My tax guy told me that the mortgage interest follows the legal obligation to pay the debt. Since your mom is the only one on the mortgage, technically she's the only one legally obligated to pay it regardless of who actually makes the payments. He wouldn't let me claim interest on my son's mortgage even though I paid it all because I wasn't on the loan documents.

I went through something very similar last year! I was paying my sister's mortgage after she lost her job, but only her name was on the loan. The difference in your case is that you actually have ownership interest since your name is on the deed - that's huge for your tax situation. From my research and conversations with the IRS, having your name on the deed gives you the legal standing to claim the mortgage interest deduction even though you're not on the loan. The IRS cares about two things: (1) you have a legal or beneficial ownership interest in the property, and (2) you actually paid the interest. You clearly meet both criteria. Since you paid 100% of the interest and have ownership interest, you should be able to deduct the full amount. The 50/50 deed ownership doesn't limit your deduction - what matters is that you paid it and you have some ownership stake. Just make sure to attach a statement to your return explaining the situation, including your mother's name and SSN, and that you paid the interest reported on the 1098 that was issued to her. Keep all those bank statements showing the payments came from your account. For $266, it's definitely worth claiming if you're already itemizing anyway!

This is exactly why I always maintain my own basis tracking spreadsheet for each LP investment. I've been burned before by relying on the GP's calculations. For your situation, here's what I'd recommend: Start with your original $65K investment, then add any income allocated to you from prior K-1s (check Box 1 on your 2023 K-1), subtract any prior distributions, and add your share of partnership debt. The debt piece is crucial - if the partnership has non-recourse debt, you likely get basis from your proportionate share. With a $120K distribution, you'll need to determine if any portion exceeds your adjusted basis. The excess would be treated as capital gain. Given that this was a refinance in 2024, the partnership's debt likely increased, which could have boosted your basis and reduced the taxable portion. I'd strongly suggest requesting a detailed basis calculation from your GP. If they can't provide it, consider working with a tax professional who specializes in partnership taxation - this isn't something you want to get wrong.

I've been through this exact scenario with two different LP investments over the past few years. The confusion around refinance distributions is completely understandable because the tax treatment isn't intuitive. Here's what I learned: The refinancing itself doesn't create a taxable event, but when those proceeds get distributed to partners, the tax treatment depends entirely on your adjusted basis in the partnership. Think of your basis as your "tax-free withdrawal limit" - distributions up to that amount are generally not taxable, but anything above it becomes taxable as capital gain. Your basis starts with your original $65K investment, but it gets adjusted over time. It increases with your share of partnership income and your proportionate share of partnership debt, and decreases with distributions and your share of losses (including depreciation). The tricky part is that most GPs don't provide adequate basis tracking. I'd recommend immediately requesting a detailed basis calculation from your GP showing your beginning basis, all adjustments for 2023-2024, and your ending basis after the $120K distribution. Don't just rely on the capital account shown in Box 9A of your K-1 - that's often different from your tax basis. If your GP can't provide this calculation, that's a red flag about their tax compliance practices, and you'll definitely need a tax professional who specializes in partnership taxation to help reconstruct your basis from prior years' K-1s and partnership documents.

16 Stupid question maybe but do I need to include the payment processor fees when determining if I've hit the $600 threshold for issuing a 1099? Like if I paid someone $590 but with fees it was $608 total cost to me, do I need to issue a 1099?

This is really helpful information! As someone who's been struggling with similar payment processor fee questions, I appreciate everyone sharing their experiences. Just to clarify my understanding - so if I pay a contractor $1,000 through Stripe and Stripe takes a $30 fee, I would: 1. Issue a 1099-NEC for $1,000 (the full amount I intended to pay) 2. On my Schedule C, deduct $1,000 as contractor expense 3. Separately deduct the $30 Stripe fee as a business expense Is that correct? And would this same logic apply to other payment methods like Venmo Business or Zelle?

This is actually really common with TT and their banking partner SBTPG. They hold onto refunds for weird reasons sometimes. Best thing to do: 1. Call SBTPG directly (not TT customer service) 2. Check your IRS transcript 3. Make sure your bank info is correct There's also a TT forum specifically for these issues that might have more specific advice.

I had the exact same thing happen to me last year - filed early February, got accepted, then suddenly status switched to pending with zero explanation from TurboTax. Turns out the IRS was doing additional processing on my EITC claim (even though everything was correct). The whole thing took about 4 weeks to resolve, but I eventually got my full refund plus interest for the delay. The most frustrating part is that TurboTax customer service acts like they have no visibility into what's actually happening once your return hits the IRS systems. I ended up having to check my IRS account transcript daily to see any updates. Don't panic though - a status change doesn't mean anything is wrong with your return, it just means the IRS needs more time to process it. The advance refund feature definitely makes it more confusing because you can't track it the normal way.

Just a heads up to the original poster - be aware that if you do file as married (common law or otherwise), you'll need to continue filing that way unless you legally separate or divorce. That's true even for common law marriages - you can't just go back to filing single next year if you decide the tax benefits aren't worth it! Common law divorce isn't really a thing in most places - you'd need to go through regular divorce proceedings just like formally married couples. So make sure you're ready for that commitment before changing your filing status!

This is really helpful information! I'm actually in a similar situation in Colorado with my partner of 2.5 years. We've been hesitant to file jointly because we weren't sure if we'd need some kind of official paperwork first. One thing I'm curious about - if we start filing as married jointly this year, does that create any kind of official record of our common law marriage with the state? Or is it purely for federal tax purposes? I'm wondering if filing jointly would affect things like health insurance through employers, since some companies require proof of marriage for spousal coverage. Also, has anyone here ever been asked to provide documentation during an actual audit? I'd love to know what kinds of evidence the IRS typically looks for to verify common law marriage status.