Has anyone had any luck with Form 14157 (Complaint: Tax Return Preparer)? I filled one out last year after my preparer made a huge mistake with my Schedule C, but I never heard anything back from the IRS. Wondering if it's even worth the time to file this form.

This is such a common issue, and you're absolutely right to feel frustrated! I went through something similar two years ago with a preparer who missed some important business expense deductions. Here's what I learned: Check your engagement letter or contract carefully. Look for clauses about "accuracy guarantees" or error correction policies. Even if they disclaim liability for penalties, many preparers will at least help fix the issue without additional charges if it was clearly their mistake. For business deductions specifically, the key question is whether you provided all the correct documentation and whether the deductions were legitimately allowable. If you gave them proper records and they misapplied the tax rules, that's on them. But if the deductions genuinely weren't allowed under tax law, that's trickier. I'd recommend documenting everything - your original paperwork, what you told them, and their response. Then give them one more chance to make it right before exploring other options like filing complaints with their professional licensing board or small claims court. Don't just pay up without a fight if this was truly their error. You hired them specifically for their expertise, and they should stand behind their work.

Based on your detailed description, you have an extremely strong case for the Bona Fide Residence Test. Your situation checks all the major boxes: continuous residence since 2012, permanent resident status since 2016, property ownership, and strong ties to your foreign country without maintaining a US home. The flexibility you're seeking is exactly what the Bona Fide Residence Test provides - it's designed for people like you who have genuinely established their life abroad but need occasional US travel flexibility. The Physical Presence Test is really better suited for shorter-term assignments or digital nomads. Don't worry about the audit concern. Switching tests is completely legitimate when your circumstances support it, and your documentation is solid. The IRS actually prefers the Bona Fide Residence Test for long-term expats because it demonstrates genuine commitment to foreign residence. One suggestion: start keeping a simple travel log documenting the purpose of your US visits (work, family, etc.) and evidence of your intent to return to your foreign home. This creates a clear paper trail showing the temporary nature of your US trips. Your permanent resident visa and property ownership are particularly strong evidence. You're making the right move!

Your situation is absolutely perfect for the Bona Fide Residence Test! I made this exact switch three years ago when I was living in the Philippines, and it was one of the best tax decisions I've made. The key factors that make your case so strong: - 13+ years of continuous residence (since 2012) - Official permanent resident status since 2016 - Property ownership (even leasehold counts) - No maintained US home - Clear intent to remain abroad long-term I was initially nervous about the switch too, but the IRS guidance is actually very clear that people can qualify under different tests at different times as their circumstances evolve. Your documentation looks solid. One practical tip: when you file Form 2555 using the Bona Fide Residence Test, make sure to attach a brief statement explaining your residence history and ties to your foreign country. I included a simple timeline showing my visa progression, property purchase, and community involvement. It helps paint the complete picture. The flexibility you'll gain is worth it - I can now visit the US for extended periods without constantly counting days or worrying about losing my exclusion. Your permanent resident visa gives you an even stronger position than most expats have. Go for it! Your case is as straightforward as they come for the Bona Fide Residence Test.

The key thing to remember is that depreciation recapture isn't necessarily a bad thing - it's just the IRS collecting on the tax benefit you already received. When you took those depreciation deductions on your HVAC system over the past 3 years, you reduced your taxable income each year. Now when you sell, you'll pay tax on that depreciation at a maximum rate of 25% (which is often lower than your regular income tax rate). Here's a simple way to think about it: Let's say you've claimed $2,000 in depreciation on that HVAC system so far. When you sell, you'll owe recapture tax on that $2,000 at up to 25%. But you got to deduct that $2,000 from your income in previous years, possibly at a higher tax rate. Plus, you got the time value of having that tax savings earlier. For calculating your potential liability, you'll need to know exactly how much depreciation you've claimed on the HVAC system (and any other capital improvements). Your tax software or records should show this. The recapture amount will be taxed as ordinary income up to 25%.

Something that might help you understand the full picture is that you need to calculate your "adjusted basis" in the property correctly when you sell. Your original purchase price gets reduced by ALL the depreciation you've claimed over the years (including the HVAC system depreciation), which affects your capital gain calculation. So you'll have two separate tax calculations when you sell: 1) Capital gains tax on the difference between your sale price and your adjusted basis, and 2) Depreciation recapture tax (up to 25%) on all the depreciation you've claimed. Keep detailed records of when you installed that HVAC system and how much depreciation you've claimed each year. You'll need this information to calculate everything correctly. If you've been using tax software, it should have been tracking this automatically, but it's worth double-checking your records now before you sell. The "hold longer vs sell now" decision really depends on your overall financial situation and goals. The depreciation recapture will be the same whether you sell next year or in 5 years - it's based on depreciation already claimed, not future depreciation.

Am I the only one who hates that the answer to every tax question is always "it depends" or "run the numbers both ways"?? Like, there should be a simple rule of thumb for when filing separately makes sense vs filing jointly. Tax software should automatically tell you which is better for your situation without making you do everything twice.

Great thread everyone! As someone who's been through this exact scenario, I wanted to add that timing can also matter. If you're planning any major life changes this year (like having another child, buying investment property, or one spouse changing jobs), it's worth considering how those might affect your filing decision. Also, don't forget about state taxes! Some states have different rules for married filing separately vs jointly, and that can sometimes tip the scales. In my state, filing separately actually cost us an extra $400 in state taxes even though the federal calculation was close. One more tip - if you do decide to run both scenarios, make sure you're accounting for ALL the credits and deductions that change between filing statuses. It's not just the child tax credit - things like the earned income credit, education credits, and even the standard deduction amounts are different. The total impact can be much bigger than you'd expect just looking at income tax brackets alone.

Has anyone used a QPRT (Qualified Personal Residence Trust) instead of direct gifting? My accountant suggested this might be better than what you're doing with the Form 709 gift splitting.

I went through this exact same process last year with a vacation home in Washington state. The section you're stuck on is likely Schedule A Part 2 where you need to provide a detailed description of the property and confirm the gift splitting election. Make sure you include the complete legal description of the property (you can get this from your deed), the physical address, and the date of transfer. You'll also need to attach the $675,000 appraisal report to both your and your husband's Form 709. One thing that tripped me up - don't forget that both of you need to sign each other's returns in the "Consenting Spouse" section. The IRS is very strict about this requirement for gift splitting to be valid. Also, since you bought the house for $280,000 and it's now worth $675,000, your daughter and son-in-law will receive a carryover basis of $280,000, so they'll have significant capital gains if they ever sell. Just something to factor into your overall planning.