Another option if you're still stuck is to check with your tax preparer or CPA if you used one during the years around when you purchased the stock. Sometimes they keep copies of old tax returns that might have records of dividend income from that stock, which could help establish when you owned it and potentially give clues about your purchase timing. Also, don't forget to check your old bank statements if you still have access to them online. Many banks keep records going back 7+ years, and you might find the withdrawal or transfer that funded the stock purchase. Even if it doesn't give you the exact cost basis, it could help narrow down the purchase date and amount, which you can then cross-reference with historical prices. The key thing is to document whatever method you use and keep records showing you made a good faith effort. The IRS is generally reasonable about these situations when you can show you tried to find the actual information.

I went through something very similar about two years ago with an old Fidelity account. What ended up working for me was a combination approach that might help you too. First, I contacted Schwab's customer service and specifically asked to speak with someone in their "account reconstruction" department - apparently they have specialists who deal with exactly these kinds of missing cost basis issues from acquisitions. The regular customer service reps couldn't help, but this specialized team had access to more historical TD Ameritrade data than what shows up in your online account. When that didn't get me everything I needed, I used the IRS's own guidance from Publication 551. They actually have a section that covers "Unknown or Indeterminable Cost" and provides a framework for making reasonable estimates. The key is being able to show you made a good faith effort to find the actual information. I ended up creating a simple spreadsheet documenting: 1) All the places I looked for records, 2) The approximate timeframe I remembered buying (even if it was just "sometime in 2011-2012"), 3) Historical price data from that period, and 4) My reasoning for the estimate I used. I attached this as a statement with my tax return. The IRS never questioned it, and my CPA said this approach shows due diligence while being conservative about not understating the tax owed. Much better than using zero and overpaying significantly.

One thing that hasn't been mentioned yet is the importance of understanding how the passive activity loss rules interact with material participation. Even if you qualify for material participation on both properties, your ability to deduct losses may still be limited by your adjusted gross income (AGI). If your AGI is under $100,000, you can generally deduct up to $25,000 in rental real estate losses per year (assuming you actively participate, which is a lower standard than material participation). This allowance phases out between $100,000-$150,000 AGI and is completely eliminated above $150,000. However, if you truly qualify as a real estate professional (which requires both material participation AND more than 750 hours annually in real estate activities, with real estate being your primary business), then the passive loss limitations don't apply at all. Given that you're managing two STRs with all the activities you described, you might actually qualify as a real estate professional, which would allow you to deduct all losses against any type of income. This could be much more valuable than just claiming material participation. Definitely worth discussing with your CPA - the real estate professional status can be a game-changer for tax savings.

Great question! You're absolutely on the right track with material participation. Based on your description, you're clearly meeting multiple tests - likely Test #2 (substantially all participation) since you and your wife handle everything yourselves, and definitely Test #3 (100+ hours with no one else participating more). The renovation property is actually a perfect example of material participation. All those hours you're spending coordinating contractors, making design decisions, purchasing materials, and planning the remodel count fully toward your material participation requirements. The IRS doesn't require the property to be generating income for these activities to qualify. Here's what I'd suggest documenting before your CPA meeting: - Create detailed time logs for both properties (even reconstruct past months from calendars/receipts if needed) - Separate your renovation activities into categories like planning, contractor coordination, material purchasing, and direct oversight - Don't forget to include travel time to/from the property One additional consideration: Given the scope of activities you're describing across two properties plus a major renovation, you might want to explore whether you qualify as a "real estate professional" under IRC Section 469(c)(7). This requires 750+ hours annually in real estate activities and real estate being more than 50% of your work time. If you qualify, you can deduct ALL losses against any income type, not just passive income - which could be much more valuable than standard material participation treatment. Your CPA should be impressed with your level of involvement. You're in a strong position!

This thread has been incredibly helpful! I'm dealing with the exact same issue and was starting to think I was going crazy. I have about $4,200 in 1099-NEC income from freelance work, and TurboTax was showing dramatically different credit amounts depending on how I entered it. What really clicked for me reading these responses is understanding that it's not that Schedule C income doesn't count as earned income - it absolutely does! The issue is that the self-employment tax calculations reduce your NET earnings from self-employment, and THAT reduced amount is what determines your credit eligibility. So my $4,200 in 1099 income becomes maybe $3,800-ish in actual "earned income" for credit purposes after all the SE tax math. No wonder my Child Tax Credit and EITC amounts were lower than I expected! I was comparing apples to oranges when I tried the W-2 experiment. Thanks everyone for explaining this so clearly. I feel much more confident now that I'm entering everything correctly in TurboTax, even if the final credit amounts aren't as high as I initially hoped they'd be.

