I logged into my account and there's nothing about an outstanding balance or pending charges. Just looks normal. I've checked all email folders including spam - absolutely nothing from them requesting payment. My contact info is all current too. It's just weird that they haven't made any attempt to collect.

That's definitely unusual. Their automated system should have flagged your account by now. Most likely explanations: There's a glitch in their system that failed to flag your account as unpaid. This happens sometimes when the IRS changes delivery method without proper notification codes to the software company. The best ethical approach would be to contact them, but realistically, if you don't, there are two possible outcomes: either they'll eventually discover the error and bill you (could be weeks or even months), or it falls through the cracks permanently. I've seen both happen.

Do tax prep companies really send unpaid fees to collections? Seems excessive for what, like a $100 charge?

That's the kind of thing I'm worried about! I don't mind paying what I owe, but it's weird they haven't contacted me at all. Maybe I should just call them before it gets worse. Thanks for sharing what happened to your friend - definitely don't want collections involvement.

That's really helpful! I have done some work on the property - replaced the roof and updated the electrical. Would those count? And do I need any special documentation beyond the receipts?

Yes, a new roof and electrical updates definitely count as capital improvements that can be added to your basis! Keep all receipts, contracts, and if possible, before and after photos of the work done. For substantial improvements like these, it's also good to have the contractor invoices that detail the work performed, not just the payment receipts. The IRS wants to see that these were actual improvements that extended the life or value of the property, not just repairs or maintenance.

This is actually pretty risky advice. Seller financing means you don't get all your cash upfront, which defeats the OPs purpose of paying off debt and buying another house. Plus you take on the risk of buyer default. There are better ways to manage the tax situation.

This is a really good point! In Texas they wanted an actual signed affidavit from the doctor instead of just a letter, and my friend almost got her state return rejected because of this difference.

I actually tried that initially! The company said they don't report these credits anywhere because they consider them "promotional incentives" rather than compensation. They told me it was my responsibility to determine the value and report it correctly. That's exactly why I'm so confused about how to handle it.

That's definitely making things more complicated then. In that case, I would document everything carefully - when credits were earned, their approximate cash value, and how you calculated that value. The fact that the company calls them "promotional incentives" doesn't change your tax obligations, but it does make record-keeping more important. If you're self-employed, these would still be business income on Schedule C. Consider consulting with a tax professional who specializes in self-employment or sales compensation structures to ensure you're covered.

This is actually really good advice. If you're tracking the credits as income when earned, then using them for legitimate business expenses later, you should be able to deduct those expenses when incurred. Just make sure you're not double-counting!

17 Is that also true if you're leasing the car? My tax software is asking for all this info but I don't own my vehicle.

3 For leased vehicles, it works differently. You generally can't claim depreciation or Section 179 on a leased vehicle because you don't own it. Instead, you can deduct the business portion of your lease payments as a business expense. You still need to track your business vs. personal use percentage, but you'll apply that percentage to your lease payments rather than calculating depreciation. The "date placed in service" would still be when you first started using the leased vehicle for business purposes, but it's used differently in your tax calculations.

2 I use Stride. It's free and automatically tracks your miles while you drive. You can categorize trips as business or personal, and it calculates your potential tax deduction based on the current IRS mileage rate. It also lets you track other expenses like car washes, phone bills, etc. Been using it for 2 years now and it makes tax time way easier.