I went through this same confusion when I started my rental property journey! One thing that really helped me understand the "placed in service" concept was realizing it's all about when the property becomes available for its intended rental use, not when you actually start earning income from it. In your case with tenants moving in June 1st, that might actually be your placed in service date IF that's when the property was first ready and available for rent. But if you had finished repairs and could have rented it earlier but just didn't find tenants until then, your placed in service date would be earlier. Here's what I learned about those pre-tenant expenses you mentioned: - Advertising costs to find tenants are typically deductible rental expenses - Repairs to get the property rent-ready are usually deductible - New appliances that add value may need to be depreciated rather than expensed immediately The key is documenting everything with dates - when repairs were completed, when you started advertising, when the property was actually ready for occupancy. I took photos of my property when it was rent-ready as evidence for my records. Since this is your first rental, I'd really recommend getting professional help for at least your first year's taxes. A CPA who specializes in rental properties can help you set up proper record-keeping systems and make sure you're classifying everything correctly from the start. It's an investment that pays off in properly maximized deductions and avoiding future headaches with the IRS.

I completely understand your confusion about the placed in service date - it's one of those tax concepts that seems straightforward until you actually try to apply it! As others have mentioned, the key is that it's when your property becomes ready and available for rent, not necessarily when tenants move in. For your situation, you'll need to determine exactly when your property was in a condition where it could legally be rented out. If you were still doing essential repairs or renovations that prevented tenants from moving in before June 1st, then June 1st would likely be your placed in service date. But if the property was actually ready earlier and you were just looking for the right tenants, then your placed in service date would be earlier. Here's my practical advice for sorting through your expenses: - Keep all receipts organized by date and type of expense - Repairs needed to make the property rentable are typically deductible - New appliances and major improvements usually need to be added to your basis and depreciated - Advertising costs are generally deductible rental expenses Since this is your first rental property, I'd strongly recommend consulting with a tax professional who has experience with rental properties, at least for this first year. They can help you properly classify your expenses and set up good record-keeping practices that will serve you well in future years. The investment in professional guidance upfront can save you from costly mistakes and ensure you're maximizing your legitimate deductions. Don't stress too much - with proper documentation and maybe some professional help, you'll get through this!

I'm dealing with a very similar situation right now! Just wanted to add that if you do end up reporting this as self-employment income on Schedule C, make sure you understand the quarterly estimated tax payment schedule. The IRS expects you to pay taxes throughout the year, not just at filing time. The due dates are usually April 15th, June 15th, September 15th, and January 15th of the following year. Since you're starting next month, you'll want to calculate what you owe for the second quarter and get that payment in by June 15th. I use Form 1040ES to calculate my quarterly payments - it's basically a worksheet that helps you estimate your annual income and figure out how much to pay each quarter. The general rule is to pay 25% of your expected annual tax liability each quarter, but there are safe harbor provisions if your income varies. One thing that caught me off guard was that you need to pay both income tax AND self-employment tax in your quarterly payments. The self-employment tax alone is 15.3% of your net earnings, so don't forget to factor that in when setting aside money from each payment. Good luck with the new position - having steady income is so important for things like apartment applications!

This is such a helpful thread! I'm actually starting a nanny position in a few weeks and was completely overwhelmed by all the tax implications. Reading through everyone's experiences and advice has been incredibly valuable. One thing I wanted to add based on my research - if you do decide to have that conversation with the family about proper classification, it might help to mention that many payroll services specifically handle household employees and can make the process really simple for them. Companies like GTM Payroll Services, Breedlove & Associates, and HomePay can handle all the tax filings, payments, and paperwork for a reasonable monthly fee. I'm planning to approach my family with a "here's how we can make this easy and beneficial for everyone" angle rather than focusing on what they're doing wrong. Hopefully that keeps things positive while still getting me the proper employment status I need for my financial goals. Thanks to everyone who shared their experiences - this community is amazing for navigating these tricky situations!

I had a very similar situation with my mom's joint account last year. What really helped me was getting everything documented before doing the transfer. I created a simple spreadsheet listing all the expenses I had paid for her (medical bills, home maintenance, etc.) with dates and amounts, then had her sign a letter acknowledging that the transfer was reimbursement for those specific expenses. One thing that wasn't mentioned yet - if you've been paying expenses over multiple years, you might want to check if any of those payments could have qualified for medical expense deductions on your own tax returns. My tax preparer found that some of the medical bills I paid for my mom could be deducted since I was supporting her. Just something to consider when you're gathering all your documentation. The transfer itself should be straightforward from a tax perspective since you're already on the joint account. Just make sure to keep copies of everything - the expense records, the signed agreement, and the transfer documentation. Having it all organized in one folder made tax time much less stressful.

I've been through a similar situation with my grandmother's joint account, and I think you're approaching this the right way by getting clarity upfront. One thing that really helped me was understanding that the IRS distinguishes between the legal structure of an account and the beneficial ownership. Even though you're legally a joint owner, if there's a clear understanding that the money belongs to your parents and you're just there for convenience/emergency access, that intent matters. Since you're looking at $135k in reimbursements, I'd suggest being extra thorough with your documentation. Beyond the basic agreement and expense receipts that others mentioned, consider organizing everything chronologically - it makes it easier to show the pattern of you paying expenses and then receiving reimbursement. Also, if any of those medical expenses were significant, you might want to check if they qualify for medical deductions on your parents' tax returns or yours (depending on dependency status). Sometimes families miss out on legitimate deductions in these caregiving situations. The transfer itself shouldn't trigger gift tax issues given the joint ownership structure, but having bulletproof documentation protects everyone involved. Good luck with everything!

Something nobody mentioned yet - if you have employees in your LLC (even if it's a disregarded entity), you MUST use an EIN. So even if you're currently solo, if you think you might hire someone in the future, better to start with the EIN now to avoid changing everything later. Also, banks often require EINs for business accounts, even for SMLLCs. Using your EIN consistently from the start just makes everything cleaner.

This is such a common confusion point for new LLC owners! I went through the same thing with my consulting business. The key thing to remember is that even though your SMLLC is disregarded for income tax purposes, it's still a separate legal entity for reporting purposes. You should definitely give your client the EIN, not your SSN. This applies whether it's a 1099-NEC or 1099-MISC. The IRS wants to see consistency between the TIN on the 1099 and what you use for business purposes on your Schedule C. One tip: when you give clients your EIN, also provide them with your LLC's legal name exactly as it appears on your EIN confirmation letter. This helps ensure they fill out the 1099 correctly. I learned this the hard way when a client used a shortened version of my business name and it caused matching issues. Don't stress too much about getting this perfect immediately - you can always send corrected information to clients if needed. But starting with the EIN is definitely the right approach for keeping your business and personal finances properly separated.

This isn't related to the 5498 form specifically, but make sure you're also keeping track of any backdoor Roth conversions separately! Those have their own reporting requirements on Form 8606.

Just to reinforce what others have said - you're absolutely fine to file without the 5498! I've been dealing with this same "issue" for years with my Fidelity Roth IRA. The key thing to remember is that Form 5498 is sent to the IRS, not included with your return. What I do is keep a simple spreadsheet throughout the year tracking my contributions with dates and amounts. Fidelity's website also has a great year-end summary that shows all your contributions for the tax year - you can usually find this in your account statements or tax documents section online. The May timing is totally normal because brokers wait until after the April 15th deadline to capture any last-minute contributions people make for the previous tax year. Don't let this delay your filing - you've got all the information you need from your own records!