I shorted Apple last year and paid out dividends. The way I handled it (confirmed by my CPA) was: 1. Report the full dividend amount from my 1099-DIV on Schedule B 2. The dividend I paid on my short sale gets added to the cost basis of the short position 3. When I closed my short position, the adjusted basis meant I had a smaller gain So you're not really "deducting" it directly from your dividend income. You're adjusting the cost basis of the short sale transaction, which affects your capital gain/loss instead.

This is a great question that catches a lot of people off guard! I went through the same confusion when I first started shorting stocks. The key thing to understand is that you cannot simply net the $27 against your $125 in dividend income on your tax return. Here's what you need to do: 1. **Report the full $125 on Schedule B** - This matches what your broker reported to the IRS on your 1099-DIV 2. **Add the $27 to your short position's cost basis** - The dividend payments you made while shorting increase the cost basis of that short sale 3. **The tax benefit comes when you close the short position** - Your capital gain will be $27 less (or capital loss $27 more) when you eventually close the position Think of it this way: the IRS wants to see dividend income and capital gains/losses reported in their proper categories. You're not losing the tax benefit of that $27 - you're just getting it through the capital gains calculation instead of directly reducing dividend income. Make sure to keep good records of these payments so you can properly adjust your cost basis when you close the short positions!

I'm so sorry you went through this with Sprintax - what a nightmare! As someone who's dealt with non-resident tax issues for years, I can tell you that their lack of transparency about processing times is unacceptable, especially so close to deadlines. For anyone reading this who needs to file as a non-resident in the future, here are some tips to avoid this situation: 1. File early - even if you're using software, give yourself at least 2-3 weeks before the deadline 2. Always read the fine print about processing times before paying 3. Check if your employer/university has partnerships with tax prep services first 4. Keep screenshots of any promises made during the signup process in case you need to dispute charges The fact that they closed chat on you and lied about warning pop-ups is completely unprofessional. Document everything and definitely consider the chargeback route that others have mentioned - you have a strong case since they didn't deliver the service as promised. Hope you can get this resolved and your taxes filed properly!

This is exactly why I always warn people about Sprintax! I had a similar experience two years ago where they took my money and then informed me AFTER payment that there would be a multi-day processing delay. What really got me was their customer service - they act like you're the problem for not magically knowing about their hidden delays. I ended up having to file an extension because of their incompetence, which was stressful and embarrassing. Since then, I've used FreeTaxUSA for my non-resident filing and it's been much better - forms generate immediately and their customer service actually responds helpfully when you need them. For your current situation, definitely document everything (screenshots, chat logs, emails) and file a chargeback with your credit card company. Many people have had success with this approach since Sprintax fails to deliver services as advertised. You shouldn't have to eat that $75 for their terrible service.

Just wanted to add one more important detail that I learned the hard way - make sure you understand what qualifies as a "first-time homebuyer" for IRS purposes. It's not just about never owning a home before. You (and your spouse if married) must not have owned a principal residence during the 2-year period ending on the date you acquire your new home. So if you owned a home 18 months ago, you wouldn't qualify yet. Also, the $10,000 is a lifetime limit per person, so if you're married, you and your spouse can each use up to $10,000 from your respective IRAs for a total of $20,000. But if you're single, you're stuck with the $10,000 limit across all your accounts combined. Make sure to keep detailed records of everything - when you withdrew the money, what you used it for, and proof that you meet the first-time homebuyer requirements. The IRS can be pretty strict about documentation if they audit you later.

Important clarification about married couples and the $20K limit! Each spouse can only withdraw up to $10,000 from their own IRA accounts - you can't have one spouse withdraw $20K from their single account just because they're married. The benefit only applies if both spouses have their own retirement accounts. So if you're married and only one of you has an IRA, you're still limited to $10,000 total for the first-time homebuyer exemption. Both spouses need to have their own IRA accounts to get the full $20,000 benefit ($10K from each person's accounts). Also worth noting that the "qualified acquisition costs" this money can be used for include more than just the down payment - you can use it for closing costs, financing fees, and other expenses related to buying or building the home. Just make sure to keep receipts for everything since the IRS may ask for documentation later.

Pro tip: the cycle code on your transcript can tell you your update schedule. Look at the last 2 digits - 05 means Thursday updates, 03 means Wednesday, etc. But honestly just use taxr.ai and save yourself the headache of trying to decode all this stuff

Been there! The obsessive checking is real 😅 From my experience, WMR typically updates overnight between 3-6am EST like others mentioned, but transcripts are more unpredictable. I've seen updates on random days throughout the week. The cycle code thing is helpful if you can figure it out, but honestly the IRS system has been pretty inconsistent lately. My advice? Pick one time per day to check (maybe early morning) and try to resist the urge to refresh constantly - it'll just drive you crazy and won't make your refund come any faster!

This is such a helpful thread! I'm dealing with a similar situation with my first rental property purchase. One thing I learned from my research is that even though MACRS assumes zero salvage value for the depreciation calculation, you should still keep good records of any major improvements you make to the property over the years. The reason is that improvements have their own depreciation schedules - so if you put on a new roof, install new HVAC, or do major renovations, those get depreciated separately from the original building. This can actually increase your total annual depreciation deduction. Also, I found IRS Publication 946 (How to Depreciate Property) really helpful for understanding all the nuances. It's dense reading but covers scenarios like partial business use, mixed-use properties, and how to handle improvements vs. repairs. Definitely worth checking out if you want to understand the full picture beyond just the basic residential rental depreciation.

Great discussion everyone! As someone who just went through this process with my first rental property, I want to add a few practical tips that might help others avoid the mistakes I made initially. First, when separating land and building values, don't just rely on the property tax assessment - it can sometimes be way off. I found it helpful to get a professional appraisal that specifically breaks down land vs. building value, especially since this affects your depreciation for the entire 27.5-year period. Second, keep meticulous records from day one. I created a simple folder system: one for the original purchase documents, one for improvements, and one for repairs/maintenance. This makes tax prep so much easier and you'll be prepared if you ever get audited. Finally, don't forget about the "mid-month convention" for real estate depreciation - you only get half a month's depreciation in the month you place the property in service, regardless of when in the month you actually start renting it out. This caught me off guard in my first year. The zero salvage value rule for MACRS really does simplify things compared to other types of assets. Just focus on getting that land/building split right and you'll be in good shape!