Has anyone considered the De Minimis Safe Harbor election? If your business has applicable financial statements and an accounting procedure in place on the first day of the tax year, you can expense items up to $5,000. Without AFS, it's $2,500 per item. So a $3k espresso machine would need to be capitalized unless you have AFS, but a $2k one could potentially be fully deducted in year 1 under the safe harbor.

I've been dealing with similar home office expense questions for my consulting LLC. One thing I'd suggest is considering the "exclusive use" test more carefully. Since you mentioned keeping it in your designated home office space that you're already claiming, that helps establish business purpose. However, I'd recommend documenting a clear business justification beyond just "I need coffee to work." For example, if you're doing long video editing sessions that require sustained focus, or if the machine helps you avoid interrupting work to go out for coffee during billable hours, that creates a stronger case. Also consider this: instead of one $3,000 machine, what about a $1,500 commercial-grade setup that still meets your needs? It's easier to justify as "ordinary" for a business, falls under common de minimis thresholds, and still provides the quality you're looking for. The IRS tends to scrutinize luxury items more heavily, regardless of the business justification. Keep detailed records of how it's used exclusively for business purposes, and maybe track your productivity improvements or time savings to strengthen your position if questioned.

Watch your mailbox carefully. Unlike regular returns, amended returns ALWAYS come as paper checks. This is different from how they handle normal returns, and unlike state amended returns (some states do direct deposit for amendments). I've had two amended returns in the past three years, and both came as paper checks despite having direct deposit info on file. The second one actually got lost in the mail and I had to request a trace, which added another 6 weeks to the process.

Just wanted to chime in as someone who works in tax prep - everyone here is absolutely right about paper checks only for amended returns. The IRS systems for processing 1040X forms are completely separate from their regular return processing, which is why they can't do direct deposit for amendments. One thing I'd add that I don't think anyone mentioned yet: make sure the address on your 1040X matches exactly what the IRS has on file, including any apartment numbers or suite numbers. I've seen clients have checks delayed or returned because of small address discrepancies. You can verify your address with the IRS by looking at your most recent tax transcript or calling their automated line at 1-800-829-1040. Also, if you move between filing your 1040X and receiving your refund, you'll need to file Form 8822 (Change of Address) with the IRS. Regular mail forwarding through USPS doesn't always work for IRS checks since they're often sent via certified or registered mail. Hope this helps and good luck with your refund!

Don't overlook self-employment taxes! As a 1099 contractor you'll pay both the employer and employee portions of Social Security and Medicare taxes (around 15.3% total). That's on top of your regular income tax. Make sure you're setting aside enough. I learned this the hard way my first year lol.

Actually, there are a few ways to reduce your self-employment tax burden! First, make sure you're maximizing ALL business deductions (equipment, software, home office, etc.) because these reduce your net self-employment income that the 15.3% is calculated on. Second, you can deduct half of your self-employment tax as an above-the-line deduction on your personal return. Third, consider contributing to a SEP-IRA or Solo 401k if you're making good money - these reduce both your income tax AND self-employment tax. The key is tracking every legitimate business expense since those directly reduce what you're paying SE tax on.

One thing nobody's mentioned yet - market timing. If you think we're headed for a correction soon, selling some winners now might make sense regardless of the tax implications. I sold half my tech stock gains in early 2022 and was glad I did when everything crashed later that year.

Just wanted to add another perspective on your situation. With $10k in realized losses and $40k in unrealized gains split between short-term and long-term, you have some good flexibility here. One strategy to consider is "laddering" your gain realization over multiple tax years if you don't need the cash immediately. Instead of realizing all $10k in gains this year to offset your losses, you could realize maybe $7k this year (prioritizing short-term gains as others mentioned) and carry forward the remaining $3k in losses to offset future gains or deduct against ordinary income next year. This approach can be particularly beneficial if you expect to be in a higher tax bracket next year or if you anticipate having more capital gains in the future. The $3k annual deduction against ordinary income can provide nice tax savings year after year if you don't have enough gains to offset it. Also worth noting - if you do decide to sell and immediately repurchase (which is fine for gains), just make sure you're not creating any unintended wash sale issues with related securities or funds that might track the same underlying assets.

One thing I learned the hard way - if you're buying these muni ETFs in a retirement account like a Roth IRA, you're basically wasting the tax advantage! Since Roth IRAs are already tax-free on withdrawal, putting tax-exempt bonds in there means you're getting lower yields for no additional tax benefit. I had VTEB in my Roth for years before realizing this mistake. Munis generally have lower yields than taxable bonds of similar quality because of their tax advantages. Better to hold taxable bonds in tax-sheltered accounts and save your muni investments for taxable accounts.

Great question! One additional consideration that might help with your decision-making is looking at the taxable equivalent yield of these muni ETFs based on your specific tax situation. For example, if you're in the 24% federal tax bracket and live in a state with 6% income tax, a muni bond yielding 3% might be equivalent to a taxable bond yielding around 4.3% when you factor in the tax savings. This helps you compare whether the muni ETF is actually worth it versus just buying a regular bond ETF. There are online calculators that can help you figure out your specific taxable equivalent yield based on your federal and state tax brackets. This becomes especially important if you're in lower tax brackets where the tax benefits might not justify the typically lower yields of municipal bonds. Also worth noting - if you live in a high-tax state like California or New York, the state tax exemption benefits become much more valuable, making state-specific muni funds potentially more attractive than broad national funds like VTEB or MUB.