Just be careful - if you both try to claim the same kid without proper documentation, you'll both get letters from the IRS and one of you will have to file an amended return. Happened to a friend of mine and it was a huge headache.

One thing that might help clarify your specific situation is to actually calculate the number of nights each child spent with each parent in 2024. Since you mentioned your custody split is "technically 57/43" but varies, the IRS goes by actual nights, not percentages in your agreement. For the custodial parent determination, count overnight stays from January 1 to December 31, 2024. If a child was with you for 183+ nights (more than half the year), you're the custodial parent for that child specifically. It's possible that due to schedule variations, holidays, or sick days, one child might have spent more nights with your ex while the other spent more with you. Also, since you mentioned paying for health insurance, that could factor into your decision about which child to claim. The parent claiming the child can also claim any unreimbursed medical expenses for that child (if itemizing deductions). Given that you're covering the premiums, you might want to claim the child who had higher medical expenses during the year to maximize your potential deductions.

I went through this exact same situation last year with my rental property LLC. You're absolutely correct - there's no free e-filing option for Form 1065. I ended up paper filing and it worked out fine, just took longer to process. One thing I'd recommend is downloading the forms early and doing a practice run before you fill out the final copies. The 1065 has some tricky sections around depreciation and rental income allocation that are easy to mess up. Also, don't forget that you'll need to prepare K-1s for both you and your spouse by March 15th (the partnership return deadline), even if you're filing an extension. The IRS instructions for Form 1065 are actually pretty comprehensive if you take the time to read through them. For a straightforward rental property, paper filing really isn't that bad once you get the hang of it.

I actually found a middle-ground approach that might work for you. While there's no free e-filing option for Form 1065, some of the paid e-file providers have partnership return options starting around $150-200, which might still be cheaper than hiring a full-service tax professional. I used TaxAct Business last year for my rental property LLC and found their interface pretty user-friendly for DIY filers. They walk you through the depreciation calculations and have good validation checks to catch errors before submission. FreeTaxUSA also has a business version that's reasonably priced. If you do go the paper route, definitely send it certified mail so you have proof of delivery. The IRS processing times for paper returns have gotten better recently, but it's still good to have that tracking confirmation. Also make sure you're using the most current forms from IRS.gov - I made that mistake one year and had to refile.

One thing nobody mentioned yet - if this is your first year as a 1099 contractor, you might qualify for a special exception to the estimated tax penalty! If you had no tax liability last year (meaning you didn't owe anything when you filed your 2023 return), then you're not required to make estimated tax payments this year. Also, even if you did have a tax liability last year, you can avoid penalties by paying either 90% of this year's tax OR 100% of last year's tax (whichever is smaller) through your estimated payments. If your AGI was over $150,000 last year, that threshold increases to 110% of last year's tax. This "safe harbor" provision is super helpful when you're not sure how much you'll make as a contractor.

Don't forget about state estimated taxes too! Everyone's talking about federal, but depending on your state, you might need to make quarterly state tax payments as well. Some states follow the federal schedule but others have their own deadlines.

From what I understand, the Double Irish was already "ending" for years but corporations just kept finding ways to extend deadlines or grandfather existing arrangements. Apple alone saved billions using this structure. The real issue is enforcement. Even with this OECD agreement, who's going to force companies to comply? Each country has different tax authorities with varying levels of resources and motivation to go after these massive corporations. I'll believe corporate tax avoidance is ending when I actually see these tech giants and multinationals paying effective rates close to what small businesses pay. Until then, it's just more talk and delayed implementation.

I worked in corporate tax planning for 15+ years and here's the reality: whenever one structure gets shut down, teams of high-paid lawyers and accountants immediately develop alternatives. The Double Irish may be technically ending, but "single malt" structures (Ireland-Malta) emerged as replacements. The OECD agreement is a step forward, but it has significant carve-outs. Companies can still exclude 5% of tangible assets and payroll from the calculation, creating new incentives to shift certain operations. My prediction? Effective tax rates will increase slightly for the biggest multinationals, but they'll still pay far less than the headline 15% minimum through careful planning and exploitation of technical exceptions in the agreement.

I wish the tax code wasn't so unnecessarily complicated!! Why can't points just be points and deductions just be deductions? My freind got audited over this exact issue and the IRS agent didn't even understand it. He kept changing his answer!!!!

This is exactly the kind of situation where documentation is everything. I went through something similar last year with an $820k mortgage and $8,200 in points. The key thing I learned is to keep meticulous records of exactly how much of your loan went toward the home purchase vs. any improvements. Since you mentioned $50k went to renovations, that could actually work in your favor. The IRS treats home improvement debt differently - it's not subject to the same $750k cap as acquisition debt. So you'd potentially have $780k subject to the limit (not the full $830k), which would increase your deductible percentage. My advice: get your closing statement, contractor receipts, and any other documentation organized now. When your tax person gets back, they'll be able to properly allocate the points between acquisition debt and improvement debt. This could save you several hundred dollars in additional deductions. Don't just assume you're limited to the simple ratio calculation - the improvement portion changes everything.