Something nobody mentioned yet - if you're close to the standard deduction threshold, you might want to consider "bunching" your donations. Basically donate 2 years worth of stuff in a single tax year so you can exceed the standard deduction and itemize that year, then take the standard deduction the next year. My accountant recommended this strategy and it's worked well for us.

That's a really smart strategy! I hadn't thought about bunching donations like that. For someone like the original poster with $94k income, if they normally donate $4k per year but could bunch two years together for $8k, plus their other deductions, they might actually cross that $29,200 threshold. One thing to add though - make sure the charity can handle receiving a large donation all at once, especially for clothing. Some smaller organizations might not have the capacity to process huge amounts of items. You might need to coordinate with them or spread it across multiple qualifying charities in the same tax year. Also, if you're doing this with cash donations, just remember the AGI limits still apply each year - you can't exceed 60% of your AGI in a single year, though you can carry forward unused deductions to future years.

Based on my experience with home improvements and tax planning, I'd strongly recommend being conservative with tool costs. The IRS is pretty clear that tools remain your personal property and don't become part of the home's basis, regardless of whether you use them again. However, there are some legitimate expenses you might be overlooking that DO count toward basis: - Disposal/dump fees for old materials - Delivery charges for materials - Rental fees for equipment (since you don't retain ownership) - Permits and inspection fees - Consumable supplies that are used up (sandpaper, caulk, paint brushes that get ruined, etc.) I'd focus on maximizing these clear-cut qualifying expenses rather than risking audit issues with tool costs. The "ask forgiveness later" approach might work for small amounts, but with major tool purchases it could really complicate things if you're audited. For tracking, I've found that taking photos of your receipts immediately and organizing them by project date works better than relying on any single software solution. Most importantly, write notes on receipts explaining how each expense relates to the specific improvement project.

I've been dealing with this exact issue for my recent kitchen renovation! After going through all the advice here and doing some additional research, I ended up taking a hybrid approach that's worked well for me. For tools, I created two categories: "Project-Specific Consumables" and "Reusable Tools." Things like specialty drill bits that got destroyed during the project, disposable brushes, sandpaper, etc. went into the first category and I included those in my basis. The reusable power tools (circular saw, router, etc.) I kept separate since they clearly remain my personal property. One thing I learned that might help others: if you rent tools instead of buying them, those rental costs definitely qualify for your basis since you don't retain ownership. So for my tile work, I rented a wet saw for $75 rather than buying one for $300, and that rental fee went straight into my improvement costs. Also discovered that waste removal costs are often overlooked but totally legitimate - I had about $400 in dumpster rental and disposal fees that I initially forgot about but definitely count toward basis. The key is being able to show that every expense you claim directly contributed to permanently improving your property's value. Good documentation and photos make all the difference if questions ever come up later.

Has anyone figured out a good system for tracking labor hours anyway, even if they don't count for tax purposes? I'm renovating to flip the house and want to calculate my actual ROI including my time investment.

Great question! I went through this same frustration when I renovated my kitchen last year. You're absolutely right that only actual out-of-pocket expenses count toward your cost basis - no labor value for DIY work, unfortunately. Here's what I learned works well for documentation: 1. Create a dedicated folder (physical or digital) for each renovation project 2. Photograph every receipt immediately and store digitally as backup 3. Keep a simple log with date, vendor, amount, and what the expense was for 4. Don't forget about the smaller stuff - screws, sandpaper, drop cloths, etc. all add up 5. If you rent tools (like a tile saw), those receipts count too 6. Any professional consultations, even if just for advice, can be included The key is being thorough with documentation. I ended up adding about $23,000 to my home's basis from my kitchen reno, which will definitely help with capital gains when I sell. Even though our sweat equity doesn't count dollar-wise, at least we're saving money upfront while still building basis through materials and other legitimate expenses. Keep grinding on that renovation - sounds like you're doing great work!

I've been following this thread closely since I'm dealing with something similar - a co-owned rental property where my partner has been ignoring property tax obligations. What strikes me about your situation is how many people have found workable solutions even when dealing with completely uncooperative partners. The advice about acting fast to save the property first, then pursuing legal remedies afterward, seems to be the consistent theme from people who've successfully resolved these situations. It's counterintuitive when you feel like you're being taken advantage of, but losing the entire property would obviously be much worse than temporarily covering your partner's share. One question I have for those who've been through the small claims process - did your uncooperative partners actually pay up after losing in court, or did you have to take additional steps to collect? I'm worried about winning a judgment but then having trouble actually getting the money, especially since my partner has already shown they're willing to ignore financial obligations. Also, has anyone had success using the threat of legal action (like a formal demand letter) to get their partner to cooperate before actually having to pay everything themselves? I'm wondering if sometimes the prospect of court costs and a formal judgment is enough motivation to get them to the negotiating table. Thanks to everyone sharing their experiences - it's really helpful to see how others have navigated these frustrating situations!

This is such a stressful situation, and I really feel for you dealing with an uncooperative partner who's clearly been negligent about their responsibilities. Reading through all the responses here, it seems like the consensus is clear: protect the property first, then pursue legal remedies. What really stands out to me is how your partner has been receiving ALL the notices at their address but somehow expects you to bear the penalty costs alone. That's completely unreasonable and shows bad faith on their part. The fact that you have documentation of this (the notices going to their address) will be crucial if you need to take legal action later. I'd strongly recommend paying the full amount before the deadline to prevent the tax sale, as painful as that feels right now. Losing a property worth potentially much more than $12,000 over this dispute would be devastating. Several people here have successfully recovered their costs through small claims court with good documentation, which it sounds like you have. Consider sending a formal demand letter first (as others suggested) with a clear deadline - maybe 7-10 days before the tax payment is due. If they don't respond, at least you'll have shown you tried to resolve it amicably, which will help your court case. Make sure to document every payment you make with clear paper trails. This partnership sounds toxic if your partner won't take responsibility for basic property obligations. Once you resolve this immediate crisis, seriously consider whether you want to continue co-owning with someone so unreliable, or if one of you should buy out the other. Good luck!

Does anyone know if there's a deadline for when companies have to get these 1099s right? I got one with not just wrong address but wrong payment amount! It's showing $1,800 more than they actually paid me!

Just want to confirm what others have said - the address discrepancy on your 1099s is not something to stress about. I work in tax compliance and see this situation constantly. The IRS matching system relies on your SSN and name, not the address on the 1099 forms. However, I'd strongly recommend filing Form 8822 (Change of Address) with the IRS before you file your return, or at minimum make sure your current address is on your 2024 tax return. This ensures any future correspondence goes to the right place. One additional tip: keep copies of all those 1099s even with the old address, as they serve as your documentation that you reported all the income correctly. The address issue won't affect the validity of the forms for your records.