@markorec wrote:
Thank you very much. Now I think I have a clearer picture. In 2026 based on my initial scenario, the "clawback" would be approx 12K total but that's only Federal not SE income correct?
You have been a huge help. Now I hope the Turbotax program will calculate everything correctly.
Yes, only income tax, not SE tax. And only paying income tax on $12k after SAVING tax (both income and SE tax) on $27k seems great.
Unfortunately, TurboTax is NOT set up for reporting vehicles (and other assets) that have varied in business percentage each year. While you could enter the manually calculated numbers (like I explained above) in the "Sale of Business Property" section, I don't think that section affects things like the Qualified Business Income deduction and the Home Office limit, like it should. You may consider a tax professional.
