Great question about the QBI deduction! Since you're filing Schedule C as a sole proprietor, you likely do qualify for the 20% Qualified Business Income deduction. This applies to your net profit from the food truck business (after all deductions) and can be a significant tax saver. One thing I haven't seen mentioned yet is the importance of keeping detailed mileage logs. Since you're traveling between events, commissary kitchens, and supply runs, those business miles add up quickly. You can either deduct actual vehicle expenses (gas, maintenance, insurance) or use the standard mileage rate - whichever gives you a bigger deduction. Also, don't forget about business insurance premiums! Your food truck liability insurance, equipment coverage, and any business-related health insurance premiums are all deductible. For record-keeping, I'd strongly recommend getting a dedicated business bank account and credit card if you haven't already. It makes tracking expenses so much easier, especially during tax season when you're trying to separate personal from business expenses. The fact that you're asking these questions shows you're being proactive about your taxes, which is smart. Even without a CPA right now, keeping good records will save you time and money whether you eventually hire one or continue doing your own taxes.

One thing I haven't seen mentioned yet that could save you significant money is considering whether your food trailer qualifies for bonus depreciation. Under current tax law, you might be able to deduct 80% of the trailer and equipment costs in the first year (2024) through bonus depreciation, rather than spreading it over 5 years with regular depreciation. Also, since you mentioned using volunteers (spouse and relative), make sure you're handling this correctly. If they're truly volunteers and you're not paying them wages, that's fine. But if you start paying them regularly, you'll need to consider payroll taxes and proper documentation. For your commissary kitchen expenses (if you use one), those are fully deductible as rent. Same goes for any storage fees for your trailer. One often-overlooked deduction for food trucks is professional development - if you attend food service trade shows, take food safety courses, or join food truck associations, those costs are deductible as business education expenses. Finally, don't forget about your business license fees, health department permits, and any certifications you need to maintain. These are all ordinary and necessary business expenses that should be deducted. Keep receipts for everything and consider using a mileage tracking app on your phone - it makes documenting business travel much easier than trying to recreate logs later!

Just wanted to add something important - make sure you keep documentation of all your attempts to get the W9 from your landlord. I had a similar situation and the IRS actually questioned my 1099 filing during a review of my return. I was able to show emails requesting the W9 multiple times, which satisfied them that I had made a "reasonable effort." Also, when you do get the W9, verify the TIN (Tax Identification Number) using the IRS TIN matching program if you can. Prevents headaches later if the information turns out to be incorrect!

This is such a helpful thread! I'm dealing with a similar situation where I have a home office but my lease is under my personal name, not my LLC. One thing I learned from my accountant is that you should also consider the timing of when you formed your LLC versus when you signed the lease. Since your lease was signed before your LLC existed, you're personally liable for the rent payments (not your LLC), but you can still deduct the business portion as a business expense on your Schedule C. The 1099 requirement still applies because you're paying for business use, even though the lease isn't in your LLC's name. Also, a pro tip - when you do reach out to Pine Valley Properties for the W9, explain that you need it for tax compliance purposes and that it's a standard business requirement. Most property management companies deal with this regularly and should have a process in place. If they seem confused, you can even send them IRS Publication 1220 which explains their obligations as payees.

I've been following this thread with great interest as I'm dealing with a somewhat similar situation - though thankfully with fewer states involved! One aspect that hasn't been discussed much is the potential for estimated tax payments at the state level. Since you mentioned this partnership has been generating income for a few years, you might need to consider whether any of your filing states require quarterly estimated payments for the upcoming tax year. Some states have pretty aggressive underpayment penalties that can add up quickly, especially if your partnership income is growing. I learned this lesson when I filed returns for three states last year but forgot to set up estimated payments for this year. Two of the states sent notices about required quarterly payments with penalty calculations that were eye-opening. The threshold amounts vary significantly by state - some require estimates if you expect to owe more than $400, others have $1,000+ thresholds. Given your systematic approach to tackling this multi-state challenge, you might want to add estimated payment requirements to your research checklist for each state where you decide to file. It's much easier to set these up proactively than to deal with underpayment penalties later. Also, kudos on successfully completing your 1065 after 130 hours of self-study - that's genuinely impressive! Your late CPA would be proud of how much you've learned and the thorough approach you're taking to this complex situation.

