One thing to consider that hasn't been mentioned yet - if your church is part of a larger denomination, check with their financial office first. Many denominations have established procedures for member loans and may even have template agreements that comply with both IRS requirements and their own governance rules. Also, consider setting up the loan with a nominal interest rate (like 1-2%) instead of zero interest. This can actually simplify things tax-wise since you avoid the imputed interest calculations entirely, and the small amount of interest income is usually manageable. The church can still benefit significantly from below-market rates without triggering the complex IRS rules around gift loans. Make sure you understand your state's usury laws too - some states have minimum interest rate requirements even for loans to nonprofits. Better to be safe and charge a small amount than risk having the loan structure challenged later.

Another consideration worth mentioning - if your church has any pending legal issues or financial disputes, you might want to wait until those are resolved before making the loan. I learned this the hard way when I lent money to a nonprofit that later had creditor issues. Even though my loan was properly documented, it got tied up in their financial restructuring for months. Also, consider whether you want to include a clause allowing you to convert the loan to a donation at any time. This gives you flexibility if the church's situation changes or if you decide you'd rather take the charitable deduction. Just make sure this conversion option is clearly documented in the original agreement so there's no question about your intent with the IRS. One more practical tip - set up a separate savings account just for tracking this loan. Keep all the paperwork together and document any payments or communications about the loan. If you ever need to prove to the IRS that this was a legitimate loan (not a gift), having clean records will save you a lot of headaches.

I'm going through this exact same situation right now and this thread has been incredibly helpful! I've had just the single 810 code on my transcript for about 3 weeks now, and like everyone else, I was expecting to see other codes appear based on previous years' experiences. I tried the online verification at idverify.irs.gov twice but kept getting error messages saying they couldn't verify my information. I'm planning to call the 800-830-5084 number tomorrow morning. One thing I'm curious about - for those who successfully completed phone verification, did you need to have your actual tax return documents in front of you during the call, or was having last year's AGI and basic info sufficient? Also, I noticed some people mentioned that transcripts update on Fridays - is that a reliable pattern for seeing changes after verification is complete? I'm trying to figure out the best days to check for updates so I don't drive myself crazy refreshing daily! Thanks to everyone who shared their experiences here. It's such a relief to know this is normal for 2024 and not some unique problem with my return.

I'm currently dealing with this exact situation and this thread has been a lifesaver! I've had only the 810 code on my transcript for about 5 weeks now, and I was starting to panic thinking something was seriously wrong with my return. Reading everyone's experiences here has helped me understand that this is actually the new normal for identity verification in 2024. I successfully completed phone verification about 10 days ago after calling 800-830-5084. The agent was helpful and confirmed that the isolated 810 code meant my return never entered normal processing - it was flagged for identity verification right from the start. She told me to expect 6-9 weeks for processing to resume after verification, which aligns with what others have shared here. One thing I learned during my call that might help others: they asked me not just for my prior year AGI, but also for specific line items from my current return (like total wages and withholdings). Having my actual tax documents in front of me definitely made the process smoother. The verification itself only took about 15 minutes once I got through to an agent. Now I'm in the waiting phase like many of you. My transcript still shows just the 810 code, but I'm checking every Friday morning for updates based on the advice here. It's frustrating not knowing exactly when things will move, but at least I understand the process now thanks to this community!

I did this last year - donated about 300 items after downsizing. My advice is to create a spreadsheet NOW before you start donating. Column headings: Date donated, Charity name/address, Item description, Condition, Original cost, FMV, and Photo reference number. Take photos of EVERYTHING in groups (like "10 men's shirts" can be one photo). Number your photos to match your spreadsheet. Trust me, trying to reconstruct this at tax time is a nightmare.

Just want to add one more thing that helped me a lot - keep a running tally of your donations by charity as you go. The IRS gets suspicious if you claim massive deductions to obscure charities, but spreading $40k across well-known organizations like Goodwill, Salvation Army, local food banks, etc. looks much more legitimate. Also, make sure you're getting proper receipts from each charity with their tax ID number. Some smaller organizations are terrible about this, and without a proper receipt showing they're a qualified 501(c)(3), your deduction could get disallowed entirely. I learned this the hard way when one of my donations got questioned because the charity's receipt was just a handwritten note without their EIN. One last tip - if any of your items are unusual or potentially valuable (artwork, antiques, jewelry), consider getting a quick informal appraisal even if they're under $5,000. It shows good faith effort at accurate valuation and can save headaches later.

