One additional consideration that hasn't been mentioned yet: if your LLC elects to be taxed as an S-Corp down the road, this loan structure becomes even more important. S-Corps have strict rules about shareholder loans and basis calculations, so having proper documentation from the start will save you headaches later. Also, don't overlook the potential depreciation benefits. Since the LLC owns the property, it can depreciate the rental portion over 27.5 years, which can provide significant tax savings. Just make sure you're only depreciating the business-use portion of the property and not the personal-use unit. For record-keeping, I'd recommend creating a simple spreadsheet that tracks: 1) HELOC payments you make personally, 2) loan payments the LLC makes to you, 3) rental income from both units, and 4) all property-related expenses. This will make tax time much smoother and provide the documentation trail you need. The complexity is frustrating, but you're setting up a solid foundation that will serve you well as your real estate portfolio grows. Many investors wish they had started with proper structure from day one instead of having to unwind messy arrangements later.

I'm dealing with a very similar situation right now and appreciate everyone's detailed responses! One thing I want to emphasize is the importance of getting your loan documentation right from the very beginning. I made the mistake of being casual about it initially and had to redo everything when my accountant warned me it wouldn't pass IRS scrutiny. For the promissory note, make sure you include standard commercial terms: fixed payment schedule, default provisions, and acceleration clauses. The IRS wants to see that you're treating this as a legitimate business transaction, not just moving money between your pockets. Regarding the mixed-use allocation, I found it helpful to use the square footage method for expenses like insurance and property taxes, but the actual usage days method for utilities and maintenance. This gives you the most accurate picture and the best defensible position if questioned. One more tip: consider having your LLC pay the property taxes and insurance directly rather than having you pay them and then get reimbursed. This creates cleaner documentation and reduces the back-and-forth of money that could look suspicious to auditors. The whole setup is definitely more complex than just owning the property directly, but the liability protection and tax benefits make it worthwhile in the long run.

Double check that you didn't accidentally check a box on your Schedule C or other tax forms indicating you had employees or paid wages. I made that mistake once and started getting all kinds of employment tax forms.

I've dealt with this exact situation before! As a sole proprietor myself, I got a 941 reminder out of nowhere and panicked thinking I had done something wrong. Here's what likely happened: Someone else may have mistakenly used your SSN when applying for an EIN, or there could be a data entry error somewhere in the IRS system that's associating your SSN with employer responsibilities. The good news is this is fixable, but you absolutely need to address it promptly. When you call the IRS (and I'd recommend trying the services others mentioned to actually get through), have your SSN ready and be very clear that you are a sole proprietor who has never had employees, never applied for an EIN, and have never been required to file Form 941. They should be able to remove the employment tax filing requirement from your account. Just make sure to get a confirmation number or case number when they fix it, so you have proof if this happens again. Don't stress too much - this is more common than you'd think, and the IRS can usually resolve it quickly once you get someone on the phone!

Just adding my experience for others searching: My housekeeper is definitely an independent contractor. She has her own business name "Spotless Spaces", sets her rates, decides which cleaning products to use, and has her own liability insurance. She even has employees of her own sometimes! The IRS would never consider that an employer-employee relationship with me. Don't overthink it - if someone is clearly operating an independent cleaning business with multiple clients, they're a contractor. Just make sure to issue a 1099-NEC if you pay them $600+ in a year. I use tax software that makes this super easy.

I've been dealing with a similar situation and wanted to share what I learned from my tax preparer. The key distinction is whether your housekeeper is operating as a business or working as your personal employee. From what you've described - 20 different clients, setting her own schedule, bringing supplies, and determining methods - she's clearly running her own cleaning business. The IRS looks at the degree of control you have over the worker. If she's making her own business decisions and serving multiple clients, that screams independent contractor. One thing that helped me was keeping records of our arrangement: copies of her business cards if she has them, text messages showing she sets the schedule, receipts showing she buys her own supplies, etc. This documentation supports the independent contractor classification if you ever need to justify it. Don't let the "household employee" rules confuse you - those apply when someone works primarily in your home under your direction. Your housekeeper is running her own enterprise. Just get her W-9 filled out and issue a 1099-NEC if you pay over $600 annually.

I work at a bank and see this confusion ALL the time. Here's a quick tip: if your routing number on your tax form starts with 101, 102, 103, 061, 062, 084, or 114, it's almost certainly an intermediary bank used by tax prep software. Most big tax companies use specific banks for this - TurboTax often uses Green Dot Bank or Santa Barbara TPG, H&R Block uses Axos Bank or MetaBank, and TaxAct uses Republic Bank & Trust. Each has their own routing numbers that are dead giveaways.

This is such a common worry and totally understandable! I went through the exact same panic last year when I saw completely different numbers on my 1040. What everyone else is saying is spot on - those different routing and account numbers belong to a temporary account set up by your tax software company. It's part of their "refund transfer" service that lets you pay for the software out of your refund instead of upfront. The process is: IRS → Tax Software Company's Bank → Your Bank. It adds a few days to getting your money, but it's completely legitimate and happens millions of times every tax season. One thing I learned is that you can actually track this process. Most tax software will send you email updates when your refund hits their temporary account and when it gets forwarded to you. Also, the IRS "Where's My Refund" tool will show it as "sent" once it goes to the intermediary bank, even though you won't have it in your account for another few days. Don't stress - your money is safe and will get to you!

I'm dealing with this exact situation right now too! Filed my return 8 days ago and it's been stuck at "Return Received" status. Like you, I also had a job change mid-year and was worried something was wrong with my filing. After reading through all these responses, I feel so much better knowing this is completely normal timing, especially during peak filing season. The explanation about "accepted" vs "approved" status really helps - I didn't realize that acceptance just means the format checks passed, not that they've actually processed everything. It's reassuring to hear from the accountant that 4-5 weeks isn't unusual during busy season, and that job changes can trigger additional verification. I guess we just need to be patient and trust the process. Thanks for asking this question - it's exactly what I needed to read today!

I'm going through this same anxiety right now! Filed 11 days ago and still showing "Return Received" status. Like several others here, I also had a job change last year (switched companies in August) plus I'm claiming the child tax credit for my two kids. Reading through everyone's experiences here has been incredibly helpful - I had no idea that "accepted" just meant the format checks passed, not actual processing. That explains why the status hasn't moved even though everything seemed fine when I filed through TurboTax. The timing everyone's sharing (18-21 days seems pretty common) gives me hope that mine should update soon. It's tough when you're counting on that refund money, but sounds like we just need to trust the process and stop checking daily! Thanks for starting this thread - it's exactly what I needed to see today.