I've dealt with this exact scenario multiple times as a tax preparer. Here's what you need to know about FreeTaxUSA and ISO reporting: For your $2,300 spread, you're likely correct that your AMT will be $0 due to the exemption amounts for 2024 ($85,700 for single filers, $133,300 for married filing jointly). However, you still need to properly report the ISO adjustment. In FreeTaxUSA, the ISO spread should be entered under the "Federal" section → "Deductions & Credits" → "Other Taxes" → look for "Alternative Minimum Tax (AMT)" subsection. If you don't see this initially, make sure you've indicated stock option activity in the interview questions as others mentioned. The key point everyone seems to be missing: even if your current AMT is $0, you're creating an AMT credit that carries forward. This credit becomes valuable when you eventually sell the ISO shares, as it reduces your regular tax liability dollar-for-dollar up to the amount of AMT you would have paid. For record-keeping, maintain detailed records of: - Exercise date and number of shares - Exercise price per share - Fair market value on exercise date - AMT adjustment amount ($2,300 in your case) - Any AMT paid (likely $0 for you) This information is crucial for calculating your adjusted cost basis when you sell, which affects whether the sale generates ordinary income or capital gains treatment.

Just wanted to add my experience as someone who went through this exact situation last year. I had a $2,800 ISO spread and was also using FreeTaxUSA, wondering if I needed Form 6251. After reading through all these helpful responses, I ended up doing what several people suggested - I manually calculated Form 6251 to confirm my AMT was $0, then made sure to enter the ISO spread amount in FreeTaxUSA under the AMT section. The key thing I learned (and wish I'd known earlier) is that even though my current AMT was $0, I was still creating valuable AMT credits for the future. When I sold half my ISO shares this year after holding them for the required periods, those AMT credits saved me about $1,200 in regular taxes. For anyone in a similar situation: don't skip reporting the ISO spread just because you think your AMT will be zero. The credit tracking is worth it, and FreeTaxUSA does handle it properly once you find the right section. Also, definitely keep detailed records of everything - exercise dates, FMVs, spreads, etc. You'll need all of this when you eventually sell. The whole ISO/AMT system is confusing, but taking the time to understand it now will pay off significantly when you sell those shares down the road.

Hey all! Quick question - I'm using TurboTax Business to file my 1065 for my real estate LLC. Anyone used it for property transfers? It's asking me for "basis" and "fair market value" separately, and I'm not sure if I'm supposed to be entering the full property value or just my equity portion.

I went through this exact same situation last year when I transferred my rental property to my LLC! Here's what I learned after consulting with my CPA: You'll want to use the fair market value of the property ($385k) as your contribution, but then reduce it by the mortgage liability ($210k) that the partnership assumed. So your net capital contribution would be $175k (your equity). A few important tips from my experience: 1. Make sure you document the FMV with comparable sales or a professional appraisal - I used recent comps from my area 2. Don't forget to allocate the mortgage liability among partners on their K-1s (this affects their basis) 3. Keep detailed records of your original basis in the property (purchase price + improvements) for future reference The good news is that under Section 721, this transfer should be tax-free as long as you're receiving partnership interests in exchange for the property. Just make sure to attach a statement to your return explaining the property contribution. One last thing - if you're feeling overwhelmed with the 1065, consider having a tax pro review it before filing. Partnership returns can get complex quickly, especially with property involved!

I'm really sorry you're dealing with this stress! This is unfortunately a very common situation that catches a lot of people off guard. The marketplace representative definitely shouldn't have changed your answer without explaining the tax implications. Here's what you need to focus on: First, calculate whether CVS's insurance offer was actually "affordable" under IRS rules. Take your 2024 household income and multiply by 9.12%, then divide by 12. If your monthly premium for employee-only coverage through CVS would have been less than that amount, then their offer was considered affordable and you'll likely need to repay some or all of your Premium Tax Credits. The silver lining is the repayment caps if your income is under 400% of the federal poverty level (about $58,320 for single filers in 2024). Depending on your income bracket, you might only have to repay between $325-$2,825 instead of the full $4,860+ you received. When you file your taxes, you'll need Form 8962 to reconcile everything. This form is notoriously complex, so I'd strongly recommend getting help from a tax professional who has experience with Premium Tax Credit reconciliation. They can also help you explore any legitimate deductions that might lower your adjusted gross income and potentially reduce your repayment obligation. Don't panic - while this is definitely not ideal, there are protections in place and ways to minimize the impact. Just make sure you handle it properly on your tax return.

