Just to add another perspective - I made the mistake of not properly documenting my leasehold improvements when I first started my business. The IRS ended up questioning some of my depreciation deductions during an audit because I couldn't clearly prove which expenses were repairs versus improvements. Make sure you keep detailed records of everything: invoices, before/after photos, contractor agreements, and especially your lease terms. For your carpeting, if you're replacing the entire floor it's likely an improvement, but if you're just patching worn areas in high-traffic spots, that could be considered maintenance/repairs and immediately deductible. Also consider timing - if you're planning these improvements near year-end, you might want to accelerate them into the current tax year to take advantage of Section 179 or bonus depreciation before the rules potentially change. The mini-splits especially should qualify for immediate expensing under current rules since they're tangible personal property used in your business. One last tip: check if your improvements qualify for any energy tax credits. The mini-splits might qualify for additional credits on top of the depreciation benefits, which could save you even more money.

I'm dealing with a very similar situation right now! Just signed a 7-year lease for my consulting office and I'm planning about $35K in improvements - new flooring, custom built-ins, and upgraded lighting throughout. One thing I discovered that might help you is to carefully review the specific wording in your lease about who owns improvements at the end of the term. My lease has a clause that says I can remove "non-structural trade fixtures" when I leave, which my attorney says could affect the tax treatment of some items. For the ductless mini-splits you mentioned, those are typically considered personal property rather than real property improvements, so they should qualify for the full bonus depreciation or Section 179 treatment. The fence might be trickier since it's exterior work - you'll want to check if that qualifies as a leasehold improvement or if it needs to be treated differently. Also, don't overlook the potential for energy efficiency credits on those mini-splits. Depending on the specific models you choose, you might be eligible for additional tax credits beyond just the depreciation benefits. The combination of immediate expensing plus energy credits could be substantial. Have you considered the timing of when you'll complete these improvements? If you're doing them in phases, it might be worth accelerating everything into this tax year while the bonus depreciation rates are still favorable.

Great question! I went through this same decision process last year. The 1099 difference is real - as an S-Corp, you won't receive 1099s from most clients (except for certain payments like legal fees). This actually simplified my bookkeeping since I don't have to reconcile mismatched 1099s anymore. Regarding IRS verification - don't worry too much about this. The IRS has sophisticated data matching systems that go way beyond just 1099s. They can cross-reference your reported income with bank deposits, industry benchmarks, and previous years' patterns. Plus, S-Corps have additional oversight through the annual 1120-S filing requirements. One thing to consider: the real audit protection comes from accurate record-keeping and reasonable salary vs. distribution splits. The IRS pays close attention to S-Corp owners who try to minimize their W-2 wages too aggressively to avoid payroll taxes. Make sure you're paying yourself a reasonable salary for your industry and role. The tax savings from avoiding self-employment taxes on distributions often outweigh the slightly different reporting structure, especially as your income grows. Just budget for the additional compliance costs (payroll, corporate filings, etc.).

This is a really common concern when considering the S-Corp election! You're absolutely right that S-Corporations don't receive 1099s from most clients, while LLCs (taxed as partnerships or sole proprietorships) do. This difference exists because the IRS treats corporations as having more sophisticated reporting systems and oversight. Here's what I've learned about IRS verification methods for S-Corps: They use bank deposit analysis, industry profit margin comparisons, year-over-year income pattern analysis, and cross-referencing with your suppliers' records. The 1120-S form you'll file annually also provides detailed income reporting that the IRS can scrutinize. One important point - while you won't get 1099s as an S-Corp, you'll actually face MORE scrutiny in other areas, particularly around the reasonable salary requirement. The IRS closely watches S-Corp owners who try to minimize their W-2 wages to avoid payroll taxes. Make sure you pay yourself a market-rate salary for your role. From a practical standpoint, many business owners find the lack of 1099s actually simplifies things - no more reconciling mismatched or incorrect forms. Just maintain excellent records and report everything accurately. The potential self-employment tax savings often make the trade-off worthwhile, especially as your income grows.

I'm going through the exact same thing right now! Filed through Liberty Tax on March 16th and opted for the Deep Blue card thinking it would be faster - what a mistake that was. It's been over 3 weeks and WMR just shows "approved" with no deposit date. I've called both Liberty and Deep Blue customer service multiple times and keep getting the same runaround about "normal processing times." What's really frustrating is that my sister filed her taxes herself the same week and got her direct deposit 10 days ago! After reading all these comments about the extra processing layers and fees, I'm definitely going back to doing my own taxes next year. The $250 I paid Liberty plus all this waiting and uncertainty just isn't worth it. Has anyone found a reliable way to track exactly where your refund is once it leaves the IRS and goes into Liberty's system?

I'm dealing with this exact same nightmare right now! Filed through Liberty Tax on March 14th with the Deep Blue card and it's been over 4 weeks of pure frustration. WMR shows "approved" but no actual deposit date or timeline. I've called Liberty customer service 6 times and Deep Blue twice - every single time they give me the same useless script about "21-28 business days" without any real answers about where my money actually is. What's really annoying is that my coworker filed himself online the same week and got his direct deposit 2 weeks ago! After reading everyone's experiences here about the extra processing layers between IRS → Liberty → Meta Bank → card, I can see why this takes so much longer than just doing direct deposit yourself. The $275 prep fee plus all these delays and uncertainty definitely aren't worth whatever "convenience" I thought I was getting. I'm absolutely going back to filing myself next year with FreeTaxUSA or similar - lesson learned the hard way! Has anyone had success getting past the generic customer service responses to find someone who can actually tell you where your refund is in their system?

Is there a minimum threshold for interest that the IRS requires reporting? Like if it was only $5 would you still need to amend?

Just want to add a practical tip for anyone dealing with this situation - when you file your amended return (Form 1040-X), make sure to clearly write "INTEREST INCOME AMENDMENT" at the top of the form and attach a copy of your 1099-INT. This helps the IRS processors understand exactly why you're amending and can speed up processing. Also, if you're amending just for this interest income and it results in you owing additional tax, the amount will likely be very small. For $106.84 of interest income, you're probably looking at owing an extra $12-30 depending on your tax bracket. The IRS won't charge penalties for underpayment on such small amounts if you file the amendment promptly. One last thing - keep records of when you received the 1099-INT versus when you filed your original return. If the IRS ever questions why you didn't include it originally, you can show that you received the form after filing, which is completely legitimate.

Don't you also need to worry about "statutory residency" in some states? I think some states consider you a full-year resident if you're there for more than 183 days even if you moved.

I actually went through this exact same situation two years ago - California to Texas mid-year with the same employer. A few things that might help beyond what others have mentioned: 1. Keep detailed records of your move date - lease agreements, utility shutoff/startup dates, driver's license change, voter registration change, etc. California can be pretty aggressive about challenging part-year residency claims. 2. Your employer should have updated their payroll system when you moved, but double-check that they stopped California withholdings after your move date. I had to fight to get a corrected W2 because they kept withholding CA taxes for 6 weeks after I moved. 3. Since Texas has no state income tax, you'll only need to file the California part-year return. Make sure you're only reporting income earned while physically present in California - this is key if you did any remote work. 4. California's part-year resident form (540NR) can be tricky. The software should handle most of it, but pay attention to the income allocation section. You want to be very precise about which income belongs to which period. Good luck! The process is more straightforward than it initially seems once you understand the basics.