Can't reach IRS? Claimyr connects you to a live IRS agent in minutes.
Claimyr is a pay-as-you-go service. We do not charge a recurring subscription.
Using Claimyr will:
- Connect you to a human agent at the IRS
- Skip the long phone menu
- Call the correct department
- Redial until on hold
- Forward a call to your phone with reduced hold time
- Give you free callbacks if the IRS drops your call
If I could give 10 stars I would
If I could give 10 stars I would If I could give 10 stars I would Such an amazing service so needed during the times when EDD almost never picks up Claimyr gets me on the phone with EDD every time without fail faster. A much needed service without Claimyr I would have never received the payment I needed to support me during my postpartum recovery. Thank you so much Claimyr!
Really made a difference
Really made a difference, save me time and energy from going to a local office for making the call.
Worth not wasting your time calling for hours.
Was a bit nervous or untrusting at first, but my calls went thru. First time the wait was a bit long but their customer chat line on their page was helpful and put me at ease that I would receive my call. Today my call dropped because of EDD and Claimyr heard my concern on the same chat and another call was made within the hour.
An incredibly helpful service
An incredibly helpful service! Got me connected to a CA EDD agent without major hassle (outside of EDD's agents dropping calls – which Claimyr has free protection for). If you need to file a new claim and can't do it online, pay the $ to Claimyr to get the process started. Absolutely worth it!
Consistent,frustration free, quality Service.
Used this service a couple times now. Before I'd call 200 times in less than a weak frustrated as can be. But using claimyr with a couple hours of waiting i was on the line with an representative or on hold. Dropped a couple times but each reconnected not long after and was mission accomplished, thanks to Claimyr.
IT WORKS!! Not a scam!
I tried for weeks to get thru to EDD PFL program with no luck. I gave this a try thinking it may be a scam. OMG! It worked and They got thru within an hour and my claim is going to finally get paid!! I upgraded to the $60 call. Best $60 spent!
Ask the community...
- DO post questions about your issues.
- DO answer questions and support each other.
- DO post tips & tricks to help folks.
- DO NOT post call problems here - there is a support tab at the top for that :)
Join the conversation
Join the conversation
As someone who's been through multiple IRS audits for my mobile business (not by choice!), I can confirm that tracking mileage from home to clients is absolutely legitimate for pet sitting businesses. The auditors actually complimented my documentation system because I had clear records showing each trip was for a specific client appointment. What really sealed it for me was when the auditor explained that since pet sitting can ONLY be performed at the client's location (you can't bring someone's cat to your house for sitting!), every trip from your home base to provide services is considered business travel, not commuting. Here's what I learned saves time and headaches: create a simple spreadsheet with columns for date, client name, starting odometer, ending odometer, total miles, and purpose. For repeat clients, I calculate the round-trip distance once and just reference it. Takes maybe 2 minutes per day to maintain. The fact that you're asking these questions and tracking everything from the start puts you way ahead of most new business owners. Your CPA will definitely confirm what everyone here is telling you, but you can feel confident moving forward with those deductions. The mileage savings alone will probably be one of your biggest tax benefits! Don't let the complexity scare you - mobile service businesses like ours are supposed to have high mileage. It's the nature of what we do.
This is incredibly helpful to hear from someone who's actually been through audits! Your experience really puts things in perspective - if the IRS auditors themselves confirmed that home-to-client mileage is legitimate for mobile pet services, that gives me so much confidence. Your spreadsheet system sounds perfect and way more manageable than some of the complex tracking methods I've seen suggested. I love the idea of calculating round-trip distances once for regular clients - that'll save so much time since I have several weekly recurring appointments. It's funny that you mention pet sitting can only be performed at the client's location - that's such an obvious point but really drives home why our situation is different from traditional businesses. You can't exactly ask someone to drop off their anxious rescue dog at your living room for a week! Thank you for sharing your audit experience. As a new business owner, hearing that proper documentation actually impressed the auditors makes me feel like I'm on the right path. I'm definitely going to set up that spreadsheet system you described right away.
I've been running a mobile house cleaning business for 4 years and went through this exact same confusion when I started! The key thing that helped me understand it was realizing that for mobile service businesses, we don't have a choice about where we work - we HAVE to go to the client's location to provide our services. Your situation is textbook legitimate business mileage. Since pet sitting can only happen at the pet's home, every trip you make from your house to a client is a business trip, regardless of whether you have a formal home office deduction or not. These are completely separate tax issues. I track every mile from home to clients, even on single-appointment days, and it usually ends up being one of my largest deductions each year. The IRS actually expects mobile service providers to have high mileage - it's normal for our industry. Your record-keeping approach sounds solid. Just make sure you're noting the date, client, starting/ending odometer readings, and total business miles for each trip. For clients you visit regularly, you can calculate the round-trip distance once and then just multiply by the number of visits to save time. Don't stress about this - you're doing everything right! Your CPA will confirm what everyone here is telling you, but you can move forward confidently with claiming those deductions. The mileage savings will probably be a huge help with your tax bill, especially in your first year getting established.
