Do you use the same LLC for multiple properties or create a new one for each property? I'm looking at getting into real estate investment and wondering what the best approach is.

I use separate LLCs for each property. This creates the strongest liability barrier between properties. If there's a lawsuit at Property A that exceeds insurance coverage, they can only go after that specific LLC's assets (that property), not Property B or C. Some people use one LLC for multiple properties to reduce fees and paperwork, but that defeats much of the purpose - if there's an issue with one property, all properties in that LLC are exposed. The extra cost and paperwork is my insurance beyond insurance.

Both handle single member LLCs fine. For federal taxes it's actually super simple - you just file Schedule C with your personal return, exactly like a sole proprietorship. There's no separate tax return for a single-member LLC unless you elect to be taxed as a corporation.

What about education expenses? I'm in grad school part-time while working full-time and always wonder if I'm claiming everything correctly. The lifetime learning credit vs tuition deduction confuses me every year!

Education expenses are definitely an area where people often miss opportunities! For grad school while working, you need to evaluate whether the Lifetime Learning Credit (up to $2,000) or the tuition and fees deduction would benefit you more - it depends on your income level and other factors. An often-overlooked benefit is that if your education is related to your current career (even if not required by your employer), you might be able to deduct some expenses as unreimbursed employee expenses if they exceed 2% of your AGI and you itemize. Most tax software will ask about education expenses, but may not always connect the dots between your education and potential business expense deductions.

What kinds of credits did they miss? Now I'm worried my guy is missing stuff too. I pay $250 for what's probably 30 minutes of his time.

Is there a specific place on the tax return where we note that we're using Form 4852 instead of a W-2? Or does just attaching the form take care of that?

Just attaching the Form 4852 to your return takes care of it - there's no special place you need to note it elsewhere on your return. The form itself has a field where you explain why you're using it instead of the W-2 (missing W-2, incorrect W-2, etc.), which gives the IRS all the information they need.

Yes! TurboTax actually handles this pretty well. When you get to the income section, there's an option that says something like "I don't have a W-2" or "My employer didn't give me a W-2." If you select that, it walks you through entering all the information from your paystubs and generates Form 4852 automatically.

Thank you so much for this information! I hadn't even thought about the tax treaty benefits. My home country is India - are there specific treaty benefits I should be looking into when I file the 1040NR?

India does have a tax treaty with the US, and there are some benefits for students. Most notably, Indian students and business apprentices may be eligible to exclude a certain amount of income from US taxation. For students from India, you may be able to exclude income for teaching or research if you meet certain requirements. However, tax treaties are complex and the benefits vary based on your specific situation, status, and type of income. When you file your 1040NR, there's a section where you can claim these treaty benefits (usually on Form 8833).

This is so important! I made the same mistake last year and had to pay back the American Opportunity Credit I'd claimed. The amendment ended up with me owing money rather than getting the refund I initially received.

Do you need to complete the whole application process to see the current amount, or does it show that information early in the process?

You'll see the current amount with penalties and interest fairly early in the process, usually on the second or third screen when you've entered your basic information. You don't need to complete the entire application or commit to any payment plan to view this information.

They used a local tax preparer, not software. That's part of the issue - they just have the paper copies the preparer gave them and aren't tech-savvy enough to navigate online tools themselves. I was hoping there might be a simple way to confirm the current amount without having to call since the phone wait times are so long.