Something nobody mentioned yet - if you have employees in your LLC (even if it's a disregarded entity), you MUST use an EIN. So even if you're currently solo, if you think you might hire someone in the future, better to start with the EIN now to avoid changing everything later. Also, banks often require EINs for business accounts, even for SMLLCs. Using your EIN consistently from the start just makes everything cleaner.

This is such a common confusion point for new LLC owners! I went through the same thing with my consulting business. The key thing to remember is that even though your SMLLC is disregarded for income tax purposes, it's still a separate legal entity for reporting purposes. You should definitely give your client the EIN, not your SSN. This applies whether it's a 1099-NEC or 1099-MISC. The IRS wants to see consistency between the TIN on the 1099 and what you use for business purposes on your Schedule C. One tip: when you give clients your EIN, also provide them with your LLC's legal name exactly as it appears on your EIN confirmation letter. This helps ensure they fill out the 1099 correctly. I learned this the hard way when a client used a shortened version of my business name and it caused matching issues. Don't stress too much about getting this perfect immediately - you can always send corrected information to clients if needed. But starting with the EIN is definitely the right approach for keeping your business and personal finances properly separated.

As a tax professional who's helped many clients through AMC reverse split situations, I can confirm that Katherine and Chris are spot on. The key thing to remember is that the reverse split itself is NOT a taxable event - you're not reporting the split, you're reporting the eventual sale. Your total cost basis remains $744 regardless of how many shares you ended up with after the split. The $602 loss you calculated ($744 - $142) is correct and will be reported as a short-term capital loss since you held for less than a year. One thing I'd add: definitely keep your original purchase confirmations and any split notices from your broker in case the IRS ever asks for documentation. Corporate actions like reverse splits can sometimes trigger correspondence, so having your paper trail organized will save you headaches down the road. Also make sure there weren't any wash sale violations if you traded AMC around the time of your sale - this can disallow some or all of your loss deduction.

Just wanted to add one more tip from my experience - if you're using tax software like TurboTax or FreeTaxUSA, they usually have specific screens for handling stock transactions with corporate actions. When you get to the investment section, look for options like "stock splits" or "corporate actions" rather than just entering it as a regular stock sale. Most of these programs will ask you about any splits or other events, and they'll walk you through adjusting the cost basis if needed. But as others have mentioned, if your 1099-B already shows the correct adjusted basis (which most major brokers handle properly now), you can usually just import or enter the numbers directly from the form. The $602 loss will definitely help offset other gains or reduce your taxable income, so at least there's a silver lining to that AMC investment! Sorry to hear about the brother-in-law advice situation - we've all been there with well-meaning family stock tips that don't pan out.

I've been through this exact situation with my retail space! The key thing to understand is that even with a triple net lease, the property taxes should still be calculated based on your proportionate share of the building, not the entire property tax bill. What I discovered in my case was that I was paying 100% of the property taxes when I only occupied about 25% of the building. The county had mistakenly listed me as the sole occupant/owner instead of recognizing that the building had multiple tenants. Here's what worked for me: 1. Get a copy of your lease that shows your square footage vs. total building square footage 2. Calculate what percentage of the building you actually occupied 3. Compare that to what you were paying in property taxes 4. If you were paying more than your fair share, you have grounds for a refund Also, since you mentioned getting bills for the old location after moving out 4 months ago - this is definitely an error that needs immediate attention. The county records haven't been updated to reflect that you're no longer a tenant there. Contact them ASAP because property tax liens can affect the property even if you're not the owner, and it could complicate things for both you and the actual property owner. Don't feel bad about not knowing this stuff - commercial property tax arrangements are confusing and most small business owners aren't experts in this area!

I work as a property tax consultant and see this exact scenario weekly with small business owners. You've stumbled into what's unfortunately a very common administrative mess. The root issue is that when you registered your business at that commercial address, someone at the county assessor's office likely made a data entry error and flagged you as the property owner instead of just a tenant. This happens because many counties don't have good systems to distinguish between business registrations and property ownership changes. Here's your action plan: **Immediate steps:** 1. Stop paying any bills for the old location immediately - you have zero legal obligation there 2. Contact the county assessor and school district for the old property with your lease termination documentation 3. Request a "Property Record Correction Form" to officially remove your name from ownership records **For your past payments:** Review your lease to see if you were supposed to pay property taxes at all. If it's a gross lease, you shouldn't have been paying any property taxes directly. If it's triple net, you should only pay your proportionate share (your square footage ÷ total building square footage × total property tax). **Getting refunds:** Most counties will issue refunds for up to 3 years of erroneous payments once you provide proper documentation. You'll need your lease, move-out notice, and proof of all payments made. The silver lining? I've helped clients recover anywhere from $2,000 to $15,000 in situations exactly like yours. Don't let this slide - the money is recoverable with the right documentation.

Just a heads up - if you're going during tax season (Feb-Apr), expect longer wait times even with an appointment. I went in March last year and what should have been 45 mins turned into almost 2 hours because they were swamped. Try to schedule early morning appointments if possible! Also, make sure your phone is charged - they have you wait in different areas and you might want to track your refund status while you're there.

I went through this last month and it was pretty straightforward! Definitely bring your original Social Security card, government photo ID, and a copy of your tax return. Also helpful to have the IRS letter that told you to verify your identity. One thing I wish someone had told me - they'll ask you personal questions from your tax history to verify it's really you, so review your return beforehand. The actual appointment was about 30 minutes, but I'd budget an hour total including wait time and security. Good luck!

I'm dealing with this exact same issue! My small retail business does around $180K annually and I've been pulling my hair out trying to track every single item for COGS calculations. It's reassuring to see so many people have successfully made the switch to the small business inventory exception. One question I haven't seen addressed - if we make this change, do we need to notify our accountant or can we handle this ourselves? I use a CPA for my annual returns but do most of the bookkeeping myself throughout the year. I'm wondering if this is something I can implement on my own or if it requires professional guidance to avoid any mistakes with the election statement and documentation. Also, for those who have made the switch - did you notice any issues with your state taxes? I'm in California and want to make sure this federal election doesn't create complications at the state level.

I've been following this thread with great interest since I'm in a similar boat with my small electronics repair shop. We do about $160K annually and I've been dreading inventory time every quarter. One thing I wanted to add that might help others - when I was researching this last month, I found that the IRS actually has a specific revenue procedure (Rev. Proc. 2018-40) that outlines the simplified procedures for small businesses making this accounting method change. It's worth reading if you want to understand exactly what's required. The key thing I learned is that you don't necessarily need Form 3115 if you're a qualifying small business taxpayer making this specific change, but you do need to include a statement with your return. The statement needs to identify the change, confirm you meet the gross receipts test, and indicate you're electing the treatment under Section 471(c). I'm planning to make this switch for my 2024 return. The time savings alone will be huge - I currently spend about 6 hours every quarter just reconciling inventory for my mix of repair parts and retail items. Anyone else in the repair business made this switch successfully?