Don't forget to check your state tax rules too! Some states have more generous casualty loss provisions than federal, especially for declared disasters. In my state, we were able to deduct 100% of our hurricane losses on our state return even though we couldn't on the federal return because of the AGI limitation. Saved us about $300 on state taxes.

I went through this exact same situation with my fence after Hurricane Ian a couple years ago. One thing that really helped me was documenting the original installation cost and age of the fence - the IRS agent I spoke with said this was crucial for calculating the basis. Since you paid $3,900 for replacement and didn't file insurance, make sure you keep those contractor receipts. Also, if you can find any records of what you originally paid for the fence installation, that will help with the fair market value calculations Sofia mentioned. The federally declared disaster area status is definitely beneficial - it gives you that option to amend last year's return if it results in a bigger refund. I ended up doing that and got money back within about 8 weeks, which was much faster than waiting for this year's filing season. Just make sure to write "Hurricane Milton" on your return so the IRS knows it's disaster-related.

I went through this exact same headache two years ago when I switched from TurboTax to FreeTaxUSA! The frustration is real, but don't give up - the savings are absolutely worth it. A few additional tips that helped me beyond what others have mentioned: 1. If you can't find Form 6251 in your TurboTax returns, check if you actually had AMT liability in previous years. If your rental depreciation differences were small, you might not have triggered AMT, meaning the "prior depreciation" amount could legitimately be zero. 2. Look for any worksheets labeled "AMT Depreciation Adjustment" or "Section 1250 Property" - sometimes TurboTax buries this info in supporting worksheets rather than the main forms. 3. If you're still stuck, consider calling FreeTaxUSA support directly. They're surprisingly helpful with these transition issues and can sometimes walk you through exactly what TurboTax information they need. I've saved over $800 in the past two years by switching away from TurboTax's inflated pricing. The one-time hassle of finding these carryover numbers is absolutely worth it. Once you get through this year, you'll have everything properly set up in FreeTaxUSA for future years. Don't let TurboTax win by forcing you back with their deliberately opaque record-keeping!

I'm going through this exact same nightmare right now! Been using TurboTax for years and decided to switch to FreeTaxUSA to save money, but now I'm stuck on this AMT prior depreciation too. I have one rental property that I've owned for about 5 years, and I know there were some depreciation differences for AMT purposes, but finding the actual number is like searching for a needle in a haystack. Reading through all these responses is super helpful - I had no idea about the difference between the "taxpayer copy" and "full tax return" from TurboTax. I've definitely been looking at the wrong documents! Going to try downloading the complete returns with all the worksheets and see if I can locate Form 6251. Has anyone here actually calculated what they've saved by switching away from TurboTax? I'm curious if the annual savings really add up to enough to justify this headache. TurboTax quoted me $189 this year for my situation, while FreeTaxUSA is only $25. That's $164 in savings just this year, so I guess it's worth pushing through this frustration!

Has anyone considered the potential red flags of someone wanting to pay such a large amount upfront? In some cases it could be completely innocent, but I've heard of people using rent payments to launder money. Might be worth asking why they want to pay it all upfront.

I'd also suggest getting references and doing a thorough background check if you haven't already, especially with such a large upfront payment. Legitimate tenants who want to pay in advance usually have good reasons - like they're relocating for work, received a windfall, or just prefer the convenience of not dealing with monthly payments. One practical tip: consider asking for the payment via bank transfer or certified check rather than cash, and make sure you provide a detailed receipt that breaks down exactly what months the payment covers. This creates a clear paper trail for both tax purposes and your own protection. Also, don't forget that you'll still need to provide the tenant with proper documentation at year-end (like a 1099 if applicable) showing the total rent they paid, even though you'll be reporting the income across multiple tax periods as others have mentioned.

25 One thing nobody's mentioned yet: you might need to pay STATE taxes too, not just federal! For me in California, I set aside an extra 8% just for state taxes on top of the 25% for federal. Check your state tax rates and factor that in!

Great point about state taxes! Since you're in Ohio, you'll need to factor in Ohio state income tax too. Ohio has a progressive income tax rate that ranges from 0% to 3.99%. For your income level (around $24k annually), you're probably looking at around 1-2% for state taxes. So I'd recommend setting aside about 27-30% total: roughly 25% for federal (income + self-employment tax) and 2-3% for Ohio state taxes. Ohio also requires quarterly estimated payments just like federal, so you can usually pay both at the same time. Don't forget Ohio also has local income taxes in many cities - check if your city has additional income tax requirements. Some cities in Ohio charge an additional 1-3% on top of state taxes. You can check the Ohio Department of Taxation website to see what applies to your specific location.

Quick question - if I'm using TurboTax, where exactly do I find the Form 8995? I think I qualify too but can't seem to locate it in the software.

This is really helpful! I'm in a similar boat with my new freelance writing business that I started in September. Made about $2,800 in profit and was wondering if I qualified for the QBI deduction. Based on what everyone's saying here, it sounds like I should qualify under that same income threshold exception since writing is also typically considered an SSTB. My husband and I file jointly and our total income is around $195,000, so we're well under that $375,800 threshold. One thing I'm curious about - do we need to have any specific business structure (LLC, etc.) or does it work for sole proprietorships too? I'm just operating as a sole proprietor right now and reporting everything on Schedule C.