So does this mean I definitely have to file an amended return? I'm still waiting on my refund to come through and I'm worried this is going to create a huge mess.

Yes, you'll need to file an amended return since you claimed a deduction you weren't eligible for. Form 1040-X is what you'll need to submit. The sooner you do this, the better, as penalties and interest can accrue on any additional tax you end up owing. I would recommend not waiting for your original refund to come through before filing the amendment. The IRS is experiencing significant delays this year, and the longer you wait, the more complicated it could become. If your original refund does arrive, you'll likely need to return some portion of it when your amended return is processed.

This is good advice. I work at a financial institution, and while the April 15 deadline is generally firm, there are occasionally extenuating circumstances or specific situations where other options might be available. It's always worth asking.

1 But if the money is going directly to my US account, would I still need to file an FBAR? I won't actually have a foreign account at all in this transaction - the buyer is wiring the money directly to my account in America.

23 You're right that if the money goes directly to your US account and you never have it in a foreign account, you wouldn't trigger FBAR requirements based on this specific transaction. However, be careful about any other foreign accounts you might have, even temporarily. For example, if you have a foreign account set up to handle any aspect of the sale closing, or if there's an escrow account in the foreign country that you have signature authority over, even briefly, that could potentially trigger FBAR requirements if the amount exceeds $10,000.

16 You might have missed something. Even without a tax treaty, you can usually claim a Foreign Tax Credit on Form 1116 for taxes paid to foreign governments on the same income. Did your tax preparer look into this? It doesn't eliminate all double taxation but should have reduced your US tax liability.

Can you explain more about this accountable plan thing? I've never heard of it but sounds like it might be useful for my situation. My LLC is taxed as an S-corp already.

An accountable plan is an arrangement that allows your business to reimburse you for business expenses without those reimbursements being counted as taxable income to you. For it to qualify, you need three key elements: a business connection for the expense, adequate accounting within a reasonable time period, and returning excess reimbursements. For vehicles specifically, you can set up a plan where your S-Corp reimburses you at the standard IRS mileage rate for documented business miles. This creates a deductible business expense for the company while providing you tax-free reimbursement. It's often more advantageous than trying to deduct lease payments directly, especially for mixed-use vehicles.

Thats what i do! way easier and no headaches about mixed use. I just keep track of business miles in an app and bill my LLC monthly. My accountant said its the cleanest way to do it for a small business owner.

Do you know if homeowner's insurance premiums are ever tax deductible? I think I prepaid 14 months at closing and wondering if any of that is deductible anywhere.

Unfortunately, homeowner's insurance premiums aren't tax deductible for personal residences. They're considered a personal expense rather than a deductible housing expense. The only exception would be if you use part of your home for business - then you might be able to deduct the business portion of your insurance. However, if you paid for mortgage insurance premiums (different from homeowner's insurance), those might be deductible depending on your income level and when you got your mortgage. The rules change frequently on mortgage insurance deductibility, so that's worth looking into for your specific situation.

In my experience, most lenders only issue a 1098 if the total interest for the year exceeds $600. If you closed in late December, the few days of interest probably didn't hit that threshold, so they might have just included it in next year's form. You can still deduct it in the correct year though, even without a separate 1098.

This is really important! When I refinanced from 4.5% to 2.75% during the pandemic, my interest payments dropped significantly. Great for monthly cash flow, but suddenly my itemized deductions fell below the standard deduction threshold. Worth checking if this applies to OP's situation.