Just to add a practical perspective - my husband and I run a 2-member LLC consulting business. We started taking draws only (partnership taxation) for the first two years when profits were lower. In year 3, we switched to S-Corp status once we crossed $120k in annual profit. Now we each take a $45k salary and the rest as distributions. That saves us around $4,600 in SE taxes annually, which more than covers the extra $1,800 we pay for payroll processing and additional tax preparation complexity. The other benefit is that having W-2 income makes it easier to qualify for mortgages and other loans compared to just having Schedule K-1 income, which lenders sometimes view skeptically.

I've been following this thread and wanted to share some additional perspective as someone who's helped several family members navigate LLC taxation decisions. One thing I'd emphasize for your daughter is timing - if they decide to elect S-Corp status, they need to file Form 2553 within 75 days of forming the LLC (or by March 15th of the tax year they want it to be effective). Missing this deadline means waiting until the next tax year. Also, since they're college students, consider their other income sources. If either has significant scholarship income, work-study jobs, or parents claiming them as dependents, this could affect their overall tax situation and influence whether the S-Corp election makes sense. For a brand new consulting business run by 19-year-olds, I'd honestly recommend starting simple with partnership taxation and draws. They can always elect S-Corp status later once they have a better handle on their profit levels and business operations. The administrative burden of payroll processing might be more than they want to deal with while also focusing on growing their business and managing college coursework. The most important thing right now is that they're setting aside money for quarterly estimated taxes and keeping good records of all business expenses.

I'm going through something very similar right now! Just got a 2017 K-1 in the mail from an old business partnership that I honestly forgot I was even part of. The whole situation is giving me major anxiety about whether I messed up my taxes years ago. Reading through this thread has been incredibly helpful - it's reassuring to know that delayed K-1s are apparently pretty common when partnerships are dissolving or going through complex wind-down processes. The advice from the tax professionals here about the statute of limitations and focusing on whether the dollar amounts are actually material makes a lot of sense. My K-1 has some entries in Box 13 with different codes that I have no idea how to interpret. Based on what everyone's saying here, it sounds like unless we're talking about significant amounts, it's probably not worth the stress of trying to figure out amendments for returns from so many years ago. Has anyone here dealt with multiple late K-1s from the same partnership? I'm wondering if I should expect more of these to show up in my mailbox as they work through their final paperwork. This whole experience is making me think twice about any future partnership investments!

I'm dealing with almost the exact same situation! Got a 2018 K-1 in the mail last week from a partnership I invested in years ago - completely forgot about it until this form showed up. Like you, I'm scrambling to get my 2024 taxes done and this unexpected form has me stressed. After reading through all the helpful responses here, it seems like late K-1s are way more common than I thought, especially from partnerships that are winding down. The advice from the tax professionals about the statute of limitations being past for 2018 returns is really reassuring. My Box 13 also has some codes I don't understand, but based on what everyone's saying about focusing on the dollar amounts rather than panicking, I'm feeling much better about the whole situation. If the amounts are small and we're well past the amendment period, it sounds like we're probably overthinking this. Thanks to everyone who shared their experiences and expertise - this thread has been a lifesaver for understanding how to handle these surprise partnership forms! Sometimes it's just nice to know you're not alone in dealing with confusing tax situations like this.

Why don't you just claim exempt? I did that when I was making $16/hr and got way more in my checks. You can always pay what you owe at the end of the year if needed.

Hey Olivia! I totally understand your frustration - that first paycheck shock is real! Based on what you're describing, it sounds like your withholding might be set too high for your actual situation. A few things to consider: First, make sure this paycheck was for a full pay period and not just partial days when you started. Second, with two jobs, the withholding can get tricky because each employer doesn't know about your other income. Here's what I'd suggest while you wait for payroll to get back to you: 1. Look at your pay stub to see exactly what's being withheld (federal income tax vs. FICA vs. state, etc.) 2. Check if you filled out your W-4 correctly - especially the multiple jobs section 3. Consider using the IRS Tax Withholding Estimator online to see what your withholding should actually be At $17/hr as your main job plus part-time work, you're probably in the 12% federal tax bracket, so 20% withholding does seem excessive. The good news is this is totally fixable with a new W-4! You might be able to get significantly more in your take-home pay while still covering your actual tax liability. Hang in there - once you get this sorted out, your budget should work much better!

Don't forget about the year of disposition too! The year you convert a property back to personal use or sell it has special depreciation rules. You generally only get half the annual depreciation in the year you place it in service AND in the year you dispose of it (the "mid-month convention").

Great information in this thread! Just to summarize the key points for @dcac7ecca8da: 1. Your rental property conversion date is November 2014 when tenants moved in, not when you moved out 2. Form 3115 is definitely the right approach - don't amend prior returns 3. You'll get the catch-up depreciation deduction on your 2025 return, but no refunds for prior years 4. The IRS will still treat you as having taken depreciation when you sell (even though you didn't), so filing Form 3115 now prevents you from losing those deductions entirely One additional tip: make sure to keep good records of when you converted the property to rental use and any improvements you've made since then. The IRS may ask for documentation if they have questions about your Form 3115. Also, since you mentioned this is a military move situation, you might want to check if there are any special provisions that apply to your situation, though the standard depreciation rules should still apply to your rental property. Good luck with your filing!

Had this issue. Fixed it myself. Called the TPP directly. Number is different. Regular agents can't help. Asked for supervisor on third call. Got transferred properly. Verified identity by phone. Refund arrived three weeks later. Don't wait for letters. Be proactive. Keep detailed notes of each call. Names and badge numbers help. Good luck.

This exact situation happened to me last year, and I completely understand your frustration. The inconsistent information is maddening when you're depending on that refund. Here's what I learned after going through this nightmare: the regular customer service reps literally cannot see your full case details when you're in TPP (Taxpayer Protection Program). They're looking at different systems that don't talk to each other, which explains the wildly different answers. What finally worked for me was calling early morning (7-8 AM seems to be the sweet spot) and immediately asking to be transferred to the Taxpayer Protection Program department. Don't let them tell you they can help - they can't. You need TPP specifically. Have your prior year AGI ready and be prepared to answer security questions. Also, check if you can access idverify.irs.gov - some people can complete verification online without waiting for the letter. The anxiety of not knowing what's happening while drowning in debt is real, and I'm sorry you're going through this. Document every call with names and reference numbers. You've got this!