Do these CTR reports trigger IRS audits? I'm getting a large gift from my parents in Canada next month and now I'm worried this will flag me for extra scrutiny.

CTRs themselves don't automatically trigger audits. They're filed with FinCEN (Financial Crimes Enforcement Network), not directly with the IRS. These reports are mainly used to detect patterns of money laundering or other financial crimes. The IRS may have access to this information, but receiving a legitimate gift that's properly documented is not going to raise red flags. Just make sure you have documentation showing the source of the funds and the gift intent. If the amount is under $100,000 from an individual in a single year, you don't even have a reporting requirement as the recipient.

Yes! I use Wise all the time for family in Germany. The exchange rates are WAY better than bank-to-bank transfers and the fees are transparent. For a $25k transfer, you'd probably save hundreds compared to traditional bank wires.

Thanks for confirming! I'll definitely look into that. Did you run into any issues with Wise transfers being treated differently for tax/reporting purposes than traditional bank wires?

That's a really good point I hadn't considered at all. So would it be better to have two separate LLCs in that case? Would that substantially increase my paperwork/costs?

Yes, from a liability protection standpoint, two separate LLCs would offer better protection. If something happens in your courier business, the game development assets would be sheltered in the separate LLC. It does increase some paperwork and costs. You'd pay two state filing fees (usually $50-$150 per LLC depending on your state), potentially two annual report fees, and would need to maintain separate books, bank accounts, and records for each entity. If you're a single-member LLC filing as a pass-through entity, the tax filing isn't substantially more complicated - you'd just have two Schedule Cs instead of one. A middle ground some people choose is starting with one LLC, then separating into two once the second business (game development) actually starts generating some revenue or when the assets become valuable enough to justify the extra protection.

That's such a smart approach! How complicated was it to set up the DBAs? And did you need separate bank accounts for each one?

That's not helpful at all. The question isn't about "adulting" but about maximizing tax benefits. Sometimes it makes financial sense for parents to claim adult children in school, and other times it benefits everyone for them to file independently. It's about following tax law correctly, not some arbitrary timeline.

You're right and I apologize for the unhelpful comment. I was projecting my own experience without considering the actual tax implications. The most important thing is figuring out which filing status benefits everyone the most while staying within tax laws. If OP qualifies as a dependent and it saves the family more money overall for the parents to claim them, that makes financial sense regardless of age.

Personal exemptions don't exist anymore since the 2017 tax law changes. The standard deduction was increased instead. You might be thinking of the personal deduction, which is what you get when you file independently rather than being claimed as a dependent.

Interesting historical context! How high were tariffs back then compared to what we might need today to fund the modern government? And didn't high tariffs cause problems that eventually led to creating income tax in the first place?

Before income tax became permanent in 1913, tariff rates varied widely but sometimes exceeded 40-50% on many imported goods. However, the federal government was drastically smaller then - no Social Security, Medicare, modern military, or many other major expenditures we have today. You're absolutely right about the historical problems. High tariffs like the Smoot-Hawley Tariff Act of 1930 contributed to trade wars and economic problems. The core issue is that tariffs are essentially taxes on consumption that disproportionately affect everyday purchases. This regressive nature was one reason the progressive income tax system was developed - to tie tax burden more closely to ability to pay rather than consumption needs. Moving entirely back to tariffs would fundamentally shift tax burden distribution across different income levels.

Do you think it would create jobs though? Like all that new manufacturing you mentioned plus all the compliance people? Might balance out the lost tax preparer jobs?

That's really helpful! Do you know if cottage food laws would protect him from potential tax issues too, or is that a completely separate concern? And would money made under cottage food laws still need to be reported as income?

Cottage food laws and tax requirements are completely separate issues. Cottage food laws just regulate food safety and allow you to legally sell certain foods from your home kitchen - they don't exempt you from tax obligations. Regardless of whether you're operating under cottage food laws or not, all income needs to be reported on your tax return. While operating under cottage food laws, you'd still report the income on your personal tax return. You could potentially file a Schedule C as a sole proprietor even without formally registering a business name with your state, which would allow you to deduct legitimate business expenses. Many cottage food operators start this way before formally establishing an LLC or other business entity.

This is seriously underrated advice. I use a completely separate credit card for ALL business purchases, even tiny ones. Makes tracking expenses 100x easier and looks much more legitimate if there are ever questions.