One thing I learned the hard way - be super careful about claiming too much of your house as rental property if you ever want to claim the capital gains exclusion when selling! If you claim 60% as rental, you might only be able to exclude 40% of your gains from capital gains taxes when you sell. Also, make sure you're tracking the dates that rooms are actually rented vs. vacant. If a room sits empty for a few months while you're looking for a tenant, the expenses during that time are still deductible as long as the room is being actively marketed for rent.

Great question about the capital gains exclusion! You're right to think about maximizing deductions, but it's all about timing and your long-term plans. If you're planning to sell within a few years, you might want to be more conservative with your rental percentage claims. But if you're planning to keep the property long-term, maximizing current deductions usually makes more sense. The key is that you can qualify for the capital gains exclusion on your primary residence portion as long as you've lived in the home as your main residence for at least 2 of the last 5 years before selling. So if you're claiming 60% rental use, you'd potentially pay capital gains on 60% of your profit, but exclude up to $250k (or $500k if married) of gains on the 40% personal use portion. Run the numbers both ways - sometimes the annual tax savings from higher rental deductions outweigh the future capital gains hit, especially if you're in a high tax bracket now. A good tax professional can help you model different scenarios based on your specific situation and timeline.

I had the same issue with MI last month! Turned out my return was still in "processing" status even though it had been weeks. The state website doesn't update until it's fully processed, unlike the federal system. You might want to try calling their automated line at 517-636-4486 - sometimes it gives you more info than the website does. Hang in there, it's frustrating but normal this year!

Michigan resident here who went through this exact same thing last year! The "no match found" error is super common when their system is backlogged. I ended up waiting about 5-6 weeks before my return showed up in their lookup tool. One thing that helped me was keeping a screenshot of my submission confirmation from when I e-filed - that way you have proof you submitted it on time. Also, if you're really worried, you can request a payment trace after 6 weeks if your refund still hasn't shown up. Don't stress too much, MI is just notoriously slow compared to federal!

You're absolutely right to be thinking about the installment method for your S Corp stock sale - it can be a great tax planning strategy. Since your S Corporation is privately held and not traded on any established market, you should indeed be eligible to use the installment method under Section 453. One thing I'd recommend is getting a professional valuation of your business before structuring the sale, especially since you mentioned the buyer is interested in eventually taking over completely. This will help establish a defensible sales price and ensure you're maximizing the benefit of spreading the gain over multiple years. Also, make sure your installment agreement includes appropriate interest provisions - the IRS requires imputed interest on deferred payments, so you'll want to use at least the applicable federal rate to avoid any complications. Since this is a significant transaction representing 30% of your business, I'd strongly suggest consulting with a tax professional who has experience with installment sales of closely-held business interests. They can help you navigate any potential complications and ensure all the documentation is properly structured.

Val, you're correct that private S Corporation stock should qualify for installment sale treatment since it's not traded on an established market. However, I'd recommend getting clarification on a few key points before proceeding: 1. **Basis calculation** - Make sure you have clear documentation of your adjusted basis in the S Corp stock, including any loans you've made to the company that might affect your basis. 2. **Payment structure** - The installment agreement needs to specify the total sales price, payment schedule, and interest rate (at least the applicable federal rate). Even though payments are deferred, the total consideration must be determinable. 3. **S Corp elections** - Verify that selling 30% won't inadvertently terminate your S election due to ownership restrictions, especially if the buyer isn't eligible to be an S Corp shareholder. 4. **State tax implications** - Some states don't conform to federal installment sale treatment, so you might face different timing for state taxes. Given the complexity and significant tax implications you mentioned, I'd strongly suggest consulting with a tax professional experienced in S Corp transactions before finalizing the structure. The potential tax savings from proper planning could far exceed the cost of professional guidance.

As someone who went from zero tax knowledge to confidently managing my small business taxes, I'd highly recommend starting with "J.K. Lasser's Small Business Taxes" - it's updated annually and has excellent worksheets you can actually use. The book walks through real scenarios step-by-step, which sounds perfect for your note-taking style. For a landscaping business specifically, pay close attention to equipment depreciation rules and vehicle expense tracking - these are huge deductions that many new business owners miss or calculate incorrectly. The book covers both Section 179 deductions and bonus depreciation in plain language. Definitely take that community college accounting course! I did the same thing (also came from a non-business background) and it was invaluable. The structured learning helped me understand the "why" behind tax strategies, not just the "what." Plus, you'll network with other small business owners facing similar challenges. One tip: before your first meeting with your tax preparer, read through at least one of these books so you can have an informed conversation about tax planning strategies for next year, not just compliance for this year.

Great thread! I'd add "Tax Savvy for Small Business" by Frederick Daily to your reading list. What sets this book apart is how it connects day-to-day business decisions to tax implications - really helpful for someone like you who wants to understand the "why" behind tax planning. Since you mentioned you're not afraid of technical material, I'd also suggest getting familiar with IRS Publication 535 (Business Expenses) - it's dry but comprehensive, and having read it will make you much more confident when discussing deductions with your tax preparer. One thing I wish someone had told me when I started: track EVERYTHING from day one, even if you're not sure it's deductible. It's much easier to exclude questionable expenses later than to try reconstructing records. For landscaping specifically, don't forget about things like work boots, safety equipment, and even business-related cell phone usage. The community college course is definitely worth it - I took one through continuing education and the networking alone paid for itself. You'll meet other small business owners dealing with similar challenges, and many instructors are practicing CPAs who can provide real-world insights beyond what you'll find in books.

I just wanted to add my voice to everyone saying check your IRS transcript first - it really is the fastest way to get answers! I went through this same situation about 6 months ago and was terrified I'd somehow messed up my taxes or that the IRS would demand the money back later. Turned out they had automatically applied the Recovery Rebate Credit that I was eligible for but hadn't claimed on my original return. The transcript showed exactly what happened with a clear code explanation. One thing I'll add that I haven't seen mentioned - if you do end up needing to call the IRS for any reason, try calling right when they open at 7 AM. I had much better luck getting through during the first hour they're open versus trying later in the day. But honestly, the transcript check will probably give you everything you need without having to call at all. Don't stress too much about it - these automatic adjustments happen all the time and are usually good news!

This happened to me too! Got an unexpected $395 check about a month after my direct deposit refund came through. I was completely panicking thinking I'd made some huge mistake or that the IRS would come after me later demanding it back with penalties. After reading through all the great advice here, I checked my IRS account transcript online and found the answer immediately. Turns out they had made an automatic adjustment because my employer submitted a corrected W-2 that showed I had paid more state taxes than originally reported, which affected my state and local tax deduction on my federal return. The whole thing was resolved in literally 5 minutes of checking the transcript. I found a code 291 adjustment that explained exactly what happened. The IRS code lookup tool translated it into plain English so I could understand it without any confusion. I was so relieved to discover it was completely legitimate! I had worked myself up thinking this was going to be a massive headache, but it turned out to be a pleasant surprise. The IRS systems really do catch these things automatically and send corrections when they work in your favor. Definitely start with checking your transcript online - it's free, fast, and will give you peace of mind right away. Thanks to everyone in this thread for sharing their experiences and advice!