I'm dealing with a similar situation right now and wanted to share what I learned from my tax preparer. One thing that hasn't been mentioned yet - if your LLC has been operating as a partnership but you've been filing as a sole proprietorship (Schedule C), the IRS might also flag this as an entity classification issue. Make sure when you file your 1065, you're consistent about your entity election. If you never filed Form 8832 (Entity Classification Election), the IRS defaults multi-member LLCs to partnership status, which is why you need the 1065. Also, don't forget about your state requirements! Most states require separate partnership returns too, and those penalties can add up. Some states are more forgiving than others with penalty abatement, but you'll want to check your specific state's requirements. One more thing - if you have any business bank accounts, make sure the income/expenses on your 1065 match your bank records. The IRS can cross-reference this, and inconsistencies might trigger additional scrutiny. Good luck getting this sorted out!

Don't stress too much - this is actually a pretty common mistake for new LLC owners! The good news is that the IRS has specific provisions for situations exactly like yours. Here's what you need to know about penalty relief: **First-Time Penalty Abatement (FTA)** is your best friend here. Since you filed your personal taxes on time and this appears to be your first business filing penalty, you have a strong case for getting the penalties completely waived. The key is being proactive - file your 1065 immediately and include a penalty abatement request with your submission. **Quick reality check on penalties:** Yes, it's $210 per partner per month, but don't let that number paralyze you. Many first-time business owners successfully get these penalties reduced or eliminated entirely through FTA. **Your reasonable cause statement should include:** - This was your first year operating as a partnership - You demonstrated good faith by filing your personal return on time - You're taking immediate corrective action upon discovering the requirement - You had no prior knowledge of the 1065 filing requirement The fact that you already filed your personal taxes actually works in your favor - it shows you're not someone who ignores tax obligations, you just genuinely didn't know about this specific requirement. File that 1065 this week and you'll likely be fine!

FYI the financial institution already reported this to the IRS. The computer systems will automatically flag your return if the numbers don't match. Don't risk an audit over $187!

I went through this exact same situation last year with a small 1099-INT for about $150. I was tempted to skip it too, but I'm glad I didn't. The consensus here is absolutely correct - you MUST report all interest income regardless of the amount. There's no minimum threshold for reporting interest income on your tax return. What really convinced me was realizing that the IRS already has a copy of your 1099-INT form. The financial institution is required to send them a copy of everything they send to you. Their computer systems automatically cross-reference what you report against what they have on file. If there's a mismatch, you'll likely get a notice asking about the discrepancy. For $187, you're probably looking at owing maybe $30-50 in additional tax depending on your bracket, but the penalties and interest for not reporting it initially could add up to more than that. Plus, having to deal with IRS correspondence is just not worth the headache. Just report it and move on - it really is straightforward once you know where it goes on your return.

anyone know if they still doing the amazon gift card bonus this year?

I'm also waiting for TurboTax to announce their 2025 refund advance! From what I've seen, they usually launch it around this time but with all the IRS delays this season I wonder if they're being more cautious. Might be worth calling their customer service line to see if they have any insider info on when it'll drop.

Don't forget about bonus depreciation! For 2025, I believe you can still take 80% bonus depreciation on qualifying property with a recovery period of 20 years or less. This means things like appliances, carpet, furniture, etc. can have 80% of their cost deducted immediately and the remaining 20% depreciated over their normal recovery period.

Great question! As someone who's been through this with multiple rental properties, I can tell you that properly handling renovation depreciation is absolutely worth it - the tax savings add up significantly over time. Here's my practical approach for your $45k renovation: First, go through all your receipts and categorize everything. Things like flooring, built-in cabinets, plumbing fixtures, and structural work go on the 27.5-year residential rental schedule. But appliances (refrigerator, dishwasher, etc.), window treatments, and some fixtures can be depreciated over 5-7 years. The key is documentation. Keep detailed records of what was purchased for which room/purpose. For your kitchen and bathroom remodel, separate out any appliances or removable fixtures from the permanent improvements. One tip that saved me money: if you replaced multiple items as part of the renovation, you might be able to take advantage of the remaining bonus depreciation (80% in 2025) on qualifying shorter-life property. This can give you a substantial deduction in year one. Don't try to expense major renovations as repairs - the IRS will flag that. But definitely take the depreciation deductions you're entitled to. Consider using tax software designed for rental properties or consulting a CPA who specializes in real estate - the upfront cost pays for itself in tax savings.

has anyone used proseries to handle the 754 election forms after a redemption? im trying to figure out where to input the adjustment info but the software is so confusing with partnership stuff

One thing I'd add to this discussion is that you should also consider whether the redemption triggers any recapture issues under Section 1245 or 1250 if the LLC holds depreciable property. The redeemed partner might face ordinary income treatment on their share of depreciation recapture, which is separate from the basis calculations everyone's been discussing. Also, if the LLC has unrealized receivables or inventory (Section 751 assets), part of the redemption payment might be recharacterized as ordinary income rather than capital gain treatment. This doesn't affect the outside basis calculations, but it definitely impacts the tax consequences for the departing partner. Make sure to review the LLC's balance sheet for these "hot assets" before structuring the redemption. The interaction between Section 736 payments and Section 751 can get pretty complex, especially if the operating agreement has special provisions about how to value these assets during a redemption.