I switched to FreeTaxUSA three years ago after getting fed up with TurboTax's constantly increasing prices, and it's been fantastic. What really sold me was discovering that their customer service is actually better than the expensive alternatives - when I had a question about reporting freelance income, I got a helpful response within 24 hours via email. One thing I haven't seen mentioned yet is that FreeTaxUSA has really good resources for self-employed folks and small business owners. Their guidance on Schedule C and business deductions is surprisingly thorough for such an affordable service. I run a small consulting business on the side and was worried I'd miss deductions, but their interview process caught everything I needed. Also worth noting - they offer free amendments if you need to correct something after filing, which saved me when I got a corrected 1099 a month after filing. Most other services charge $40+ for amendments. Between the low cost, good support, and helpful features, I can't see myself going back to the overpriced options.

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As someone who went through this exact decision process two years ago, I strongly recommend sticking with the Schedule C professional gambler approach rather than trying to force an LLC structure. The core issue you've identified - that sportsbooks don't allow business accounts and report everything under your SSN - is actually more problematic than most people realize. I spent months researching this and even consulted with an attorney who specializes in gaming law. The consensus was that trying to transfer funds from personal accounts to business accounts creates a paper trail that's very difficult to defend if the IRS scrutinizes your structure. Here's what I learned from my research and implementation: **The IRS Position on Gambling LLCs** - Revenue agents I spoke with through professional channels indicated they're increasingly skeptical of LLCs formed primarily to reclassify gambling income. Without substantial ancillary business activities (coaching, content creation, etc.), it's hard to demonstrate a legitimate business purpose beyond tax avoidance. **Professional Status Doesn't Require Primary Income** - This was a key revelation for me. The "facts and circumstances" test focuses on your systematic approach, profit motive, and substantial time investment. I maintained professional status even after gambling dropped to about 30% of my total income because I documented my continued systematic approach. **Real Numbers on Tax Savings** - I modeled both approaches extensively. For someone in your income range, the actual SE tax savings from S-Corp election (after reasonable salary requirements and administrative costs) were only about $3,000-4,500 annually. Not insignificant, but not worth the complexity and potential audit risk. My recommendation: Document everything meticulously as a professional gambler, maximize your Schedule C deductions, and invest the time you'd spend on LLC administration into building stronger documentation of your professional approach. The tax benefits are there without the structural complications. What specific aspects of maintaining professional gambler status are you most concerned about as you transition to other income sources?

I've been dealing with a very similar situation and want to add my perspective after reading through this excellent discussion. I was making around $110k annually from sports betting and went through the exact same thought process about forming an LLC for S-Corp election. After extensive research and consultations, I ultimately decided against it for all the reasons people have outlined here - but I want to emphasize one additional concern that wasn't fully addressed. **The "Business Purpose" Test** - Beyond just the mechanics of fund transfers and SSN reporting, the IRS applies a business purpose test to entity formations. If your only business activity is placing bets on sportsbooks (with no coaching, content creation, or other ancillary services), it becomes very difficult to argue that an LLC serves any legitimate business purpose other than tax avoidance. This is particularly true when the entity can't even have its own accounts with the primary revenue-generating platforms. **What Actually Worked for Me** - I stayed with Schedule C professional gambler status and instead focused on maximizing legitimate deductions: - Home office (dedicated space for analysis/research) - Professional development (books, courses, seminars) - Technology (multiple monitors, analysis software subscriptions) - Travel expenses for major sporting events - Professional consultation fees (handicapping services, data feeds) The key was treating it like any other professional service business in terms of documentation and business practices, just without the formal entity structure. **Regarding Income Percentage Concerns** - I maintained professional status even when betting dropped to roughly 25% of my total income. The IRS agent I spoke with emphasized that regularity, systematic approach, and profit motive matter more than income percentage. As long as you're still betting regularly with a documented system and substantial time investment, the classification can be maintained. My advice: Keep excellent records, maximize Schedule C deductions, and avoid the LLC complications that don't align with how sportsbook income actually works.

As someone who's navigated similar waters with multiple property sales, I want to add a few practical considerations that might help with your decision-making process. First, regarding the bonus depreciation question - while it won't directly offset your capital gains as others have mentioned, don't overlook the timing strategy. If you're planning to acquire new properties anyway, accelerating depreciation through cost segregation studies on those new acquisitions can help offset other ordinary income, freeing up cash flow that can help with the tax burden from your capital gains. Second, something to consider with your LLC structure - make sure you understand how your partnership agreements affect any 1031 exchange. If you and your business partner have different investment timelines or risk tolerances, this could complicate a like-kind exchange. You might need to restructure or consider a "drop and swap" strategy. One often-overlooked strategy for real estate professionals is the installment sale method. If you can structure seller financing on your next acquisition (even partially), you can spread the gain recognition over multiple years while potentially getting a better overall return than traditional financing. Given the complexity of your situation with multiple LLCs and real estate professional status, I'd strongly recommend getting a second opinion from a tax professional who specializes in real estate before making any final decisions. The strategies mentioned here all have strict timing requirements and potential pitfalls.

