Just my experience, but I deducted my hearing aids last year as a medical expense along with some dental work and surgery costs. The combined amount got me over the 7.5% threshold. When you file, make sure you keep all receipts and documentation from your audiologist about the medical necessity. I also got a letter from my doctor explaining why I needed them, which helped support the deduction.

It's not too complicated to itemize, especially if you have substantial medical expenses like hearing aids. You'll use Schedule A instead of taking the standard deduction. The key is making sure your total itemized deductions (medical expenses over 7.5% of AGI, state/local taxes, mortgage interest, charitable donations) exceed the standard deduction amount to make it worthwhile. For 2024, the standard deduction is $14,600 for single filers and $29,200 for married filing jointly. If your hearing aids plus other medical expenses get you over that 7.5% AGI threshold and your total itemized deductions beat the standard deduction, then it's worth doing. Most tax software will automatically calculate both scenarios and tell you which saves you more money.

Just wanted to add my experience for anyone else in a similar situation. I had almost the exact same scenario last year - bought Bitcoin through CashApp in 2021 and sold at a small loss in 2024. Never received a 1099-B from them, but I went ahead and filed using my transaction records from the app. The key thing I learned is that you can actually download a CSV file of all your Bitcoin transactions directly from CashApp. Go to your profile, then "Privacy & Security," then "Download My Data." It takes a day or two to process, but you get a comprehensive file with all transaction details including dates, amounts, and fees. This makes filling out Form 8949 much easier than trying to screenshot individual transactions. Also, don't forget to include any fees CashApp charged in your cost basis - those small transaction fees can add up and increase your deductible loss. In my case, the fees actually made my loss about $15 higher than I initially calculated, which helped a bit more with the tax offset. The IRS accepted my return without any issues, and I got my refund on schedule. So definitely don't wait around for forms that probably aren't coming!

I went through something very similar last year! Based on your transaction amounts ($950 purchase, $920 sale), CashApp definitely won't be sending you a 1099-B since you're well under the $600 reporting threshold that others mentioned. Here's what I'd recommend: Don't wait any longer to file your taxes. You have everything you need right in the CashApp app. Go to your Bitcoin transaction history and document the purchase date (2021), purchase amount ($950), sale date (last month), and sale amount ($920). Since you held for over a year, this is a long-term capital loss of about $30. Even though $30 might seem small, it's still a legitimate deduction that can offset other income. Plus, if you're waiting for your refund, there's really no benefit to delaying your filing when you already have all the information you need. The IRS doesn't require you to have the 1099-B to report crypto transactions - you just need accurate records, which you can get directly from CashApp. I filed without waiting for forms and had zero issues with my return being processed.

Thanks for starting this discussion - this is such an important topic that many people don't think about until it's too late! I'm dealing with a similar situation where I converted my primary residence to a rental for a few years and now I'm back living in it. One thing I want to emphasize is that the IRS computer systems have become incredibly sophisticated at matching data. When you eventually sell, they'll receive a 1099-S showing the sale price, and their systems can cross-reference that against your historical Schedule E filings to look for potential depreciation recapture situations. The key thing to remember is that depreciation recapture is calculated on the LESSER of: (1) the total depreciation you claimed (or should have claimed) during the rental period, or (2) the gain on the sale. So even if your property appreciates significantly by 2035, you're only paying recapture tax on that 2.5 years worth of depreciation, not the entire gain. My advice would be to create a simple spreadsheet now documenting your rental period dates, the property's basis when converted to rental, and the annual depreciation amounts. Even if you lose your tax returns, having this basic information will help you (or your tax preparer) reconstruct the numbers accurately when the time comes. The peace of mind is worth the small effort now!

