Great discussion everyone! I just wanted to add one more practical consideration for your situation. Since you're planning to rebalance between your IRA and taxable account, this might be a good time to think about tax-location strategy going forward. Generally, it's most tax-efficient to hold your most tax-inefficient investments (like REITs, bonds, or high-turnover funds) in tax-advantaged accounts like your IRA, while keeping tax-efficient investments (like broad market index funds or individual stocks you plan to hold long-term) in your taxable account where you can benefit from long-term capital gains rates. With 30-40 years until retirement, you've got plenty of time to recover from those tech losses. The silver lining is that this gives you a chance to restructure your portfolio with better tax efficiency in mind. And as others have confirmed, you don't need to worry about wash sale rules when moving from IRA losses to taxable purchases - just focus on building a solid long-term allocation that you can stick with through future market volatility.

One additional thing to consider as you're restructuring - since you mentioned you're 30-40 years from retirement, this might actually be a blessing in disguise. Those tech losses in your IRA, while painful now, don't have the same tax implications as losses in a taxable account would. I went through something similar in 2022 with my growth-heavy IRA getting crushed. What I learned is that IRA losses, while they hurt psychologically, are actually "cleaner" from a tax perspective since you're not missing out on tax-loss harvesting opportunities like you would in a taxable account. The fact that you're thinking about wash sale rules shows you're being thoughtful about this, but as others have confirmed, selling those losing positions in your IRA and buying different investments in your taxable account won't create any wash sale issues. Focus on building a more diversified allocation across your accounts rather than trying to recover those specific losses. With decades until retirement, time is really on your side here. Those ARKK losses might sting now, but they'll be a footnote in your investment journey if you stay disciplined with a solid long-term strategy.

Has anyone used a Delaware Statutory Trust (DST) for this kind of situation? I've heard it can work with a 1031 exchange but not sure if it applies when the original property is already in a family trust.

Another strategy worth considering is a Charitable Remainder Trust (CRT) if you have any philanthropic interests. This can be particularly effective for highly appreciated farmland since you get an immediate charitable deduction, avoid capital gains tax on the sale, and receive income for life. The CRT sells the property tax-free, then pays you a percentage annually (typically 5-8%) for either a term of years or your lifetime. At the end, the remainder goes to charity. If you don't need the full value immediately and want to support causes you care about, this could provide steady income while significantly reducing your current tax burden. You could also combine this with life insurance to replace the charitable remainder for your heirs if that's a concern. The tax savings from the charitable deduction can help fund the premium payments.

One important thing to keep in mind is that you need to receive Form 1098-T from your daughter's school to claim education credits. The school should send this by January 31st showing tuition and fees paid during the tax year. However, don't just rely on the 1098-T amounts - sometimes the form shows payments received by the school rather than what you actually paid. You should use your actual payment records (receipts, bank statements, etc.) to determine the correct amount of qualified expenses. Also, remember that room and board don't qualify for education credits, only tuition, fees, and required course materials like textbooks. Some people mistakenly try to include housing costs which can trigger IRS scrutiny later.

This is such a helpful thread! I'm in a similar situation with my son starting his sophomore year. One thing I learned the hard way is to keep detailed records throughout the year, not just wait until tax time. I created a simple spreadsheet tracking all education payments - tuition, fees, required textbooks, lab fees, etc. - along with dates and payment methods. This made it so much easier when I needed to verify amounts against the 1098-T form. Also, if your daughter buys textbooks from sources other than the school bookstore (like Amazon, used book sites, etc.), make sure those receipts clearly show they were required for her courses. The IRS can ask for documentation proving the books were actually required, not just recommended reading. One last tip: if you're paying tuition in December for spring semester, those payments count toward the current tax year's education credits, not the following year when the classes actually happen. The timing is based on when you pay, not when the education occurs.

The timing of your exit is actually really important for tax purposes. Since you're leaving at the end of this quarter, make sure your partnership agreement clearly defines your "tax year end" vs your actual departure date. I had a similar situation where I left my LLC in October, but because our partnership used a calendar tax year, I was still allocated income through December 31st even though I wasn't actively involved. This can work in your favor or against you depending on how profitable the business is in Q4. Also, don't forget about self-employment taxes! Your $3,300 share will likely be subject to SE tax in addition to regular income tax. If you haven't been making quarterly estimated payments, you might want to calculate if you'll owe a penalty and consider making a payment before year-end. One last thing - if your LLC has been depreciating any assets, there might be depreciation recapture implications when you exit. It's worth having someone review this even for a small partnership.

One crucial detail that hasn't been mentioned yet is making sure your partnership properly closes the books on your departure date. Many small LLCs get sloppy about this and just use a simple proration method, but that can really hurt you tax-wise. For example, if your LLC has seasonal income patterns or major expenses that hit at certain times of year, a simple day-count allocation might not reflect your actual economic participation. You have the right to request a "closing of the books" method under Section 706, which calculates your exact share of income and expenses up to your departure date. This is especially important for things like depreciation, prepaid expenses, and accrued income. I've seen cases where departing partners got stuck with a full year's worth of depreciation recapture or missed out on major contract income that was earned during their time but received after they left. Also, make sure someone tracks your capital account properly through your departure. Your basis calculation affects everything from how distributions are taxed to potential phantom income issues. Small partnerships often don't maintain proper capital account records, but you'll need this information for your final K-1 and any future dealings with your former partners.

This is really helpful information everyone! I'm dealing with this exact situation right now - my refund switched from DD to mail and I couldn't figure out why. Based on what everyone's sharing, it sounds like the IRS has definitely tightened their verification process this year. I'm particularly concerned about the address issue that @Ravi mentioned - I moved last year and while I filed a change of address with the post office, I'm not sure if the IRS has my current address. Does anyone know the best way to verify that the IRS has your correct mailing address before the check gets sent out? I'd hate to have my refund end up at my old apartment!

This is such a widespread issue this year! I'm a tax preparer and I've had at least a dozen clients contact me about this exact same problem. What's really frustrating is that the IRS doesn't provide clear communication about why the switch happens. From my experience, I've noticed it tends to affect people who: 1) Changed banks recently, 2) Have joint accounts but file separately, or 3) Used a tax prep service for the first time. The silver lining is that paper checks are actually more reliable than people think - I haven't had any clients report lost or delayed mail refunds this season. Just make sure your address is current in the IRS system because unlike direct deposits, there's no "bounce back" mechanism with paper checks. They go where they're sent, period.