I've been reading through this entire thread and wanted to share my experience with a similar multi-state partnership situation from last year. Like you, I had a complex K-1 (though thankfully only 89 pages!) from a fund-of-funds investment that touched about 25 states. One thing that really helped me was creating a "state decision tree" spreadsheet with columns for: income amount, filing threshold, penalty structure, composite eligibility, estimated payment requirements, and registration needs. This let me quickly sort and prioritize which states needed immediate attention versus which ones I could research later. For the Massachusetts situation specifically - I found out they have a "safe harbor" provision where if you file within 60 days of the due date and pay any tax owed, they'll often waive the daily penalties on first-time late filers. Might be worth calling them directly if you're close to that threshold. Also wanted to echo the suggestion about reaching out to your fund managers. When I contacted mine, they actually had a tax specialist who spent 30 minutes on the phone walking me through the most common filing issues their partners face. Turns out they get these questions constantly and had developed some helpful guidance documents they just don't proactively share. The multi-state filing process is genuinely one of the most complex areas of tax compliance, so don't feel overwhelmed by the scope. You've already demonstrated impressive capability by tackling the 1065 yourself - this is just the next logical step in that learning journey.

FYI - there's another situation where you need to file Schedule B regardless of the amount of interest or dividends: if you have any foreign accounts. I found this out the hard way after getting a notice from the IRS. Even if you only have $5 of interest total, if any of it came from a foreign bank account, you still need to file Schedule B and check that box in Part III.

Just wanted to add another important detail that I learned when I had to file Schedule B for the first time - you need to list ALL payers of interest and dividends on Schedule B, not just the ones that put you over the threshold. So even if you have 10 different accounts contributing small amounts that together exceed $1,500, you have to list every single payer on the form, including their name, address, and the amount they paid you. It can make for a pretty long form if you have accounts scattered across multiple banks and brokerages. The IRS uses this information for matching purposes - they want to see that what you're reporting matches up with all the 1099-INT and 1099-DIV forms they received about you. Missing even a small payer can trigger a notice later on.

I think there might be some confusion in the thread about how distributions are ordered and reported. Let me clarify the proper sequence for S Corp distributions: When an S Corp makes a distribution, it comes out in this specific order: 1. First from AAA (Accumulated Adjustments Account) - this is previously taxed income 2. Then from PTI (Previously Taxed Income) if you have any from pre-1983 3. Then from paid-in capital/capital contributions 4. Finally, anything beyond that would be taxable gain For your $25k distribution with only $1.3k in AAA: - $1.3k reduces AAA and goes in Schedule M-2 Line 7, column (b) - The remaining $23.7k reduces your capital account and goes in Schedule M-2 Line 7, column (c) "Other adjustments account" This is NOT the same as the OAA that some mentioned - that's a different account entirely. The capital account reduction represents the return of your partner's original $52k contribution. On the K-1, the full $25k gets reported on Line 16d as a distribution. Your partner won't owe any tax on this since it's just getting back money he originally put in, and it reduces his stock basis accordingly. The key thing to remember is that returning capital contributions is generally tax-free as long as it doesn't exceed the shareholder's total basis in their S Corp stock.

This is a really common confusion with S Corp distributions! The key distinction you need to understand is the difference between the corporate-level accounts (like AAA) and individual shareholder basis. Your partner's $25k withdrawal is indeed a distribution, but here's how it should be handled: **Schedule M-2 Reporting:** - Only $1.3k would be reported on Line 7 column (b) as a distribution from AAA - The remaining $23.7k represents a return of capital contribution, which reduces the capital account on your balance sheet but doesn't flow through the M-2 in the same way **No Capital Gains Issue:** Your instinct is correct - this shouldn't trigger capital gains! Since your partner contributed $52k originally, withdrawing $25k is simply getting back part of his original investment. He still has $27k of capital contribution basis remaining. **K-1 Reporting:** Yes, report the full $25k on Schedule K-1 Line 16d as a distribution. This reduces your partner's stock basis but isn't immediately taxable since it's within his basis. **Pro tip:** Keep a separate basis tracking worksheet for each shareholder showing capital contributions, allocated income/losses, and distributions. This makes it much easier to determine the tax treatment of future distributions. The ordering rules for S Corp distributions can be tricky, but returning capital contributions is generally the most straightforward situation. You're doing the right thing by getting this clarified before filing!