I went through this exact same confusion last year! The key thing to understand is that 1099-NEC income absolutely DOES count as earned income for tax credits, but there's an important calculation difference that TurboTax handles automatically. When you enter 1099-NEC income correctly as Schedule C business income, TurboTax calculates your self-employment tax (15.3% on 92.35% of your net profit) and then takes a deduction for half of that SE tax. The final result is your "net earnings from self-employment" - and THIS amount is what counts as earned income for EITC and Child Tax Credit purposes. So if you received $5,000 on your 1099-NEC with minimal expenses, your actual earned income for credit calculations might only be around $4,200-$4,300 after the SE tax adjustments. This reduced amount could be affecting your credit eligibility thresholds. The reason the W-2 experiment gave you higher credits is because W-2 income doesn't have these self-employment tax deductions - TurboTax counted the full amount as earned income, which isn't accurate for your situation. Make sure you're entering your 1099-NEC as Schedule C income (not hobby income, which doesn't count as earned income at all). You should still qualify for credits, but the net amount after self-employment calculations is what determines your eligibility levels. This is completely normal and correct!

This thread has been absolutely incredible to read through! I'm on an E-2 visa (treaty investor) and have been completely stumped by Form 8802 for the past month. Like literally everyone else here, I was getting completely confused by the "resident alien" terminology when I'm clearly on a nonimmigrant visa. After reading through all these detailed experiences across so many different visa categories - H1-B, L1, F-1, TN, E-3, R-1, H-4, J-1, O-1, and now adding E-2 to the mix - it's become crystal clear that line 4a is purely about TAX residency status under the substantial presence test, not immigration status at all. I've been in the US for 4 years managing my investment business and definitely meet the substantial presence test requirements, so I should check "Individual U.S. citizen/resident alien" on line 4a and then specify "E-2" in section 4e. What's really remarkable is seeing this exact same pattern work consistently across every single visa type mentioned in this thread. Whether you're here for specialized work, investment, research, extraordinary ability, or any other purpose, the IRS applies the identical substantial presence test standard for Form 8802 tax residency determination. I'll be following the tried-and-true documentation approach that everyone has successfully used: E-2 visa copy, I-94, past three years of tax returns showing I filed as a resident alien, and a brief cover letter explaining my substantial presence test qualification. Based on all the timelines shared here, I'm expecting the standard 7-9 weeks for processing. This community discussion has been infinitely more helpful than the confusing official IRS instructions. The collective wisdom here should honestly be turned into an official guide for anyone dealing with Form 8802 across different visa categories. Thank you to everyone who shared their detailed experiences!

This has been such an incredibly comprehensive and helpful thread! I'm on an L-2 EAD visa (spouse of L-1 holder) and have been absolutely lost with Form 8802 for the past few weeks. Reading through everyone's detailed experiences across this amazing collection of visa types has finally made everything clear. Like everyone else here, I was getting completely confused by the "resident alien" language since I'm obviously not a permanent resident. But now I understand that line 4a is purely about TAX residency classification under the substantial presence test, not immigration status. I've been in the US for 3.5 years and clearly meet the requirements, so I should check "Individual U.S. citizen/resident alien" and specify "L-2 EAD" in section 4e. It's really remarkable how this thread now covers virtually every major visa category - H1-B, L1, F-1, TN, E-3, R-1, H-4, J-1, O-1, E-2, and now L-2. The substantial presence test approach works consistently regardless of whether you're here for employment, investment, study, research, or as a dependent spouse. I'll be following the proven documentation strategy everyone has used: L-2 visa copy, EAD card, I-94, past three years of tax returns showing resident alien filing status, and a cover letter explaining my substantial presence test qualification. Based on all the timelines shared, I'm expecting about 8 weeks for processing. This thread should honestly be pinned as the definitive guide for Form 8802 across different visa situations. The collective wisdom here has been infinitely more valuable than the confusing official IRS instructions. Thanks to everyone who shared their detailed experiences - you've saved so many of us from costly mistakes and delays!

2 Has anyone used TIN matching with partnerships? We have an unusual situation where our LLC (taxed as partnership) needs to issue 1099s to several vendors, but we've heard that partnerships have different requirements for accessing the service.

I went through this exact process earlier this year for our consulting firm and wanted to share a few additional tips that might help: 1. Make sure you have your business banking information handy when applying - the IRS will ask for account details to verify your business identity during the e-services registration. 2. If you're planning to use the bulk upload feature (highly recommend for more than a few vendors), practice with the file format first. The IRS is very picky about the CSV layout and will reject your entire batch if even one row is formatted incorrectly. 3. Keep in mind that TIN Matching results are only valid for the calendar year you receive them. So if you verify TINs in December 2024, you'll need to re-verify them again for 2025 filings. 4. Pro tip: Run your TIN matching in early November if possible. This gives you time to reach out to vendors with mismatched information and get corrected W-9s before the 1099 filing deadline. The whole process definitely has a learning curve, but once you're set up it saves SO much time compared to dealing with IRS notices for incorrect TINs after the fact.