Just to throw something else in the mix - make sure you're calculating the Qualified Business Income deduction correctly too! For rental real estate on Form 8825, there are specific rules for taking the QBI deduction that differ from other types of business income. This can be a huge tax savings if done right.

Great discussion here! I'm dealing with a similar situation with my partner's cabin rental LLC. One thing that helped us was creating a detailed activity log from day one - we track everything from guest communications, cleaning hours, maintenance work, marketing efforts, and bookkeeping time. The IRS expects contemporaneous records if you're claiming real estate professional status, so don't wait until tax time to start documenting. We use a simple spreadsheet with date, activity type, hours spent, and brief description. It's been invaluable for both proving our material participation and for business planning purposes. Also worth noting - if you do qualify as real estate professionals, make sure you understand the "grouping" rules. You can elect to treat all your rental real estate activities as one activity, which makes it easier to meet the material participation tests. This election has to be made on a timely filed return (including extensions) for the first year you qualify.

Mine hit at midnight last year but this year im in the same boat as u still waiting 😩

Same here! My transcript shows DDD for today and I've been checking my Chime app every 10 minutes lol. From what I've seen in other threads, most people get theirs between 3-7pm EST on their DDD. Some lucky ones get it earlier but that seems to be the main window. Fingers crossed we both get ours soon! 🤞

Call the number on the letter ASAP. The TAS advocate assigned to you can explain exactly what they need.

Just wanted to add - when you respond to the 13RCA letter, make sure to include the case number that's on the letter with any documents you send. Also keep copies of everything! The TAS is really helpful once you get through to them, they actually have more power than regular IRS customer service to resolve issues.

Has anyone used TurboTax for claiming the adoption tax credit? Their software seemed confused when I tried entering this last year and I ended up having to call customer support.

Congratulations on completing your adoption! I totally understand the stress about getting this right. One thing that might ease your mind - with your $95k income, you're well within the eligibility range, and even if you can't use the full credit in one year, it carries forward for up to 5 years. For documentation, beyond what others mentioned, make sure you keep records of when payments were made and what adoption period they relate to. The IRS cares about the timing - expenses generally need to be from the tax year the adoption was finalized or the year before. Since you finalized in December, most of your $18,500 should qualify for your 2024 return. Also, don't panic if some receipts aren't super detailed. As long as you can reasonably demonstrate they were adoption-related expenses, you should be fine. Bank statements showing payments to adoption agencies or attorneys can help supplement less detailed receipts. The key is having a clear paper trail that shows the expenses were necessary and directly related to the adoption process.

Would this also apply to land being used for other purposes? I own a small parcel that cell phone companies pay me to place equipment on. The payments are pretty substantial ($7,500/year) but I've been deducting the property taxes ($1,900) on Schedule A. Should I be using Schedule E instead?

This is a great discussion that highlights a common area of confusion! As someone who's dealt with similar rental property tax situations, I want to emphasize that the IRS is very clear about this in their guidance, even though it's not always intuitive. The key principle is that when property is used in a trade or business (which includes rental activities), the expenses directly related to that activity are business deductions that offset the income from that activity. This applies whether you're renting out a house, an apartment building, or bare land. What I've found helpful is thinking about it this way: if you were to sell the property tomorrow, would you report the gain/loss as investment income or business income? Since you're actively engaged in a rental business with this land, it would be business income, which means the ongoing expenses should also be treated as business expenses. For anyone still uncertain about their specific situation, I'd recommend reviewing IRS Publication 527 and possibly consulting with a tax professional who specializes in rental property. The distinction between investment property and rental property can make a significant difference in your tax liability, especially with the current SALT deduction limitations on Schedule A.