Has anyone actually looked at the new 2023 Schedule A? I just downloaded it and Box 8a specifically says "Home mortgage interest and points reported to you on Form 1098." Wouldn't that mean you just put the full amount from your 1098 forms regardless of these limits? The forms from my lenders show about $65k in combined interest.

This is such a complex area of tax law! I've been dealing with a similar situation where I have properties purchased on different sides of the 2017 cutoff. One thing that helped me was creating a simple spreadsheet to track each property separately. For your situation, I'd recommend documenting everything clearly: - Primary residence: $700K mortgage (pre-12/15/2017) = 100% of interest deductible - Second home: $1.1M mortgage (post-12/15/2017) = interest on first $750K deductible The key insight from all these responses is that you DON'T combine the limits - each property stands alone based on its purchase date. So you're not limited to some combined $1.75M cap. Also worth noting - since you mentioned renovations on the second home, make sure any loan proceeds used for substantial improvements still count as acquisition debt. The IRS considers improvements that add value, prolong the home's life, or adapt it for new uses as qualifying for the mortgage interest deduction. Keep detailed records of how loan proceeds were used, especially if you did any cash-out refinancing. The documentation will be crucial if you ever face questions about your deductions.

Another thing to consider with your lease situation - since you're doing two different types of contractor work, you might want to look into whether either of your clients require specific vehicle standards or insurance coverage. Some real estate agencies have requirements about the condition/appearance of vehicles used for client meetings, and sports leagues sometimes have insurance minimums for officials. This could influence whether leasing vs buying makes more sense, and it might also affect your deduction calculations. Also, don't forget that if you use the actual expenses method, you can deduct more than just the lease payments - insurance, gas, maintenance, registration fees, etc. all count toward your business vehicle expenses. With two income streams requiring lots of driving, those costs can really add up. Keep all your receipts organized from day one. I learned this the hard way when I got audited - having everything documented properly made the difference between keeping my deductions and losing them.

I work as a tax preparer and see this situation a lot with contractors who have multiple income streams. A few additional points that might help: First, consider keeping a separate credit card just for vehicle expenses if you go the actual expenses route. This makes tracking and documentation much cleaner, especially come tax time. Second, since you mentioned your current vehicle is falling apart, factor in the reliability benefit of leasing when comparing costs. Missing referee assignments or photo shoots due to car trouble could cost you more than the difference between deduction methods. Third, remember that the business use percentage applies to ALL vehicle expenses - not just lease payments. So if you determine you use the car 80% for business, that percentage applies to insurance, gas, maintenance, everything. Make sure your business use calculation is realistic and defensible. Finally, start that mileage log immediately when you get the new vehicle, even for a few weeks before you officially start the lease. This establishes your actual driving patterns and makes your business use percentage more credible to the IRS. Good luck with your decision! Both referee work and real estate photography are solid contractor gigs that definitely justify vehicle deductions.

Has anyone used TurboTax to report ESPP sales? I'm trying to figure out how to adjust the cost basis correctly since my 1099-B only shows what I paid, not the adjusted basis after adding back the discount.

I went through this exact same confusion with my ESPP last year! The key thing to understand is that with a disqualifying disposition (selling within one year), the ordinary income calculation uses the Purchase FMV, not the Subscription FMV. Your ESPP Disposition Summary showing $1,142.57 in ordinary income is correct. Here's the math: 43.7921 shares × ($71.89 Purchase FMV - $45.82 actual purchase price) = $1,142.57. This means your adjusted cost basis for capital gains purposes is actually $71.89 per share (the Purchase FMV), not your original purchase price. So your capital loss would be: $2,986.44 (sale proceeds) - (43.7921 × $71.89) = approximately -$162.66. The total tax impact is roughly the same as you calculated, but it's split between ordinary income (taxed at your marginal rate) and capital loss (which can offset other gains or up to $3,000 of ordinary income). Make sure this ordinary income amount appears somewhere on your W-2 - usually in Box 1 or Box 14.

I went through this exact same process with Charles Schwab about 6 months ago as a UK resident. The confusion around Article 13 is really common because most people expect to see a percentage rate, but for capital gains, UK residents actually get 0% withholding under the treaty. Here's what I learned: Article 13 covers capital gains, and under the US-UK tax treaty, these gains are only taxable in your country of residence (UK), not in the US. So you literally write "0%" in the treaty rate field. It feels wrong when you're filling it out, but that's the correct answer. The other thing that tripped me up initially was understanding that if you plan to receive dividends, you'd also need to reference Article 10, which typically gives you a 15% rate instead of the standard 30% non-treaty rate. Charles Schwab's customer service can help verify this if you're still unsure, but based on my experience and what others have confirmed here, 0% for Article 13 capital gains is definitely correct for UK residents. The form was accepted without any issues when I submitted it.

I just went through this exact same process with Charles Schwab last month as a UK resident, and I can confirm what everyone else is saying about Article 13. The correct rate to enter is indeed 0% for capital gains. What helped me understand this was realizing that the US-UK tax treaty essentially says "capital gains from US investments are only taxed in your country of residence (the UK), not in the US." So when the form asks for the treaty rate, you're telling them the US withholding rate is zero percent. I was initially confused because most tax forms involve entering positive percentages, but in this case, 0% is the actual treaty benefit you're claiming. My form was processed and accepted by Charles Schwab within about 3-4 business days. One practical tip: if you're planning to invest in dividend-paying stocks as well, make sure you understand Article 10 for dividend withholding (typically 15% for UK residents). You might need to claim benefits under both articles depending on your investment strategy. The key is being confident that as a legitimate UK tax resident, you're absolutely entitled to these treaty benefits. Don't let the unusual 0% rate make you second-guess yourself!

I messed this up last year and had to amend my return. Filed as single when I should have used married filing separately. Cost me an extra $800 in penalties and interest, plus the amendment fee my tax guy charged. Don't make my mistake!!!

This is such a helpful thread! I'm dealing with a similar situation with my husband in the Philippines. One thing I learned from my tax advisor that might help others here - if you're considering the 6013(g) election to file jointly, make sure you understand that once you make this election, your spouse becomes subject to US tax on their worldwide income for that entire tax year, even if they only earned income abroad. For those with spouses who have minimal or no income, this usually works out great. But if your spouse has significant foreign income, you'll want to run the numbers carefully. Sometimes Married Filing Separately ends up being better despite the less favorable brackets, especially if your spouse's country has high tax rates that you can't fully credit against US taxes. Also, @Chris King regarding Thailand - the US-Thailand tax treaty does have some provisions that could affect you, particularly around pension income if that's relevant to your situation. Definitely worth reviewing Article 18 of the treaty if your wife has any Thai retirement or government payments.