinary income. Also, since you mentioned your business is booming, consider whether you'll hit the Section 179 phase-out limits. For 2023, the deduction starts phasing out if you purchase more than $2.89 million in qualifying property (which probably doesn't apply to you, but good to know). The financing vs. cash question really doesn't matter - what matters is when you put it in service for your business. Keep detailed records of your business routes and maybe take some photos of the bike loaded with your pet care supplies to help document the business use!
Hey just an FYI - I'm an accountant and this question comes up all the time. For future reunions, you might want to consider setting up a simple "unincorporated association" for your family reunions. It's super easy and doesn't require any formal filings in most states, but gives you a legitimate structure for collecting and spending money for family events.
I went through almost the exact same situation last year organizing our church's annual retreat! Collected about $12,000 through various payment methods and was absolutely panicking about tax implications. Here's what I learned after consulting with a tax professional: since you're acting as a "fiscal intermediary" and not keeping any of the money as profit, this isn't considered taxable income. The key is that you can demonstrate the money flowed directly from collection to expenses for the reunion. A few practical tips: - Pull all your payment statements from the relevant period - Create a simple reconciliation showing money in vs money out - Keep copies of receipts from the camp and other vendors - Note that the payment descriptions (like "Smith family - 4 people") actually help show this was clearly for a family event You can file your taxes normally with just your W-2s. The payment platforms report business income, not family/personal transfers like this. Just keep your documentation in case there are ever questions, but this shouldn't complicate your tax filing at all. Don't stress too much - this is way more common than you think and the IRS understands the difference between actual income and just being the person who handles logistics for family events!
Has anyone else noticed that the 'Where's My Refund' tool is about as useful as a chocolate teapot? š«ā
A chocolate teapot sounds delicious tbh. Can we get those instead of refunds?
I totally feel your frustration! I'm in a similar situation - filed in January and got that dreaded 60-day review letter in March. It's now been way longer than 60 days and I'm still waiting too. The worst part is not knowing WHY they're reviewing it or what they need from me. From what I've learned lurking in forums like this, the IRS is massively backlogged and those 60-day letters are basically just buying them more time. Some people are waiting 6+ months even after getting that letter. It's absolutely ridiculous that we have to wait this long for our own money back! I've been checking the "Where's My Refund" tool obsessively but it just says the same thing every time. At this point I'm considering reaching out to my local congressman's office since I heard they can sometimes help expedite things when the IRS is being unresponsive for this long. Hang in there - hopefully we'll both get some answers soon! š¤
Ugh, I'm so sorry you're going through this too! It's crazy that we're all in the same boat waiting months and months for our own money. I filed in March and got my 60-day letter in May, so I'm right there with you. The lack of communication is the worst part - like, just tell us what the holdup is! I've been thinking about contacting my congressman's office too. Have you found any info on how to do that or what they can actually help with? At this point I'm willing to try anything. This whole system is just broken. Thanks for sharing your experience - it helps to know I'm not alone in this nightmare!
I'm dealing with the exact same thing! Filed in February, got that vague 60-day letter in April, and here we are months later with absolutely nothing. The silence is maddening - like you said, just tell us what's wrong! For contacting your congressman, you can usually find a "Help with Federal Agencies" section on their website where you can submit a case. They have staff specifically for dealing with IRS issues and can sometimes get answers when we can't. You'll need to provide your SSN, copies of your return, and that review letter. I actually just submitted a case with my rep's office last week after seeing so many people here say it helped. Fingers crossed it moves things along! We shouldn't have to jump through all these hoops just to get our own money back. This whole system is absolutely broken. š¤
I'm in almost the exact same situation! Filed in late January, had to verify identity in person at the IRS office in early March, and just got that same "delayed beyond normal timeframe" message with Tax Topic 152 this week. My transcripts are still completely blank too. Reading through all these comments is actually really helpful - sounds like we're both making progress even though it doesn't feel like it. The fact that multiple people are saying 1-3 weeks for transcript updates after this message gives me hope. I've been checking daily but I think I need to follow the advice here and just check weekly on Fridays. Thanks for posting this - it's reassuring to know I'm not the only one dealing with this frustrating situation. Hopefully we both see movement soon! š¤
I'm going through the exact same thing! Filed in early February, had to verify identity in person at the IRS office last month, and just got that same "delayed beyond normal timeframe" message with Tax Topic 152 yesterday. My transcripts are still completely blank too which has been driving me crazy. It's actually really reassuring to read all these responses - sounds like this is a normal part of the process after identity verification and that we should see transcript updates within the next few weeks. I've been obsessively checking every day but I think I need to take the advice here and just check weekly on Fridays. The waiting is so stressful when you're depending on that refund money, but it seems like once things start moving after this message, they move pretty quickly. Fingers crossed we both see some movement soon! Thanks for sharing your experience - it helps to know we're not alone in this.
Same here! I'm in week 2 since getting that message and checking transcripts every Friday morning like clockwork now. It's definitely less stressful than the daily obsessive checking I was doing before. One thing that's helped me is remembering that no news isn't necessarily bad news - it just means they're working through the backlog. The in-person verification seems to be the key that gets things moving eventually. Hang in there!
Carmen Sanchez
You can also pay at your local IRS office in person with a check or money order! Just look up "IRS Taxpayer Assistance Center" near you and make an appointment. I did this last year when I had similar online access issues and it was surprisingly easy. Bring your ID and they'll give you a receipt right there.
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Andre Dupont
ā¢Do you need an appointment or can you just walk in? The appointment system online shows nothing available for weeks!
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Carmen Sanchez
ā¢You definitely need an appointment - they won't let you in without one. If the online system shows nothing available, try calling the appointment line at 844-545-5640. Sometimes they have slots that aren't showing online. They also release new appointment times at midnight, so check right after midnight for next-day appointments that might open up. I had to do this and managed to get an appointment for the following week when the website showed nothing available.
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Zoe Papadakis
Does anyone know if paying late affects your future ability to e-file? I missed my estimated payment last year and had to mail my tax return this year because the e-file system kept rejecting me!
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ThunderBolt7
ā¢Late estimated payments shouldn't affect your ability to e-file. I've missed plenty of quarterly payments (oops) and still e-file every year. You probably had a rejection for a different reason - maybe a mismatch with your AGI from the previous year or something else in your return.
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