This is a really comprehensive discussion with excellent points from everyone! I'm dealing with a similar situation and wanted to add one more consideration that might be relevant. If you do end up filing Form 1065, make sure you understand the timing requirements. Partnership returns are due March 15th (with possible extension to September 15th), which is earlier than individual returns. Missing the deadline can result in penalties that multiply by the number of partners, so even though it's just you and your spouse, late filing penalties can add up quickly. Also, regarding the depreciation question that started this thread - if you go the Form 1065 route, you might want to consider having the LLC pay you and your spouse a guaranteed payment for the use of the property. This creates a deductible expense for the LLC and taxable income for you personally, where you can then claim the depreciation on Schedule E. Your tax professional can help structure this properly. One last thought - given all the complexity discussed here, it might be worth revisiting whether the LLC structure is still the best fit for your situation. Sometimes the tax complications outweigh the liability benefits, especially for a single rental property. You could potentially get similar liability protection through proper insurance coverage without the partnership tax filing requirements.

Great question about LLC vs umbrella insurance! I actually went through this exact analysis last year with my insurance agent and attorney. For a single rental property, a good umbrella policy (we went with $2M coverage) costs about $300/year and covers personal liability from the rental activity. Compare that to LLC annual fees, separate tax filings, and the complexity we've all been discussing here. The key difference is that an LLC provides "entity-level" protection - if there's a major lawsuit, they can go after the LLC's assets (the rental income, bank accounts) but generally can't "pierce the veil" to get your personal assets. With umbrella insurance, you're covered for liability up to the policy limits, but the property itself and rental income aren't in a separate legal entity. Our attorney's take was that for one property with good tenants and proper maintenance, umbrella insurance often provides adequate protection without the tax headaches. But if you're planning to acquire multiple properties or have higher-risk situations (like short-term rentals), the LLC structure becomes more valuable despite the complexity. We ended up keeping our LLC because we're planning to buy another rental next year, but honestly, if it was just going to be the one property, I probably would have dissolved it and gone the insurance route after experiencing all these tax complications firsthand.

This is a tricky situation that many people in the film industry face! The key issue here is that when your employer includes per diem in your taxable wages, it becomes much harder to deduct those meal expenses under current tax law. Since the Tax Cuts and Jobs Act, most unreimbursed employee business expenses (including meals) are suspended for W-2 employees through 2025. Even though you're being taxed on money meant for work expenses, the IRS generally doesn't allow these deductions unless you fall into very specific categories. A few things to consider: 1) Check if you qualify as a "qualified performing artist" under tax code - this is one of the few exceptions that still allows above-the-line deductions 2) Ask your employer about switching to an accountable plan for per diem, which would make it non-taxable in the first place 3) If you have any 1099 income from film work, you might be able to deduct meal expenses against that self-employment income I'd recommend keeping detailed records of all your meal expenses (dates, locations, business purpose) just in case, and consider consulting with a tax professional who understands the entertainment industry since there are some nuanced rules that might apply to your specific situation.

I work as a location sound mixer and have dealt with this exact situation for years! One thing I've learned is that it's worth tracking ALL your work-related expenses throughout the year, not just meals. Even if the per diem meal deductions don't work out due to the current tax law limitations, you might have other unreimbursed expenses that could push you over the 2% AGI threshold if you itemize. Things like professional equipment maintenance, union dues, specialized clothing/gear, continuing education courses, and travel expenses between job sites can add up quickly in our industry. I keep a detailed spreadsheet with dates, amounts, and business purposes for everything. Also, don't forget that some states have different rules than federal - California, for example, still allows some employee business expense deductions that the feds suspended. Worth checking what your state allows if you're not in a no-income-tax state. The accountable plan suggestion from others is spot on though. I've had a few production companies switch to this after crew members brought it up, and it makes life so much easier for everyone.

