Make sure you use the right dependent code on your tax return! Many tax software programs will ask if the dependent is your "qualifying child" or "qualifying relative" - your grandmother would be a qualifying relative. Using the wrong code could trigger unnecessary reviews.

Just to add some reassurance - I work in tax preparation and see this situation frequently. The IRS audit from last year has absolutely zero impact on your ability to claim your grandmother as a dependent for 2024. Each tax year is evaluated independently. Based on what you've described, your grandmother should qualify as your dependent under the qualifying relative rules. Her Social Security income of $14,500 is likely mostly non-taxable (especially if it's her only income), which means her gross income for dependency purposes is probably well under the $5,050 threshold for 2024. The key thing is documenting your support. Since you're paying $1,800-2,000 monthly for her expenses, that's $21,600-24,000 annually - far more than her $14,500 Social Security income. Keep receipts for housing, utilities, food, medical expenses, and anything else you pay for her. One tip: calculate the exact support test by adding up ALL sources of her support (what you pay + what she pays from her own income), then make sure your contribution exceeds 50% of that total. Given your numbers, you should easily pass this test.

Why not just help your girlfriend set up her own bank account? Most online banks can be set up in like 15 minutes and don't have minimum balance requirements. That would solve the whole problem and be better for her financially anyway.

I'd strongly recommend against depositing checks made out to your girlfriend into your account, even temporarily. This creates unnecessary complications and potential red flags. Here's why this is problematic: 1. **Banking violations**: Most banks prohibit depositing third-party checks without proper endorsement or joint account status 2. **Tax confusion**: The IRS could view these deposits as your income, creating documentation headaches later 3. **Audit risks**: If either of you gets audited, you'll need to prove the money wasn't yours - why create that burden? The simple solution is to help your girlfriend open her own account. Many online banks (Capital One 360, Ally, etc.) can be set up in minutes with no minimum balance. She can even deposit checks via mobile app immediately. If she absolutely can't open an account right now, she should cash the checks at the issuing bank and handle the cash herself. Don't create a paper trail that suggests someone else's income is yours - it's not worth the potential headaches down the road.

Has anyone mentioned the fact that this is probably a terrible investment regardless of tax implications? You're essentially saying "I'm going to spend $470k to avoid losing $130k" - that math doesn't work unless you really believe the property will hold most of its value. In this market, that's risky.

I agree with Tyler and Sara that the fundamental economics here don't make sense. You're basically throwing good money after bad. Even if you could somehow make this work as a rental property loss (which would require years of legitimate rental activity), you'd still be out significant cash. Consider this: at your income level, you're already maxing out most tax-advantaged strategies. The passive loss limitations mean you couldn't even use rental losses against your W-2 income immediately - they'd just carry forward until you sell the property or have passive income to offset. Have you exhausted all options with the builder? Some possibilities: - Negotiate a partial refund (even 50% back is better than losing it all) - Transfer the credit to someone else who actually wants to buy - Use it toward a smaller, less expensive property that might actually appreciate - See if they'll extend the deadline in exchange for a smaller forfeiture Walking away from $130k hurts, but it's better than turning it into a $200k+ loss. Sometimes the best tax strategy is simply not making bad investments in the first place.

dont get ur hopes up about updates. been stuck on the same message since february lmaoooo

I had this exact same issue last week! The "daily limit" error is super frustrating when you know you only tried once. What worked for me was logging out of the IRS website completely (if you had it open), clearing all browser cookies for IRS.gov, then waiting about 30 minutes before trying the app again. The system seems to share login attempt counters between the website and app, so even having the website open in a browser tab can sometimes trigger this. Also make sure you're using the exact same credentials - any typos count as failed attempts too.

Has anyone here actually filed Form 6781 in TurboTax? I'm having a hard time figuring out where to enter my section 1256 contracts from my K-1. The software seems confused by it.

I went through something very similar last year with my K-1 and section 1256 contracts. The key thing to understand is that these are two completely separate tax reporting requirements, even though they might feel connected to your overall trading activity. Your personal $600 loss from SVIX trading gets reported on Schedule D as a regular capital loss. The $245 section 1256 contracts loss from your K-1 gets reported on Form 6781 and receives that special 60/40 treatment (60% long-term, 40% short-term) regardless of holding period. The reason your bank account only shows $600 down is because the K-1 loss represents your allocated share of the partnership's trading activity in these specialized contracts. You didn't directly lose that $245 from your account - it's a pass-through loss from the partnership that you're entitled to claim on your taxes. Your tax preparer is absolutely correct. Both losses are legitimate and should be reported separately. The total $845 loss is your proper tax loss for the year, even though your personal account impact was only $600.