My credit union actually has a feature in their app that shows pending direct deposits like 3 days before they post! I saw my tax refund in there before the IRS even updated their status. Maybe check if your bank has something similar?

That's a great point about credit unions and smaller banks - they often show pending transactions earlier than the big banks. Some of the major banks have started adding this feature too. Chase and Bank of America both now show pending direct deposits a few days early in their mobile apps. If your bank doesn't have this feature, another trick is to call their customer service department directly. The representatives often have access to pending ACH information that isn't visible in the online banking portal yet.

IRS2Go shows exactly the same info as the website. I had both and they updated simultaneously. Neither one tells you the actual deposit date until it's basically already happening, which is super annoying.

That's a really good point I hadn't even thought about. I'm in Tennessee - do you happen to know if they have any specific rules about business asset sales that differ from federal?

Tennessee is actually one of the better states for this since they don't have a standard income tax. However, they do have the Hall Income Tax which could apply to certain parts of your sale, though it's being phased out. I'd still recommend checking with a Tennessee tax specialist. Even states without income tax sometimes have surprising ways of taxing business sales through other mechanisms. Better to know ahead of time than find out next April!

I did an installment sale for my auto repair shop in 2023. It definitely helped spread the tax burden across multiple years, which kept me from jumping into a much higher bracket. The downside is you're taking on risk if the buyer defaults. Make sure you have rock-solid security agreements in place!

Do you think its worth paying for a year-round tax person or just someone during tax season? My business is pretty small (only made about $12k last year on the side).

Even with a smaller side business, having access to your tax preparer throughout the year can be very valuable. You don't need someone on retainer, but you want someone who'll answer a quick email or call about estimated tax payments or potential deductions. For a business generating $12k, I'd recommend finding a preparer who offers a package deal rather than hourly billing. Many offer a single annual fee that includes your tax preparation plus reasonable access during the year for questions. This way you're not hesitating to ask important questions because you're worried about getting billed for every email.

Any tips on finding a good tax professional? I've heard horror stories about people who paid a lot but got terrible advice.

I didn't even think about losing the student loan interest deduction! Do you know how much that could impact our tax situation? We were deducting about $1,400 in student loan interest last year.

Based on the amount you were deducting, you could see an increase in your tax bill of around $308-$350 depending on your tax bracket (assuming the $1,400 deduction you mentioned). This is because the deduction reduces your taxable income - when you lose it, that amount becomes taxable again. It's still probably worth doing the family loan if the interest rate your parents are charging is lower than the original student loans. Just make sure to factor this change into your tax planning for next year so you're not surprised at tax time.

That's not always true though. The AFR rates are tiered based on loan term. For a short-term family loan (under 3 years), the AFR might be around 1.5-2% right now. For medium-term (3-9 years) slightly higher. Long-term loans have the highest rates. So they could still charge a pretty reasonable interest rate and be IRS compliant.

Does this math change if I'm leasing my car instead of owning it? I heard you can't claim depreciation on a leased vehicle but you can still use standard mileage?

With a leased vehicle, you can still use either method, but there are some differences to consider. If you use the standard mileage rate, you can claim the full rate for all business miles, which is simple and usually favorable. The standard rate already factors in an average amount for depreciation, so it doesn't matter that you don't technically own the car. If you choose actual expenses, you'd include your lease payments rather than depreciation. However, if your lease has a high monthly payment, you might need to apply what's called the "lease inclusion amount" which actually reduces your deduction for expensive vehicles (the IRS doesn't want people deducting high-end luxury car leases). In most cases with leased vehicles, standard mileage still works out better and involves less paperwork. Just be aware that once you choose standard mileage for a leased car, you must continue using that method for the entire lease period.

Wait seriously? I switched methods last year and my tax software didn't flag this at all. Is this something that would trigger an audit?