This thread has been so helpful! As someone who's literally just starting out with my pet sitting business (got my first few clients last month), I was completely overwhelmed by all the tax stuff I need to figure out. Reading everyone's experiences, especially those who've been through audits and had their deductions confirmed, makes me feel like I can actually do this without messing up. I love how you put it - we don't have a choice about where we work since pets can't come to us! That really clarifies why our mileage situation is different from regular office workers. I'm going to start that simple spreadsheet tracking system right away. One quick question - when you calculate round-trip distance for regular clients, do you include the drive home in your business mileage, or just the drive to the client? I have a few weekly clients now and want to make sure I'm tracking everything correctly from the beginning. Thanks for sharing your experience - it's so reassuring to hear from established mobile business owners who've successfully navigated all this!
Yes, you absolutely include the drive home in your business mileage! The entire round trip (home to client and back home) counts as business miles since you're traveling to provide a service and then returning to your business base. Think of it this way - if you were an employee driving to a temporary work site, your employer would reimburse you for the full round trip, not just one way. Same principle applies here since you're self-employed. For your weekly regular clients, just measure the total round-trip distance once (using Google Maps or your odometer), then multiply by how many times you visit them. So if Mrs. Smith is 8 miles round-trip and you visit twice a week, that's 16 miles per week or about 832 miles per year just for that one client! The key is that your home is your business headquarters where you do scheduling, billing, and admin work, so any travel from there to provide services is legitimate business mileage. You're off to a great start by tracking everything from day one - that's going to make your taxes so much easier! Welcome to the mobile business world - it's challenging but the mileage deduction really helps offset our travel costs!
Join the conversation
For handling multiple ESPP lots in FreeTaxUSA, I'd recommend creating a spreadsheet first to organize all your transactions before entering them. Include columns for purchase date, sale date, shares sold, sale proceeds, what you actually paid per share, FMV on purchase date, and the discount amount. This makes it much easier to verify that each lot's cost basis is correct (FMV on purchase date, which equals what you paid + discount). You can also double-check that the total discount amounts match what's included in your W-2. Once you have everything organized, the manual entry in FreeTaxUSA goes much faster. I learned this the hard way after making errors trying to enter everything directly from my 1099-B and employer statements. The spreadsheet also serves as good documentation in case the IRS ever questions your reporting. For 8 lots, it's definitely manageable to enter manually. The import feature really doesn't work well for ESPP situations where basis adjustments are needed.
This spreadsheet approach is brilliant! I wish I had thought of this before diving into FreeTaxUSA. I made so many mistakes trying to calculate everything on the fly. One thing I'd add - also include a column for the adjustment amount you'll need to enter on Form 8949. That way you can see at a glance how much you're adjusting the basis by for each lot. Also helps you spot any outliers that might need double-checking before filing.
I've been through this exact situation with ESPP disqualifying dispositions in FreeTaxUSA, and I want to emphasize something that helped me avoid a major mistake: always verify that your broker correctly reported whether the shares were "covered" or "non-covered" on your 1099-B. For ESPP shares, many brokers mark them as "covered" securities, which means they're supposed to calculate the correct cost basis. However, most brokers don't have access to your employer's ESPP discount information, so their cost basis calculation is often wrong for tax purposes. In FreeTaxUSA, when you see that discrepancy between what the 1099-B shows and what your actual basis should be (purchase price + discount already taxed), make sure you're using the correct adjustment codes. For ESPP situations where the broker didn't account for the discount, you typically want to use code "B" on Form 8949 with a description like "Basis adjustment - ESPP discount included in wages." Also, keep excellent records. The IRS may not question it immediately, but if they ever do review your return, having your employer's supplemental tax statements and your calculations clearly documented will save you a lot of headaches.
Join the conversation
One thing that might help clarify the calculation is to think about it this way: out of your $26,800 current portfolio value, your original investment (cost basis) is $13,500, so your total unrealized gain is $13,300. When you sell $6,700 worth of stock, you're selling about 25% of your holdings ($6,700 ÷ $26,800). If you use the average cost method, roughly 25% of your cost basis ($13,500 × 0.25 = $3,375) would be considered the "cost" portion of your $6,700 sale, and the remaining $3,325 would be your taxable capital gain. However, the specific method your broker uses matters a lot! I'd recommend calling them before you sell to ask which method they use by default and whether you have options to choose. Since you've been investing for over a decade, you'll likely qualify for long-term capital gains rates on most of your shares, which is much more favorable than short-term rates. Your broker should handle all the calculations and provide the details on your 1099-B, but understanding the basics helps you make better decisions about which shares to sell!