I can share some recent experience with Maine state tax refunds! I filed my Maine return on February 25th and got my refund deposited on March 8th - so about 9 business days total. This was my third year filing in Maine after moving from Massachusetts, and it's been consistently faster each year. What really helped was making sure I had all my documentation ready before filing, especially since you mentioned you're claiming education credits. One tip: if you're anxious about the timing for your summer tuition, you can set up text alerts through the Maine Revenue Services portal once you get your confirmation number. They'll send you updates when your return moves through different processing stages. It's way more reliable than constantly checking the website! The Maine system really is much more efficient than what you dealt with in California - you should be in good shape for getting your refund in time.

I'm actually going through this exact situation right now! Filed my Maine return on March 3rd as a first-time Maine resident (moved from Vermont) and just got my refund deposited this morning - so 8 business days total. What really surprised me was how smooth the process was compared to Vermont, where I waited almost 6 weeks last year. For context, I also claimed the Educational Opportunity Tax Credit for my student loans from UMaine, and it didn't seem to cause any delays. The Maine portal updates were super helpful too - much more transparent than other states I've dealt with. Since you mentioned needing the money for summer tuition, I'd definitely recommend setting up direct deposit if you haven't already, and keep an eye on their portal starting about 5-7 days after filing. You should be in much better shape than your California experience!

Has anyone used TurboTax to claim a non-relative dependent? Their questionnaire keeps asking about family relationships and I can't figure out where to indicate its my roommate not a family member.

Just wanted to add something important that I learned from my tax preparer last year - if you do qualify to claim your roommate as a dependent, make sure you understand ALL the tax benefits you might be eligible for. It's not just the dependent exemption - you might also qualify for Head of Household filing status if you're unmarried and providing more than half the cost of maintaining the home for your dependent. Head of Household has better tax brackets and a higher standard deduction than Single filing status, which could save you even more money. My preparer said a lot of people miss this because they don't realize non-relatives can qualify you for HOH status if they meet the dependent requirements. Also, definitely keep detailed records of all expenses you pay for your roommate - rent, utilities, medical costs, transportation, etc. The IRS defines "support" pretty broadly, so even things like paying for her phone or helping with medical appointments could count toward that "more than half support" test.

This is such a timely thread for me! I just set up my food content LLC last month and have been drowning in confusion about what I can and can't deduct. One area I'm still unclear on - what about cookbook purchases? I buy a lot of cookbooks both for inspiration and to test/adapt recipes for my content. Some I use heavily for business, others just sit on my shelf. Can I deduct cookbook purchases as research materials, or does that fall into a gray area? Also, for anyone who's been doing this a while - do you find it's better to have completely separate credit cards for business vs personal, or is good record-keeping with one card sufficient? I keep hearing mixed advice on this. The tracking app recommendations here are gold - definitely going to try a few of these out. Thanks for such a helpful discussion everyone!

Welcome to the food content creator tax maze! 😅 As someone who's been running a food blog LLC for about 3 years now, I wish I had found a thread like this when I was starting out. A few additional tips that haven't been mentioned yet: **Storage costs**: If you're like me and end up with tons of specialty ingredients, spices, and equipment, a portion of storage costs (whether it's a pantry, dedicated cabinet space, or even a storage unit) can be deductible as business expenses. **Food styling props**: All those plates, napkins, backgrounds, and props you buy specifically for photography/video are 100% deductible. I have a whole collection of "camera-only" dishes that never see actual meals! **Software subscriptions**: Don't forget about video editing software, photo editing apps, scheduling tools for social media, and even music licensing for videos - all deductible business expenses. **Networking meals**: If you meet with other food bloggers, potential sponsors, or industry contacts over meals to discuss business, those can often be partially deductible as business meals (usually 50% of the cost). The biggest game-changer for me was realizing that almost everything I buy "for the blog" is a legitimate business expense as long as I document it properly. Just keep good records and when in doubt, ask a tax professional - it's worth the consultation fee to get it right from the start! Good luck with your LLC setup! The first year of proper bookkeeping is the hardest, but it gets so much easier once you have a system down.