That's fascinating! Do you need an engineering background to be credible in cost segregation, or can an accounting major learn enough to be valuable in that specific area?

You absolutely don't need an engineering background! While engineers are often involved in cost segregation studies, accountants play a crucial role in translating the physical components into tax classifications and depreciation calculations. What helped me was taking a specialized course through ASCSP (American Society of Cost Segregation Professionals) during my final semester. I combined that with reading every IRS ruling on the topic and creating sample studies for hypothetical properties. In interviews, I brought a portfolio showing how I would approach different property types. That practical demonstration of skills is what convinced the firm to place me directly in their real estate tax group instead of the general tax pool.

I'm at PwC in their real estate practice. Yes, you'll do grunt work, but it's ALL real estate-focused grunt work. Huge difference in learning curve compared to my friends doing general tax. After 2 years, I'm already sitting in on advisory meetings because I've seen so many different real estate structures.

Do you think you would have been audited if you'd used a local preparer from the start? I've heard the IRS is less likely to audit returns done by professionals.

I don't think using a local preparer would have prevented the audit because it was triggered by a specific issue with a 1099-K from my side gig that didn't match what I reported. The preparer told me these "document matching" audits happen regardless of who prepares the return. What would have been different is catching the error before filing. The software didn't flag the discrepancy, but a human preparer likely would have questioned me about it during the preparation process. So while it wouldn't have prevented the audit trigger, it might have prevented the error that caused it.

This is absolutely true. I worked at a tax prep chain in college and was disgusted by how we targeted low-income people with "instant refunds" that were just high-interest loans. The fees would eat up a significant portion of their refund, but they needed money immediately and couldn't wait for the IRS processing time.

What about vehicle advertising? I have my business logo and info on my vehicle. Is that deductible separately or is it considered part of the vehicle expense?

Vehicle advertising is absolutely deductible as a separate marketing expense, not as part of your vehicle costs. This includes permanent signage, vehicle wraps, magnetic signs, or even custom paint jobs with your business info. Save all receipts from the sign company or wrap installer. This is a great strategy because these advertising costs are separate from your vehicle deduction method. So even if you choose the standard mileage rate (which bundles most vehicle expenses together), you can still deduct the advertising separately as a marketing expense.

What mileage tracking app do you recommend? I've tried a couple but they drain my battery or forget to track sometimes.

Do you track miles driving to your first pickup? I heard different things about whether that's deductible or not.

Yes, I do track miles to my first pickup, but there's some nuance here. If you're driving from home directly to your first delivery pickup, the IRS technically considers that a non-deductible commute. However, if you first drive to a "regular place of business" (like a specific area where you regularly start deliveries) and then to your first pickup, those miles can be deductible. The key is consistency and documentation. I have a designated "staging area" where I officially start work, which allows me to deduct more miles. Many tax professionals have different interpretations of this rule for gig workers, so it's something to discuss with a tax pro familiar with independent contractor rules.

I used it last year and it was OK but not great. It asks good questions about deductions but I still felt like I might be missing things. This year I'm trying FreeTaxUSA which is cheaper and handles self-employment pretty well from what I've heard.

Oh wow I had no idea about this! I definitely had over $10k in my Korean bank accounts... is there a deadline for this form too? Is it the same as the regular tax deadline?

The FBAR deadline is technically April 15th (same as tax day), but there's an automatic extension to October 15th - you don't need to request it. File it as soon as you can though! It's filed electronically through the FinCEN BSA e-filing system, not with your tax return to the IRS. I'd also check if you need to file Form 8938 (Statement of Foreign Financial Assets) with your tax return if your foreign accounts exceeded certain thresholds. The requirements are different than FBAR and it goes with your tax return, not separately.

I think the 2024 FEIE amount is actually $126,500, but your point still stands! Also, make sure you file Form 2555 to claim it.