CCH has a great corporate income tax navigator tool that shows nexus requirements for all states. It's expensive but worth it if you're dealing with this regularly. You might also want to check with your existing tax software provider - many of them have state nexus determination tools built in. For a more DIY approach, I've found the State Tax Research Institute (STRI) publications to be helpful. They periodically publish comprehensive surveys of state tax nexus standards.

One resource nobody's mentioned yet is Thomson Reuters Checkpoint. Their state tax nexus tool is very comprehensive. We use it at our firm for all multi-state clients. Don't forget to consider whether your company might benefit from voluntary disclosure agreements in states where you may have had nexus but haven't filed. Many states have amnesty or VDA programs that can limit lookback periods and waive penalties.

Just finished dealing with this. I found the most confusing part was column C in Schedule A Part 1 where you have to list donor's adjusted basis. For real estate that's appreciated a lot, this number can be WAY different from the FMV you're reporting. Make sure you have good records of what you originally paid + any capital improvements. Without that you're just guessing at your basis which could cause problems later. Also heads up - you might need to file a state gift tax return too depending on where you live. I had to file in Connecticut and that was a whole separate headache.

I went through a similar nightmare with Form 709 last year! One thing that really helped me was creating a simple spreadsheet to track everything before filling out the actual form. I made columns for: property description, full FMV, my basis, spouse's portion, and my portion. For the split gift reporting, remember that even though you're each filing separate 709s, the gift splitting election applies to ALL gifts made during the tax year by either spouse - not just this one property. So if either of you made any other gifts during the year (even small ones), those need to be reported consistently with the splitting election. Also, double-check that you're using the correct annual exclusion amounts. For 2024, it's $18,000 per recipient ($36,000 if splitting), but make sure you're using the right year's limits for when the gift was actually made. The deadline stress is real, but you've got this! The IRS is generally reasonable about gift tax issues if you make a good faith effort to comply.

Has your friend checked if they already accounted for the excess contribution on their 2021 return? Sometimes ppl report the excess as income on the year they over-contributed (using form 5329) instead of withdrawing it. If they did that, handling the 1099-SA gets more complicated cuz they've already paid tax on it.

This is really helpful information everyone! I'm dealing with a similar HSA situation myself - I switched jobs mid-year and accidentally over-contributed by about $800. Reading through this thread, it sounds like I need to contact my HSA provider ASAP to withdraw the excess before April 15th to avoid the 6% penalty. One question though - if I withdraw the excess contribution now (in 2025 for my 2024 over-contribution), will I get a 1099-SA for the 2025 tax year even though it's correcting a 2024 mistake? Want to make sure I understand the timing correctly so I don't mess up like some of the situations described here!

Just a heads up about something many new partnerships miss - don't forget to include your guaranteed payments if you took any regular draws from the business! Those aren't the same as distributions and get reported differently on the K-1.

I went through a very similar situation with my consulting partnership last year when our CPA bailed on us right before the deadline. Here's what I learned that might help you: For your straightforward 50/50 partnership with $34k income and $8.5k expenses, you can absolutely handle this yourself. The key things to remember: 1. Your quarterly distributions of $3,125 each are NOT reported as income on the K-1 - they're just distributions of money you already earned. The actual income that goes on each K-1 would be your share of the net profit (roughly $12,750 each after expenses). 2. Make sure you track your "basis" correctly - this starts with what you each contributed to start the LLC, then increases with your share of income and decreases with distributions taken. 3. For a simple partnership like yours, the main boxes on the K-1 that will have amounts are Box 1 (ordinary business income) and possibly Box 19 (distributions). I used FreeTaxUSA's business version for about $80 and it walked me through everything step by step. The 1065 generates the K-1s automatically once you input all the partnership info. Took me about 3 hours total, and my regular accountant said they looked perfect. Don't stress too much - your situation is pretty straightforward compared to partnerships with multiple income streams or complex allocations!

I went through this same confusion when I started my rental property journey! One thing that really helped me understand the "placed in service" concept was realizing it's all about when the property becomes available for its intended rental use, not when you actually start earning income from it. In your case with tenants moving in June 1st, that might actually be your placed in service date IF that's when the property was first ready and available for rent. But if you had finished repairs and could have rented it earlier but just didn't find tenants until then, your placed in service date would be earlier. Here's what I learned about those pre-tenant expenses you mentioned: - Advertising costs to find tenants are typically deductible rental expenses - Repairs to get the property rent-ready are usually deductible - New appliances that add value may need to be depreciated rather than expensed immediately The key is documenting everything with dates - when repairs were completed, when you started advertising, when the property was actually ready for occupancy. I took photos of my property when it was rent-ready as evidence for my records. Since this is your first rental, I'd really recommend getting professional help for at least your first year's taxes. A CPA who specializes in rental properties can help you set up proper record-keeping systems and make sure you're classifying everything correctly from the start. It's an investment that pays off in properly maximized deductions and avoiding future headaches with the IRS.

I completely understand your confusion about the placed in service date - it's one of those tax concepts that seems straightforward until you actually try to apply it! As others have mentioned, the key is that it's when your property becomes ready and available for rent, not necessarily when tenants move in. For your situation, you'll need to determine exactly when your property was in a condition where it could legally be rented out. If you were still doing essential repairs or renovations that prevented tenants from moving in before June 1st, then June 1st would likely be your placed in service date. But if the property was actually ready earlier and you were just looking for the right tenants, then your placed in service date would be earlier. Here's my practical advice for sorting through your expenses: - Keep all receipts organized by date and type of expense - Repairs needed to make the property rentable are typically deductible - New appliances and major improvements usually need to be added to your basis and depreciated - Advertising costs are generally deductible rental expenses Since this is your first rental property, I'd strongly recommend consulting with a tax professional who has experience with rental properties, at least for this first year. They can help you properly classify your expenses and set up good record-keeping practices that will serve you well in future years. The investment in professional guidance upfront can save you from costly mistakes and ensure you're maximizing your legitimate deductions. Don't stress too much - with proper documentation and maybe some professional help, you'll get through this!