Has anyone used TurboTax to handle the reporting for this kind of transaction? I'm dealing with this exact situation but not sure if regular tax software can handle it properly or if I need to hire a CPA.

I'd strongly recommend getting professional help for this type of transaction. While the strategy can work, there are several critical considerations that need to be handled correctly: 1. **Business Purpose Documentation**: The IRS will scrutinize whether your S-Corp has legitimate business purposes beyond just holding your former residence. You'll need to document these purposes clearly. 2. **Fair Market Value**: You must sell at true FMV - get a professional appraisal. The IRS can challenge related-party transactions if the price seems artificial. 3. **Corporate Formalities**: Your S-Corp needs to operate as a real business entity - separate bank accounts, proper meetings/resolutions, market-rate rent if you continue living there, etc. 4. **Mortgage Complications**: As others mentioned, most residential mortgages have due-on-sale clauses. You'll likely need commercial financing for the S-Corp. 5. **State-Specific Issues**: Property tax reassessment, transfer taxes, and state-level reporting requirements vary significantly by location. The potential benefits can be substantial if you have significant appreciation, but the compliance requirements are complex. A qualified CPA experienced with real estate transactions and S-Corp structures is essential - don't try to navigate this alone with tax software.

Your congressman's office can help! Mine got involved and suddenly IRS started moving on my case real quick

I went through something similar last year. After 6 months of getting nowhere with regular customer service, I filed a complaint with the Treasury Inspector General for Tax Administration (TIGTA). You can do it online at treasury.gov/tigta. They actually investigate IRS processing delays and can force action on stuck cases. Also consider sending a certified letter to the IRS office that handles your region - sometimes written complaints get more attention than phone calls. Keep pushing and don't give up!

Remember that LLC registration and tax filing are two different things! I kept my Wyoming LLC registration even after moving to Oregon because Wyoming has better asset protection laws. But I still have to file and pay Oregon taxes as that's where I physically operate the business. You might want to consider maintaining your LLC registration in whichever state has more favorable business laws while still complying with tax filing requirements based on where you actually operate and have clients. Texas has some good liability protections for LLCs that Colorado doesn't.

Great discussion here! As someone who went through a similar LLC relocation from Nevada to Washington state, I wanted to add a few practical tips that helped me navigate this process. First, regarding the $78k income split - document EXACTLY when you moved and what income was earned where. The IRS and state tax agencies love clear documentation. I created a simple spreadsheet tracking income by client, date earned, and location where I performed the work. Second, don't overlook estimated tax payments! If you were making quarterly payments to Colorado and now need to make them elsewhere, you'll want to adjust your payment schedule mid-year to avoid penalties. Third, consider consulting with a tax professional who specializes in multi-state businesses before making any final decisions about dissolving your Colorado LLC registration. Sometimes maintaining registration in both states can be beneficial depending on your specific business structure and future plans. The tools mentioned above (taxr.ai and claimyr.com) sound helpful, but also make sure you're working with someone who understands the nuances of your specific industry and client relationships. State tax laws can be surprisingly specific about what constitutes "doing business" in a state. Good luck with your filings!

Does anyone know if you actually NEED to make this election for small rental property repairs? I've been reading that if all your repair expenses are under $2,500 per invoice, you might qualify to deduct them outright as repairs without making this formal election. I'm using Cash App Taxes too and can't figure out where to put this election statement, so I'm wondering if I can just skip it and still deduct my minor expenses.

I actually had this exact same issue with Cash App Taxes last year! After trying multiple approaches, I found the solution in an unexpected place. Go to your Schedule E section, select the specific rental property you're working on, then look for a section called "Property Details" or "Additional Property Information." Within that section, there should be a text field for "Notes" or "Comments" - it's usually near the bottom and easy to miss. I put my de minimis safe harbor election statement there using this language: "Taxpayer elects the de minimis safe harbor under Treasury Regulation Section 1.263(a)-3(h) for all eligible expenditures for the tax year ending December 31, 2024." My return was accepted without any issues, and I've used this same approach for two years now. The key is that the election needs to be associated with your rental property reporting, which Schedule E accomplishes perfectly. If you still can't find that field, try updating Cash App Taxes - they've moved some sections around in recent updates. Hope this helps!

Just a heads up to everyone having PIN problems - if you end up missing the filing deadline because of PIN issues, make sure you file for an extension using Form 4868! This gives you until October to file your actual return while you sort out the PIN stuff. The extension doesn't give you more time to pay though, so you should still estimate and pay any taxes you owe by the regular deadline to avoid penalties and interest.

Just wanted to add another option for folks dealing with PIN issues - if you're in a rural area or don't have reliable internet, you can also file a paper return without needing your IP PIN at all. You'll just need to include Form 14039 (Identity Theft Affidavit) with your paper return to explain why you can't provide the PIN electronically. The paper filing takes longer to process (usually 6-8 weeks vs 2-3 weeks for e-filing), but it's a solid backup option if you absolutely can't recover your PIN and are running up against the deadline. Just make sure to mail it certified mail so you have proof it was sent on time. This saved me two years ago when I had a similar PIN nightmare right before the deadline!