I know this is different from the main QBID discussion, but has anyone had success with the 20% pass-through deduction for rental income when the properties are held in a trust? My family has 5 rental properties in our family trust and I'm trying to figure out if the same rules apply.

The confusion around QBID for rental income is totally understandable - I went through the same thing when I first learned about the 250-hour requirement. What really helped me was realizing that the safe harbor is just ONE path to qualification, not the only path. Here's what I've learned from my own experience with 4 rental properties: even though I don't hit 250 hours, I was still able to claim QBID by demonstrating that my rental activities constitute a legitimate trade or business. The key is showing regular, continuous activity with a profit motive. Some activities that count toward "business-like" operations that many landlords forget to document: - Time spent analyzing local rental markets and adjusting rents - Researching and vetting potential tenants - Regular property inspections (even if brief) - Coordinating with contractors and getting repair quotes - Managing property finances and reviewing performance - Planning capital improvements or property upgrades I started keeping a simple log of these activities, and while I'm nowhere near 250 hours, having documentation of consistent business involvement gave me confidence to claim the deduction. The IRS has been pretty reasonable in recognizing that most small landlords operate legitimate businesses even without massive time commitments. My advice: start documenting everything now, even small tasks. It adds up and paints a picture of genuine business activity.

I'm in almost the exact same situation and it's driving me absolutely crazy! Filed in late January, got accepted immediately, and have been stuck with that dreaded 570 code for about 3 weeks now. Processing date of 4/2/24 and expecting around $6,400 with EIC and CTC. The complete lack of communication from the IRS is honestly the most frustrating part. I've been checking my transcript every Friday morning like clockwork, hoping to see literally ANY change - maybe a 971 code, a 571, anything that would give me a clue about what's happening. But nope, just that same 570 code sitting there taunting me week after week. Reading through everyone's experiences here has been both comforting and terrifying. Comforting because it's clear this isn't just happening to me - there's obviously some kind of systematic review going on this year, especially for returns with EIC and CTC. But terrifying because some people are waiting 6-8 weeks with no resolution! The timeline that @Chloe Harris shared earlier gives me some hope that things will eventually move, even if it takes way longer than expected. I'm trying to be patient and wait until my processing date passes before attempting to call, but honestly those services like Claimyr and taxr.ai that people mentioned are looking more tempting each day. We really shouldn't have to pay extra just to get basic information about what's happening with our own money, but at this point I'm so desperate for answers that I might cave. Stay strong everyone - hopefully we'll all start seeing some movement soon! 🤞

I'm dealing with the exact same frustrating situation! Filed in early February and have been stuck with a 570 code for about 3 weeks now, processing date of 4/12/24. Also expecting a large refund with EIC and CTC (around $6,200). This thread has been incredibly helpful - I was starting to panic thinking something was seriously wrong with my return, but seeing so many others going through the identical experience is oddly reassuring. It's clear the IRS is doing some kind of systematic review this year, especially for returns claiming these credits. The complete lack of communication is absolutely maddening though. I've been doing the Friday morning transcript check like everyone else, but it's just that same 570 code staring back at me every week. No 971, no letters, nothing. From all the timelines people have shared, it seems like 4-8 weeks is becoming the new normal, which is just insane. I'm trying to hold out until my processing date passes before calling, but honestly those services like taxr.ai and Claimyr that people mentioned are looking more tempting each day when the anxiety gets overwhelming. Stay strong everyone - we'll get through this bureaucratic nightmare eventually! At least we know we're not alone in this mess. 🤞

5 Has anyone actually filed an amended return to get back the self-employment tax from prior years? How far back can you go? I've been paying SE tax on these payments for like 6 years now.

I went through this exact situation last year and can confirm that Notice 2014-7 is a game-changer for caregivers receiving Medicaid waiver payments. After years of paying self-employment tax on these payments (which totaled about $18,000 annually for me), I discovered I could exclude them from income entirely. The key requirements are that the payments must be for care provided to an eligible individual living in your home, and they must be received under a state Medicaid waiver program. Since you're caring for your adult son with a developmental disability in your home, this should qualify. For reporting, you'll want to move away from Schedule C entirely. Instead, report the payments on Schedule 1, line 8z as "other income" with "Notice 2014-7" noted, then subtract the same amount as a negative entry on the same line. This shows the IRS you received the payments but are properly excluding them under the notice. I also filed amended returns (Form 1040X) for the previous three years to recover the self-employment tax I had overpaid - ended up getting back over $3,800! The amended returns were processed without any issues once I included proper documentation referencing Notice 2014-7. Just make sure to keep all your Medicaid waiver program documentation and consider attaching a brief statement to your return explaining the exclusion to avoid any confusion during processing.

As someone who's run a craft business for 5+ years, here's my actual experience: started as self-employed, switched to LLC in year 3. Self-employed pros: easy setup, simple taxes (Schedule C), no extra fees Self-employed cons: no liability protection, looks less professional LLC pros: liability protection, more professional, easier to separate finances LLC cons: filing fees ($50-500 depending on state), annual fees, more paperwork For a new craft business making under $10k, self-employed is fine. Just get a separate business bank account and track EVERYTHING! Your mobile payment fees are 100% deductible btw.

I'm also just starting my craft business and this thread has been SO helpful! I was totally overwhelmed by all the tax stuff but now I have a much clearer picture. Based on what everyone's shared, it sounds like starting as self-employed is the way to go for most of us small crafters. I love that the mobile payment fees are deductible - that's going to add up over time! One question though - does anyone know if craft supplies like yarn, fabric, wood, etc. are also fully deductible? I'm assuming they are since they're directly used to create the products I sell, but want to make sure I'm understanding this correctly. Also super grateful for the heads up about sales tax permits - definitely going to look into that for my state before my first craft fair!

8 I'm wondering about the lifetime gift exemption - does anybody know if that's going to change in the next few years? I heard it might go down significantly after 2026...

As someone who's been through similar tax situations, I'd recommend documenting everything clearly from the start. Keep records showing the gift amount, date, and recipient - even a simple written note stating "Gift to [friend's name] for Christmas 2025" can be helpful. One thing to consider: if your friend is in serious financial trouble, make sure this gift won't affect any government benefits he might be receiving. Some assistance programs have asset limits that could be impacted by receiving a large gift, even though it's not taxable income to him. Also, since you mentioned having both W-2 and business income, this might be a good time to review your overall tax strategy. The gift itself won't be deductible, but there might be other legitimate business deductions you're missing that could help offset the financial impact of helping your friend out.