Doesn't this all become moot if you're taking the standard deduction anyway? With the current standard deduction being so high ($13,850 for single filers in 2023), most people aren't itemizing anymore, right? So would the mortgage interest and property tax deductions even matter?

Congrats on your upcoming closing! As someone who went through this exact decision last year, I'd strongly recommend tenancy in common for your situation. Even though you're splitting everything 50/50 now, TIC gives you flexibility if your financial situations change down the road. One thing that really helped us was setting up a separate joint account just for house-related expenses (mortgage, property taxes, insurance, repairs) where we each contribute our percentage monthly. This makes tracking everything for taxes super clean and eliminates any confusion about who paid what. Since you both make similar incomes around $85k, you'll want to run the numbers on whether either of you will be itemizing deductions. With a $430k house, your property taxes and mortgage interest combined might push at least one of you over the standard deduction threshold, especially if you're in a higher tax state. Even if only one of you itemizes, you can still both benefit from the deductions based on your ownership percentages and actual payments. The two-week timeline is tight, but your title company should be able to handle the TIC paperwork without any issues. Just make sure to specify the exact ownership percentages you want on the deed!

I've been reading through all these responses and wanted to add something that might be helpful - the IRS actually has a specific procedure for handling mixed personal/business transactions in S-Corps called the "loan vs. contribution analysis." What you're describing with treating personal expenses as additional paid-in capital and then netting that against personal withdrawals as a return of capital is actually a recognized approach, but you need to be very careful about the documentation. The key is establishing that these were intended as capital contributions at the time they occurred, not loans. This means you'll need to document that: 1. There was no expectation of repayment 2. No interest was charged or expected 3. The payments were made to benefit the corporation, not the individual 4. The shareholders had the intent to make capital contributions For your return of capital approach, make sure you can clearly show that the amounts withdrawn don't exceed your actual basis in the corporation. S-Corp shareholders can only receive tax-free return of capital up to their adjusted basis in the stock. One practical tip: create a shareholder basis schedule showing opening basis, plus contributions (including your personal expenses paid for business), plus/minus your share of income/losses, minus any distributions. This will help you determine how much can legitimately be treated as return of capital versus taxable distributions. The mixed personal/business situation isn't uncommon for small S-Corps, and the IRS has seen it all before. As long as you can demonstrate legitimate business purposes and maintain consistent treatment, your approach should be defensible.

Reading through all these responses, I want to emphasize something that might save you significant headaches down the road - the importance of establishing a clear paper trail NOW, even though these transactions already occurred. I've seen several small S-Corps get into trouble not because their approach was wrong, but because they couldn't adequately document their intentions when the IRS came asking. Here's what I'd recommend based on the discussion above: 1. Create a comprehensive transaction log showing every mixed personal/business expense with dates, amounts, business purpose, and supporting documentation. This becomes your evidence that personal expenses were legitimate business costs intended as capital contributions. 2. Draft a retroactive shareholder agreement acknowledging that personal funds used for business purposes were capital contributions, not loans. Include specific language about no expectation of repayment or interest. 3. Calculate your shareholder basis carefully (initial investment + additional contributions + allocated income - distributions) to ensure your return of capital treatment doesn't exceed your actual basis. 4. Most importantly - implement proper procedures going forward. Set up payroll for reasonable compensation, establish an accountable plan for expense reimbursements, and maintain clear separation of personal and business finances. The good news is that your situation isn't unusual for new S-Corps, and the approaches discussed in this thread are legitimate if properly documented. The bad news is that without proper documentation, even the correct tax treatment can be challenged successfully by the IRS. Consider getting a tax professional involved to review your documentation before filing - the cost now could save you much more in penalties and professional fees later if you face scrutiny.