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Have you considered gifting the stock directly to your wife's business instead of selling it first? I'm not a tax pro, but I did something similar with my LLC. Might be worth looking into.
That's an interesting idea I hadn't thought of. Since her business is a sole proprietorship, would that even work? Wouldn't it still trigger a taxable event since it's essentially transferring to her personally?
You're right that with a sole proprietorship it gets tricky since there's no legal separation between the business and the owner. If you formed an LLC or S-Corp first, you might have more options, but that introduces other complexities. One option might be to explore using the stock as collateral for a business loan to purchase the property instead of selling it outright. This way you keep the stock, avoid the capital gains for now, and can deduct the interest payments. The downside is you'd have ongoing debt, but if the stock continues to appreciate, it might be worth it long-term.
Does anyone know how the new business expense rules might impact depreciating commercial property? I heard there were some changes this year and wondering if that affects this situation.
Commercial real estate is still depreciated over 39 years under straight-line depreciation. The recent changes mainly affected Section 179 expensing and bonus depreciation for personal property and qualified improvement property, not the building itself. For a sole proprietorship purchasing a commercial building, you'd still report the depreciation on Form 4562 and Schedule C. The property's purchase price (minus the value of the land, which can't be depreciated) determines your annual depreciation deduction.
One thing nobody mentioned - check if your bank info was entered correctly when you filed! My first time filing I accidentally transposed two digits in my account number and my refund got rejected. Took an extra 6 weeks to get a paper check instead. Triple check those bank details if you chose direct deposit!
Omg I didn't even think about that possibility! Just double-checked my return and thankfully the bank info looks right. Good looking out - that would've been such a headache to deal with!
Does anyone know if filing in different states affects refund timing? I worked in both Nevada and Idaho last year and had to file in both. My federal refund came quickly (11 days) but I'm still waiting on Idaho...
I've had multi-state returns for years and state refunds are wildly inconsistent. Some states are quick (like 5-7 days) while others can take 2+ months. Idaho is notoriously slow in my experience. They were still using paper processing for a lot of their internal systems last I checked.
FYI there are completely free ways to file if your situation is simple! I've used FreeTaxUSA for years and federal filing is $0. They charge like $15 for state filing but that's it. No hidden fees or upsells like the "free" turbotax garbage.
Thank you for this! Does FreeTaxUSA handle 1099 income too? I have a small side gig that I get a 1099 for and that's usually when TurboTax hits me with the "upgrade to premium" nonsense.
Yes, FreeTaxUSA handles 1099 income with no extra charge for the federal return. I have a side gig too and I enter multiple 1099s every year without any "premium upgrade" nonsense. That's one of the main reasons I switched from TurboTax years ago. They have a pretty straightforward interface for entering self-employment income and expenses. You'll still fill out a Schedule C just like with any other service, but they don't charge extra for it. The state return does cost about $15, but that's still way cheaper than most alternatives.
Everyone saying you need to file is technically right, BUT... if you're only owed $1, the IRS really isn't going to come looking for you. The 3-year window to claim refunds is real though, so keep that in mind. What's your income level? You might qualify for more tax credits than you realize. Especially if you're low or moderate income, there are credits like EITC that could potentially get you a much bigger refund.
Just a heads up - if your vehicle is over a certain weight (6,000 pounds gross vehicle weight), different rules apply. Some SUVs and trucks qualify for Section 179 expensing which could make a purchase more advantageous than a lease in certain situations. Something to consider if you're still deciding on your vehicle.
How do you find out the exact "gross vehicle weight" of your car? Is that in the manual or something? I have a Ford Explorer and wondering if I qualify.
You can find the gross vehicle weight rating (GVWR) on a sticker inside the driver's side door jamb. It's usually listed on a manufacturer's label there. For a Ford Explorer, it depends on the specific model and year - some of the larger models do exceed 6,000 pounds GVWR, but many don't. You can also check your owner's manual or contact your dealer with your VIN number. This weight is the manufacturer's designated total loaded weight capacity, not the vehicle's weight when empty, which is an important distinction.
Don't forget about the luxury auto limits for 2023! Even with actual expenses, the IRS caps depreciation for passenger vehicles. For cars first placed in service during 2023, the limits for passenger automobiles are $20,200 for the first year. This gets complicated with leases which is why they have the "lease inclusion amount" thing that someone mentioned.
GalaxyGlider
Double check your filing status on both software! Last year I had a huge discrepancy because I accidentally selected "Head of Household" on one software and "Single" on another. Since you have kids, make sure both are set to either "Head of Household" or "Married Filing Jointly" depending on your marital status. Also, verify that you entered your kids' Social Security numbers correctly in both systems and that you answered all questions about whether they lived with you full-time. The child tax credit has specific requirements that might be addressed differently in each software's interview process.
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Paolo Rizzo
β’Just checked and my filing status is the same on both (Head of Household), and I triple-checked the SSNs for my kids. They did live with me full-time last year. I'm starting to think there's something weird in how TurboTax is handling the child tax credit questions. Maybe I'll try re-entering that section from scratch. Has anyone else noticed TurboTax getting less user-friendly over the years? I feel like their interview process used to be clearer.
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GalaxyGlider
β’TurboTax definitely has become more confusing in recent years. Their interview process now seems designed to push you toward paid add-ons rather than clearly explaining tax situations. For the Child Tax Credit specifically, look for questions about your children's relationship to you, whether anyone else could claim them as dependents, and their residency. Sometimes these questions are tucked away in sub-menus or worded in confusing ways. If you're certain they qualify (under 17, lived with you over half the year, you provide over half their support), then FreeTaxUSA is likely calculating correctly.
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Malik Robinson
Has anyone compared the actual tax forms between the two software? I'd look specifically at: 1. Form 1040 Line 12 (Child Tax Credit) 2. Form 1040 Line 28 (Additional Child Tax Credit) 3. Schedule 8812 (Credits for Qualifying Children and Other Dependents) Seeing exactly where the numbers differ would immediately tell you what's causing the discrepancy. From what you described, I'm 99% sure it's the Child Tax Credit, but there could be other smaller differences too.
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Paolo Rizzo
β’That's a great suggestion, thank you! I just downloaded the PDF of both returns and compared those specific lines. You were right - TurboTax shows $0 on Line 12 and Line 28, while FreeTaxUSA shows $1,400 on Line 12 and $600 on Line 28. Schedule 8812 is completely different between the two returns. Looks like I need to figure out why TurboTax isn't calculating my Child Tax Credit at all. Going to go back through all the dependent questions tonight!
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