Thanks for mentioning this! Do you know if setting up a payment plan affects your credit score? And is there a minimum amount I have to pay monthly or can I set it to whatever I can afford?

Setting up an IRS payment plan generally doesn't directly affect your credit score - the IRS doesn't report to credit bureaus like a normal lender would. However, if you fail to pay and the IRS files a tax lien, that WILL hurt your credit. So the payment plan actually helps protect your credit by preventing more serious collection actions. For monthly payment amounts, it depends on how much you owe. For debts under $10,000, you can pretty much set your own monthly payment as long as you can pay off the full amount within 3 years. For larger amounts, the IRS may want financial information to determine what you can afford. They're surprisingly reasonable about this - they'd rather get paid slowly than not at all.

This is actually brilliant advice. I had a similar situation (though not as old) and the Social Security earnings record was spot on. Combined with the IRS transcript it gave me everything I needed!

Thanks for the suggestion! Do you know if bank-to-bank transfers also fall under this $600 reporting threshold, or is that just for payment apps?

Bank-to-bank transfers don't fall under the same $600 reporting requirements that apply to payment apps. Those rules specifically target third-party payment networks like PayPal, Venmo, etc. Regular transfers between bank accounts aren't subject to 1099-K reporting regardless of the amount. This is why some people prefer setting up direct transfers for recurring payments like rent or mortgage sharing. It's more straightforward from a tax perspective since there's no confusion about whether it's a business or personal transaction.

That's called "structuring" and it's actually illegal if you're doing it specifically to avoid reporting requirements. Not worth the risk just to avoid something that isn't even taxable in the first place.

Thanks for the info! Definitely don't want to do anything sketchy. Seems like the simplest approach is just to properly mark the payments as personal and not worry about it.

But don't you get hit with franchise taxes in most states when you set up those LLCs? I heard California charges $800 minimum per LLC, so with multiple properties that adds up fast. Are the tax benefits really worth those extra costs?

You're right about the franchise taxes - they definitely cut into the benefits. In California it's $800 per LLC which is painful, but I'm in Tennessee where the annual fee is much lower ($300). For me, the math still works out when I consider both the tax advantages and the asset protection. I'm able to legitimately deduct more business expenses through the holding company structure, including a portion of travel related to property management, home office expenses, and administrative costs that were harder to claim as an individual investor.

This is a great question about QBI and holding companies. The Section 199A deduction can be tricky with holding companies because certain structures might limit your ability to claim it. If your holding company is classified as a specified service trade or business (SSTB) and your income is above the threshold (which at $310k, yours is), you'll face limitations. However, a properly structured holding company might allow you to separate SSTB income from non-SSTB income, potentially preserving some of the QBI deduction.

My employer actually did give me a letter saying the move was required for the position! Would that help with any other deductions you know about? And do you think there's any chance they'll bring back the moving expense deduction in time for this tax season?

The letter from your employer could potentially help if any of your expenses could be categorized as unreimbursed employee business expenses. Unfortunately, for most people, these aren't directly deductible either since 2018, but there are exceptions for certain qualified performing artists, fee-basis state or local government officials, and armed forces reservists. As for bringing back the moving expense deduction, it won't happen for this tax season. The Tax Cuts and Jobs Act provisions that eliminated this deduction are in effect through 2025. Any changes would likely come after that, when Congress reviews the expiring provisions. So definitely keep your documentation, but don't expect to use Form 3853 as a non-military taxpayer for at least a few more years.

I second the FreeTaxUSA recommendation! Been using them for years after getting fed up with TurboTax's constant upselling. Much clearer explanations about which forms you can and can't use. They won't be able to magically make Form 3853 available to non-military folks, but at least they'll explain WHY in plain English.

That donation approach sounds super sketchy and likely illegal if audited. The IRS specifically looks for these kinds of arrangements. If you make a donation with the understanding that your child receives a direct benefit (like reduced tuition), it's not a legitimate charitable donation for tax purposes.