This thread has been incredibly helpful! I'm dealing with a very similar situation with my multi-member LLC that owns rental properties. One additional consideration I'd like to add: if your partnership is making the Section 754 election, it can significantly impact how depreciation is calculated and reported on Form 8825, especially when partners change their ownership percentages or when new partners are admitted. The Section 754 election allows the partnership to adjust the basis of partnership property when there are transfers of partnership interests or distributions. This can affect the depreciation amounts that flow through to individual partners on their K-1s. If you're not familiar with this election, it's worth discussing with your tax professional, especially if you anticipate any changes in partnership structure. Also, regarding the multi-state issues mentioned earlier - I found that the Federation of Tax Administrators website has a good state-by-state breakdown of partnership filing requirements. Each state's Department of Revenue website also typically has specific guidance for multi-state partnerships. For those considering the AI tax services or IRS callback services mentioned above, I'd also recommend checking if your state has similar callback services. Some states have implemented their own versions for state tax questions, which can be just as valuable as getting federal guidance. Thanks everyone for sharing your experiences - this is exactly the kind of practical guidance that's hard to find elsewhere!

Wow, this thread has been absolutely invaluable! I'm dealing with almost the exact same situation - multi-member LLC with rental properties and I've been going in circles trying to figure out the proper reporting structure. What really helped me understand this was the explanation that Form 8825 is essentially like a "rental property Schedule E" that attaches to the partnership return. That mental framework makes so much sense! Our previous CPA also put property depreciation directly on Form 1065, so it sounds like this is a common mistake. I'm particularly interested in the Section 754 election that @Sasha Ivanov mentioned. Our partnership is stable now, but we're planning to add properties and potentially new partners over the next few years. It sounds like this election could be important for our situation, but I need to research it more. One question I haven't seen addressed: if we're using bonus depreciation on any of our rental properties (like for qualifying improvements), does that also get reported on Form 8825? I assume it would follow the same rule as regular depreciation, but I want to make sure before filing. Thanks to everyone who's contributed to this discussion - the practical advice here is so much better than anything I've found in official publications or general tax guides!

Don't forget that if you trade micro e-minis or other small futures contracts, the wash sale rules don't apply like they do with stocks! This is a huge advantage for futures traders. You can take your losses in December to offset income and then jump right back into the same positions in January without triggering wash sale rules.

You're absolutely right to start gathering this information early! As someone who went through this same situation last year, here's what I wish I had known: Your tax preparer will definitely need the 1099 from Tradovate, but they'll also need to complete Form 6781 (Gains and Losses From Section 1256 Contracts and Straddles) to properly report your futures trading losses. The good news is that since you're using a professional tax preparer, they should handle all the form preparation - you just need to provide them with the documentation. Make sure to bring not just the 1099, but also any monthly statements from Tradovate showing your trading activity. Sometimes the 1099s can have errors, so having backup documentation is always smart. One advantage you have with futures losses is that they're marked-to-market at year-end, meaning any open positions are treated as if they were closed on December 31st. This can actually be beneficial for tax planning purposes. Since you mentioned you're new to filing with trading activity, I'd suggest having a brief conversation with your tax preparer about futures trading taxes before your appointment. Most good preparers are familiar with Section 1256 contracts, but it's worth confirming they have experience with trading taxes to avoid any surprises.

Just want to add my experience as someone who went through this exact situation last year. You're absolutely right that withdrawing Roth contributions is tax and penalty-free, but the reporting aspect can be tricky if you're not prepared. The key thing I learned is that your IRA custodian will send you Form 1099-R showing the total distribution, but they have no way of knowing whether you withdrew contributions or earnings - that's entirely on you to track and report correctly via Form 8606. My advice: before you make any withdrawal, create a simple record of all your historical contributions. I went through my old tax returns (look for Form 5498 from previous years) and account statements to build a complete picture. This made filing Form 8606 much less stressful when tax time came around. Also, definitely explore that EAP option first! Many people don't realize their employers offer emergency financial assistance. I was able to get a small interest-free loan through my company's program, which let me keep my Roth IRA intact. Your future self will thank you for preserving that tax-free growth space if you can find another solution for the $1500.

This is such a helpful thread! I'm in a similar situation where I might need to tap into my Roth IRA for an emergency expense, and I was completely unaware of the Form 8606 requirement. One thing I'm wondering about - if you've made contributions to multiple Roth IRAs (like I have one with Fidelity and another with Vanguard from a previous job), do you need to aggregate all your contributions across all accounts when calculating what you can withdraw tax-free? Or does each account get treated separately? Also, @Diego Mendoza, definitely check out that EAP suggestion! I used my company's emergency assistance program a few years ago and it was a lifesaver. Many people don't even know these programs exist. Sometimes they offer grants (not loans) for certain hardship situations, which would be even better than touching your retirement savings. Thanks everyone for sharing your experiences - this is exactly the kind of real-world advice you can't easily find elsewhere!

I went through this exact same situation last year and it was so confusing! The key thing to understand is that TurboTax is trying to help you optimize your tax situation, not trick you into claiming something wrong. Here's what's happening: When your scholarships/grants (Box 5) exceed your qualified education expenses (Box 1), you have flexibility in how to allocate those funds. By telling TurboTax that some of your scholarship money went to room and board, you're making that portion taxable income BUT you're also freeing up more of your qualified expenses to count toward the American Opportunity Credit. The math usually works out in your favor - you might pay a little tax on the scholarship money used for room and board, but the increased AOTC more than makes up for it. Just make sure you actually did have room and board expenses equal to what you're claiming the scholarship covered. One tip: Keep good records of all your education-related expenses (tuition, fees, books, room, board) so you can confidently answer these allocation questions. The IRS allows you to choose how to allocate scholarship funds as long as you're truthful about your actual expenses.

I just went through this exact same situation with my 1098-T! I was so confused at first too, but after reading through all these responses and doing some research, I finally understand what's happening. The key insight is that when Box 5 (scholarships/grants) exceeds Box 1 (qualified education expenses), you get to choose how to allocate those scholarship funds. TurboTax is asking about room and board because if you designate some of your scholarship money as going toward room and board, that portion becomes taxable income - BUT it also means more of your out-of-pocket qualified expenses can count toward the American Opportunity Credit. It's counterintuitive, but paying a little tax on the "room and board scholarship" often results in a much larger tax credit. In my case, I ended up with about $1,200 more in refund even after accounting for the extra taxable income. The most important thing is to make sure you actually had room and board expenses that match what you're telling TurboTax. As long as you're being honest about your actual expenses, you have the flexibility to optimize how you allocate your scholarship funds. Don't be afraid to use this strategy - it's completely legitimate and the IRS expects students to make these kinds of allocation decisions!

So if I'm e-filing do I still need to sign anything physically? This is my first time using tax software instead of paper forms and I'm confused about the whole signature process when it's all online.

Don't feel embarrassed about asking this question! I went through the exact same confusion when I filed my first US tax return a few years ago. Those arrow stickers are just guides - you sign directly on the actual signature line on the form, not on the stickers themselves. Your normal signature that you use for bank documents, contracts, etc. is perfectly fine. The IRS isn't looking for calligraphy - they just need a consistent signature that matches what you'd use on other official documents. One thing that helped me was to practice signing my name a few times on scrap paper first, just to make sure I was comfortable with how it looked. And yes, make sure to date it too! The IRS is pretty reasonable about signature variations - they're mainly concerned that you're acknowledging responsibility for the accuracy of your return. You've got this! First-time filing is always nerve-wracking, but you're being smart by asking questions beforehand.