This breakdown is super helpful! I never thought about looking at it as a percentage of my total holdings - that makes the math much clearer. So if I'm understanding correctly, when I sell $6,700 worth, I'm not paying tax on the full $6,700, just on the gain portion (which would be around $3,325 in your example). One follow-up question: you mentioned calling the broker to ask about their default method - is this something I need to do before every sale, or once I choose a method, does it stay consistent? I'm planning to do more partial sales over the next few years for various expenses, so I want to make sure I understand how this works going forward.
Exactly right - you only pay tax on the gain portion! Most brokerages will let you set a default method that applies to all future sales of that security, so you typically don't need to specify it every time. However, it's worth noting that once you choose a method for a particular stock, the IRS requires you to be consistent with that choice going forward. Some brokerages are more flexible than others though. For example, Fidelity and Schwab allow you to choose "specific identification" as your default, which gives you the most control - you can pick exactly which lots to sell each time based on your current tax situation. Other brokers might default to FIFO and require you to actively change it for each trade. I'd recommend setting this up before your first sale since it affects all future transactions. Most platforms have this setting under "Account Preferences" or "Tax Settings." This way you'll have maximum flexibility for your future partial sales without having to think about it each time!
Just wanted to add something that helped me tremendously when I was in a similar situation - make sure to check if your brokerage offers tax-loss harvesting opportunities when you're selling. Sometimes you might have other positions that are currently at a loss that you could sell simultaneously to offset some of your capital gains. For example, if you're going to realize a $3,000 gain from selling your profitable stocks for the home repairs, but you have another stock that's currently down $1,500, you could sell both and only pay taxes on the net $1,500 gain. Just be careful about the wash sale rule - you can't buy back the same security within 30 days or the loss won't count. This strategy can significantly reduce your tax burden, especially if you have a diversified portfolio with some winners and losers. Your brokerage might even have tools to help identify these opportunities automatically. Worth exploring before you make your sale!
This is excellent advice about tax-loss harvesting! I'm relatively new to investing and hadn't heard of this strategy before. When you mention that brokerages might have tools to help identify these opportunities automatically, do most major platforms like Vanguard or E*TRADE offer this feature? And is there a minimum loss amount that makes this worthwhile, or is it beneficial even for smaller amounts? I'm wondering if this is something I should be thinking about proactively throughout the year, not just when I need to make a sale like the original poster.
Join the conversation
Watch out for state tax implications! The federal insolvency exclusion doesn't automatically apply to state taxes. I learned this the hard way last year when I excluded $18k from my federal return using Form 982, but my state still counted it as income! Had to file an amended state return with additional documentation. Some states follow the federal treatment, but others have their own rules for canceled debt.
Good point about state taxes! Which state were you in that didn't follow the federal rules? I'm in California and wondering if I'll have the same problem.
I was in Pennsylvania, which doesn't conform to the federal insolvency exclusion. California generally follows federal tax treatment for canceled debt exclusions, so you should be okay there. But definitely double-check with your state's tax authority or a local tax professional to be sure. Each state handles this differently - some automatically follow the federal exclusion, others require separate state forms, and a few don't recognize it at all.
One thing to be very careful about is the order of operations when you have multiple exclusions that might apply. If you qualify for both the insolvency exclusion AND the deductible debt exclusion under IRC 108(e)(2), you generally want to apply the deductible debt exclusion first since it doesn't reduce your tax attributes (like basis in assets or NOL carryforwards). The insolvency exclusion comes with attribute reduction requirements that can affect future tax benefits. So if part of your $15,600 was business debt that would have been deductible, calculate that exclusion first on Form 982, then apply insolvency to any remaining amount. Also, keep detailed records of your insolvency calculation worksheet. Even if you don't get audited, having everything documented will save you headaches if the IRS has questions years later. I recommend creating a file with all your asset valuations, debt statements, and the exact date each debt was canceled.
This is really helpful advice about the order of exclusions! I'm new to this whole canceled debt situation and hadn't realized there could be multiple exclusions that apply. When you mention "attribute reduction requirements" for the insolvency exclusion, what exactly does that mean? Does it affect things like my ability to deduct losses in future years? Also, do I need to file any additional forms besides Form 982 to document the deductible debt exclusion, or is it all handled on that same form?
