Has anyone actually gone through this process of changing from IT to lending? I'm considering something similar and wondering about the actual paperwork involved. Did you have to refile your EIN or get new business bank accounts? Did it affect existing contracts you had with IT clients?

Just went through a similar transition last year - changed my LLC from marketing consulting to real estate investing. Here's what I learned that might help with your IT to lending switch: The good news is you can definitely keep your existing LLC, but you'll need to handle several steps properly. First, check if your state requires you to amend your Articles of Organization to reflect the new business purpose. Some states are strict about this, others are more flexible. For lending specifically, you'll absolutely need to research your state's lending laws and licensing requirements. This is heavily regulated - much more so than IT services. Look into whether you need a money lender's license, what your state's usury laws are, and if there are any bonding requirements. Don't forget about the practical stuff either: new business insurance (your current policy definitely won't cover lending activities), potentially new banking relationships (some banks have stricter requirements for lending businesses), and updated contracts/agreements. The tax implications are also significant - interest income is taxed differently than service income, and you'll have different allowable deductions. I'd strongly recommend consulting with both a business attorney familiar with lending regulations and a CPA before making the switch. Timeline-wise, plan for 2-3 months to get everything properly sorted. The licensing part usually takes the longest, so start there first.

I was in a very similar situation last year - my husband was working in Texas while I stayed in Colorado. One thing that really helped us was creating a detailed timeline of where each of us lived and worked throughout the year, including exact dates. This became crucial when filling out the state forms, especially for determining part-year residency status. For your situation, since you own property together in Michigan and you're still living there, you'll likely be considered a Michigan resident for the full year. Your wife's situation in Arizona might be more complex - she could be considered either a part-year resident or a non-resident depending on how long she's been there and whether she intends to make it permanent. One tip: keep all your lease agreements, utility bills, and work contracts as documentation. Arizona and Michigan may have different thresholds for what constitutes residency, and having clear documentation of your living situations will help if either state questions your filing status. Also, don't forget to check if either state has reciprocity agreements that might affect your filing requirements. Some states have agreements that can simplify the process for people working across state lines.

Just wanted to add one more consideration that hasn't been mentioned yet - be careful about timing if you're planning to move back together soon. If your wife moves back to Michigan before the end of the tax year, it could change her residency status for 2024, which would affect how you file both federal and state returns. Also, since you mentioned this is temporary due to work situations, make sure to keep documentation showing the temporary nature of the arrangement (like a job contract with an end date, or correspondence about plans to relocate back together). This can be helpful if either state questions your filing status or tries to claim you as residents when you're not. One practical tip: consider doing your taxes a bit earlier this year since multi-state filings can take longer to process. Both Michigan and Arizona may need additional time to review returns that involve couples filing separately at the state level but jointly at the federal level. Getting everything filed early gives you more time to address any questions that come up.

Has anyone here actually gotten audited by the IRS for premium tax credit issues? I'm in a similar situation but honestly thinking about just claiming the credit for all months and seeing what happens. It's only about $340 for that overlap month and seems like a lot of hassle to figure out.

I went through almost exactly this situation last year and can confirm what others have said - you'll need to repay the APTC for that overlap month. The IRS considers you ineligible for the premium tax credit during any month when you were eligible for qualifying employer coverage, regardless of whether you actually used both plans. A few practical tips from my experience: 1. Make sure to check your employer's plan documents for the exact eligibility date - sometimes it's different from when coverage actually starts 2. Keep documentation of when your employer coverage began in case the IRS asks for proof later 3. The repayment caps mentioned earlier can really help limit what you owe if your income qualifies One thing that caught me off guard was that my tax software initially missed the overlap entirely until I manually entered the employer coverage dates. Double-check that your software is accounting for both coverages correctly when calculating your Form 8962. The good news is that even though you have to repay that month's APTC, you can still claim the premium tax credit for the other 6 months where you only had marketplace coverage. It's frustrating but not as bad as having to repay everything!

Make sure you're also considering the account statements! If the account was generating interest, dividends, or other income AFTER your uncle passed but BEFORE you took over the account, that income technically belongs to the estate and should be reported on the estate's income tax return (Form 1041). The bank will issue a 1099 for that income, and if it's in your name, the IRS will expect to see it on your personal return. You might need to file a separate schedule showing that this income belongs to the estate, not you personally.

One more thing to keep in mind - you'll want to get documentation from the bank showing when you were added as a secondary account holder and what type of account it was (joint tenants with right of survivorship vs. convenience account, etc.). This can matter for tax purposes. Also, check if your uncle's estate went through probate. If it did, the probate court records should show how this account was handled. Sometimes joint accounts are excluded from probate, but the estate executor should still account for them when calculating the total estate value. If you're unsure about any of this, it might be worth consulting with a tax professional who specializes in estate matters. The $43,000 amount is significant enough that you want to make sure you handle it correctly, especially since inheritance and estate tax rules can be complex and vary by state.

One thing I haven't seen mentioned yet - if you do get the retroactive S-Corp election approved, make sure your CPA prepares a reasonable compensation study to justify whatever salary you're setting for yourself. The IRS really scrutinizes S-Corps because they know owners try to minimize salary (which is subject to employment taxes) in favor of distributions. Have you actually calculated how much you might save by switching to S-Corp status for 2022? It's mainly the Medicare and Social Security tax savings on the distribution portion, but you need to weigh that against the additional complexity and compliance costs.

I went through a very similar situation about two years ago and successfully did the retroactive S-Corp election. A few things I learned that might help: First, yes, Rev. Proc. 2013-30 is absolutely legitimate, but timing is crucial. You have 3 years and 75 days from the original due date you wanted the election to be effective. So for 2022, you'd need to act soon. Second, the "reasonable cause" statement is critical. I used the fact that my previous tax preparer never mentioned S-Corp elections as an option despite my business income level. The IRS accepted this reasoning. Document everything - emails, conversations, even the lack of discussion about entity elections. Third, calculate the potential savings first before diving in. In my case, I saved about $18k in self-employment taxes, but I also had to establish a reasonable salary (I used about 60% of net income based on industry data) and file amended returns for multiple years. The process took about 6-8 months total to get fully resolved, but it was absolutely worth it. Make sure your new CPA has experience with late S-Corp elections - not all tax professionals are familiar with the process. Good luck!