Has anyone actually gone through this process of changing from IT to lending? I'm considering something similar and wondering about the actual paperwork involved. Did you have to refile your EIN or get new business bank accounts? Did it affect existing contracts you had with IT clients?

Just went through a similar transition last year - changed my LLC from marketing consulting to real estate investing. Here's what I learned that might help with your IT to lending switch: The good news is you can definitely keep your existing LLC, but you'll need to handle several steps properly. First, check if your state requires you to amend your Articles of Organization to reflect the new business purpose. Some states are strict about this, others are more flexible. For lending specifically, you'll absolutely need to research your state's lending laws and licensing requirements. This is heavily regulated - much more so than IT services. Look into whether you need a money lender's license, what your state's usury laws are, and if there are any bonding requirements. Don't forget about the practical stuff either: new business insurance (your current policy definitely won't cover lending activities), potentially new banking relationships (some banks have stricter requirements for lending businesses), and updated contracts/agreements. The tax implications are also significant - interest income is taxed differently than service income, and you'll have different allowable deductions. I'd strongly recommend consulting with both a business attorney familiar with lending regulations and a CPA before making the switch. Timeline-wise, plan for 2-3 months to get everything properly sorted. The licensing part usually takes the longest, so start there first.

Make sure you're also considering the account statements! If the account was generating interest, dividends, or other income AFTER your uncle passed but BEFORE you took over the account, that income technically belongs to the estate and should be reported on the estate's income tax return (Form 1041). The bank will issue a 1099 for that income, and if it's in your name, the IRS will expect to see it on your personal return. You might need to file a separate schedule showing that this income belongs to the estate, not you personally.

One more thing to keep in mind - you'll want to get documentation from the bank showing when you were added as a secondary account holder and what type of account it was (joint tenants with right of survivorship vs. convenience account, etc.). This can matter for tax purposes. Also, check if your uncle's estate went through probate. If it did, the probate court records should show how this account was handled. Sometimes joint accounts are excluded from probate, but the estate executor should still account for them when calculating the total estate value. If you're unsure about any of this, it might be worth consulting with a tax professional who specializes in estate matters. The $43,000 amount is significant enough that you want to make sure you handle it correctly, especially since inheritance and estate tax rules can be complex and vary by state.

This is a really helpful thread! I'm in a similar situation with a regional airline's pilot development program. One thing I'd add is to make sure you understand the hobby loss rules if your training expenses significantly exceed your 1099 income for multiple years. The IRS has a presumption that an activity is a hobby (not a business) if it shows losses for 3 out of 5 consecutive years. Since pilot training is front-loaded with high costs but leads to substantial future income, you'll want to document your business plan and profit motive clearly. Keep records showing the airline's commitment to hire you upon completion, industry salary data for commercial pilots, and your progression milestones. This helps demonstrate that the current losses are temporary and part of a legitimate business venture with strong profit potential. Also consider timing some of your larger expenses strategically if possible - spreading major costs across tax years can help avoid triggering the hobby loss scrutiny while still maximizing your legitimate deductions.

This is such a comprehensive discussion! As someone who just started a similar regional airline development program, I'm taking notes on all of this. One thing I'd add that my tax preparer mentioned - make sure you're also tracking any mileage to and from training facilities, especially if you're traveling to different airports for specific training requirements. Also, don't forget about the smaller expenses that add up - things like aviation medical exams, chart subscriptions, and even some meals during long training days away from home base. The IRS allows business meal deductions at 50% if you're away from your tax home for business purposes. The hobby loss rule discussion is eye-opening - I had no idea about the 3-out-of-5-year presumption. Given that pilot training is inherently front-loaded with costs before any substantial income, this seems like something every aviation student should be aware of when planning their training timeline and tax strategy.

ugh the waiting game is the WORST. been checking transcripts like a crazy person everyday

I went through the exact same thing last year! My amended return showed "completed" on 10/15 and the 846 code appeared on my transcript exactly 9 days later on 10/24. The actual direct deposit hit my account 4 days after that. So you're probably looking at about 2 weeks total from your 9/27 completion date. The IRS seems pretty consistent with this timeline once they mark it as fully processed. Keep checking your transcript daily around 6am when they update - that's when mine showed up!

Has anyone used TurboSelf-Employed for this situation? I'm wondering if it catches these kinds of deductions or if I need to use a different software for my meditation teaching side gig...

Great question! As someone who's dealt with similar self-employment tax situations, I can confirm that your meditation workshop expenses would likely qualify as legitimate business deductions on Schedule C. Since you're teaching meditation techniques and getting paid for it, attending workshops to improve those same skills has a clear business purpose. The key is that the training must be "ordinary and necessary" for your current work - which it sounds like it is. A few important points to keep in mind: - Document everything: Keep receipts, workshop descriptions, and notes on how the training improved your teaching abilities - The business connection needs to be direct - you're learning techniques you actually use with clients - It's totally normal for business expenses to exceed income in some periods, especially for seasonal work like retreats Just make sure you're treating this as a legitimate business (not a hobby) and maintaining good records. The fact that you're actively earning income from multiple centers and have been doing this for 2 years helps establish business intent. Consider keeping a simple log of how you applied what you learned in your actual teaching sessions - that documentation could be valuable if questions ever come up.