For anyone dealing with partnership redemptions, don't forget that Rev. Ruling 99-6 can be relevant depending on how the redemption is structured. If the redemption results in a single remaining member, the tax treatment changes dramatically! The remaining member is treated as purchasing assets rather than an interest, which affects basis calculations completely differently than a typical redemption.

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

I'm confused by some advice here. My accountant told me ANY 1099-NEC income HAS to be reported on Schedule C as business income, no exceptions. He said the IRS automatically matches 1099-NECs with Schedule C filings and you'll get flagged if you put it on Schedule 1 instead. Am I missing something?

As someone who's dealt with similar confusion, I'd recommend being really careful about whose advice you take here. I see people recommending various tools and services, but honestly, the IRS publication 535 (Business Expenses) has a clear section on hobby vs. business that's free and official. The key question is: are you engaged in this activity with the genuine intent to make a profit? Based on your description - playing once a month for enjoyment, not actively seeking more gigs, not depending on the income - this really does sound like hobby income to me. If you classify it as hobby income on Schedule 1, you'll avoid self-employment tax but you also can't deduct any related expenses. Given that you're not trying to deduct expenses anyway, this seems like the most straightforward approach for your situation. Just make sure whatever you decide, you're consistent. If you call it a hobby this year, don't suddenly switch to business next year unless your behavior actually changes (like if you start actively marketing your services or depending on the income).

Has anyone here actually sold a house after refinancing multiple times? I'm in a similar boat and wondering if there are any practical tips for organizing all the paperwork. I've refinanced twice and did a cash-out once for a major renovation...feeling overwhelmed about keeping everything straight for when we eventually sell.

Great question! I just went through this exact scenario last year. Refinancing itself doesn't directly impact your capital gains calculation - what matters is your cost basis (purchase price + qualifying improvements + certain costs) versus your sale price. The key thing to understand is that if you do a cash-out refinance, HOW you use that money makes all the difference: - Use it for home improvements (kitchen, bathroom, roof, etc.) = increases your basis and reduces future capital gains - Use it for non-home expenses (debt consolidation, investments, etc.) = no impact on basis Since you mentioned you've built up good equity over 7 years, you'll likely qualify for the primary residence exclusion ($250K single/$500K married) if you've lived there 2+ years. Just make sure to keep detailed records of any improvements you make with refinance proceeds. Your mortgage broker was right about documentation - keep all settlement statements, improvement receipts, and contractor invoices. The IRS can ask for proof of your basis calculation even years later.

I remember reading somewhere that restaurant owners often underreport cash sales. Is that still common with everyone using credit cards and apps these days?

The enforcement gap is real, but it's worth noting that the IRS has been significantly increasing its enforcement budget and technology capabilities recently. The Inflation Reduction Act provided $80 billion in additional funding over 10 years, much of which is going toward enforcement. They're also using more sophisticated data analytics to identify non-compliance patterns. For example, they can cross-reference business income reports with industry benchmarks, supplier payments, and even social media activity to flag inconsistencies. What's interesting is that audit rates have historically been inverse to income level - lower-income taxpayers claiming EITC were audited more frequently than millionaires, simply because those audits were cheaper to conduct. The new funding is supposed to shift focus back to high-income, complex returns where the actual tax gap is largest. The psychological aspect is important too - most people comply because they assume they'll get caught, even when the actual audit risk is low. As enforcement becomes more visible and sophisticated, that compliance effect tends to increase across all income levels.

Another approach worth considering - call the company that issued the 1099-NEC and ask if they'd be willing to correct it. Some companies incorrectly issue 1099s for expense reimbursements when they should actually be using a different process that doesn't trigger tax reporting. They might be willing to void it and reissue as a non-taxable reimbursement. I had success with this once when a client reported a travel reimbursement on my 1099. Their accounting department admitted they made an error and issued a corrected form. Worth a try before going through all the Schedule C gymnastics!

I had a very similar situation last year with multiple companies! The multi-state filing aspect is particularly frustrating when you're already dealing with moves for your actual job. One thing that helped me was creating a simple spreadsheet tracking each state's non-resident filing thresholds. Most states don't require you to file if your income in that state is below a certain amount (usually $1,000-$3,000). Your $950 reimbursement might not even trigger a filing requirement depending on the state. Also, definitely keep all your documentation from the interview process - emails confirming the reimbursement, receipts for the flight, etc. Even though you'll likely offset the income with expenses on Schedule C, having a clear paper trail makes everything much smoother if questions ever come up. The good news is this is way more common than you'd think, and once you get through this tax season, you'll know exactly how to handle it if it ever happens again!