I'm actually a landlord with multiple properties and just want to add one more thing that hasn't been mentioned yet: depreciation recapture! Even after you figure out your correct adjusted basis, when you sell a rental property, you'll have to "recapture" the depreciation you claimed over the years at a 25% tax rate (which is often higher than the long-term capital gains rate). So make sure you're planning for that tax hit too. It catches a lot of first-time rental property sellers by surprise.

Your accountant is being overly cautious here. The key distinction is between capital improvements (which get depreciated and added to basis) versus regular repairs/maintenance (which are fully deducted and don't affect basis). For your $23,000 in improvements - items like a new roof, water heater, and flooring are typically capital improvements that should have been depreciated over time, not fully deducted in one year. These DO increase your cost basis, but you need to reduce your basis by any depreciation you've already claimed. The confusion often comes from incorrect tax treatment in prior years. Many taxpayers (and some preparers) mistakenly deduct capital improvements as current expenses instead of depreciating them. If this happened, you might need to determine what should have been depreciated versus what was correctly expensed. I'd recommend getting a second opinion or asking your accountant to specifically explain which of your $23,000 in improvements they believe were correctly treated as immediate deductions versus which should have been capitalized. The IRS Publication 527 has detailed guidance on this distinction for rental properties. Don't let them dismiss legitimate basis increases - this could cost you thousands in unnecessary capital gains tax.

Great advice from everyone here! Just wanted to add that if you're feeling overwhelmed by all the different requirements (federal, state, dissolution procedures), don't forget that the IRS also has some helpful resources on their website. Publication 3402 specifically covers tax issues for LLCs, including inactive ones. Also, make sure to keep good records of everything you do to close the LLC - the dissolution paperwork, any final tax filings, correspondence with state agencies, etc. This documentation will be valuable if any questions come up later. I learned this the hard way when I had to reconstruct paperwork for an old business years later. One last tip: if you formed the LLC late in the year and it truly had zero activity, some tax preparers recommend including a statement with your return explaining the situation (like "LLC formed in December 2023, no business activity conducted"). It's not required but can help prevent any confusion if the IRS has questions.

This is such a common situation - I went through the exact same thing two years ago! I formed an LLC for what I thought would be a great online business, but it never got off the ground. Here's what I learned from my experience: First, yes you absolutely need to address it on your taxes even though it did nothing. Since it's a single-member LLC, you'll file Schedule C with all zeros. The key thing is to show the IRS you're being transparent about the entity's existence. For dissolution, I found the process varies a lot by state, but most require filing dissolution paperwork with the Secretary of State and paying a small fee. Some states also want you to publish a notice in a local newspaper, but many have exceptions for LLCs that never operated. One thing that really helped me was keeping a simple log of everything I did to close it down - the dates I filed paperwork, confirmation numbers, etc. It gave me peace of mind knowing I had documentation if any questions came up later. Don't stress too much about this - it's more common than you think, and the process is usually pretty straightforward once you know the steps. The important thing is addressing it properly rather than just ignoring it.

I'm also a student & dependent. My tax professor explained that there are actually TWO different filing requirements happening: 1. Self-employment tax filing threshold: $400 2. Income tax filing threshold: $12,950 (standard deduction for dependents in 2025) Even though you have to FILE because of the self-employment, the actual TAXABLE portion follows normal rules. You'll fill out Schedule SE for the self-employment tax on your DoorDash earnings, but your W-2 income still gets the standard deduction.

As someone who went through this exact situation last year, I can confirm what others have said - you won't lose money doing DoorDash! Here's my real-world example: My DoorDash earnings: $1,200 My campus bookstore job: $7,500 Total income: $8,700 I had to file because of the $400 self-employment threshold, but here's what I actually paid: - Self-employment tax on DoorDash: ~$170 (15.3% on net earnings after deductions) - Federal income tax: $0 (total income was under $12,950 standard deduction) The key thing I learned is that filing a return doesn't automatically make all your income taxable - the standard deduction still protects your regular W-2 income. I actually saved money by tracking my mileage and other DoorDash expenses, which reduced the self-employment tax even more. Don't let tax fears stop you from earning extra money - you'll definitely come out ahead even after paying the self-employment taxes!

I had EXACTLY $317 taken from my refund this year. Turned out it was for a student loan offset. The weird thing is my transcript showed the full amount of $2,843 until the day before deposit, then it updated to show the $317 offset and final refund of $2,526. Check your transcript again in 24-48 hours - it might update to show what happened. The Bureau of Fiscal Service (not the IRS) handles these offsets, and they sent me a letter exactly 12 days after my deposit explaining what happened. Such a relief to finally understand what was going on!

Hey Darcy! This is super frustrating, but you're definitely not alone in dealing with this. A $320 difference is significant enough that there's likely a specific reason for it. A few things to check immediately: 1. **Look for offset codes on your transcript** - TC 898 is the big one that indicates money was taken for debts like student loans, child support, or state taxes. This code might not have shown up initially but could appear now. 2. **Check if you used a tax preparation service** that deducted fees from your refund. Sometimes these fees aren't immediately obvious when you're calculating your expected refund. 3. **Review for late adjustments** - The IRS can make corrections after your return is initially processed, especially for things like Earned Income Credit calculations or math errors. Since you mention you're good with finances and tracking investments, I'd suggest downloading a fresh copy of your Account Transcript (not just Return Transcript) to see if any new codes have appeared. The timing suggests this might be an offset that just processed, and you should receive a notice in the mail within the next 1-2 weeks explaining exactly what happened. If nothing shows up on your transcript, definitely call the IRS - but consider using a callback service to avoid the wait times. You deserve to know where that $320 went!

I found out the hard way that even if the broker doesn't report it, the IRS can still come after you! I had some old IBM stock from my grandpa that I sold in 2022, and the gain wasn't reported by my broker. I thought "cool, free money" and didn't include it on my taxes. Got a CP2000 notice six months later saying I owed taxes plus penalties and interest. The broker not reporting it to the IRS doesn't mean the IRS won't find out eventually, especially if the amounts are substantial. Better to report everything properly the first time!

This is such an important topic that catches so many people off guard! I went through the exact same confusion last year with my Schwab account. One thing I'd add to the great advice already given is to keep really detailed records of ALL your transactions, especially the ones not reported to the IRS. I started using a simple spreadsheet to track purchase dates, sale dates, and cost basis for everything - even when my broker has the info. This saved me so much time during tax prep. Also, if you're dealing with inherited securities or stocks transferred from another brokerage, those are prime candidates for being "not reported to IRS" on your 1099-B. The receiving broker often doesn't have the original purchase information needed for proper cost basis reporting. One last tip - if you're unsure about any complex transactions, consider getting help from a tax professional for this year. The cost is usually worth it to avoid potential penalties down the road, and you'll learn the process for handling it yourself in future years. Tax compliance stress is real, but you're asking the right questions!