Just be careful about the "triple net lease" exception! If your rental is a triple net lease (tenant pays taxes, insurance, and maintenance), it specifically DOESN'T qualify for QBI under the safe harbor. Found this out the hard way last year.

This is such great timing for this discussion! I've been managing a small duplex for the past three years and finally understand why my tax preparer kept asking about my "hours spent" on rental activities. I thought it was just for passive activity rules, but now I see it's also crucial for QBI qualification. One thing I'd add for anyone tracking their rental hours - don't forget to include time spent on tenant communications, property advertising/marketing when units are vacant, and research time for repairs or improvements. I was only tracking the physical maintenance time initially, but realized I spend significant hours on emails, phone calls, and researching contractors/suppliers. Also, if you're using property management software or apps like Zillow Rental Manager, those often have built-in time tracking features that can help with contemporaneous record-keeping. Much easier than trying to remember to update a spreadsheet every time you do something rental-related!

Processing usually means theres nothing wrong, just waiting in line. But check your transcript for any codes that start with 570 or 971

This whole system is broken fr fr 🤡 Been processing since February too

One more thing on this topic - capital loss carryovers can potentially be used on back-to-back separate and joint returns. Like if you filed as single with carryover losses, then got married, you CAN bring those losses to your joint return. But what's weird is if you file jointly with losses, then get divorced, each spouse gets half the carryover. My ex and I had about $18k in carryovers when we split, and we each took $9k to our separate returns.

For the divorce question about splitting capital loss carryovers - yes, this is covered in IRS Publication 504 (Divorced or Separated Individuals). When spouses who filed jointly get divorced, any unused capital loss carryovers from the joint returns are generally allocated 50/50 between the former spouses on their subsequent separate returns, unless they agree to a different allocation in their divorce decree. However, if one spouse can demonstrate they were responsible for a larger portion of the losses (like if they managed all the investments that generated the losses), they might be able to claim a larger share. But absent specific documentation or agreement, the IRS default is 50/50 split. The key thing is to make sure this gets addressed in your divorce settlement so there's no confusion later when you're both trying to claim the carryovers on separate returns.

The IRS is such a joke fr fr... They expect us to pay on time but take 10 years to send refunds 🤡

Have you tried checking your account transcript instead of just the return transcript? Sometimes the account transcript shows processing activity even when the return transcript is blank. Also, if you filed in February and verified ID in March, you're definitely within the timeframe where it could still be processing normally - the IRS is still working through returns from that period. Don't panic yet!

One thing nobody mentioned - if you're due a refund for those years, you only have 3 years from the original due date to claim it. So for 2021, you have until April 2025 (since it was due April 2022). After that, you can still file but kiss any potential refund goodbye. If you owe money though, there's no time limit for the IRS to collect, and penalties and interest keep building. So definitely prioritize filing those past returns ASAP.

Hey Liam! I completely understand your stress about this situation - I was in a very similar spot about two years ago when I realized I hadn't filed for 2019 and 2020, and one of my employers had literally disappeared. Here's what worked for me: First, definitely go the IRS transcript route that GalacticGuru mentioned - it's the most reliable way to get your exact wage information. But if you're having trouble with the online verification (like many people do), I'd recommend calling that transcript line at 800-908-9946 early in the morning, around 7 AM. The wait times are much shorter then. While you're waiting for those transcripts, start gathering whatever you DO have - bank statements showing direct deposits, any old pay stubs, even screenshots of your online banking if that's all you've got. The IRS really does prefer that you file with your best available information rather than not file at all. One thing that helped calm my nerves: the IRS is generally pretty reasonable when you're making a good faith effort to comply and file your returns. The scary penalties people talk about are usually for people who just ignore their obligations completely. You're actively trying to fix this, which puts you in a much better category. Also, don't forget to look into penalty abatement options once you get everything filed. If you have a reasonable cause (like unresponsive employers), the IRS might waive some of the penalties. You've got this!