As a newcomer to this community, I wanted to chime in on your situation since I recently went through a very similar transition. You're absolutely on the right track with how you're handling everything! One aspect I don't see mentioned yet is making sure you understand how the mortgage interest deduction timing works with your new home. Since you bought during 2024, you can only deduct the mortgage interest that actually accrued during the months you owned the property in 2024. Your 1098 should reflect this correctly, but it's worth double-checking that the dates align with your actual ownership period. Also, regarding your old house that you owned outright - you're correct that you can't claim mortgage interest since there's no mortgage, but you absolutely can deduct the property taxes paid on both properties (subject to the $10,000 SALT cap that others mentioned). One thing that really helped me was keeping a simple spreadsheet tracking which expenses belonged to which property and during what time periods. This made it much easier when I was entering everything into my tax software and gave me confidence I wasn't missing anything or double-counting. Your gradual approach to the transition is actually perfect from a tax perspective - it creates a clear intent to establish the new home as your primary residence while giving you time to properly handle the sale of your old home. You're doing everything right!

As a newcomer to this community, I wanted to share some insights from having navigated a very similar situation recently. You're handling this transition exactly right, and I can tell you're being appropriately thorough with your documentation. One thing I'd add to the excellent advice already shared is to pay special attention to your homeowners insurance policies during this overlap period. While not directly tax-related, make sure you're properly covered on both properties and that your insurance companies understand which is your primary residence. Some insurers offer different rates or coverage options for primary vs. secondary homes. Also, since you mentioned it's taking longer than expected to prepare your old house for sale, consider keeping a detailed log of any market-ready improvements you're making. While these won't add to your cost basis like major historical improvements, they do count as selling expenses that can reduce your capital gain when you do sell. Your methodical approach with TurboTax and careful expense tracking shows you understand the importance of good documentation. The temporary two-home situation is completely normal during moves, and you're demonstrating clear intent to establish your new house as your primary residence. Keep doing exactly what you're doing - you're well-prepared for a smooth tax filing and eventual sale of your old property!

One thing that hasn't been mentioned yet is to make sure you check if your address on file with the IRS is current. Since you filed that 2011 return so late (last year), if they've been trying to send you notices or even a refund check to an old address, that could explain why you haven't heard anything about that $675 credit. You can update your address through your IRS online account or by filing Form 8822. This is especially important because if they do issue a refund check and it gets returned as undeliverable, the IRS will typically hold the funds but won't automatically reissue the check - you'd have to contact them to get it resent to your current address. Also, double-check that the bank account information they have on file is still valid if you originally requested direct deposit on that 2011 return. Banks sometimes close old accounts, and if the direct deposit fails, the IRS will mail a paper check instead.

Something else worth mentioning - if you do end up calling the IRS about that $675 credit, try calling first thing in the morning (around 7-8 AM local time) on Tuesday, Wednesday, or Thursday. Monday and Friday tend to have the highest call volumes, and afternoons are generally busier too. Also, when you do get through to an agent, ask them to put a "case note" on your account documenting the conversation and what actions they're taking. This creates a paper trail in their system, so if you need to call back later, the next agent can see exactly what was discussed and what steps were already initiated. I learned this the hard way after having to explain my situation from scratch multiple times to different agents. Having those case notes saved me so much frustration on follow-up calls.

I went through something very similar with my single-member LLC last year. The key thing that saved me was immediately opening a properly designated IOLTA (Interest on Lawyers' Trust Account) style trust account specifically for client funds, even though I'm not a lawyer. Many banks will set up similar trust accounts for other professionals. The critical part is having ironclad documentation showing these are client funds held in trust, not your operating income. I had to provide retainer agreements, invoices showing the funds were for future services, and a clear paper trail separating client deposits from my earned income. Also, don't wait until you're more liquid to contact the IRS. Call them now and explain your situation - they're actually more willing to work with you if you're proactive rather than reactive. I was able to get a Currently Not Collectible status temporarily while I sorted out my finances, which stopped all collection activity. The IRS revenue officer I spoke with told me that being upfront about the client funds situation and showing proper documentation was much better than them discovering it during a levy. They appreciate transparency and it can actually work in your favor during negotiations.

This is exactly the kind of situation where you need to act fast but also be very careful about how you handle it. As others have mentioned, the IRS absolutely can levy your single-member LLC account for personal tax debt since it's a disregarded entity. Here's what I'd recommend doing immediately: 1) **Document everything** - Get written proof that certain funds belong to clients. This means retainer agreements, invoices showing advance payments, anything that proves the money isn't yours. 2) **Contact the IRS proactively** - Don't wait for them to levy. Call and explain you have client funds mixed in the account that need protection. They're more likely to work with you if you're upfront. 3) **Set up proper separation** - Open a designated trust account for client funds if you haven't already. But be careful about the timing - moving money after receiving collection notices can look suspicious. The $78k debt is substantial, but the IRS has options like installment agreements and Currently Not Collectible status if you truly can't pay right now. The key is being proactive and transparent rather than trying to hide assets. Also, for future reference, consider electing S-Corp status for your LLC to create better separation between personal and business tax liabilities, though that won't help with your current situation. Don't panic, but don't delay either. The sooner you address this head-on, the more options you'll have.

Has anyone tried recreating a mileage log using Google Maps timeline data? My tax guy told me that the state accepted this as supporting evidence in another client's audit since it shows where you actually were on specific dates.

This is really helpful advice from everyone. I'm in a similar situation but for a different year. One thing I wanted to add - if you do end up owing additional tax, make sure to ask about installment payment plans when you talk to the state. Most states will work with you on a payment plan rather than demanding everything upfront, especially if you're cooperative during the audit process. Also, don't ignore the audit notice or delay responding - that just makes everything worse. Even if you can't find all your documentation, respond by the deadline and explain what you're missing. They'd rather work with someone who's communicating than someone who goes silent. The Google Maps timeline suggestion is brilliant - I wish I had known about that option when I went through my audit. Definitely going to remember that for the future.

Whatever you do, DON'T ignore the CP2000! I made that mistake thinking it would go away and ended up with wage garnishment! Respond within the deadline even if you're still gathering some documents - you can always send additional info later.

I went through almost the exact same situation last year with a CP2000 notice! The key thing that saved me was keeping meticulous records of WHEN payments were actually received vs when they were reported by clients. Here's what worked for me: I created a simple spreadsheet showing the client name, amount, date payment was actually received (per my bank statements), and which tax year I correctly reported it in. Then I included copies of the relevant pages from both my 2023 AND 2024 tax returns to show the IRS exactly where that income appeared. The IRS had the same issue - a client reported paying me in December 2023 when I actually received it in January 2024. My response letter was very straightforward: "The payment from [Client Name] for $X was received on [Date] as shown in the attached bank statement. This income was correctly reported on my 2024 tax return, not 2023, as it was received in 2024." Don't stress too much - when you have clear documentation like bank statements showing the actual deposit date, the IRS will correct their error. Just make sure to respond before that 3-week deadline! The whole process took about 6-8 weeks for me and they completely removed the assessment.