I've been through this exact situation with my HVAC business when I upgraded from my old personal pickup to a new service van. The trade-in approach is completely fine and won't jeopardize your Section 179 deduction at all. What you need to understand is that the trade-in value ($12,500) simply reduces the depreciable basis of your new vehicle. So instead of deducting the full $45,000, you'll deduct $32,500 under Section 179. The IRS treats this as a straightforward purchase where part of your payment came from the trade-in value rather than cash. A few practical tips from my experience: Make sure the purchase agreement clearly shows both the total vehicle price and the trade-in credit. Keep all paperwork showing the new truck will be used exclusively for business. Most importantly, start maintaining detailed mileage logs from day one - the IRS scrutinizes vehicles claimed at 100% business use more closely than partial business use vehicles. Don't overthink the transaction structure. Whether you do it as one transaction with a trade-in or two separate transactions really doesn't matter for tax purposes - go with whichever approach saves you money on sales tax and fees. Your accountant will be able to handle either scenario easily when they return from vacation.

I just went through this exact situation with my electrical contracting business a few months ago! Trading in your personal vehicle is absolutely fine and won't affect your Section 179 eligibility. The key thing to understand is that the trade-in value just reduces your deductible basis - so you'll be able to deduct $32,500 instead of the full $45,000. One thing I learned that might help you: make sure the dealer titles the new truck in your business name if possible, and get the purchase agreement to clearly state it's for 100% business use. I also started keeping a mileage log from day one using a simple smartphone app - just date, destination, miles, and business purpose for each trip. Don't stress about whether to do one transaction or two separate ones. I did mine as a single transaction with the trade-in and it worked out fine. The most important thing is keeping good records and actually using the vehicle exclusively for business. The IRS pays extra attention to 100% business use claims, so be prepared to document that it's truly only used for work purposes. Your accountant will be able to sort out all the paperwork details when they get back. Just make sure you save all the dealer documentation showing the trade-in value and final purchase price!

5 One thing nobody's mentioned - if your new job offers a 401(k), put as much in there as you can afford! It reduces your taxable income which means less tax owed. I doubled my salary last year too and upped my 401(k) contribution to 15% and ended up with a refund instead of owing. Plus you're saving for retirement which is a win-win.

Great thread! As someone who went through this exact situation two years ago, I wanted to add that you should also consider quarterly estimated tax payments if your withholding still isn't enough. When I doubled my salary mid-year, even with extra withholding I was still projected to owe about $800. My accountant suggested making a small estimated payment in Q4 (January 15th deadline) to cover the gap. It's form 1040ES and you can pay online through EFTPS. This way you avoid any underpayment penalties and don't get hit with a big bill at filing time. Just another tool in your arsenal to make sure you're covered!

Code 424 is definitely one of the more stressful ones to see! I got mine about 8 weeks ago and just had it resolve last week, so there's definitely light at the end of the tunnel. From what I've experienced and read, it usually means they're doing income matching or verifying credits you claimed. The timeframe really varies - some people get through it in 45 days, others take 4+ months. One thing that helped me was setting up informed delivery with USPS so I'd know immediately if the IRS sent any letters requesting documents. Try to stay patient (easier said than done, I know!) and remember that most 424 reviews end with your refund being released without any issues. You've got this! 💪

I totally understand the anxiety! I got code 424 about 4 months ago and it was such a rollercoaster of emotions. Mine ended up being related to the Earned Income Tax Credit verification - they wanted to make sure my income and dependents matched up properly. The whole process took about 14 weeks but I did eventually get my full refund with interest. The hardest part was definitely the uncertainty and not knowing what specific issue they were reviewing. I found it helpful to keep a little journal of when I checked my transcript and any changes I noticed - it helped me feel like I had some control over the situation. Also seconding what others said about having your W-2s, 1099s, and any dependent documentation ready to go just in case. Hang in there - I know the waiting is brutal but you'll get through this! 🌟

I just want to say thank you to everyone who shared their solutions here! I was pulling my hair out with the blank screen issue for three days straight. I ended up using a combination of the suggestions - switched to Microsoft Edge, disabled my ad blocker, and added the VITA site to my trusted sites list with lowered security settings. What finally did it was realizing I had to disable hardware acceleration in Edge's advanced settings. None of the troubleshooting guides mention this, but apparently some graphics drivers conflict with the VITA site's interface. Once I turned that off and restarted the browser, everything loaded perfectly. For anyone still struggling, don't give up! The solutions in this thread really work, you just might need to try a few different combinations depending on your specific setup. Good luck with your certifications everyone!

I'm dealing with this exact same issue right now! I've been trying to access the VITA Link and Learn tests for my certification and getting nothing but blank screens. Reading through all these solutions has been incredibly helpful - I had no idea there were so many different potential causes. I'm going to start with the Microsoft Edge suggestion since that seems to work for a lot of people, and if that doesn't work I'll try the hardware acceleration fix that Mei-Ling mentioned. It's reassuring to know that this is a common problem with actual solutions rather than just something wrong with my computer. Has anyone had success with the mobile app version of VITA Link and Learn, or is it desktop browser only? I'm wondering if that might be a workaround while I troubleshoot the browser issues.

One additional consideration that hasn't been mentioned yet - if either of you has any employee stock purchase plans (ESPPs) or restricted stock units (RSUs) mixed in with your regular holdings, make sure to check with your employer's plan administrator before transferring those shares. Some employer-sponsored equity plans have specific rules about transfers between spouses that could affect vesting schedules or tax treatment. Also, since you're planning to hold for 5-7 years, this might be a good time to review your asset allocation across both accounts before consolidating. Sometimes when couples merge accounts, they discover they've been inadvertently overweight in certain sectors or asset classes without realizing it. A quick portfolio analysis before the transfer could help you identify any rebalancing opportunities while you're already making changes. The tax implications are definitely straightforward as others have confirmed, but getting the strategic aspects right can really pay off in the long run!

This is such a common situation for married couples trying to streamline their finances! You've gotten excellent advice here about the tax-free nature of spousal transfers under the unlimited marital deduction. I'd like to add one practical tip that saved me a lot of hassle when my wife and I did something similar last year: before initiating the transfer, call both brokerages to confirm their specific requirements and timelines. Even though the tax treatment is straightforward, each firm has different paperwork and processing procedures. Vanguard typically requires a medallion signature guarantee for large transfers (which you can get at most banks), while Schwab sometimes accepts their own transfer forms without the medallion depending on the amount. Getting this sorted out upfront prevented delays in our case. Also, consider doing a partial test transfer first with a smaller holding to make sure everything goes smoothly before moving the full $675k. This gives you a chance to verify that cost basis information transfers correctly and that you're comfortable with the process before committing to the larger amount. The consolidation will definitely make portfolio management much easier once it's complete!