This is such a helpful thread! I'm in a similar situation with my marketing consultancy. I've been successfully using the Augusta Rule for our quarterly board meetings at my house, but I'm also considering renting my detached workshop to the business for product photography and storage. Based on what everyone's shared, it sounds like the key is really in the documentation and keeping everything clearly separated. I'm definitely going to get separate lease agreements drafted and maybe get that real estate agent valuation that Chloe mentioned. One question - for those who are doing both arrangements, do you find it helpful to use different payment schedules? Like monthly payments for the continuous garage rental versus per-event payments for the Augusta Rule house rentals? I'm wondering if that helps demonstrate the different nature of each arrangement to the IRS. Also really appreciate the audit experience shared by Mila - gives me confidence that this can be done legitimately if you keep proper records!

Great question about payment schedules! Yes, I absolutely recommend different payment structures for each arrangement - it's one of the clearest ways to demonstrate that these are truly separate rental activities. For my Augusta Rule house rentals, I use per-event invoicing (usually $800-1,200 per day depending on the event type and number of attendees). Each invoice references the specific business purpose like "Q3 Board Meeting" or "Annual Company Retreat." Payment is typically made within 30 days of the event. For my garage workshop rental, I have a standard monthly lease payment of $450 that gets paid on the 1st of each month via automatic transfer. This consistent monthly payment pattern clearly shows it's an ongoing business facility rental rather than occasional event space usage. The different payment schedules actually strengthen your documentation because they reflect the different nature of each rental: - Augusta Rule = occasional, event-based, higher daily rate - Workshop rental = continuous, facility-based, lower monthly rate I also keep the invoices and lease agreements in completely separate files, and my business categorizes the expenses differently in QuickBooks ("Event Space Rental" vs "Facility Lease"). This payment structure differentiation was something my accountant specifically recommended, and it's worked well through two years of clean tax filings. Definitely get those separate valuations - having that professional documentation gives you confidence that your rates are defensible!

Make sure you understand the difference between personal items, hobby sales, and business income. Each has different tax implications: Personal items: If sold for less than you paid, generally no tax impact. If sold for more, could be capital gains. Hobby income: Report full amount on Schedule 1, but post-2018 you can't deduct expenses (which sucks). Business income: Report on Schedule C, can deduct all legitimate expenses, but you'll owe self-employment tax. Your situation sounds like a mix of personal items and hobby sales. Document everything!!

I'm dealing with a very similar situation! I've been selling off my vintage video game collection on eBay after years of collecting, and I'm so confused about how to handle this tax-wise. Like you, most of my sales are actually losses when I compare what I originally paid versus what I'm getting now. One thing that's been helpful is creating a simple three-column spreadsheet: Original Purchase Price | Sale Price | Net Gain/Loss. This makes it crystal clear that even though eBay will report the gross sales on the 1099-K, the actual taxable amount should be much lower. I've been reading through all these comments and it sounds like the key is having good documentation. I wish I had kept better records over the years, but I'm doing my best to reconstruct what I can using old credit card statements and checking price history on sites like PriceCharting for video games. The hobby vs. personal property distinction seems really important here. Since you collected these for personal enjoyment and are selling due to space constraints (not to make a profit), it sounds like you have a strong case for treating many of these as personal property sales rather than hobby income. Definitely keep that detailed spreadsheet - it shows you're being thorough and honest about tracking actual gains and losses.

If you're just looking to avoid manual entry, FreeTaxUSA probably isn't for you. I've used it for 5 years and what you save in money, you "pay" in time with manual entry. For simple returns it's great, but with lots of investment transactions, you might be better off with TurboTax or H&R Block despite the higher cost. That said, if you're determined to use FreeTaxUSA, here's what I do for my ETrade stuff: 1. Use ETrade's cost basis report (not just the 1099) 2. Focus on entering the summary information where possible 3. Set aside a dedicated chunk of time - it will take longer than you expect 4. Double-check your numbers - easy to make typos with manual entry

I made the switch from TurboTax to FreeTaxUSA last year and dealt with the same ETrade import issue. Here's what worked for me: ETrade provides a "Realized Gains and Losses" report in their tax center that's much cleaner than trying to work from the 1099-B directly. You can download it as a CSV file and it breaks everything down by short-term vs long-term gains, which matches exactly how FreeTaxUSA asks for the information. For the 40 transactions you mentioned, you'll likely be able to use the summary totals if they're all covered securities (most ETrade transactions from recent years are). FreeTaxUSA has a streamlined entry option where you just enter the totals from each category rather than individual trades. The whole process took me about 45 minutes once I had the right report from ETrade. Way better than I expected, and I saved over $100 compared to TurboTax's pricing this year. The trade-off in convenience was definitely worth it for me.

Something nobody mentioned yet - if you have an S-Corp, you should absolutely set up a Solo 401k rather than just a SEP IRA. You can contribute WAY more pre-tax money - up to $69,000 for 2025 vs. the $23,000 employee limit for regular folks. This is one of the biggest tax advantages of having the S-Corp structure.

Grace, congrats on making the S-Corp election! You're asking all the right questions. Based on my experience helping clients transition to S-Corp status, here are some practical recommendations: **Payroll Frequency**: While annual payroll is technically allowed, I strongly recommend quarterly. The IRS tends to scrutinize S-Corps that only run payroll once per year, as it can appear like you're trying to minimize employment taxes. Quarterly shows good faith compliance and spreads out your tax obligations. **Reasonable Salary**: For your income level ($220-250k), aim for a salary of at least $100-120k. The IRS doesn't publish specific percentages, but they do look at industry standards. For consulting, this range should keep you safe while still allowing meaningful tax savings on distributions. **Expense Tracking**: Set up QuickBooks Online and connect it to your business bank account. Create categories that align with Schedule C deductions (office supplies, professional development, travel, etc.). Take photos of receipts immediately and store them in the QB mobile app. **Service Recommendations**: Between ZenBusiness and Gusto, I'd lean toward Gusto for payroll - their tax compliance guarantee is valuable. For accounting, consider pairing it with QuickBooks rather than relying on their basic expense tracking. One critical note: Make sure your S-Corp election was properly filed and accepted by the IRS before proceeding. You might want to call and confirm it's been processed to avoid any complications down the road.

This is actually a really good sign! When your transcript goes from showing normal information to this "Information Not Available" message specifically mentioning adjustments, it usually means the IRS is actively working on your account in the final stages. I've seen this pattern countless times - the system basically locks down your account info while they're making the final calculations and preparing to issue your refund. The fact that it's showing at 10:34 and specifically mentions adjustment processing is textbook pre-846 behavior. Keep checking Friday mornings since that's when transcript updates typically post. You're probably looking at getting your DDD (Direct Deposit Date) within the next week or two!

I went through the exact same thing last month! My transcript showed that same "Information Not Available" message for about 5 days, and then BAM - 846 code appeared with my DDD. The key thing is that it specifically mentions "adjustment" processing, which is different from regular processing delays. When the IRS locks down your account info like this, they're usually in the final stages of calculating your refund amount. The timing at 10:34 is also pretty typical for when these updates happen. I'd say you're definitely on the right track - just keep checking those Friday morning updates. The wait is torture but this is actually one of the better signs you can get! 🤞