1 Thanks for bringing this up - I think I have my business license sorted but I'm not sure about specialty permits for tobacco/vape products. Who would I even contact to make sure I have everything covered? The city? County? State? It's so confusing trying to figure out which government entity handles what.

8 Look for someone who has specific experience with retail businesses, particularly those dealing with specialized inventory like yours. Ask potential tax pros what percentage of their clients are small retail businesses, and how familiar they are with your state's specific sales tax requirements for your products. A good tax professional should be asking YOU lots of questions about your business operations, not just quoting you a price. They should inquire about your inventory methods, point-of-sale system, how you track expenses, etc. If they don't ask these types of questions, they're probably not specialized enough for your needs. The cheapest option is rarely the best for specialized businesses. That said, the most expensive isn't automatically the best either. Focus on finding someone with relevant experience rather than making decisions based purely on price.

Thanks for the clear explanation. I definitely don't want to do anything that would trigger an audit. Do you know if these carried forward losses have any time limit? Like if I keep the property for another 10 years, can I still use these losses when I eventually sell?

There is no time limit on carried forward passive losses. You can continue to carry them forward indefinitely until you either have passive income to offset them against or until you dispose of the property in a taxable transaction. When you eventually sell the property, you'll be able to use all accumulated passive losses against any type of income (not just passive income). This is one of the benefits of holding real estate long-term - those suspended losses can create a nice tax break when you ultimately sell the property, even if it's 10, 20, or more years down the road.

How do you tell the difference between a repair and an improvement? I replaced my water heater last year and wasn't sure how to classify it.

Thanks for bringing up the cost basis point! Do you know if I need to track each batch of dividend shares separately for when I eventually sell? Like if I get quarterly stock dividends, do I need to track 4 different lots with different cost bases?

Yes, you should definitely track each distribution as a separate lot with its own cost basis and acquisition date. This becomes important when you sell, as you'll want to identify which specific shares you're selling to optimize your tax situation. Most brokers these days track this automatically in their systems, but it's good practice to keep your own records as well. I use a simple spreadsheet with distribution dates, number of shares, price per share on that date, and total value. It takes a little effort, but it makes tax time much easier, especially if you hold these investments for many years.

My broker does the same thing. I round to 3 decimal places for my records and it hasn't been an issue. The IRS isn't going to come after you for rounding $50.175 to $50.18 on your taxes. Just make sure your total dividend income for the year is reasonably accurate.

Thank you for this advice. We made an appointment with a tax preparer for tomorrow to get last year's return filed properly. Do you know if we should wait to contact the IRS until after we've filed that missing return, or should we call them now to try to put a hold on the CP504?

I would contact the IRS immediately about the CP504, even before the tax return is completed. Let them know you're actively working on filing the missing return and have an appointment scheduled. Request a temporary hold on collection activities while you get everything in order. When you call, be prepared with your boyfriend's financial information because they might ask about his current income and expenses to determine what kind of payment arrangement is appropriate. The missing return is important, but addressing the immediate levy threat should be your first priority.

How much did they take from his paycheck? Is it like a fixed amount or a percentage?

Thanks for mentioning this! I'm not claiming either of those credits, just getting back over-withheld taxes from my bonuses. So hopefully I won't be affected by those delays.

You should be fine then! Since you're just dealing with over-withholding on bonuses and not claiming those particular credits, your refund should follow the standard timeline. Just make sure to file electronically with direct deposit selected for the fastest processing.

Is there actually any evidence for this or is it just something you've noticed personally? I've never heard the IRS say anything about processing returns differently based on the day of the week.