Has anyone used H&R Block or TurboTax for handling ISO sales with AMT credits? I'm wondering if they calculate everything correctly or if I need to use a specialized tax preparer for this.

This is a great question about AMT and ISO dispositions! I went through something very similar last year. One thing I learned that might help: when you sell those 3,000 shares at $6.75, you'll indeed have different tax treatments for regular vs AMT purposes. For regular tax, you'll have long-term capital gains of ($6.75 - $1.35) × 3,000 = $16,200. But for AMT purposes, you'll actually have a loss of ($6.75 - $13.50) × 3,000 = -$20,250. This AMT loss helps generate additional AMT credit that you can use to offset future regular tax liability. The key thing to remember is that AMT credits can only be used when your regular tax exceeds your tentative minimum tax in future years. So if you're planning to exercise more ISOs this year, you'll want to model out whether you'll be able to use those credits effectively or if they'll just carry forward again. I'd strongly recommend getting a tax projection done before you make any moves, especially if you're considering additional exercises. The timing of when you sell and exercise can make a huge difference in your overall tax bill.

I've been lurking on this thread as someone who faced a nearly identical situation with Sprott PSLV in my traditional IRA. The collective wisdom here is excellent - you definitely don't need to file Form 8621 for PFIC holdings in qualified retirement accounts. What I found most helpful was understanding the "why" behind this exemption. The PFIC rules target tax avoidance through deferral of income recognition on foreign investments. Since your IRA already provides legitimate tax deferral by design, applying PFIC reporting would be redundant and contrary to the intent of retirement account tax benefits. I went through months of research and eventually paid for a consultation with an international tax specialist. They confirmed the IRA exemption and explained that the Treasury regulations treat qualified retirement accounts differently precisely because they already have their own comprehensive tax framework. For your three-year ownership period, you absolutely don't need to amend anything. There was no filing obligation you missed. Just keep good records of your purchase dates and basis in case you ever need them for future account transactions. One last thought - since you mentioned using TurboTax, be aware that if you ever hold PFICs in taxable accounts, you'll likely need more sophisticated tax software or professional help. Consumer software generally can't handle Form 8621 properly.

I've been dealing with PFIC issues for several years now across different account types, and this thread perfectly captures the confusion that many investors face with these rules. The consensus here is absolutely correct - PFICs held in IRAs generally don't require Form 8621 filing because the tax-deferred structure of the IRA already addresses what the PFIC rules are designed to prevent. What I'd add from my experience is that it's worth understanding that this exemption applies broadly to qualified retirement accounts - not just traditional and Roth IRAs, but also 401(k)s, 403(b)s, and similar employer-sponsored plans. The underlying principle is the same across all these account types. For your Sprott fund situation specifically, I'd recommend keeping detailed records of your holdings even though you don't need to file Form 8621. If you ever decide to rebalance your portfolio or if tax laws change in the future, having good documentation of purchase dates, amounts, and fund details could be valuable. One practical tip: consider setting up a simple spreadsheet or folder to track your PFIC holdings across all accounts. Even though the IRA holdings don't require current reporting, having organized records makes it much easier to handle any future scenarios where the information might become relevant. The peace of mind from professional confirmation is definitely worth considering given your $19K holdings, but you can move forward confidently knowing that no immediate filing is required.

As someone who used to work for a tax resolution firm, I'd add one more thing - check if you received a closing letter for the CP-2000 (often a letter number 2030C). If not, you should absolutely call to verify the status. Sometimes the IRS makes adjustments based on information they receive from third parties without properly notifying you. Even if your account shows $0 now, if the issue isn't formally closed in their system, it could potentially come back later. The IRS operates on extremely slow timelines, and sometimes notices cross in the mail. Better to be 100% sure than to have this resurface years later with interest and penalties attached.

This situation is more common than you think, especially with older debt cancellations. The timing disconnect between when the CP-2000 was generated and when your online account updated is typical - the IRS systems don't always sync immediately. Since your online account shows $0 due, it's very likely that the IRS already processed information showing you either qualified for an exclusion (like insolvency) or determined the debt cancellation income wasn't actually taxable in your case. Credit card companies sometimes report cancellations incorrectly or the IRS receives corrected forms later. However, I'd strongly recommend calling the CP-2000 phone number to get official confirmation and ask for a closing letter. You want documentation that this specific notice has been resolved, not just that your current balance is zero. Also request an account transcript that shows the adjustment - this will give you peace of mind and protect you if anything comes up later. Don't ignore it completely, but also don't panic and pay money you might not actually owe. Get the official word first.

Just a heads up on those cutting machines - I made the mistake of putting similar equipment ($250 range) under Section 179 last year, and my tax preparer said it created unnecessary complication. She had to go back and reclassify them as simple expenses under the de minimis rule, which apparently is much cleaner for audit purposes. For the utilities question, I use a Kill-A-Watt meter to track exactly how much electricity my craft equipment uses. I can literally show the difference in usage between when my machines are running vs not. My accountant said this is perfect documentation to justify claiming more than just the square footage percentage for electricity.

Great questions about Schedule C categorization! As someone who's been through this confusion before, here's my take based on experience and professional guidance: Your vinyl sheets are definitely COGS Materials and Supplies since they directly become part of your finished product. This is the clearest categorization you have. For those $230 cutting machines, you're overthinking it! Since they're under the $2,500 de minimis threshold and have short useful lives, just expense them immediately under Operations Expenses - Supplies. No need for Section 179 or depreciation headaches for relatively inexpensive equipment. Packaging materials should go under COGS Materials and Supplies too - they're essential for delivering your finished product to customers, so they're part of your cost of goods sold. For utilities, if you track actual usage (like with a power meter), you can definitely claim more than just the standard home office percentage. Document your machine usage patterns and put the business portion under Operations Expenses - Utilities. Phone/internet business usage goes under Operations Expenses - Utilities at whatever reasonable percentage you can document. Those Costco storage bins are definitely just Operations Expenses - Supplies. At $12, they're way below any capitalization threshold. The key is reasonable documentation and consistency in your categorization approach!

Has anyone used any specific tax software that handles household employee situations well? I tried using [popular tax software] last year for my mother's caregiver and it was a nightmare trying to figure out the Schedule H and W-2 generation.

I went through this exact same situation with my grandmother's caregiver two years ago and learned some hard lessons. First, the IRS classification really does depend on the degree of control you have over the work, not just whether they work for other families. If you're directing what tasks need to be done, when they need to be at your home, and how the care should be provided, you're likely an employer regardless of their other clients. One thing I wish someone had told me earlier: even if you determine she should get a 1099-NEC as an independent contractor, you still need her Social Security Number or Individual Taxpayer Identification Number (ITIN), her full legal name, and address before you can file anything. The deadline for giving her the form is January 31st, and you need to file it with the IRS by the end of February (or March 31st if filing electronically). But honestly, given that you're paying her $26,000+ annually for regular ongoing care work in your home, this sounds like a textbook household employee situation to me. I'd strongly recommend getting professional help to sort this out properly - the penalties for misclassification can be significant, especially when you're dealing with this much money.