Thanks for this advice! I just contacted the company and you're exactly right - they have a policy of only issuing 1099-NECs for amounts over $600 per project, and I had several smaller projects that added up to the missing amount. They confirmed I should still report everything. How specifically do I add this to my tax return? Is there a specific line or form for "income not reported on 1099-NEC"?

You'll report all your self-employment income on Schedule C, regardless of whether it was on a 1099 or not. There's not actually a separate line for "income not reported on 1099-NEC" - I was simplifying a bit there. The total income you report on Schedule C should be everything you earned from your business, and the IRS doesn't actually require you to break out what was or wasn't on a 1099 on this form. If you're using tax software, there's usually a section where you enter 1099-NEC information, but there should also be a way to add additional self-employment income. Just make sure your total Schedule C gross receipts equals all the money you received from your business activities.

The basics haven't changed much but the standard deduction amount increases slightly each year. The bigger difference might be that you didn't claim as many business deductions? Also, your income from other sources could affect it. Self-employment taxes are pretty consistent at around 15.3% of net business profit.

That's technically tax evasion though. The IRS doesn't care what payment method you use - income is income. Your friends are still supposed to report that money as taxable income, and you're supposed to deduct it properly as a business expense with documentation.

I mean, I'm just sharing what most creators do in practice, not saying it's 100% by the book. You're right that technically all income should be reported. I guess a better suggestion would be to keep payments under the $600 threshold when possible if you want to minimize paperwork, but still document everything properly on your end so you can deduct those expenses. Even if you don't issue a 1099, you can still claim those payments as legitimate business expenses with proper documentation.

That's not how it works. If you're paying someone for services or work they've done for your business, it's not a gift - it's compensation. The IRS looks at the nature of the payment, not what you call it. Calling business payments "gifts" to avoid taxes is misrepresentation that could get you in trouble.

You HAVE to use your residential address on the BOI form. I tried using my business address and my application got rejected. Had to resubmit with my home address. The whole point of this law is transparency about who actually owns these companies, so they're strict about it.

Well that sucks but thanks for the info. I guess I'll have to use my home address then. Just feels like a privacy invasion when I've been so careful about keeping my home address separate from my business for so long.

For existing companies formed before January 1, 2024, you don't need to report company applicant information at all - just the beneficial owners. If your LLC was formed in 2020, you only need to report yourself as the beneficial owner, not your accountant who helped set it up. If your LLC had been formed after January 1, 2024, then yes, you would need to include your accountant as a company applicant since they filed the formation documents for you.

Thank you so much! That's a huge relief - my accountant retired and moved to Florida so I wasn't sure how I was going to get all his information for the filing.

Do any of these exceptions apply to purchasing rental property specifically? I thought these were mostly for primary residences, not investment properties.

Unfortunately, the first-time homebuyer exception only applies to a primary residence, not rental properties. None of the exceptions specifically cover investment property purchases. However, if you used the SEPP (Substantially Equal Periodic Payments) method to access your retirement funds, that could potentially avoid the 10% penalty regardless of how you used the money. But that's a very specific method that must be set up properly in advance and continued for at least 5 years or until age 59½, whichever is longer.

I switched from TurboTax to H&R Block Premium for my rental properties. It asks more detailed questions about property management, depreciation, and has better guidance for rental-specific deductions. Not perfect but definitely better for real estate.

I worked with Johnson Tax Law in Chicago and had a really good experience. They specialize in tax resolution and don't make unrealistic promises like some of the big advertised firms. They were upfront about costs and what could realistically be achieved.

That's a great point about the collection statute. Some of this debt is from 2018-2019, so not quite close to the 10-year mark yet. And thank you for the reminder about capital gains - I hadn't even thought about how liquidating stocks would affect this year's taxes. Definitely need to be strategic about that.