Random question - does anyone know if the implant maintenance costs are also deductible? Like special cleaning tools, follow-up visits, etc.? I'm about to get implants too and wondering about ongoing expenses.

Just wanted to add my experience for anyone else considering this - I claimed dental implants on my 2024 return and it went through without any issues. The key was having really good documentation from my dentist explaining the medical necessity (I had lost teeth due to an accident). One thing I learned: keep track of ALL related expenses, not just the implant surgery itself. I was able to deduct the initial consultations, X-rays, bone grafting procedure, temporary dentures during healing, and even mileage to/from appointments. It all added up to a significant deduction that made the financial hit a bit easier to handle. Also, if you're planning the procedure, consider timing it strategically across tax years if possible. If you know you'll have high medical expenses in a given year that will easily exceed the 7.5% AGI threshold, it might make sense to bunch procedures together to maximize the deduction benefit.

This thread has been so enlightening! I'm relatively new to running an online business (started my handmade candle shop about 6 months ago) and PayPal fees have been one of those things keeping me up at night wondering if I'm handling them correctly. Reading through everyone's experiences, I now understand that I should be reporting the full transaction amount as income and then deducting the PayPal fees as a separate business expense on Schedule C. The analogy comparing PayPal fees to other business expenses like shipping or materials really helped it click - you wouldn't subtract those costs from your gross sales, so PayPal fees should be treated the same way. I've been using a basic spreadsheet to track everything, but after seeing the recommendations for PayPal's Financial Summary report and various accounting software options, I think it's time to upgrade my system. The idea of PayPal automatically generating a breakdown of gross payments versus fees sounds like it would save me hours of manual calculations. One question for the group - when you're deducting PayPal fees on Schedule C, do you lump all payment processing fees together in one line item, or do you separate them by platform if you use multiple processors? I also use Venmo for some local sales and wasn't sure if they should all go together or be itemized separately. Thanks to everyone for sharing their real experiences and especially to the CPA who provided professional confirmation. This community has been invaluable for helping me navigate these tax questions as a small business owner!

This thread has been incredibly helpful for understanding PayPal fee reporting! I'm just starting my third year running a small Etsy shop selling vintage items, and I've been confused about this exact issue. Reading through everyone's experiences, it's clear that reporting the full transaction amount as gross income and then deducting PayPal fees separately on Schedule C is the way to go. What really helped me understand this was the analogy someone made about PayPal being just another business service provider - you wouldn't subtract your shipping or packaging costs from your reported income, so PayPal fees should be treated the same way. I've been manually tracking everything in a basic spreadsheet, but after seeing the recommendations for PayPal's Financial Summary report, I'm definitely going to try that. The idea of having PayPal automatically generate a breakdown of gross payments versus fees could save me so much time during tax prep. One thing I wanted to add for other Etsy sellers - don't forget that Etsy also takes transaction fees and payment processing fees on top of PayPal's fees. All of these are deductible business expenses, so make sure you're tracking both Etsy's fees AND PayPal's fees separately. It can get complicated when you have multiple fee layers, but they're all legitimate business expenses. Thanks to everyone for sharing their real-world experiences, especially the CPA who confirmed this approach is correct. This community is so valuable for small business owners trying to navigate tax questions!

I'm also navigating this exact same situation with my LLC partnership, so this thread has been incredibly helpful! One additional consideration I wanted to mention - make sure you're thinking about state franchise taxes and fees when making the S-Corp election. In some states, LLCs and S-Corps have different annual filing requirements and fees. For example, in Texas, LLCs pay a franchise tax based on revenue while S-Corps are generally exempt from franchise tax but have different filing requirements. The federal tax savings from S-Corp status could potentially be offset by higher state-level costs depending on where you're located. Also, regarding the reasonable compensation discussion - I've been told by my CPA that the IRS looks not just at salary amount but also at the frequency of payments. You can't just pay yourself a lump sum salary at year-end; it needs to be regular payroll with proper withholdings throughout the year. This is another administrative consideration to factor into your decision-making process. Has anyone dealt with converting existing independent contractor relationships to employee status after making the S-Corp election? I'm wondering if this creates complications with clients who are used to receiving 1099s from us.