Great discussion here! As someone who's dealt with similar capital gains situations, I wanted to add a perspective that might be helpful. While everyone's covered the main strategies well (1031 exchanges, Opportunity Zones, etc.), there's one angle worth considering given your real estate professional status: the timing of when you recognize income versus deductions across your various LLCs. Since you're not subject to passive activity limitations, you have more flexibility in managing the timing of income and deductions across your portfolio. If you're acquiring new properties, you could potentially accelerate certain deductible expenses (like repairs, improvements that don't qualify for capitalization, or professional services) into the same tax year as your capital gains recognition. Also, don't forget about the Section 199A QBI deduction - as a real estate professional, your rental activities should qualify for the 20% deduction, which can help offset some of the overall tax impact even if it doesn't directly reduce the capital gains. One last thought: if you do go the 1031 route, consider whether a reverse exchange might give you more flexibility. It's more complex but allows you to acquire the replacement property first, which can be advantageous in competitive markets where good properties move quickly. The key is running the numbers on all these strategies with your actual figures to see which combination gives you the best after-tax result.

Really appreciate seeing an actual IRS professional weigh in on this! As someone who's been dealing with international tax issues myself (I work remotely for a UK company while living in the US), this thread has been incredibly educational. The F1 driver situation is fascinating because it shows how complex these arrangements can get, but it also highlights that even with the best advisors, aggressive tax planning can still face scrutiny - like with the Hamilton Paradise Papers case mentioned earlier. What strikes me most is how the basic principles apply to regular taxpayers too. Whether you're Lewis Hamilton or just someone doing freelance work for foreign clients, you still need to track where income is earned, understand treaty provisions, and be meticulous about reporting requirements. The "over-disclosure" advice really resonates with me. I've learned it's much better to file an extra form you might not need than to miss one you should have filed. The potential penalties for non-compliance with international reporting requirements can be absolutely devastating compared to just paying the actual tax owed. For anyone else dealing with cross-border income issues, this conversation has reinforced that professional tax advice isn't just for F1 drivers - the international tax landscape has gotten complex enough that even relatively simple situations benefit from expert guidance.

This whole discussion has been incredibly enlightening! As someone who's been following F1 for years, I never realized just how sophisticated these tax arrangements really are. It's fascinating that drivers like Hamilton essentially become test cases for international tax planning strategies that eventually influence how regular taxpayers with cross-border income are treated. What really strikes me is how the conversation evolved from the glamorous world of F1 to practical advice that applies to everyday situations. The point about "duty days" tracking is something I never considered - I occasionally travel internationally for work conferences and now I'm wondering if I should be keeping better records of where I'm physically working. The IRS professional's insight about "over-disclosure" being safer than trying to minimize reporting is a real eye-opener. It seems like the international tax landscape has become much more complex and heavily scrutinized than most people realize. The fact that penalties can exceed the actual tax owed is honestly terrifying and makes me want to be extra cautious about compliance. Thanks to everyone who shared their experiences and tools in this thread - it's given me a much better understanding of why international tax planning requires such careful attention to detail, whether you're earning millions like an F1 driver or just doing occasional freelance work across borders!

Just to add some clarity for everyone here - I work in tax preparation and see a lot of confusion about the heat pump credits. The key thing to remember is that for 2024 installations, you're looking at the 25C credit (Energy Efficient Home Improvement Credit) which is 30% up to $2,000 specifically for heat pumps. DIY installations have ALWAYS qualified - there's never been a professional installation requirement for this credit. I think some tax preparers get confused because certain state rebate programs do require professional installation, but the federal tax credit does not. For efficiency standards, most modern mini-splits will qualify. You need to meet the highest efficiency tier established by CEE, which for air-source heat pumps is typically 16+ SEER2 and 9+ HSPF2 for single-speed units, or 18+ SEER2 and 9.5+ HSPF2 for variable-speed units. @CosmicCommander - for your $8,000 installation, you'd be eligible for the full $2,000 credit (not $2,600 - that's the max for the full 25C credit including all qualifying improvements). Make sure to use Form 5695 when filing your 2024 return!

Great thread everyone! I'm seeing a lot of helpful information here. Just wanted to add a few points from my own experience: I successfully claimed the DIY heat pump credit for my 2024 installation and can confirm everything @Giovanni Colombo and @Zoey Bianchi said is accurate. The key documentation you'll need includes: 1. Purchase receipts showing the equipment cost and date 2. Manufacturer's certification or spec sheet showing the efficiency ratings meet CEE standards 3. Photos of the installation (helpful but not required) One thing I learned the hard way - keep ALL your receipts, including any electrical work you had to do. Things like upgraded breakers, disconnect switches, and conduit runs can sometimes qualify for the electrical panel credit if they're substantial enough. Also, don't let tax preparers tell you DIY doesn't qualify - I had to educate mine too! The IRS has never required professional installation for residential energy credits. If you're getting pushback, show them IRS Publication 5695 instructions which make no mention of installation requirements. @CosmicCommander - definitely claim that credit for your 2024 installation! With $8k spent, you're looking at the full $2,000 heat pump credit. Just make sure your system meets the efficiency requirements (most modern mini-splits do).