Thanks for the confirmation! I was definitely overthinking it, but it's my first time seeing this specific question so directly on a form. I'm going to select "US citizen or resident alien" option. Do you know if there are any other special considerations I should be aware of for the rest of my W-4 since I'm a resident alien and not a citizen?

Not really! Once you select "US citizen or resident alien," the rest of the W-4 is identical regardless of citizenship status. You'll fill out the standard deductions, multiple jobs section, and dependents information just like everyone else. The only time you'd have different tax paperwork is if you were a nonresident alien, which would involve some different withholding rules. But as a resident alien, you're treated exactly the same as a US citizen for tax purposes.

How did the audit go? Did you have to prove each day you were in the US? I travel internationally a lot and now I'm worried about this!

What about education expenses? I'm in grad school part-time while working full-time and always wonder if I'm claiming everything correctly. The lifetime learning credit vs tuition deduction confuses me every year!

Education expenses are definitely an area where people often miss opportunities! For grad school while working, you need to evaluate whether the Lifetime Learning Credit (up to $2,000) or the tuition and fees deduction would benefit you more - it depends on your income level and other factors. An often-overlooked benefit is that if your education is related to your current career (even if not required by your employer), you might be able to deduct some expenses as unreimbursed employee expenses if they exceed 2% of your AGI and you itemize. Most tax software will ask about education expenses, but may not always connect the dots between your education and potential business expense deductions.

What kinds of credits did they miss? Now I'm worried my guy is missing stuff too. I pay $250 for what's probably 30 minutes of his time.

Do you use the same LLC for multiple properties or create a new one for each property? I'm looking at getting into real estate investment and wondering what the best approach is.

I use separate LLCs for each property. This creates the strongest liability barrier between properties. If there's a lawsuit at Property A that exceeds insurance coverage, they can only go after that specific LLC's assets (that property), not Property B or C. Some people use one LLC for multiple properties to reduce fees and paperwork, but that defeats much of the purpose - if there's an issue with one property, all properties in that LLC are exposed. The extra cost and paperwork is my insurance beyond insurance.

Both handle single member LLCs fine. For federal taxes it's actually super simple - you just file Schedule C with your personal return, exactly like a sole proprietorship. There's no separate tax return for a single-member LLC unless you elect to be taxed as a corporation.

That's a great point! Do you know if there's any centralized system for managing all these exemption certificates? I expect to have both retail and wholesale customers, and I'm worried about the paperwork nightmare.

There are definitely systems to help manage exemption certificates! Avalara CertCapture is probably the most comprehensive, but it's pricey. For smaller businesses, services like TaxJar Plus or even basic document management systems can work. The key is having a process in place where you collect the certificate before completing a tax-exempt sale. Many ecommerce platforms have built-in functionality or apps to help with this. Just make sure you validate that the certificates are complete (not missing signatures or expiration dates) and that you're storing them securely. Digital copies are acceptable in all states now, so at least you don't need physical paper copies anymore.

I've been using WooCommerce with the Avalara plugin and it's been pretty solid. Automatically calculates the right rates based on address and handles the reports too.

I'm planning to use Shopify as my primary platform. That's good to hear they have decent tax tools built in. Has anyone used their tax features extensively? Do they make it easy to handle the filing and reporting part too, or just the collection?

That's an excellent point I hadn't fully considered. The trust document does state that assets should be "prudently managed to preserve principal while generating reasonable income for beneficiaries" but doesn't specifically address real estate. Would that language suggest I should be trying to rent them out?

Based on that language, yes, you likely have a fiduciary duty to try to generate income from these properties. The phrase "generating reasonable income for beneficiaries" creates an expectation that trust assets will be managed productively, not just held. This actually works in your favor tax-wise, as it supports your position that these are income-producing properties temporarily vacant, rather than personal-use properties. Document your efforts to prepare and market the properties for rental as part of fulfilling your trustee duties. Keep detailed records of all repairs, improvements, marketing attempts, and inquiries - this serves both your fiduciary obligation to beneficiaries and your tax documentation needs.

Did the IRS give you any trouble about depreciation specifically? I'm in a similar situation and my accountant says depreciation is the biggest red flag for vacant properties since you can claim it even with zero income.