If your total itemized deductions are close to the standard deduction amount, sometimes it's not even worth the hassle of tracking all those charitable donations. For 2024 taxes, the standard deduction is $14,600 for singles and $29,200 for married filing jointly. Unless your total itemized deductions (including charitable donations, mortgage interest, state taxes, etc.) exceed those amounts, you're better off just taking the standard deduction. I used to meticulously track every $5 and $10 donation until I realized I wasn't even close to exceeding the standard deduction threshold.

Great question! Beyond what others have mentioned about statistical flagging and documentation requirements, there are a few additional deterrents worth noting. The IRS has access to third-party data that many people don't realize. For example, if you claim large donations but your bank records (which they can access during an audit) don't show corresponding withdrawals or checks, that's a red flag. Credit card companies also report certain transaction data that can be cross-referenced. There's also the "lifestyle audit" aspect - if you're claiming $5,000 in charitable donations but your reported income and other financial behaviors suggest you're living paycheck to paycheck, that inconsistency might trigger scrutiny. The penalties for understating your tax liability can be steep too. If they determine you knowingly inflated deductions, you could face accuracy-related penalties of 20% of the underpayment, plus interest, and in severe cases even fraud penalties of 75%. For most people, the risk just isn't worth the relatively small tax savings from inflating donations. That said, don't let paranoia stop you from claiming legitimate donations! Just keep good records and be honest about amounts.

This is such a fascinating topic! As someone who's always wondered about the tax implications of these viral giveaway videos, I really appreciate all the detailed explanations here. One thing I'm curious about - has anyone seen any official statements from MrBeast or his team about how they handle the tax reporting side of things? I imagine they must have a whole system in place given the volume of prizes they give out. It would be interesting to know if they automatically collect tax information from winners or if it's left up to the recipients to figure out on their own. Also, for the people mentioning the difficulty of reaching the IRS - I had no idea there were services to help with that! The phone system is absolutely brutal when you actually need to talk to someone. Good to know there are options besides spending entire days on hold.

This whole thread has been super educational! I never realized how complex the tax situation gets with these big YouTube giveaways. One angle I haven't seen mentioned yet is what happens if you're a minor when you win one of these prizes. Like, MrBeast sometimes gives money to kids in his videos - do the parents have to report it on their tax return? And what about international winners? I've seen him give prizes to people in other countries in some of his videos. Also, reading about all the phone troubles with the IRS makes me wonder if there are other government agencies that are similarly hard to reach. Seems like a systemic problem that really needs fixing when taxpayers can't even get basic questions answered without using third-party services. The whole non-cash prize situation with houses and cars is honestly terrifying from a tax perspective. Imagine being handed keys to a dream house only to realize you now owe six figures in taxes you don't have! Really makes you think twice about entering those kinds of contests.

One thing I learned the hard way - be super careful about claiming too much of your house as rental property if you ever want to claim the capital gains exclusion when selling! If you claim 60% as rental, you might only be able to exclude 40% of your gains from capital gains taxes when you sell. Also, make sure you're tracking the dates that rooms are actually rented vs. vacant. If a room sits empty for a few months while you're looking for a tenant, the expenses during that time are still deductible as long as the room is being actively marketed for rent.

Great question about the capital gains exclusion! You're right to think about maximizing deductions, but it's all about timing and your long-term plans. If you're planning to sell within a few years, you might want to be more conservative with your rental percentage claims. But if you're planning to keep the property long-term, maximizing current deductions usually makes more sense. The key is that you can qualify for the capital gains exclusion on your primary residence portion as long as you've lived in the home as your main residence for at least 2 of the last 5 years before selling. So if you're claiming 60% rental use, you'd potentially pay capital gains on 60% of your profit, but exclude up to $250k (or $500k if married) of gains on the 40% personal use portion. Run the numbers both ways - sometimes the annual tax savings from higher rental deductions outweigh the future capital gains hit, especially if you're in a high tax bracket now. A good tax professional can help you model different scenarios based on your specific situation and timeline.

I had the same issue with MI last month! Turned out my return was still in "processing" status even though it had been weeks. The state website doesn't update until it's fully processed, unlike the federal system. You might want to try calling their automated line at 517-636-4486 - sometimes it gives you more info than the website does. Hang in there, it's frustrating but normal this year!

Michigan resident here who went through this exact same thing last year! The "no match found" error is super common when their system is backlogged. I ended up waiting about 5-6 weeks before my return showed up in their lookup tool. One thing that helped me was keeping a screenshot of my submission confirmation from when I e-filed - that way you have proof you submitted it on time. Also, if you're really worried, you can request a payment trace after 6 weeks if your refund still hasn't shown up. Don't stress too much, MI is just notoriously slow compared to federal!

You're absolutely right to be thinking about the installment method for your S Corp stock sale - it can be a great tax planning strategy. Since your S Corporation is privately held and not traded on any established market, you should indeed be eligible to use the installment method under Section 453. One thing I'd recommend is getting a professional valuation of your business before structuring the sale, especially since you mentioned the buyer is interested in eventually taking over completely. This will help establish a defensible sales price and ensure you're maximizing the benefit of spreading the gain over multiple years. Also, make sure your installment agreement includes appropriate interest provisions - the IRS requires imputed interest on deferred payments, so you'll want to use at least the applicable federal rate to avoid any complications. Since this is a significant transaction representing 30% of your business, I'd strongly suggest consulting with a tax professional who has experience with installment sales of closely-held business interests. They can help you navigate any potential complications and ensure all the documentation is properly structured.

Val, you're correct that private S Corporation stock should qualify for installment sale treatment since it's not traded on an established market. However, I'd recommend getting clarification on a few key points before proceeding: 1. **Basis calculation** - Make sure you have clear documentation of your adjusted basis in the S Corp stock, including any loans you've made to the company that might affect your basis. 2. **Payment structure** - The installment agreement needs to specify the total sales price, payment schedule, and interest rate (at least the applicable federal rate). Even though payments are deferred, the total consideration must be determinable. 3. **S Corp elections** - Verify that selling 30% won't inadvertently terminate your S election due to ownership restrictions, especially if the buyer isn't eligible to be an S Corp shareholder. 4. **State tax implications** - Some states don't conform to federal installment sale treatment, so you might face different timing for state taxes. Given the complexity and significant tax implications you mentioned, I'd strongly suggest consulting with a tax professional experienced in S Corp transactions before finalizing the structure. The potential tax savings from proper planning could far exceed the cost of professional guidance.