Dylan Mitchell
Great question about farm building tax write-offs! Since you're replacing an old structure with a new one dedicated 100% to business use, you're in a good position tax-wise. For the demolition costs, these typically get added to your land basis rather than being immediately deductible. However, the construction costs for your new butchering facility can be depreciated over 20 years as farm property, or you might qualify for bonus depreciation (80% in 2025) or Section 179 expensing for immediate deduction. One thing to watch out for - if you've been depreciating the old barn, you'll likely face depreciation recapture when you demolish it. This means you'll owe taxes on the depreciation you previously claimed. Plan for this so it doesn't surprise you at tax time. Make sure to separate different components of your project. Specialized butchering equipment, processing tables, and refrigeration systems might qualify as 7-year property with faster depreciation than the building structure itself. Also check if your state offers agricultural exemptions on construction materials - could save you significant sales tax. Keep detailed records of everything and consider consulting with a tax professional who specializes in agricultural operations before you start construction.
0 coins
Chad Winthrope
•This is really helpful! I hadn't thought about the depreciation recapture issue with the old barn. Since our barn is pretty old (built in the 1970s), we've probably taken quite a bit of depreciation over the years. Do you know if there's a way to estimate what the recapture amount might be before we start the project? I'd rather know now so I can plan for the tax hit rather than get surprised next April. Also, when you mention separating different components - would something like concrete flooring with special drains for the butchering operation count as part of the building or as specialized equipment? The drainage system alone is going to cost about $15,000 and it's very specific to poultry processing.
0 coins
Fiona Gallagher
•Great questions! For estimating depreciation recapture, you'll need to look at your tax records to see how much depreciation you've claimed on the old barn since you started using it for business purposes. The recapture amount is generally the lesser of: (1) the total depreciation you've claimed, or (2) the gain on disposal. Since you're demolishing rather than selling, you might actually have a loss on disposal if the remaining book value is higher than any salvage value. Regarding the specialized drainage system - that's a great example of where component separation really matters! A $15,000 drainage system specifically designed for poultry processing would likely qualify as specialized equipment rather than part of the basic building structure. This could put it in the 7-year property class instead of 20-year, meaning much faster depreciation. Plus it might qualify for immediate expensing under Section 179 or bonus depreciation. I'd definitely recommend getting your tax professional involved before you start construction. They can help you structure the project to maximize your tax benefits and give you a better estimate of the recapture liability so you can plan accordingly.
0 coins
Malik Robinson
One thing I haven't seen mentioned yet is the potential for cost segregation studies on your new butchering facility. Since this is a specialized agricultural building with specific equipment and systems for poultry processing, a cost segregation analysis could identify components that qualify for accelerated depreciation. For example, your electrical systems for refrigeration, specialized lighting, ventilation systems, and processing equipment might be classified as 5-7 year property instead of the standard 20-year building depreciation. This could significantly increase your immediate tax deductions, especially combined with bonus depreciation. The cost segregation study typically costs a few thousand dollars but can often save tens of thousands in taxes by properly classifying building components. Given that you're doing a complete rebuild specifically for business use, this might be worth exploring with a tax professional who specializes in agricultural operations. Also, don't forget to document the business necessity for the demolition and rebuild. Photos of the old barn's condition and records showing why renovation wasn't feasible can help support your tax positions if the IRS ever questions the timing or necessity of the project.
0 coins
Liam O'Sullivan
•This is exactly the kind of advanced strategy I needed to hear about! I had no idea cost segregation studies were even a thing for farm buildings. With all the specialized equipment we're planning - the scalding tanks, plucking machines, refrigeration systems, and custom ventilation - it sounds like there could be significant components that qualify for faster depreciation. Do you know roughly what size project typically justifies the cost of a cost segregation study? Our total project budget is around $180,000 for the new facility. Also, is this something that has to be done during construction, or can it be performed after the building is completed and in use? The documentation point is really smart too. I've been taking photos of the old barn's deteriorating condition, but I should probably get something more formal from a structural engineer about why renovation isn't cost-effective compared to rebuilding.
0 coins
Zachary Hughes
•At $180,000, your project is definitely large enough to justify a cost segregation study! Most tax professionals recommend them for projects over $100,000, and with your specialized processing equipment, you could see substantial benefits. The great news is cost segregation can be done after construction is complete - you have until you file your tax return for the year the property was placed in service. However, doing it during the planning phase can help you make strategic decisions about how to structure purchases and installations to maximize tax benefits. Getting that structural engineer's assessment is brilliant planning! That documentation, combined with photos showing the barn's condition, creates a solid business justification for the demolition. This is especially important since you'll be dealing with depreciation recapture on the old structure. With all your specialized equipment - scalding tanks, plucking machines, etc. - I'd estimate you could potentially reclassify $40,000-$60,000 of your project costs to 5-7 year property instead of 20-year. Combined with current bonus depreciation rules, that could mean significant immediate tax savings that would more than pay for the study itself.
0 coins