Thanks for bringing up these points! Do you know if the EV credit recapture applies even if I took Section 179 instead of regular depreciation? And does the business/personal split affect the EV credit recapture calculation?

The EV credit recapture is separate from the Section 179 recapture, so yes, it still applies even if you took Section 179 instead of regular depreciation. The IRS treats these as completely separate tax benefits. The business/personal split doesn't directly affect the EV credit recapture calculation. The EV credit recapture is simply based on the full original credit amount and how long you owned the vehicle. So if you received a $7,500 credit and sell after 24 months, you'd recapture $7,500 × (36-24)/36 = $2,500, regardless of business use percentage.

I used FreeTaxUSA last year for a similar situation and it worked fine. You need to make sure you're using Form 4797 correctly - Part III is for the recapture. The key is getting your adjusted basis right first, then the rest falls into place.

Thanks for mentioning this! Do you know how long it typically takes for paper checks to arrive after the IRS approves the refund? Also, is there any way to check if they're sending it as a check vs direct deposit?

Paper checks typically take about 1-2 weeks to arrive after the IRS approves the refund, so you're looking at potentially 6-10 weeks total from filing if they go this route. You can check whether they're sending a direct deposit or paper check by using the "Where's My Refund" tool on the IRS website. Once your return is approved, it should tell you which method they're using for your refund. If it shows they're mailing a check when you requested direct deposit, it's usually because of their security protocols for older returns or when there's a long gap between filing seasons.

Amended returns unfortunately take much longer to process than original returns, even when filed electronically. The current processing time for amended returns (Form 1040-X) is running about 20+ weeks according to the IRS.

Thanks for the info! 20 weeks is a long time to wait. I'm guessing it's even worse since I filed right on the deadline day when they're probably overwhelmed with submissions. Wish I had realized those missed deductions sooner.

This is actually incorrect information. Traveling from your home to ANY client is considered commuting by the IRS and isn't deductible - even if you have a home office. The only exception is if your home office is your principal place of business AND you're traveling to a temporary work location.

Thanks for the reference! I'll definitely check out Publication 463. I'm trying to understand all the rules before I file my 2025 taxes and want to make sure I'm claiming everything I'm legitimately entitled to without raising any red flags.

That's interesting - I hadn't considered the adoption angle. We've actually talked about it before for family reasons, but I didn't realize it would also have this tax benefit. Do you happen to know how complicated the adoption process is for a stepchild? I'm guessing it's simpler than other adoptions.

Stepchild adoption is generally much simpler than adopting a non-related child. The biggest hurdle is usually getting consent from the other biological parent, if they're still in the picture and have parental rights. In my case, the biological father had been out of the picture for years, so it was fairly straightforward. The process typically involves a home study, filing adoption papers with the court, and a hearing. Costs vary by state but are often lower for stepparent adoptions - ours was about $1,500 total including attorney fees.

That's actually not a great solution for this specific issue. Even with an S-Corp structure, payments to shareholders that are related to services performed are still considered wages subject to employment taxes. The IRS is pretty strict about ensuring reasonable compensation is paid for work performed. Additionally, there are restrictions on how S-Corp stock can be issued, especially to minors, and the administrative burden of maintaining an S-Corp is significant. For most small businesses, the cost and complexity of setting up and maintaining an S-Corp just to try to work around this rule would far outweigh any potential tax benefits.

Good point about state variations! Do you know if there's a good resource that lists how each state handles clergy housing allowances? I've looked around but haven't found a comprehensive guide.

I don't know of a single comprehensive guide for all states. Your best bet is to check with your specific state's department of revenue or taxation. Most have publications or sections of their tax guides dedicated to clergy income. For the most complex states, denominational offices often provide state-specific guidance for their ministers. The Church Law & Tax organization also has some good state-by-state resources, though you might need a subscription to access the detailed information.

Is there actually any real chance of this benefit going away? My pastor client is planning his finances around this exclusion for years to come. Should I be warning him that this might not be something he can count on long-term?