I'm reading all these comments and feel like I'm taking crazy pills. Our entire government is in chaos and everyone's just like "keep paying your taxes, nothing to see here!" WTF? Not saying anyone should commit tax fraud, but maybe consider adjusting your withholdings to the legal minimum while keeping good records of what you would normally pay? Then if things stabilize you can make estimated payments to catch up without penalties?

I understand the confusion, but I want to emphasize what others have said - continuing to pay your taxes is absolutely the right approach. I've been through several IRS reorganizations during my career, and the core tax collection and enforcement systems always remain operational. What many people don't realize is that the IRS processes over 150 million individual tax returns annually through highly automated systems. These computer systems that match your reported income to what employers and banks report to the IRS don't get shut down during administrative changes. If you're genuinely concerned about where your tax dollars are going during this transition, you can actually track federal spending through USAspending.gov. Your tax payments continue funding Social Security, Medicare, military operations, infrastructure maintenance, and other essential services that operate continuously regardless of IRS staffing changes. The best thing you can do is maintain accurate records, file electronically if possible to avoid paper processing delays, and continue making your regular tax payments. If you have specific concerns about your tax situation, consider consulting with a licensed tax professional who can give you personalized advice based on your circumstances rather than making decisions based on general uncertainty about government operations.

Anyone know if property management fees count toward the "services" that might trigger self employment tax? I own the properties but pay a company to handle everything.

This is exactly the kind of confusion that trips up so many rental property owners! You're smart to think through the implications before diving in. The key thing to understand is that the QBI deduction and self-employment tax operate under completely different rules. The IRS specifically designed the rental real estate safe harbor (Rev. Proc. 2019-38) to allow rental properties to qualify for QBI while maintaining their status as passive investments for SE tax purposes. Think of it this way: QBI asks "is this a business activity?" while SE tax asks "are you actively engaged in a trade or business?" For rentals, the answer can be yes to the first and no to the second. As long as you're doing normal landlord stuff - collecting rent, arranging maintenance, screening tenants, handling lease agreements - you're still in passive income territory. The line gets crossed when you start providing substantial personal services to tenants (like daily housekeeping, meals, or concierge services that would make it more like running a hotel). So you can absolutely pursue that QBI deduction without worrying about suddenly owing SE taxes on your rental income. Just make sure you meet the safe harbor requirements if you go that route.

anybody know if AOTC is better than the Lifetime Learning Credit? my tax guy said AOTC is usually better but depends on your situation

Just wanted to add a few key points that might help others in similar situations: 1. The AOTC requires you to be enrolled at least half-time in a degree program, while the Tuition and Fees Deduction doesn't have this requirement. 2. If you receive a refund from your school for any reason (dropped classes, etc.), you need to reduce your qualified expenses by that amount or potentially pay back part of the credit. 3. Keep ALL your receipts and documentation - not just the 1098-T. The IRS can audit education credits, and you'll need proof of what you actually paid and when. 4. If you're planning to continue school beyond 4 years total (including any previous colleges), start thinking about whether to save some AOTC eligibility for later years when your expenses might be higher. With your income level and being in year 3, the AOTC is definitely your best bet. Just make sure you're tracking everything properly for future years!

One thing nobody's mentioned - if you're using your Roth for a first-time home purchase, you might not even need to roll it back! You can withdraw up to $10,000 of earnings (not just contributions) from a Roth IRA penalty-free for a first-time home purchase. And remember, contributions can always be withdrawn tax and penalty free anyway. So depending on whether this was contribution money or earnings, and if it's your first home, you might be overthinking this. Worth looking into before going through the rollover hassle.

Great question about the mechanics! I've helped several clients through this exact scenario. You're correct that you can roll the money back into the same Roth IRA - no need to open a new account elsewhere. One important detail to add: make sure you have the exact amount you withdrew ($13,500) to roll back in. If you roll back less than the full amount, the difference will be treated as a permanent distribution and could be subject to taxes and penalties depending on whether it came from contributions or earnings. Also, keep detailed records of both the withdrawal date (July 12th) and the rollover date. The IRS counts calendar days, not business days, so you want to be absolutely certain you're within that 60-day window. Since you're planning around 45 days, you should be fine, but it's worth marking the exact deadline on your calendar just to be safe. For the tax reporting, you'll indeed receive a 1099-R from Fidelity, but when you complete the rollover within 60 days, you'll report it as a non-taxable transaction on your return. The key is making sure both the distribution and rollover are properly documented.

I'm dealing with a very similar situation - renting to my elderly parents below market rate. One thing I learned from my CPA is that you should also document WHY you're charging below market rent. In my case, I kept records showing that my parents help with property maintenance and yard work, which justifies some of the rent reduction. Also, make sure you're treating this like a real business relationship even though it's family. I set up automatic bank transfers for the rent payments so there's a clear paper trail, and I give my parents a receipt each month. The IRS wants to see that this is a legitimate rental arrangement, not just you letting family live there cheaply. One more tip - if your mother-in-law ever stays elsewhere for extended periods, keep track of those days. If the property is vacant for more than 14 days per year due to personal use (like if she visits other family), it affects your tax calculations even more.

I went through this exact situation a few years ago when I rented to my uncle below market rate. One crucial thing to understand is that even though your deductions are limited to your rental income, you still need to report ALL the rental income you receive - even if it's below market value. For your situation, you'll report the $850/month ($10,200 for the year, assuming 12 months) on Schedule E. Your deductible expenses can't exceed this amount, but here's what many people miss: you need to allocate expenses properly between rental and personal use portions. Since you're only collecting about 60-65% of market rent, the IRS may require you to allocate expenses accordingly. This means if your total property expenses (mortgage interest, taxes, insurance, etc.) are $15,000 for the year, you might only be able to deduct $10,200 of them as rental expenses on Schedule E. The remaining $4,800 could potentially be deductible on Schedule A if you itemize. Also, don't forget about depreciation - even with limited rental income, you can still depreciate the portion of the property used for rental purposes, but again, only up to your net rental income limit. Keep excellent records of everything, including a formal lease agreement with your mother-in-law, even if it feels awkward with family.