Anyone know if there's a de minimis exception for small gifts throughout the year from the same foreign person? My parents send me like $500-$1000 every month from their accounts in Korea for help with my kids' expenses, and it'll add up to more than $100k for the year. Do I seriously need to file this special form for what's basically just family support?

I'm dealing with a similar situation and wanted to share what I learned from my research. Carmen, you definitely need to file Form 3520 since you received $130,000 from foreign persons (your parents) in 2024. The $100,000 threshold applies to the total amount received from ALL foreign persons combined in a single tax year. A few important points to keep in mind: - Form 3520 is due by April 15, 2025 (same as your tax return deadline) - It must be mailed separately - you cannot e-file it with your regular return - The penalties for not filing are severe (starting at $10,000), so definitely don't skip this - While you need to report the gift, you won't owe income tax on it since gifts from foreign individuals are generally not taxable to the recipient I'd recommend getting professional help with this form if you're unsure about any details, especially since the penalties are so high. Better to spend money on proper preparation than face potential penalties later!

Anybody know if this same rule applies to other rental expenses too? Like if I buy cleaning supplies that I use at both properties, do I need to split that cost too?

Great question! I actually had a similar situation last year with two rental units in the same building complex. After consulting with my CPA, I learned that the correct approach is definitely to split the mileage proportionally - not claim the full amount for each property. Here's what I do now: I keep a simple spreadsheet where I log each trip with the total miles, then note what percentage of time/work was spent at each property. For your example, if you spent equal time at both units, you'd allocate 7 miles to each property on their respective Schedule E forms. The IRS views this as one business trip that served multiple properties, so the expense should be divided accordingly. Claiming 14 miles on both would indeed be double-dipping and could raise red flags during an audit. I've found that being conservative and well-documented with these allocations has saved me headaches down the road. One tip: I also photograph my odometer readings and keep brief notes about what work I did at each property. Makes tax time much smoother!

Make sure you check if your US company needs to have you fill out Form W-8BEN to certify your foreign status. Many US companies require this form before they'll honor the tax treaty provisions. Without it, some will withhold 30% automatically regardless of the treaty.

As someone who's been through this exact situation as a contractor from Mexico working with US companies, I wanted to add a few practical tips that really helped me: 1. **Get organized early** - Create a folder system now for all your tax documents. You'll need your 1099, contract agreements, proof of Argentine residency, and records of any US visits. 2. **Consider quarterly estimated payments** - Even though your company isn't withholding taxes, you might still owe US taxes depending on how the treaty applies to your specific situation. Making quarterly payments can help avoid underpayment penalties. 3. **Document your work location meticulously** - I keep a simple spreadsheet tracking where I physically perform work each day. This becomes crucial evidence if the IRS ever questions your treaty position. 4. **Connect with other Argentine contractors** - There are some good expat tax groups on Facebook where people share their experiences with the US-Argentina treaty specifically. The nuances can be quite different from other countries' treaties. The learning curve is steep but totally manageable once you get the system down. Feel free to ask if you have specific questions about the filing process!

Has anyone looked into how this affects your homeowners insurance? We did something similar last year and our regular policy didn't cover rental use - had to get a special landlord policy for the months we were renting it out.

Great question about the insurance piece! This is something a lot of people overlook when temporarily renting out their primary residence. I went through this exact situation two years ago when we relocated for 6 months to care for my father. Most standard homeowners policies have what's called a "business use exclusion" that can void coverage if you're renting the property without notifying them. Even short-term rentals can trigger this. I learned this the hard way when a pipe burst during our rental period - thankfully our insurance company was understanding since we had called ahead to discuss it. The good news is that many insurers offer temporary rental endorsements that you can add to your existing policy for situations like this. It's usually much cheaper than switching to a full landlord policy if you're only renting for under a year. Just make sure to get everything in writing and keep those records with your tax documentation. Also worth noting - if you do switch to a landlord policy temporarily, that premium becomes a deductible rental expense on Schedule E, which can help offset some of the rental income you're reporting.

Based on what I've seen in previous years, VA paper checks are taking about 10-14 days to arrive. Last year mine was dated Feb 15 and arrived on Feb 26. The explanation letter is usually attached right to the check, so you'll find out what it was for when it arrives. If you're PCSing soon and need that money ASAP, you might want to call the VA Tax Dept and see if they can tell you over the phone what the offset was for - sometimes you can resolve it faster that way.

Hey Nadia! Military family here too, so I totally get the PCS stress. 🪖 I've been through this exact situation with VA twice now. The paper check usually takes 10-14 business days from when they process the DD portion. Since your DD was processed on 2/9, I'd expect the check sometime around 2/25-3/3. Pro tip: If you're really tight on timing for your PCS move, you can call the VA Tax Department and ask them to expedite the explanation letter via email while the check is still in transit. That way you'll at least know what the offset was for and can start working on resolving it if needed. The number is on their website under "Refund Inquiries." Good luck with your move! 🚛