This is such a frustrating situation, and I feel for you! The marketplace rep really put you in a tough spot by changing that answer without fully explaining the consequences. From what I've learned dealing with similar issues, you'll need to determine if CVS's health insurance offer met the IRS "affordability" standard. For 2024, employer coverage is considered affordable if your share of the premium for self-only coverage is less than 9.12% of your household income. Here's a quick way to check: Take your 2024 annual household income, multiply by 0.0912, then divide by 12. If CVS's monthly premium for just you would have been less than that amount, their offer was technically "affordable" and you'll likely need to repay some of your Premium Tax Credits. The good news is there are income-based repayment caps. If your household income is under 400% of the federal poverty level (around $58,320 for single filers), you won't have to repay more than $325-$2,825 depending on your specific income bracket, even if you received much more than that in credits. When you file your taxes, you'll use Form 8962 to reconcile everything. This form is incredibly complex, so I'd strongly recommend getting help from a tax professional who specializes in Premium Tax Credit issues. They can also help you identify any deductions that might lower your adjusted gross income and potentially reduce your repayment. Don't panic - while this isn't ideal, the repayment caps exist specifically to protect people in situations like yours. Just make sure you handle it properly on your return.

I understand you're worried about your cousin, but this is unfortunately a very serious federal crime. Creating a fake Schedule C to obtain $26K in PPP funds is textbook fraud, and the fact that he didn't file taxes for 2020-2021 will make this case extremely easy for investigators to identify and prosecute. The government has specifically allocated resources to investigate PPP fraud cases of all sizes, not just the large ones. They're using automated systems to cross-reference loan applications with tax filings, so missing returns paired with a Schedule C-based loan application will absolutely trigger a review. Your cousin needs to understand that simply paying back the loan doesn't eliminate criminal liability - the crime was committed when he submitted false information to obtain the funds. He should immediately consult with a criminal defense attorney who specializes in federal financial crimes (not just a tax attorney) to discuss his options, which may include voluntary disclosure and cooperation. The statute of limitations for PPP fraud has been extended to 10 years, so time is not on his side. The sooner he addresses this proactively with proper legal counsel, the better his chances of minimizing the consequences.

I've been following this thread closely because my brother is in a very similar situation - he got a PPP loan using questionable documentation and has been losing sleep over potential consequences. What strikes me most from reading everyone's responses is how consistent the advice is: this needs immediate professional attention. The automated cross-referencing systems mentioned by several people here are real - I work in financial compliance and can confirm that agencies are absolutely using data analytics to flag discrepancies between loan applications and tax filings. The timeline aspect is crucial too. From what I'm seeing in the responses, voluntary disclosure before being contacted provides significantly better outcomes than waiting. Your cousin's situation with missing tax returns for 2020-2021 paired with a Schedule C-based loan application is exactly the type of red flag these systems are designed to catch. I'd strongly encourage your cousin to act within the next few weeks rather than months. The window for beneficial voluntary disclosure closes once an investigation begins, and given how systematic these reviews are becoming, it's really a question of when, not if, his case gets flagged.

Anyone know if the tax treatment is different for qualified vs non-qualified dispositions of ESPP shares? I've held mine for over a year but less than 2 years from the offering date.

This is exactly the kind of confusion that trips up so many ESPP participants! You're right to be concerned about double taxation, but the good news is that you've already paid the taxes on that $135. Here's what happened: When you acquired the shares in August 2023, the $135 "bargain element" (the discount you received) was treated as compensation income and included on your W2. You paid ordinary income tax on this when you filed your 2023 return. When you sell in 2024, your cost basis for tax purposes will be the fair market value of the shares on the purchase date (8/15/23) - which already includes that $135 discount that was taxed. So you'll only owe capital gains tax on any appreciation since then. Make sure your broker reports the correct adjusted cost basis on your 1099-B. Sometimes they get this wrong and show a lower basis, which could lead to overpaying taxes. If there's a discrepancy, you'll need your ESPP statements to prove the correct basis. Since you're planning to use TurboTax, it should handle this correctly as long as the 1099-B shows the right cost basis. Good luck with those home repairs!