Just wanted to add some clarification on the MAGI calculation since I see some confusion in the comments. You're absolutely right that traditional IRA contributions don't reduce MAGI for determining deductibility - that would indeed be circular. However, it's worth noting that if you WERE eligible for the deduction (i.e., if your income was lower), THEN the traditional IRA contribution would reduce your MAGI for other tax purposes like determining eligibility for other credits or benefits. In your case at $93k post-401k, you're unfortunately well above the threshold. But here's a potential strategy: if you can increase your 401k contribution by even more (up to the $23,000 limit for 2025), that could potentially get your MAGI low enough to qualify for at least a partial traditional IRA deduction. For example, if you could contribute an additional $7k+ to your 401k, that would bring your MAGI down to around $86k or below, potentially making you eligible for the traditional IRA deduction. Of course, this only works if you have the cash flow to support the higher 401k contributions.

Great discussion here! Just to add one more perspective - I was in almost the exact same situation last year. Making around $105k, maxing out my 401k, and thinking I could squeeze out a traditional IRA deduction. What I learned the hard way is that once you're covered by a workplace plan, those income limits are pretty strict. At $93k MAGI after your 401k contributions, you're definitely above the $86k cutoff for any deduction. I ended up going the backdoor Roth route that several people mentioned. The process was actually simpler than I expected - contributed $6k to a traditional IRA (non-deductible), then immediately converted it to Roth. No taxes on the conversion since there were no earnings, and now that money grows tax-free. One thing to watch out for - make sure you don't have any other traditional IRA balances with pre-tax money, or you'll run into the pro-rata rule complications. If you do, consider rolling those into your current employer's 401k first if they allow it. The backdoor Roth has been a game changer for getting more money into tax-advantaged accounts at our income level. Definitely worth exploring!

As someone who went through a similar family home purchase situation, I'd recommend getting everything properly documented upfront rather than trying to fix issues later. We ended up using a real estate attorney who specialized in seller financing to draft our promissory note and ensure we met AFR requirements. One thing that really helped us was looking at the AFR rates for different loan terms. Since you mentioned affordability concerns, you might consider a longer-term loan (over 9 years) since the AFR for long-term loans is often the most favorable. The current long-term AFR is around 4.2%, which is still significantly better than conventional mortgage rates. Also, make sure your cousin understands they'll need to report the interest income on their tax return each year, even if you're making principal-only payments in some months. Having a clear payment schedule that shows both principal and interest portions will make tax reporting much easier for everyone involved. The peace of mind from knowing everything is compliant is worth the extra effort upfront, especially when family relationships are involved.

I've been through this exact situation as both a buyer and seller in family transactions, and I want to emphasize something that hasn't been mentioned enough: documentation is absolutely critical, but it doesn't have to break the bank. For finding the right attorney, I'd suggest contacting your state bar association - they often have referral services where you can specify "seller financing" or "owner financing" as your need. Real estate investment groups in your area are also great resources since their members frequently use these arrangements. Cost-wise, expect to pay $500-1500 for proper documentation depending on your area. Yes, it's an upfront expense on teacher salaries, but consider it insurance against much bigger problems later. A template might save money initially, but if the IRS questions your arrangement, the cost of fixing issues retroactively will be far higher. One practical tip: ask the attorney to structure the promissory note with monthly payments that include both principal and interest at exactly the current AFR rate. This makes tax reporting straightforward for your cousin and creates a clear paper trail showing legitimate loan activity rather than a disguised gift. Also, make sure you and your cousin both keep detailed records of all payments made and received. The IRS loves to see consistent payment history when reviewing family loans.

I own several rental properties and have dealt with this exact issue. One thing to consider: if your AGI is under $100k, you can deduct up to $25k in rental losses against your ordinary income under the active participation exception, even though the activity is technically passive. But if you're trying to qualify as a real estate professional to treat ALL losses as non-passive, be prepared for potential IRS scrutiny. You need meticulous time logs to prove your 750+ hours.

