Just a heads up - make sure you're tracking the "unadjusted basis" correctly. This should be the original cost of the building portion only (not including land) before any depreciation. For an inherited property, it would typically be the fair market value of the building (not including land) at the time of inheritance. So if your property is worth $320k total but $50k of that is land value, your building basis would be $270k, making the 2% threshold $5,400. That would be lower than the $10k cap, so $5,400 would be your safe harbor limit.

This is such a helpful thread! I'm dealing with a similar situation with my rental property. One thing I want to add is that documentation becomes really important when you're near or over the safe harbor limits. I learned this the hard way during an audit a few years ago - the IRS agent wanted detailed records showing exactly what work was done and why it was necessary. For repairs like your HVAC replacement, having documentation that the old system was broken/non-functional (like repair estimates or photos) really helps support the "repair" classification versus "improvement." Also, timing can matter. If you're close to your safe harbor limit and have discretionary maintenance work planned, you might consider spreading it across tax years to stay under the threshold when possible. Obviously you can't delay emergency repairs like your mold situation, but things like painting or minor updates could potentially be timed strategically. The inherited property basis calculation mentioned above is spot on - make sure you're using the stepped-up basis correctly and allocating between land and building properly. A good appraisal from the time of inheritance can be invaluable for this.

Another thing to consider - if you're expecting a large refund, you might want to call NJ unemployment BEFORE filing and ask them to put a hold on the offset while you're actively making payments. Some people have had luck getting them to agree to this in writing, especially if you've been consistent with your payment plan. Won't hurt to try!

Just went through this exact situation last month! Even though I had a payment plan and was current on all payments, NJ still grabbed my entire state refund ($1,847). The frustrating part is that the payment plan doesn't automatically protect you from offsets - they're two separate processes. I called after it happened and they basically said the offset system runs automatically and doesn't check for active payment plans. Definitely call them BEFORE filing like others suggested - I wish I had known to do that!

Just wanted to share my experience as someone who went through this exact situation last year! I had a similar duplex setup (65/35 split) and was terrified of making a mistake after reading horror stories online. Here's what I learned that might help: The key is being absolutely meticulous about your documentation. I created a simple spreadsheet tracking every expense and its allocation percentage. For the mortgage interest specifically, I made sure to clearly note on my tax return that the Schedule E amount represented only the rental portion. One thing that really helped me was creating a "property allocation worksheet" where I documented how I calculated my 70/30 split (square footage, rooms, whatever method you used). Keep this with your tax records because if you ever get audited, the IRS will want to see your methodology was reasonable and consistent. Also, pro tip: if you're using the same allocation method for multiple expenses (mortgage interest, property taxes, insurance, etc.), make sure you're applying it consistently across all of them. The IRS looks for consistency in your reporting. You're asking all the right questions - being cautious about double-dipping shows you're thinking about this correctly!

I just went through this same situation with my triplex property! One thing I'd add to all the great advice here is to be extra careful about how you handle improvements vs. repairs when allocating expenses. For regular repairs and maintenance (like fixing a leaky faucet or painting), you can deduct the rental portion immediately on Schedule E. But for improvements that increase the property's value (like a new roof or HVAC system), those need to be depreciated over time rather than deducted all at once. Also, since you mentioned you're filing soon, make sure you have your depreciation calculation ready for the rental portion of the property. This is often one of the biggest deductions new landlords miss! You'll need to determine the cost basis of just the building (excluding land value) and then depreciate 70% of that over 27.5 years. Keep detailed records of everything - I learned the hard way that good documentation is your best friend if the IRS ever comes knocking. Take photos of any repairs, save all receipts, and document your square footage measurements. Future you will thank you for being thorough!

Pro tip: Call your brokerage and ask for the Dec 31 value over the phone. They can tell you even if the 5498 hasn't been issued yet. I did this with Vanguard last year for exactly the same situation and they gave me the info in 2 minutes!

Just wanted to add another perspective here - if you're still having trouble getting through to your brokerage, you can also try logging into your online account and looking for a "Tax Documents" or "Year-End Statements" section. Most major brokerages (Fidelity, Schwab, Vanguard, etc.) will have your December 31st account balance available in your year-end statement, even if the official Form 5498 hasn't been mailed yet. I had a similar conversion situation last year and found my Dec 31st Traditional IRA balance right on my online statement summary. Since you converted in December, the balance should be pretty straightforward - either $0 if you converted everything, or whatever small amount remained after the conversion. This saved me from having to wait on hold or file an extension.

Has anyone used TurboTax for this kind of situation? I have a similar issue with RSUs vesting after leaving the US and I'm wondering if regular tax software can handle it or if I need to hire a specialist.

I went through this exact situation last year! As a former F1 visa holder now living in Canada, I can confirm that you typically don't need to pay Social Security and Medicare taxes on stock vestings that occur after you've left the US. The key points for your situation: 1. You'll need to file Form 1040-NR as a non-resident alien 2. Report the stock vesting income, but FICA taxes generally don't apply since you're no longer providing services in the US 3. Definitely look into the US-Canada tax treaty provisions - you may be able to claim treaty benefits to reduce your US tax burden 4. On your Canadian return, you'll report this as foreign income and can likely claim a foreign tax credit for any US taxes paid The stock vesting is considered compensation for work you performed while in the US, but since you had the F1 FICA exemption when you earned it, that exemption typically carries forward. Just make sure you're properly documenting your non-resident status and the dates when you left the US. I'd recommend keeping detailed records of when you left the US, your visa status history, and all stock vesting documents. This will be helpful if you ever need to explain your tax position to either the IRS or CRA.