Anyone use TurboTax for reporting rental property renovations? I'm doing a similar project and wonder if it handles all these complicated depreciation schedules and passive loss limitations correctly?

Based on my experience with similar rental property renovations, you'll want to be very careful about how you classify these expenses. The IRS is pretty strict about the repair vs. improvement distinction, and a $65,000 "complete renovation" will likely be treated as capital improvements requiring depreciation over 27.5 years rather than immediate deductions. However, you might be able to break out some components as repairs if they're truly fixing existing problems rather than upgrading. For example, if you're replacing broken tiles with identical ones, that's a repair. But if you're upgrading from basic tile to granite countertops, that's an improvement. The good news is that with the $25,000 passive loss allowance (assuming your income qualifies), you can still deduct a significant portion against your regular income even if you have depreciated losses. Any unused losses carry forward indefinitely, so you're not losing the tax benefit entirely - just spreading it out over time. I'd strongly recommend getting professional help for this level of renovation expense. The classification decisions you make now will impact your taxes for decades, and getting it wrong could be costly if you're audited.

Last year after verification my return was processed in exactly 5 weeks. 2022 took like 10 weeks. Its totally random and depends on their workload. If you claimed credits like EITC or CTC it definitely takes longer cuz they have extra verification steps.

I feel your pain! I went through the exact same thing earlier this year. After entering my ID.me verification code, it took about 6 weeks before I actually got my refund. The verification step is just the beginning - your return still has to go through their regular processing pipeline after that. Since you claimed the Child Tax Credit (saw your other comments), that's definitely adding time. The IRS is doing extra reviews on all CTC claims this year. My advice is to check your tax transcript like others mentioned - it'll show you the actual processing codes and give you a better idea of where things stand than the "Where's My Refund" tool. At 3 weeks you're still within the realm of normal, unfortunately. I know it's frustrating when you're counting on that money, but hang in there!

This is such a great question and I'm glad to see so many helpful responses! I went through this exact same confusion last year as a freelance graphic designer. One thing I'd add that hasn't been mentioned yet - make sure you establish your Solo 401k by December 31st of the tax year you want to contribute for, even though you have until the tax filing deadline (plus extensions) to actually make the contributions. I almost missed this deadline thinking I could set it up when I filed my taxes. Also, if you're planning to do this strategy long-term, consider working with a fee-only financial advisor who specializes in self-employed clients. The tax savings and growth potential from properly maximizing both accounts can easily justify the cost, especially as your income grows. I wish I had started this dual approach earlier - the compound growth difference is significant over time. The backdoor Roth strategy mentioned earlier is also crucial to understand if your income fluctuates. Some years I'm under the Roth limit, other years I'm over, so having that flexibility has been a game-changer for my retirement planning.

Great question about the annual savings difference! In my early 30s, I was able to save about $30K annually by maxing both accounts versus maybe $12-15K with just a SEP-IRA or traditional IRA. That extra $15-18K per year compounding over 30+ years makes a massive difference. For example, if you're saving an extra $16K annually from age 32 to 62 (30 years) at a 7% average return, that's roughly an additional $1.5 million at retirement compared to the single-account approach. Even accounting for inflation, that's life-changing money. The complexity really isn't that bad once you get into a rhythm. I use a simple spreadsheet to track my quarterly estimated taxes and contribution limits, and most of the major brokerages (Fidelity, Schwab, Vanguard) make the actual account management pretty straightforward. The key is starting early like you are - the compound growth on those higher contribution limits is where the real magic happens. Even if you can't max both accounts right away, getting the Solo 401k established and contributing what you can to both gives you that foundation to scale up as your income grows. One tip: I always prioritize getting the full Solo 401k employer match equivalent first (the 25% of net self-employment income), then max the Roth IRA, then go back to finish maxing the Solo 401k employee contribution. This ensures you're capturing the highest tax-advantaged savings rates first.

I actually just went through this process last month with my mom's $4,500 lottery win. The whole "power of attorney" terminology can be confusing - what most states actually use is called a "Prize Claim Authorization" or "Third Party Claim Form" which is much simpler than a full legal power of attorney. Here's what worked for us: I called our state lottery commission directly and they emailed me the form within an hour. My mom filled it out, got it notarized (the assisted living facility had a notary), and I was able to claim her prize two days later. The W-2G was issued in her name and SSN, so she's responsible for the taxes. The lottery office was super helpful - they said they handle these situations multiple times per week, especially for elderly winners or people with disabilities. They even let me complete most of the claim paperwork over the phone to minimize the time my mom needed to be involved. One tip: ask the lottery office if they accept digital signatures or scanned documents. Some states have modernized their processes, especially after COVID, which can speed things up significantly.

I went through this exact situation with my disabled brother who won $6,200 on a scratch-off last year. The key thing that saved us was calling the state lottery office directly - they walked me through their specific process and it was much simpler than I expected. Most states have a streamlined process for family members helping with prize claims. In our case, my brother just had to sign a simple one-page authorization form (not a full power of attorney) and get it notarized. I was able to claim the prize the next day, and the W-2G was issued in his name, so he handles the taxes. The lottery office staff said they see this situation constantly - elderly winners, people with mobility issues, etc. They're very used to helping families navigate this properly. My advice: call your state lottery office first thing Monday morning. Don't try to figure it out from their website or guess at the process. A 5-minute phone call will tell you exactly what forms you need and how to handle it correctly. They want to help because it makes their job easier too when everything is documented properly from the start. Whatever you do, don't cash it under your name and try to sort it out later - I've heard too many horror stories about that approach creating tax nightmares.

This is a great reminder about record keeping! I'd also suggest setting up a dedicated email folder for tax documents and using it consistently each year. I forward all my tax-related emails (W-2s, 1099s, property tax statements, etc.) to a specific folder, and at year-end I download everything as PDFs. This way I have a complete digital trail that's searchable if I need to find specific information years later. I also use a simple spreadsheet to track key numbers from each year's return - things like AGI, taxable income, and yes, AMTI if applicable. Takes 10 minutes after filing but saves hours of hunting later.

For future reference, the IRS also allows you to request a "Record of Account" transcript online through their website (irs.gov) which will show if Form 6251 was filed with your 2021 return. This is often faster than calling and can be accessed 24/7. If the transcript shows Form 6251 was filed, you can then request a "Return Transcript" to get the actual form data including line 4 (AMTI). In the meantime, for TurboTax's worksheet, you might try entering "0" for the AMTI field if you're confident you weren't subject to AMT last year - the software should handle the calculation appropriately. Just make sure to double-check the final AMT calculation on your current year's return to ensure it makes sense. If you're still uncertain, consider consulting a tax professional for this specific situation since AMT calculations can have long-term carryover implications.