I've been through this exact situation with my duplex rental. The key thing to understand is that rental real estate is almost always classified as passive income/loss by default, regardless of how hands-on you are with management. However, you likely qualify for the "active participation" exception since you're making management decisions yourself. This allows you to deduct up to $25,000 of rental losses against your other income (like your regular job) if your modified adjusted gross income is under $100,000. The deduction phases out between $100k-$150k. Don't confuse "active participation" with being a "real estate professional" - they're completely different rules. Active participation just means you own at least 10% of the property and participate in management decisions (which you clearly do). The real estate professional status requires 750+ hours annually in real estate activities AND more than half your total working time. For your situation, being able to use the $25k exception now is probably better than waiting until you sell, especially if you're in a higher tax bracket currently. Just make sure to keep good records of your participation in case the IRS ever asks.

I'm brand new to this community and just created my account because I got this exact same "Audit Status Unavailable" error message about an hour ago and was absolutely terrified! 😰 I thought for sure I was about to get audited or that I had completely messed up my tax return somehow. Reading through all these responses has been such a huge relief - it's incredible to see how many people have experienced this same scary error message! Really appreciate Dylan Cooper's technical explanation about it being backend system updates - hearing from an actual IRS tech specialist makes all the difference. And thank you to everyone like Yara Khalil who shared their experience of seeing this error multiple times without it ever being a real audit situation. I was literally about to panic-call my tax preparer and probably drive myself crazy googling audit procedures all night! It's honestly ridiculous how that error message is worded - saying "Audit Status Unavailable" when it's just routine maintenance is so unnecessarily frightening. They really should just say "Service temporarily unavailable due to system updates" instead of using audit terminology that sends everyone into a panic! Going to follow everyone's advice and wait a few days before checking again. This community seems amazing for getting real answers from people who actually understand how the IRS works. Thanks for saving me from what would have been several sleepless nights! 🙏

Hey! I'm brand new to this community and just created my account because I got this exact same "Audit Status Unavailable" error message this afternoon and was absolutely panicking! 😰 I was convinced I was about to get audited or had made some huge mistake on my return. Reading through everyone's experiences here has been such a massive relief - it's incredible how many of us have dealt with this same terrifying error! Really appreciate Dylan Cooper's explanation about it being system maintenance and Yara Khalil sharing that they've seen this happen multiple times without it ever being an actual audit. I was literally about to start calling tax professionals in a complete panic! It's honestly crazy how poorly that error message is worded - mentioning "audit status" when it's just routine maintenance is so unnecessarily scary. They really should just say "service temporarily unavailable" instead of using audit terminology that sends everyone into a panic! Going to follow everyone's advice and wait a few days before checking again. This community seems amazing for getting real answers from people who actually know what they're talking about. Thanks for saving me from what would have been several sleepless nights! 🙏

Has anyone considered the 24-credit rule? IRS also says a student is full-time if they're enrolled in enough credits to complete a typical 4-year degree program in 4 years. That's usually 24 credits in a year. So even if you don't meet the 5-month rule, you might still qualify as full-time if you took enough credits during those 4 months.

Don't stress too much about this! I had a very similar situation my freshman year. The key thing to understand is that the IRS looks at whether you were enrolled as a full-time student according to your school's standards for at least 5 months during the tax year. Since you mentioned you were taking 15 credit hours, your school definitely considered you full-time. The question is just whether you can get to 5 months of enrollment. Here's what often helps students in your situation: 1. Check if your school counts orientation week (even if it was just a few days in late August) as part of the enrollment period 2. See if finals week or any post-semester activities in January count toward enrollment 3. If you're continuing in spring semester, that would definitely put you over the 5-month requirement for the tax year I'd recommend getting an official enrollment verification letter from your registrar that shows the exact dates of your enrollment period. You might be surprised to find that your "4-month" semester actually spans 5 calendar months when you include all the official academic activities. Your parents should still be able to claim you as a dependent as long as you meet the other dependency requirements. The timing of your semester shouldn't affect that!