doesn't anyone else think its crazy that we gotta jump through all these hoops for some tax savings?? i'm flipping houses in florida and just use an LLC, keep it simple. my buddy went S-corp and now he's spending like 5 hrs a month just on paperwork. not worth it imho unless ur making big $$$.

Great discussion everyone! As someone who's been flipping properties for about 5 years now, I can confirm that the S-Corp election sweet spot is usually around $75k-100k+ in annual profit. Below that, the administrative burden often outweighs the tax savings. One thing I'd add is timing - if you're just starting out and not sure about your profit levels, you can always begin with a regular LLC and make the S-Corp election later when your business grows. Just remember the election deadline is March 15th (or within 75 days of forming your LLC if it's a new entity). Also, don't forget about state taxes! Some states don't recognize S-Corp elections or have additional fees/taxes for S-Corps. In my state (California), there's an additional $800 franchise tax for S-Corps regardless of income, which needs to be factored into your calculations. For those flipping 3-4 properties annually with $60k-75k profit per property like the OP, you're definitely in the range where S-Corp election could make sense, but I'd strongly recommend running the numbers with a tax professional first.

Has anyone else noticed that some of the tax law examples in the 2025 VITA training materials still reference old tax law from before the Tax Cuts and Jobs Act updates? I found at least 3 examples that give incorrect information about personal exemptions which haven't been a thing since 2017...

I just went through the VITA registration process myself last week and wanted to share a few additional tips that helped me get through it smoothly: 1. If you're still having browser issues, try using an incognito/private browsing window. Sometimes cached data from old versions of the site can cause problems. 2. The IRS has actually set up a dedicated VITA registration help page at irs.gov/vita-help that wasn't mentioned in the original orientation materials. It has step-by-step screenshots of the current registration process. 3. For anyone planning to volunteer at multiple sites, make sure you register with your primary site coordinator first. I made the mistake of trying to register with two different sites simultaneously and it created a duplicate account issue that took days to resolve. The good news is that once you get past the registration hurdles, the actual training modules are really well designed and helpful. Good luck to everyone getting started with VITA this year - it's such a rewarding way to help your community!

Great question! I went through the exact same confusion when I started contract work. You're getting mixed info because tax software like TurboTax handles this automatically when you e-file - you don't physically mail anything to the IRS. Here's the breakdown of your 1099-NEC copies: - Copy B ("For Recipient"): This is for your personal records. Keep it safe but don't send it anywhere. - Copy 2 ("To be filed with recipient's state income tax return"): Only send this with your state return if your state specifically requires it. Many states now receive this info electronically. The reason you're seeing conflicting advice is that some older guides still reference paper filing requirements. When you e-file your federal return, the income from your 1099-NEC gets reported on Schedule C, and the IRS computer systems automatically match it against Copy A that your client already sent them. Pro tip: Since this is your first year as a contractor, make sure you're also prepared for self-employment tax (Schedule SE) - that was the biggest surprise for me! It's an additional 15.3% on top of regular income tax that catches a lot of new contractors off guard.

I just went through this exact same situation! As a new contractor, I was so confused about which 1099-NEC copies to send where. After doing some research and calling the IRS (which took forever), I can confirm what others have said - you absolutely do NOT need to send any physical copies of your 1099-NEC to the IRS with your federal return. Here's what I learned: Your client already sent Copy A directly to the IRS, so they have the information. Copy B is for your records, and Copy 2 is potentially for your state return (though most states get this electronically now too). When you e-file your federal return, you just enter the income amount on Schedule C and the system matches it automatically. One thing that really helped me was creating a simple filing system for all my tax documents. I keep Copy B with my other tax records in a dedicated folder, and I scan everything to have digital backups. Since we're both new to this contractor life, I'd also recommend starting to track your business expenses right away - every mile driven for work, any equipment purchases, portion of home internet/phone bills used for business, etc. These deductions on Schedule C can really help offset that self-employment tax hit! Don't stress too much - TurboTax will guide you through the whole process and it's more straightforward than it initially seems.

Has anyone here actually succeeded in getting 501(c)(4) status for a small HOA? I'm wondering if it's worth the effort or if Form 1120-H is really the best option for most situations.

I've been following this thread and wanted to share some additional perspective as someone who went through a similar situation with our 75-unit HOA. First, regarding your accountant pushing for 501(c)(3) status - this is a major red flag. HOAs are NOT charitable organizations and the IRS has consistently rejected these applications. Your accountant should absolutely know this, and continuing to charge you for an application that's almost guaranteed to fail borders on professional negligence. For your specific questions: 1. Yes, you can absolutely file back returns using Form 1120-H for qualifying years. The IRS allows this and it's often the cleanest way to get compliant. 2. For non-qualifying years, you'll need to file Form 1120 (regular corporate return), not wait for 501(c)(4) approval. The IRS expects timely filings regardless of your exempt status application. 3. As others have confirmed, 501(c)(3) is inappropriate for HOAs. If you want exempt status, 501(c)(4) is the correct path, but honestly, for a small HOA like yours, Form 1120-H is usually simpler and more cost-effective. My recommendation: Stop the 501(c)(3) process immediately, demand a partial refund from your accountant (emphasize the inappropriate advice), and find someone with actual HOA tax experience to help you file the correct forms for previous years. The Community Associations Institute has a directory of HOA-experienced CPAs that might be helpful. Don't let this accountant cost you any more money on a dead-end strategy.

Don't overthink this! I run a single-member LLC and tried fancy software but it was overkill. I just use a Google Sheet with tabs for income, expenses, mileage, etc. For receipts I take pics with my phone and save them to a Google Drive folder. As long as u have a separate business account like others mentioned, and keep good records of everything, you're fine. The IRS mostly wants to see that you're tracking things consistently and have documentation to back up yr deductions. When you make more money or get more clients, then upgrade to QuickBooks or whatever. Starting simple helped me actually stick with it!

As someone who's been through several IRS audits with my LLC, I have to respectfully disagree with the spreadsheet approach. While it might seem simple, the IRS expects professional bookkeeping practices for business entities, even single-member LLCs. I learned this the hard way during my first audit - they questioned my "informal" record-keeping system and it created unnecessary complications. Now I use FreshBooks (similar to QuickBooks but more user-friendly) and it's been worth every penny for the peace of mind. The key things the IRS really focuses on during LLC audits are: 1) Clear separation of business/personal expenses, 2) Proper categorization of deductions, 3) Complete documentation trail, and 4) Consistent accounting methods. Professional accounting software automatically creates this audit trail, while manual spreadsheets leave gaps that auditors love to exploit. For someone specifically worried about IRS issues like OP, investing in proper software from day one is crucial. Better to spend $15-30/month on software than thousands later on audit defense!