You should talk to your boss about making you legitimate. Just mention that you need proper documentation for apartment applications and loans, not even mentioning taxes. Many small business owners will switch you to proper payroll when they realize it matters to you for housing. Worked for me! My landscaping boss switched me from cash to proper payroll once I told him I was trying to get approved for a car loan.

I was in almost the exact same situation last year with a roofing company. Here's what I learned after going through this process: First, don't stress too much about "getting your boss in trouble." The IRS processes millions of Schedule C filings every year and they're not actively cross-referencing every one to hunt down employers. They're way more interested in collecting taxes owed than playing detective. For your immediate apartment need, bank statements showing consistent deposits should work fine. But for taxes, you'll definitely want to file Schedule C and pay self-employment taxes on what you've earned. One thing nobody mentioned - if you've been doing this since April, you might want to make an estimated tax payment for Q4 (due January 15th) to avoid underpayment penalties. The IRS expects you to pay taxes throughout the year, not just at filing time. Also, keep track of ANY work-related expenses - gas, tools, work clothes, phone usage for work calls. As a self-employed person, these become deductions that can significantly reduce what you owe. The whole situation is more common than you think, and the IRS has seen it all before. Just be honest about your income and pay what you owe - that's really all they care about.

I'm confused about a related issue - does anyone know if you can file a tax return with ONLY self-employment income that's under the 1099-NEC threshold? Like if that's literally all the money I made last year (around $2,000 spread across different clients, all under $600 each).

Just wanted to add some clarity from personal experience - I had a similar situation where I worked with multiple small clients under the $600 threshold. After doing some research and speaking with a tax professional, here's what I learned: The $600 rule applies to both issuing the 1099-NEC form AND reporting to the IRS. Companies are not required to report payments under $600 to the IRS for independent contractor work. However, some larger companies with automated systems might report everything as part of their batch processing, but this isn't the standard practice. The key thing to remember is that YOU are still required to report ALL income on your tax return, regardless of whether you receive a 1099-NEC or not. I keep detailed records of all payments received, including screenshots of digital payments, invoices sent, and bank deposits. For tracking purposes, I create a simple spreadsheet with columns for: Date, Client Name, Amount, Payment Method, and Service Provided. This helps during tax season and provides documentation if ever needed for an audit. The IRS won't necessarily know about unreported small payments unless they audit you or cross-reference other information, but it's always better to be compliant from the start.

I went through a very similar situation about 6 months ago as a freelance marketing consultant with 1099 income. The process was definitely more involved than a traditional W-2 mortgage, but absolutely doable with your financial profile. A few things that really helped me: **Documentation is everything** - Beyond just tax returns, I prepared a business income summary showing quarterly earnings for the past 2-3 years to demonstrate consistency. This helped offset any concerns about income variability. **Consider your debt-to-income calculation carefully** - Since you mentioned taking business deductions, run the numbers on what your net income looks like for qualification purposes. Sometimes it makes sense to be less aggressive with deductions in the year you're applying for a mortgage. **Bank statement loans might be worth exploring** - As someone else mentioned, these can be great for self-employed folks. I didn't go this route since my tax return income was sufficient, but it's good to know it exists as an option. **Your combined profile is strong** - Having your wife's stable W-2 income plus your consistent contractor earnings, excellent credit scores, and solid down payment puts you in a really good position. Many lenders will view this as lower risk than a solo 1099 applicant. I ended up going with a regional bank that had experience with self-employed borrowers. The process took about 45 days total, but we got a great rate and closed without any last-minute surprises. Don't let the extra paperwork discourage you - it's totally manageable!

As someone who went through this exact process last year as a 1099 contractor, I wanted to share what worked for me. I had been doing freelance accounting work for about 2.5 years when my husband and I decided to buy our first home. The biggest challenge was indeed the income documentation. Lenders wanted to see not just my tax returns, but also profit & loss statements, bank statements showing consistent deposits, and letters from my main clients confirming ongoing work relationships. I learned that organization is absolutely critical - having everything ready upfront made a huge difference. One thing that really helped was working with a loan officer who specialized in self-employed borrowers. They knew exactly what documentation to request and how to present my income in the most favorable light to underwriters. They also suggested I get a CPA letter summarizing my business income trends, which seemed to carry weight with the underwriting team. Your situation sounds quite strong actually - having your wife's W-2 income as a foundation plus your consistent 1099 earnings should work in your favor. The key is finding the right lender and being prepared with thorough documentation. Don't get discouraged if you get a "no" from the first lender - shop around until you find one that understands self-employed borrowers. Feel free to ask if you want more specific details about the documentation process!

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!