This is such a valuable discussion! As someone who works in tax compliance, I want to add a few practical points that might help with your long-term planning. First, regarding IRS record keeping - while they officially keep records for about 7 years, their property transaction matching systems have become much more sophisticated. They maintain databases that can cross-reference 1099-S forms (property sales) with historical Schedule E filings going back much further than 7 years. So yes, they absolutely can and do catch depreciation recapture issues even from many years ago. One thing I haven't seen mentioned yet is the Section 121 exclusion interaction. Since this was your primary residence before and after the rental period, you may be able to exclude up to $250K (single) or $500K (married) of gain when you sell - but this doesn't apply to the depreciation recapture portion. That will always be taxable at the 25% rate (under current law). My recommendation would be to treat this as a compliance issue, not a "will they catch me" gamble. Create that documentation spreadsheet others have mentioned, but also consider filing Form 3115 (Application for Change in Accounting Method) if you realize you calculated depreciation incorrectly in those years. This lets you fix errors proactively and often reduces penalties. The peace of mind of having everything properly documented and calculated is worth far more than any potential tax savings from hoping it gets overlooked.

14 One thing nobody's mentioned - make sure you're properly licensed and insured for a home laundry business! My sister got hit with fines because she didn't have the right permits. Also affects your tax situation because those permit fees and insurance premiums are deductible business expenses.

Great discussion everyone! As someone who's been running a small home-based service business for a few years, I can definitely relate to the confusion around deductions. One thing I'd add is to consider setting up a separate business bank account if you haven't already - it makes tracking business expenses so much easier come tax time. Also, don't forget about deducting your business insurance premiums, any professional memberships or subscriptions related to your laundry business, and even mileage for business-related trips (like picking up supplies or meeting clients). These smaller deductions can really add up over the year. Keep receipts for everything and consider using a simple spreadsheet or accounting app to track expenses monthly rather than scrambling at tax time. One last tip - if you're doing laundry for other businesses, make sure you're issuing proper invoices and keeping copies. The IRS loves to see that paper trail for business-to-business transactions.

I've been following this discussion and wanted to add my perspective as someone who recently went through this exact process. The consensus here is absolutely correct - you don't need an AAR for purely administrative corrections like SSN/address swaps when no tax amounts change. I had a nearly identical situation with a client's partnership return where we accidentally switched two partners' personal information on their K-1s. After researching extensively and consulting with the IRS, here's what worked: I prepared corrected K-1s marked "CORRECTED" prominently at the top, included a detailed cover letter stating "ADMINISTRATIVE CORRECTION ONLY - NO CHANGES TO INCOME, DEDUCTIONS, OR ALLOCATIONS," and mailed everything via certified mail to ensure delivery confirmation. The key phrase that seemed to help was explicitly stating in the cover letter that "this correction affects partner identifying information only and does not change any partner's distributive share of income, loss, deductions, credits, or capital account balances." This language directly addresses the IRS distinction between administrative vs. substantive changes. One thing I'd add that hasn't been mentioned - consider including a simple comparison chart in your cover letter showing "Partner A: Original SSN XXX-XX-1234, Corrected SSN XXX-XX-5678" so it's crystal clear what changed. The whole process took about 8 weeks for my client and was processed without any follow-up questions. The partners didn't need to amend their personal returns since the income amounts were correct on their original K-1s.

I've been following this thread closely as someone who encountered this exact issue with a partnership return earlier this year. The advice here is spot-on - you absolutely do NOT need to file an AAR (Form 8082) when you're only correcting partner identifying information like SSNs and addresses, provided no tax amounts are changing. I want to emphasize something that's been mentioned but bears repeating: the IRS makes a clear distinction between "administrative corrections" and "substantive changes." Since you're not changing any income allocations, deductions, credits, or capital account balances - just fixing clerical errors in partner identification - this falls under administrative correction. Here's my recommended process based on what worked for me: 1) Prepare corrected K-1s with "CORRECTED" prominently displayed, 2) Include a cover letter with language like "ADMINISTRATIVE CORRECTION ONLY - Partner identifying information corrected, all tax amounts and allocations remain unchanged," 3) Send via certified mail to the appropriate IRS service center, and 4) Keep detailed records of everything sent. One additional tip - I included a brief sentence in my cover letter stating the correction was needed "to ensure proper matching of tax documents with correct taxpayer identification numbers in IRS systems." This helped frame it as helping the IRS rather than fixing a mistake, which seemed to facilitate processing. The whole process took about 7 weeks for me, and I never received any follow-up questions. The partners didn't need to amend their returns since the income amounts on their original K-1s were correct.