This is such a comprehensive thread! As someone who just formed an LLC partnership myself, I'm learning so much from everyone's experiences. One thing I wanted to add that I learned from my attorney during formation - make sure your LLC operating agreement doesn't have any provisions that conflict with S-Corp taxation before filing Form 2553. Some LLC operating agreements include specific tax elections or distribution requirements that might not align with S-Corp rules. For example, if your operating agreement requires distributions based on capital contributions rather than pro-rata ownership, this could create issues with S-Corp requirements for equal treatment of shareholders. Also, I noticed several mentions of missed deadlines and late election relief. Something my CPA emphasized is that if you do need to request late election relief, the IRS wants to see that you operated as if the election was in effect during the period in question. This means filing as an S-Corp on your tax returns even before receiving approval, which feels counterintuitive but apparently strengthens your reasonable cause argument. The reasonable compensation discussion has been really eye-opening too. I hadn't realized how thoroughly you need to document your salary research. It sounds like treating it seriously from day one is much easier than scrambling during an audit.

FYI everyone, banking gets complicated too! When I moved to Canada but kept working for my US employer, I maintained US bank accounts for direct deposit. Just remember that Canadian residents must report foreign accounts on Form T1135 if the total cost of all foreign assets exceeds CAD $100,000. Also, Canadian banks may limit services for US citizens due to FATCA reporting requirements. I had to shop around to find a bank comfortable with my dual-status situation.

Great question about dual citizenship vs permanent residency! From a tax perspective, there's actually no difference - both Canadian citizens and permanent residents are taxed on worldwide income once they establish Canadian tax residency. The key factor is where you're considered a resident for tax purposes, not your citizenship status. What matters more is establishing your "tax residency" date in Canada, which is typically when you move and establish significant residential ties (home, spouse/family, personal property). This date determines when you start filing Canadian tax returns and claiming foreign tax credits. One thing to watch out for with your $95K income: make sure you understand the timing of when to start claiming Canadian residency. If you move mid-year, you might be able to optimize which country gets primary taxing rights for that transition year. Also, don't forget about potential state tax obligations - some states like California are notoriously difficult to escape from a tax perspective even after you move to Canada. The Foreign Tax Credit should handle most of the double taxation, but you'll want to run the numbers carefully since Canadian tax rates vary significantly by province. Your effective tax rate in Canada could be higher or lower than what you're currently paying in the US depending on which province you choose!

This is a frustrating situation that unfortunately highlights gaps in how many tax offices handle identity verification. Since you own multiple properties and there's another Thomas Wilson who also owns multiple properties in the same county, the tax office really should have been more careful about verification. Here's what I'd recommend based on similar cases I've seen: 1. **File a formal written complaint** with your county's Board of Supervisors or equivalent governing body. Include all documentation showing you requested your bill by name and address, and that they provided the wrong one. 2. **Request an "erroneous payment transfer"** - this is different from a refund and specifically addresses payments made to the wrong account due to administrative error. Most counties have procedures for this even if front-line staff don't know about them. 3. **Document the systemic problem** - emphasize that their identification process failed when dealing with common names and multiple property owners. This isn't just about your money, it's about preventing this from happening to others. 4. **Consider small claims court** as a last resort if administrative remedies fail. You have documentation that you requested your specific bill and they provided the wrong one. The key is framing this as their procedural failure rather than just a payment mix-up. Good luck!

I work in municipal finance and see these kinds of mix-ups more often than you'd expect, especially with common names. The frustrating part is that many tax office clerks don't fully understand the procedures for correcting these errors, which is why you're getting the runaround. A few additional points to consider: First, most states have laws requiring tax offices to maintain reasonable identification procedures when accepting payments. When you specifically requested YOUR bill and they handed you someone else's, that's a failure of their verification process, not your mistake. Second, you mentioned paying in cash - make sure you have a receipt showing the date, amount, and any property identifiers. This documentation will be crucial for any formal complaint process. Third, if the informal approaches don't work, consider contacting your state's Department of Revenue or equivalent agency. They often have oversight authority over local tax collection procedures and can intervene when counties aren't following proper protocols. The bottom line is that you shouldn't be financially penalized for their administrative error. Keep pushing back - this is absolutely their responsibility to correct, not yours to just accept.