One mistake I see a lot - make sure your properties actually qualify as short-term rentals for tax purposes. Its not just about being on Airbnb. The average stay needs to be less than 7 days, and you need to be providing substantial services (similar to hotels). Also remember that material participation for each property is determined separately unless you make a grouping election. If your spending 600 hours combined across all properties, but only 150 on one of them, that specific property might not qualify as active without proper grouping.

Great question about the 7-day average and substantial services! The IRS looks at several factors to determine if you're providing "substantial services" similar to a hotel: - Daily housekeeping or frequent cleaning (you've got this covered) - Providing linens, towels, and toiletries (check) - Concierge-type services like local recommendations, booking activities - Maintenance and repair services - Guest communication and problem resolution Based on what you mentioned (linens, toiletries, coffee, cleaning between guests), you're likely meeting the substantial services test. The key is that these services are provided for the convenience of the occupant, not just basic property maintenance. For the material participation piece that Laura mentioned - you're absolutely right about the grouping election. With 600-700 total hours across multiple properties, Ethan should definitely consider making an election to group his rental activities together. This allows him to meet the material participation test for the entire grouped activity rather than each property individually. The election needs to be made by filing a statement with your tax return, and once made, it's generally binding for future years unless there's a material change in circumstances.

Has anyone dealt with the final LLC tax return when you've been filing as a single-member disregarded entity? My accountant says we just check the "final return" box on Schedule C, but that seems too simple to me.

One thing I learned the hard way is to keep detailed records of all your closure activities. I created a simple spreadsheet tracking every form filed, every agency contacted, and every confirmation number received. When I got a random notice from my state 18 months later questioning whether my business was properly closed, having that documentation saved me hours of research. I could immediately show exactly when I filed dissolution papers, when I notified each agency, and when I received confirmations. Also, don't forget about any automatic payments or subscriptions tied to your business accounts - things like software subscriptions, business credit monitoring, or merchant services. These can continue charging even after you close bank accounts and create headaches with overdraft fees or collections issues.

Has anyone actually been audited when using personal cards for business? All this advice sounds good in theory but I'm wondering about real experiences.

I've been using a personal card for my freelance business expenses for over two years now, and I can confirm what others have said - the IRS really doesn't care about the card type. During my recent interaction with a tax professional, they emphasized that the key is maintaining clear separation in your accounting records. What I've found helpful is using a dedicated personal card ONLY for business expenses, even though it's technically a personal card. This makes reconciliation much easier in QuickBooks and gives you a clear paper trail. I also keep a simple spreadsheet with business purpose notes for each transaction, which takes maybe 5 minutes per week but gives me peace of mind. The audit risk doesn't increase just because you're using a personal card - it increases if your expense patterns look unusual for your industry or if you can't properly document business purposes. As long as you're disciplined about record-keeping and only deducting legitimate business expenses, you should be fine regardless of card type.

I totally feel your pain! I went through something very similar a couple years ago when I had to amend for a forgotten 1099-MISC. Those 971/977 codes are definitely standard for amended returns - the 971 just means they're going to mail you a notice (usually just a boring confirmation letter), and 977 confirms they got your electronic amendment. The fact that you filed the amendment only 4 days after your original is actually great timing! There's a real chance the IRS hadn't even touched your original return yet when the amendment came in, which means they'll likely process everything together. That's way faster than having to stop an already-started return and restart. I know waiting for $2,400 when you need it for car repairs is super stressful. While you're in limbo, definitely call around to repair shops about payment plans - you'd be amazed how many will work with you if you explain you're waiting on a tax refund. Some will even hold off on major repairs until your refund comes through. Since you e-filed, you're probably looking at 8-12 weeks from when those codes appeared (much better than 20+ for paper). Keep checking your transcript weekly but try not to drive yourself crazy with it. The money will come through - the IRS is just painfully slow with amendments. Hang in there!

I've been in this exact situation before and I know how stressful it is! The 971 and 977 codes are actually pretty standard for amended returns - the 971 just means they're going to send you a notice (usually just a confirmation letter), and the 977 confirms they received your electronic amendment. The timing actually works in your favor here. Since you caught the error and filed the amendment only 4 days after your original return, there's a good chance the IRS hadn't even started processing your original yet. When this happens, they often process everything together which can be much faster than having to stop and restart processing. I know $2,400 is significant when you need it for car repairs. While you wait, definitely call around to repair shops about payment plans - many are surprisingly flexible if you explain you're waiting on a tax refund. You could also prioritize just the most critical repairs for now. Since you e-filed the amendment, you're probably looking at 8-16 weeks from when those codes appeared (way better than 20+ for paper amendments). Keep checking your transcript weekly for updates. Don't panic if a 570 code shows up - that's just the official refund hold. You'll know things are moving when you see a 571 (hold released) followed by an 846 (refund issued). The waiting is definitely the hardest part, but your refund will come through! Hang in there.

I'm a nurse and see this issue come up with patients all the time. The rule I always tell them is: if you prepaid for a SPECIFIC procedure with a set date and service, it's deductible when paid. If you put money into a general account or prepaid without knowing exactly what services you'd get, you have to wait until you actually get the service. Also make sure the medical expense is actually deductible. Remember you can only deduct the amount that exceeds 7.5% of your AGI, and only if you itemize deductions instead of taking the standard deduction.

One thing nobody's mentioned - make sure you keep REALLY good documentation. I went through an audit for medical expenses and they wanted to see proof of when I paid AND when I received services. Save everything - receipts, appointment confirmations, insurance EOBs, etc. The IRS is being super picky about medical deductions lately.