Been waiting since April 2024 here and this is super helpful info! Had no idea they'd include the interest in the same check. At 7% that's actually not terrible considering how long we've all been waiting. Thanks for the heads up about the 1099-INT too - would've definitely forgotten to report that interest as income next year.

Just wanted to chime in as someone who finally got their refund check last month after waiting since February! Can confirm everything comes in one check - the original refund amount plus all the accumulated interest. The breakdown was actually printed right on the stub that came with the check, so you can see exactly how much was interest vs the original refund. Really helpful for record keeping before that 1099-INT shows up next January. Hang in there everyone, the wait sucks but at least we're earning something on it!

One important document that hasn't been mentioned is Form 8308 (Report of a Sale or Exchange of Certain Partnership Interests). If your investment club is holding "hot assets" like inventory or unrealized receivables (which most investment clubs don't have), the partnership must file this form when a partner sells their interest. Also, has anyone dealt with an investment club where some investments are held in a tax-advantaged account like an IRA? We're starting a club and some members want to contribute through their self-directed IRAs, which adds another layer of complexity with UBTI concerns.

Great discussion everyone! I wanted to add a perspective on the record-keeping aspect that's crucial for investment clubs. Beyond just tracking basis adjustments, clubs should maintain detailed records of each transaction, including the date, amount, and which members were present for investment decisions. When Bob cashes out in the scenario described, having clear documentation of his participation in each investment decision can be important if the IRS questions the allocations later. Some investment clubs I've worked with create quarterly statements for each member showing their capital account balance, adjusted basis, and share of unrealized gains/losses. One tip: consider using partnership accounting software specifically designed for investment clubs rather than trying to track everything in Excel. The complexity grows quickly as you have members entering and leaving, especially if you're making the Section 754 election that was mentioned earlier. The software can automatically calculate the basis adjustments and generate the necessary tax documents. Also, make sure your operating agreement addresses what happens to a departing member's share of management fees, carried interest (if applicable), and whether they're entitled to their share of unrealized gains at fair market value or book value. These details can significantly impact the tax consequences for everyone involved.

E-file if you can! Paper processing times are insane rn

For the mailing address, you'll need to check your state on the IRS website since it varies by location. But honestly, if your amended return is for 2019 or later, definitely go with e-filing through tax software - it's so much faster than paper. The processing times for mailed returns are still pretty brutal right now.

I'd echo what others have said about being cautious with that high refund estimate. As a tax preparer, I see this kind of confusion regularly when people use different AI tools or online calculators. The business equipment purchases you mentioned could definitely be a major factor here. Photography equipment often qualifies for immediate Section 179 deduction (up to $1,160,000 for 2023), which can dramatically reduce your taxable income. Combined with child tax credits and higher withholding, a large refund is definitely possible. However, AI tools frequently make errors with: - Business expense categorization (not all equipment qualifies for immediate deduction) - Income limits for various credits and deductions - Proper calculation of self-employment tax for business income - Phase-out thresholds for credits based on AGI Before you count on that $13,416, I'd strongly recommend: 1. Use established tax software (TurboTax, H&R Block, etc.) as a second opinion 2. Make sure you have all your business income and expense documentation organized 3. Consider consulting a CPA if your wife's business had significant income alongside the equipment purchases The good news is that if you do get a large legitimate refund, you'll know for next year to adjust your withholding so you're not overpaying throughout the year!

I've been following this discussion and want to add a few important points that haven't been covered yet. First, regarding your wife's photography business - the timing of when you purchased equipment versus when the business actually started operating can affect how you claim deductions. If equipment was purchased before the business was "active," you might need to depreciate it rather than take the full Section 179 deduction immediately. Also, be very careful about hobby vs. business classification. If the photography business shows losses for multiple years (especially with high equipment costs and low initial revenue), the IRS might classify it as a hobby rather than a legitimate business. This would disallow many of the deductions and could result in a much smaller refund than expected. The AI calculator might be assuming all equipment purchases qualify for immediate business deduction without considering these nuances. I'd strongly recommend keeping detailed records of: - When the business officially started - Business income and expenses by month - How the equipment is used (business vs. personal) Given the complexity with the new business, I'd actually recommend consulting with a tax professional rather than just using software. The cost of a CPA consultation could save you from potential issues with the IRS later, especially if that $13,416 refund triggers an audit. Better to get it right the first time than deal with amended returns or IRS questions down the road!

One thing none of these comments mentioned - the SALT cap is scheduled to expire after 2025! So if you're buying a home now, in just a couple years the cap might go away and you could potentially deduct your full SALT amount again. Of course, Congress could extend the cap or create a new limit, but it's worth keeping in mind for long-term planning.

Great discussion everyone! As someone who went through this exact analysis last year, I wanted to add a few practical tips for @cc288379ec13: 1. Don't forget about PMI - if you're putting less than 20% down, your mortgage insurance premiums are also deductible (subject to income limits). This can add another $1-3k to your itemized deductions. 2. Track your charitable contributions more carefully once you're itemizing. Even small donations to Goodwill, church offerings, etc. can add up to meaningful deductions. 3. Consider timing some deductions strategically. For example, if you're close to the itemizing threshold, you might want to bunch charitable contributions into alternating years to maximize the benefit. The $18k property tax you mentioned is indeed high, but if you're in a state like NY, NJ, or CA, that's unfortunately pretty normal for decent areas. Just make sure you factor in the tax benefits when comparing the total cost of homeownership vs. renting. One last thing - property taxes can increase over time, but your deduction will still be capped at $10k, so factor that into your long-term planning.