The Turbotax error message is super misleading. Had the same issue last year and almost overpaid my state taxes. The $2,650 is definitely the gross proceeds (total sales amount) NOT your actual gain.

I had this exact same issue when I moved from California to Texas mid-year! The key thing to understand is that TurboTax is showing you gross proceeds (total amount received from sales) in column A, not your actual capital gains or losses. Since you mentioned all your transactions were short-term and resulted in a net loss, you should definitely enter zero in column B. The form is specifically asking about long-term capital gains that are attributable to your new state, and you don't have any. Don't worry about entering zero - the instructions literally say "If none, enter a zero in column b" for this exact situation. The state understands that not all proceeds shown in column A will be taxable by them, especially when you've moved mid-year and have no long-term gains. I made the mistake of overthinking this and almost entered the wrong amount. Once I realized that proceeds ≠ gains, everything made sense. Your federal return already properly accounts for your actual net loss, so you're all good there.

I negotiated with my CPA to pay based on the actual tax savings they generate for me. Base fee is $900 for preparation, plus 10% of any tax savings they find beyond what I would have gotten with basic software. The first year they found an additional $9k in deductions I'd missed (so I paid $900 + $900), but now it's usually around $1200-1500 total. This incentivizes them to actually look for optimization opportunities instead of just filling out forms. Might be worth asking if any CPAs in your area work on this kind of model.

Based on what you've shared, $1800 for comprehensive tax planning that identifies $13k+ in annual savings sounds like excellent value. I pay around $1600 annually for similar services and my CPA has consistently found optimization strategies I never would have discovered on my own. The key is making sure they can clearly explain those savings opportunities and that they're legitimate strategies, not aggressive positions that could trigger audits. I'd recommend asking for a detailed breakdown of exactly how they plan to achieve those savings - a good CPA should be able to walk you through each strategy. Also consider the ongoing relationship value. The best CPAs don't just prepare your return once a year - they provide guidance throughout the year on timing decisions, estimated payments, and strategic planning. If this CPA offers that level of service, the fee becomes even more reasonable when you consider the year-round support.

I've been through this exact scenario with multiple PTP investments over the years, and you're definitely not alone in this frustration! The good news is that receiving K-1s after filing is extremely common with PTPs, and the IRS is generally understanding about this timing issue. For your Section 751 statement, you'll need to file Form 1040-X to amend your return. The key information should be on the transaction schedule that came with your K-1 - look for any amounts labeled as "Section 751(a) ordinary income" or similar language about "hot assets." A few practical tips from my experience: - Don't stress about penalties - if you file the amendment within a reasonable time after receiving the K-1, you're usually fine - The Section 751 statement itself is just a simple document showing the breakdown between ordinary income and capital gain portions of your sale - Keep copies of everything, including the date you received the K-1, in case you need to explain the timing later Since you mentioned the profit wasn't huge, the actual tax impact might be smaller than you're worried about. The main thing is getting it reported correctly. Consider this a learning experience for future PTP investments - now you know to expect these complications!

I went through this exact nightmare with Energy Transfer (ET) two years ago! The Section 751 reporting requirements caught me completely off guard too. Here's what I learned that might help you: First, don't panic about the timing - late K-1s are incredibly common with PTPs, and the IRS knows this. You're actually in good company since most PTP investors end up filing amendments. For your Section 751 statement, look at your K-1's transaction schedule for any line items showing "ordinary income under Section 751" or similar language about unrealized receivables. That's the amount that gets treated as ordinary income instead of capital gains when you sold your MMP position. The process is pretty straightforward once you know what to do: 1. File Form 1040-X (amended return) 2. Create a simple Section 751 statement showing the breakdown 3. Report the ordinary income portion on Form 4797 4. Report the remaining capital gain on Schedule D Since you only held for 3 months and the profit wasn't huge, the actual tax difference might be minimal. The important thing is getting it reported correctly. I'd recommend just biting the bullet and filing the amendment ASAP - better to deal with it now than worry about it later. Also, lesson learned for future reference: if you're thinking about investing in any more PTPs, maybe wait until after tax season to buy them, or at least be prepared for this complexity!

Has anyone else noticed that the 1099-NEC instructions are super unclear about family care situations? I read through them twice and still couldn't figure out if my mom's caregiver payments needed to go on Schedule C or not.

Based on the details you've provided, it sounds like your family care company should issue 1099-NEC forms rather than 1099-MISC. The NEC form is specifically for non-employee compensation for services, which is what you're receiving - compensation for caregiving services you'll provide to your dad. For tax reporting, since this is a one-time payment for occasional family caregiving (not a regular business you operate), you would likely report this income on Schedule 1 of Form 1040 as "Other Income" rather than on Schedule C. This means you wouldn't owe self-employment tax on this payment. The key factors supporting this treatment are: 1) You don't do caregiving as a regular business, 2) It's a one-time payment rather than ongoing regular income, 3) The services are flexible family support rather than structured business activities, and 4) You're all retired/employed in other fields. However, given the complexity of your family's legal and financial arrangement, I'd strongly recommend confirming this with a tax professional who can review all the specifics of your situation. The distinction between casual family help with compensation versus operating a caregiving business can have significant tax implications.

I did exactly what you're asking about last year and ended up getting a notice from the IRS. Had to refile and pay penalties plus interest. Even my accountant missed this! S-corp owners HAVE to be W-2 employees if they're performing services. end of story.

Just wanted to chime in as someone who made this exact mistake when I first started my S Corp. I thought I was being clever by avoiding payroll taxes, but it backfired spectacularly. The IRS has very specific rules about S Corp shareholder-employees - if you're providing services to the corporation (which you clearly are as an IT consultant), you MUST be treated as an employee with proper W-2 wages. The "reasonable salary" requirement exists specifically to prevent what you're thinking about doing. The whole point of an S Corp is that you pay employment taxes on your salary, then take additional profits as distributions (which aren't subject to SE tax). If you could just pay yourself as a contractor, everyone would do it to avoid payroll taxes entirely. My advice: set up proper payroll for yourself immediately. Yes, it's more paperwork and you'll pay both sides of payroll taxes on your salary portion, but it's the only compliant way to do this. The tax savings on your distributions will more than make up for it, and you'll avoid the audit risk and penalties that come with trying to game the system.