Just want to add that even if you don't have to report the crypto gains on your US tax return, you should definitely be reporting them in Canada. The CRA (Canadian Revenue Agency) requires Canadian residents to report worldwide income, including all cryptocurrency transactions.

This is exactly the kind of situation where getting proper documentation is crucial. I went through something similar as an F-1 student from the UK with crypto gains. The consensus here is absolutely correct - as a non-resident alien, your crypto capital gains are sourced to your country of tax residency (Canada), not the US. This means you don't report them on your 1040-NR. Your CPA gave you the right advice. However, I'd strongly recommend getting this determination in writing somehow, whether through an official IRS consultation or at minimum keeping detailed records of your research and professional advice. The crypto tax landscape is still evolving, and having documentation of your reasoning will be invaluable if questions ever arise later. Also make sure you're keeping meticulous records of all your transactions for your Canadian tax filing - the CRA will definitely want to see those gains reported there since you're a Canadian tax resident.

Has anyone tried using inventory management software for tracking this stuff? I'm in a similar situation and trying to figure out if I should invest in some software to make this easier. Currently just using spreadsheets but it's getting messy with all these rebates and credits.

This is exactly the kind of situation that trips up a lot of small business owners! I went through something very similar with my own reselling business last year. One thing that really helped me was creating a simple tracking system where I log three things for each item: 1) actual purchase price, 2) rebate received (and when), and 3) how that rebate was used. This way I can clearly see the cost basis for each item regardless of how it was paid for. For your $25 item example, I'd record the COGS as $25 when sold, then track the $25 rebate credit separately until it's used. When you use that credit to buy another item, that new item gets its own cost basis (which might be $0 out-of-pocket but still has value for tax purposes). The key insight for me was realizing that rebates don't reduce the cost of the original item - they're essentially prepayment for future purchases. Once I started thinking about it that way, the accounting became much clearer. Keep detailed records of everything and you should be fine!

My accountant told me that if ur already filed taxes and then get a K-1 late, your kinda stuck. But it's not as bad as it sounds. Just wait for the final K-1, file a 1040-X to amend, and pay what u owe. The penalties aren't that bad usually. Last year I had to do this and ended up owing an extra $2,300 on my taxes. The penalties and interest only came to like $75 total because I filed the amendment within 2 months of the original deadline.

This is a really frustrating situation but you're definitely not alone! I went through something similar two years ago with a partnership K-1 that didn't arrive until late May. Here's what I learned: You absolutely want to make an estimated payment before the April deadline if you can. Even a rough estimate based on last year's K-1 (if you have one) or any preliminary info from the partnership can save you significant penalties. The IRS calculates failure-to-pay penalties based on the unpaid amount, so reducing that balance early makes a big difference. When you do get the final K-1, you'll file Form 1040-X to amend your return. In my case, I estimated conservatively and actually overpaid by about $400, which just became a refund when I amended. The peace of mind was worth it. One tip: Contact the partnership/investment company NOW and ask for any preliminary estimates they can provide. Many will give you at least ballpark numbers for income, deductions, or distributions that can help you estimate your additional tax liability. Don't wait until the last minute to reach out to them. The key is documenting your good faith effort to comply despite not having the information you needed. Save all correspondence showing when you requested the K-1 and any responses about delays. This can help with penalty relief if needed.

I just went through this exact process for my grandmother's estate last month. One thing I wish someone had told me upfront is to request Form 4506-T along with Form 2848 - you can use 4506-T to get tax return transcripts directly once your 2848 is processed, which is often faster than waiting for the IRS to mail them. Also, make sure you're very specific about what tax years and forms you need authorization for on the 2848. I initially put "all years" thinking it would be helpful, but the IRS actually prefers specific years listed out. Put "2023 Form 1040" exactly. One more tip - if your father-in-law had any business income or was self-employed, you might also need transcripts for Forms 1099 that were issued to him. The wage and income transcripts can be requested separately and will show you all the 1099s, W-2s, and other income documents that were filed with his SSN for 2023.

One thing I learned the hard way when dealing with my mother's estate is that you should also consider requesting a wage and income transcript (using Form 4506-T) in addition to the return transcript. The wage and income transcript will show you all the W-2s, 1099s, and other income documents that were filed with your father-in-law's SSN for 2023, which can help you identify income sources you might not have known about. Since he passed in June 2023, he may have had income from multiple sources during the first half of the year that you're not aware of. The wage and income transcript will give you a complete picture of what income documents were filed, so you can make sure you're not missing anything when preparing his final return. Also, keep in mind that if your father-in-law had any retirement account distributions or pension payments before his death, those will show up on the transcript too. This saved me from having to track down several financial institutions that I didn't even know he had accounts with.

Don't feel ashamed. I just filed my 2022 taxes last month lol. The tax prep person at Jackson Hewitt didn't even bat an eye when I told them. Just bring all your documents and they'll sort it out!

Hey, I totally get the anxiety you're feeling - I was in almost the exact same situation a couple years ago and thought my world was ending! The good news is you're absolutely NOT beyond help. You can file your 2023 taxes anytime, even now in December. Yes, you'll face penalties for filing late, but the key thing is to stop the bleeding by filing ASAP. The failure-to-file penalty stops accruing once you actually file your return. If you end up owing money, you can always set up a payment plan with the IRS. H&R Block won't judge you at all - they deal with late filers constantly, especially around this time of year when people are trying to clean up their tax situations before the new year. They've literally seen it all. One thing that might help ease your mind: if it turns out you're actually owed a refund, there are no penalties for filing late! You'd just be leaving money on the table if you don't file within 3 years of the due date. Take a deep breath and just get it done. You'll feel SO much better once those taxes are filed. The anticipation and anxiety are honestly worse than dealing with the actual situation. You've got this! 💪