Can't reach IRS? Claimyr calls for you, so you don't have to wait on hold.
Claimyr is a pay-as-you-go service. We do not charge a recurring subscription.
Using Claimyr will:
- Connect you to a human agent at the IRS
- Skip the long phone menu
- Call the correct department
- Redial until on hold
- Forward a call to your phone with reduced hold time
- Give you free callbacks if the IRS drops your call
Ask the community...
- DO post questions about your issues.
- DO answer questions and support each other.
- DO post tips & tricks to help folks.
- DO NOT post call problems here - there is a support tab at the top for that :)
Join the conversation
Join the conversation
When I was in your situation, I picked Wyoming for my LLC formation. Main reasons were: - No state income tax - Low annual fees ($50-60/year) - No need to disclose owner names in public filings - Only need to file an annual report I used a registered agent service that provided a physical address for about $120/year. Been running it for 3 years from Southeast Asia with zero issues. Most clients don't even realize I'm not in the US. Just make sure you understand the tax filing requirements for expats with businesses. You'll still likely need to file: - Schedule C with your 1040 - Self-employment tax (unless you're in a country with a totalization agreement) - Possibly FBAR if your business accounts exceed $10k
Did you have any issues setting up a business bank account? I've heard some banks won't let you open one if you don't have a US address or if you're not physically present.
I opened my business account with Mercury Bank online. They're used to working with remote business owners and didn't require me to be physically present in the US. I provided my Wyoming business documents, EIN, and passport - all done virtually. Some traditional banks might give you trouble, but several online-focused banks like Mercury, Novo, and Wise Business understand the digital nomad/expat business model. Just be upfront about your situation when applying, and make sure you have all your business formation documents properly set up first.
One thing nobody has mentioned yet is that regardless of which state you choose, you'll need to be aware of "foreign qualification" requirements. If you're "doing business" in a state other than where your LLC is formed, you technically need to register as a foreign entity there. The definition of "doing business" varies by state, but generally includes having employees, office space, or conducting in-person services in that state. As an expat with an online business, this probably won't affect you if you truly have no physical presence in any state. But something to keep in mind if your situation changes!
So if I form in Wyoming but occasionally visit California and work from there for a few weeks, would I need to register in California too? Their taxes are insane!
@Alexander Evans That s'a really good question about California! Generally, just visiting and working temporarily like (a few weeks wouldn) t'trigger foreign qualification requirements. California looks for continuous "business" activity or having a permanent "place of business in" the state. However, California is notoriously aggressive about tax nexus, so you d'want to be careful about establishing any kind of regular pattern there. If you re'just visiting occasionally as a tourist who happens to work remotely during your stay, you should be fine. But if you re'there for extended periods regularly or have clients specifically in California, that could potentially create nexus. The threshold varies, but most states consider things like having an office, employees, or conducting regular business meetings as triggers for foreign qualification. Remote work from a laptop while visiting usually doesn t'count, but I d'recommend consulting with a tax professional if you plan to spend significant time in high-tax states like California or New York.
Join the conversation
Quick question - I'm in a similar situation but I'll be renting my house for 3 years while I'm working abroad. Do the same deduction rules apply for longer rental periods? Anyone know if there are different considerations for longer-term rentals?
For a 3-year rental period, all the same deductions apply, but there's one major difference to be aware of: when you sell the house later, you might partially lose your primary residence capital gains exclusion. The rule is you need to have lived in the house as your primary residence for at least 2 of the 5 years before selling to get the full $250k/$500k capital gains exclusion. With a 3-year rental period, you'll need to move back in for at least 2 years before selling to get the full exclusion.
One thing I'd add that hasn't been mentioned - make sure you're keeping detailed records of everything! The IRS loves documentation for rental properties. I learned this the hard way during an audit a few years back. Create separate folders (physical or digital) for each type of expense: repairs, maintenance, insurance, property management, etc. Take photos of any work done on the property with timestamps. Keep all receipts, even small ones like supplies from Home Depot. Also, since you're planning to move back in March 2025, start a calendar now marking the exact dates the property was available for rent vs. when you lived there. This becomes crucial for prorating expenses and will save you headaches later when preparing your taxes. The depreciation everyone mentioned is huge - don't skip it! Even if you don't claim it, the IRS assumes you did for recapture purposes when you eventually sell. So you might as well get the tax benefit now.
Join the conversation
Has anyone mentioned the at-risk rules yet? Even if you could somehow get around the passive activity loss limitations, you'd still need to have "at-risk" basis in the LLC to claim the losses. Did you or your wife actually contribute cash or property to the LLC, or personally guarantee any loans? Without at-risk basis, you can't take the losses even if they weren't passive.
Great point about at-risk rules. I learned this the hard way with my family LLC. Had $32k in losses but could only claim about $8k because that's all I had at risk in the business (my initial capital contribution). The rest got suspended not just because of passive activity rules but because of at-risk limitations. OP should definitely check their capital account on the K-1.
Just to add another perspective on this - make sure you're also considering the state tax implications carefully. I had a similar situation with an out-of-state LLC and ended up owing more in nonresident state taxes than I expected because the state where the property was located didn't allow the same loss carryforward rules as the federal return. Also, keep detailed records of all your suspended passive losses. I use a simple spreadsheet to track mine year over year, including the original source and any partial usage. It becomes really important when you eventually dispose of the property or generate passive income to offset against. The IRS doesn't send you a reminder of what you have suspended, so it's on you to track it properly. One last thought - if this hunting property ever generates rental income (like seasonal hunting leases), that would be passive income that could be offset by your suspended losses. Might be worth discussing with the family whether monetizing the property could help everyone's tax situation.
Join the conversation
Question - does anyone know if providing snacks/drinks in the office counts under this exception? We spend about $500/month on office snacks and coffee. Is that considered employee recreation under §274(e)(4) or something else?
Office snacks and drinks are generally considered de minimis fringe benefits rather than recreation events under §274(e)(4). They're still deductible, but under a different section of tax code. As long as the value is small and accounting for it would be administratively impractical, you can deduct 100% of these expenses.
Great thread everyone! As someone who's dealt with this exact issue, I wanted to add that timing can also matter for these deductions. The IRS looks at whether the event was held during or reasonably close to the business year you're claiming the deduction. Also, one thing I haven't seen mentioned is the "all employees" requirement. Under §274(e)(4), the recreational activity needs to be available to employees generally - you can't just treat executives or a select group and claim the full deduction. If you're doing tiered events (like a nice dinner for managers and pizza for everyone else), that could complicate your deduction. For your specific activities @CosmicCommander, make sure your team dinners aren't too frequent or lavish, as the IRS might view regular expensive meals as compensation rather than recreation. The escape room and company picnic sound perfect for the exception though!
Jayden Reed
mine finally showed up after 3 weeks. just keep checking
0 coins
Olivia Garcia
Had the exact same issue! Filed through Jackson Hewitt in early January and WMR was showing "not found" for almost 3 weeks. Turns out JH had a small error in how they transmitted my SSN to the IRS. Called JH directly (not the IRS) and they were able to check their system and confirm the return was accepted but there was a processing delay on the IRS side. My refund finally hit my account yesterday even though WMR never updated. Don't panic - just give it a bit more time!
0 coins