This is super helpful! That middle ground approach sounds perfect for what I'm looking for. Do most CPAs offer this option if you specifically ask for it?

Most CPAs are actually happy to offer this approach if you specifically request it. It's often their preferred method too since it gives them time to work thoroughly without rushing while still providing you with good service and explanation. Just be clear about what you want when you first contact them. I'd recommend saying something like: "I'd like to schedule an initial meeting to provide my documents, then have you prepare the return, and finally meet again so you can explain everything before filing." Many will already have this exact process in place, but being specific helps ensure you get what you're looking for.

That's a really good point! I paid about $450 for a CPA last year versus the $150 I was paying at H&R Block. But my CPA found over $2,000 in deductions I would have missed, so definitely worth it in my case. Price really depends on how complicated your return is.

If you're not active-duty military, then no, moving expenses haven't been deductible since 2018 due to the Tax Cuts and Jobs Act. This suspension runs through 2025. If your tax preparer deducted moving expenses on your 2024 return and you're not active-duty military, you might want to consider filing an amended return to correct this. It's better to fix it before the IRS notices, as penalties and interest can add up.

Section 195 doesn't cover moving expenses though, right? I thought it was more for things like market research, analyzing potential locations, legal fees for setting up the business structure, etc.

This actually makes sense mathematically but seems like a lot of extra work just to avoid taxes. Wouldn't it be better to just charge more for your freelance work to cover the tax difference?

Do you know if common property rules still apply if you're legally married but have a prenup? Our agreement specifically states our incomes remain separate, but I'm not sure if the IRS cares about that for Form 8958 purposes.

Yes, the IRS does actually recognize prenups for tax purposes in community property states, but the rules are very specific. Your prenup needs to explicitly outline how income and assets should be treated (not just a general "our incomes are separate" statement). You'll still need to fill out Form 8958, but you would allocate income according to your prenup rather than the standard 50/50 split. However, make sure your prenup complies with your state's requirements for it to be valid - some states have very specific rules about prenups overriding community property laws.

Generally, if you bought it before marriage, the original investment stays your separate property. However, any appreciation during marriage is typically considered community property in most community property states. So you'd need to establish the value at the time of marriage and then split the gains from that point forward.

Oh that's a good point! I'm in Minnesota - do you know if there are similar requirements here? I paid the initial filing fee but wasn't aware of any annual requirements.

In Minnesota, you do have an annual filing requirement - you need to file an Annual Renewal with the Secretary of State by December 31st each year. The good news is there's no fee for the annual renewal in Minnesota (unlike California's painful $800 minimum), but you must file it or your LLC could be administratively dissolved. You can do this online through the Minnesota Secretary of State website. It's pretty straightforward - just updating your registered agent and address information. This is separate from your tax filing requirements.

What about using accounting software instead of spreadsheets? I've heard QuickBooks is good for LLCs but it seems expensive for a business with no income yet.