This has been such a comprehensive discussion! I wanted to add something that might help others who are just starting to deal with these vacation home complexities. One area that often creates confusion is the interaction between state tax treatment and federal vacation home rules. While we've covered the federal Section 280A limitations thoroughly, don't forget that some states have their own rules for vacation home deductions that might not align perfectly with federal treatment. For example, I've worked with clients who had vacation properties in states that don't conform to all federal passive activity loss rules, which created additional complexity in tracking state vs. federal carryovers. Make sure to research your specific state's treatment, especially if the property is located in a different state than where your client resides. Also, I'd recommend documenting your methodology for expense allocation between personal and rental use in your workpapers. The IRS could challenge how you allocated utilities, maintenance, depreciation, etc. between the personal and rental portions, so having a clear, defensible method documented upfront can save headaches later. Finally, consider the long-term strategy - if a vacation home consistently generates losses and the client isn't using the personal use days, it might make sense to convert it to a pure rental property to unlock those trapped losses under the more flexible passive activity rules.

This has been an absolutely fantastic deep dive into vacation home loss limitations! As someone who's been preparing taxes for over 15 years, I can say these are some of the most nuanced rules in the tax code. I wanted to add one practical tip that has saved me countless hours of research: when dealing with clients who have vacation homes, I always start the engagement by having them complete a detailed questionnaire about their property use patterns for the past few years. This includes not just their own personal use, but any family member use, business use, and even days spent on major repairs or improvements. Getting this information upfront helps me immediately identify whether we're dealing with Section 280A vacation home limitations or Section 469 passive activity rules - or in complex cases, both types of losses from different periods. It also helps me spot potential issues like when someone thinks they're running a "business" rental but family use is pushing them into vacation home territory. One thing I haven't seen mentioned yet is the importance of the "principal residence" test under Section 280A. If the vacation home is used as the taxpayer's principal residence for any part of the year (not just vacation use), it can create additional complications in the allocation of expenses and loss limitations. This sometimes happens with clients who work remotely and spend extended periods at their "vacation" home. The recordkeeping suggestions throughout this thread are spot-on. I always recommend clients take photos of their property calendar or rental booking system at year-end to support their use calculations. Contemporary documentation is key if the IRS ever questions the personal use percentages.

Does anyone know if TurboTax Business can handle LLC returns regardless of the classification? My LLC is set up as an S-Corp and I'm trying to decide if I need to hire an accountant or can DIY.

@Layla Mendes - I went through this exact same confusion when I first started my LLC! Here's what I learned: if you only have one member (just yourself), your LLC automatically defaults to "disregarded entity" status, which means you file taxes as a sole proprietor using Schedule C on your personal return. You don't need to file a separate business return. The easiest way to confirm is to look for any Form 8832 or Form 2553 in your records - these would show if you made a special election. If you can't find either of these forms, you're almost certainly under the default classification. Since you mentioned this is for a web design business you started last year, you'll likely be filing Schedule C with your 2025 personal tax return. Just make sure to track all your business expenses throughout the year - things like software subscriptions, equipment, home office expenses, etc. can really add up to significant deductions! If you want to double-check, the IRS business line at 800-829-4933 can tell you what's on file, though be prepared for potentially long wait times.

I'm going through this exact same situation and honestly, all these responses have been such a lifesaver! I filed my return on February 12th using my old SunTrust routing number and have been panicking ever since realizing the merger changed everything. Reading through everyone's successful experiences here has really calmed my nerves. It sounds like Truist has really thought this through and set up robust systems to handle the transition. The fact that multiple people have confirmed their refunds went through smoothly with the old routing number is incredibly reassuring. I think what I'm going to do is call Truist tomorrow just to double-check my account status and maybe set up those mobile alerts that Riya mentioned. Better to be proactive and get that peace of mind rather than continue stress-checking my account balance every hour! Has anyone noticed if there's a specific time of day that refunds typically hit your account? I know it's probably random, but I'm trying to figure out if I should expect it overnight or during business hours. Thank you all so much for sharing your experiences - this community is amazing during tax season stress!

I'm dealing with this exact same SunTrust/Truist routing number situation! Filed my return on February 5th using the old routing number before I realized everything had changed with the merger. I've been checking my account obsessively waiting for my refund to appear (or not appear). Reading through all these responses has been incredibly helpful and reassuring. It sounds like the automatic forwarding system is working really well for most people. I especially appreciate hearing the specific timelines - like Paolo getting his refund deposited normally just 15 days after filing with the old routing number. I think I'm going to follow the advice here and call Truist directly tomorrow to confirm my account status. The mobile alert suggestion is brilliant too - I'm definitely setting that up to stop the constant manual checking that's driving me crazy. Quick question for those who have already received their refunds: did you notice any difference in the deposit description or memo compared to previous years? I'm wondering if there's any indication on the bank side that the routing was redirected automatically. Thanks to everyone for sharing their experiences - this thread has been a huge stress reliever during an already anxious tax season!

I'm gonna go against the grain here... Just use FreeTaxUSA or Cash App Taxes (formerly Credit Karma Tax). Both handle investments including stock sales and dividends. FreeTaxUSA is free for federal and like $15 for state. Cash App Taxes is completely free for both federal and state. I switched from TurboTax to FreeTaxUSA two years ago when my taxes got more complicated with investments and rental property. Saved over $120 and the process was actually easier! TurboTax is just really good at making you think you need their expensive versions when you don't.

As someone who's been through a similar transition from simple W-2 filing to dealing with investments, I'd recommend starting with the document analysis approach others mentioned. Understanding exactly what forms you'll need is crucial before choosing software. For your specific situation - multiple W-2s, stock sales, dividends, and retirement accounts - you're definitely looking at needing investment-capable software. The key distinction is that selling stocks requires Schedule D and Form 8949, which kicks you out of basic versions of any tax software. Your 403b contributions should already be reflected on your W-2 (look for box 12 with codes like D, E, F, G, or H), so that part is actually straightforward. The Roth IRA contributions typically don't need to be reported unless you qualify for the Saver's Credit, which at 19 you might depending on your income level. Between TurboTax Premier and the alternatives like FreeTaxUSA or Cash App Taxes, it really comes down to how much hand-holding you want. TurboTax is more expensive but walks you through everything step-by-step. The alternatives can save you $100+ and handle the same forms, but assume you're comfortable reading instructions and answering questions without as much guidance. Given this is your first year with investments, you might appreciate TurboTax's explanations this time around, then switch to a cheaper alternative next year once you understand the process better.

You're absolutely correct in your understanding! With only $78 in unearned income, your daughter has no filing requirement since it's well below the $1,250 threshold for dependents with unearned income. And you're right that you don't need to report this anywhere on your MFJ return. Form 8814 is only used when you *choose* to report your child's unearned income on your return instead of filing separately for them - but this is only an option when the child actually has a filing requirement in the first place. Since your daughter doesn't need to file, Form 8814 isn't relevant to your situation. The IRS will receive the 1099 under your daughter's SSN and will see that the income is below the filing threshold, so everything is handled automatically on their end. No action needed from you at all - you can breathe easy knowing you're handling this correctly!

Great question and you've got the right understanding! With just $78 in unearned income, your daughter is well below the $1,250 filing threshold for dependents, so no return is required for her. And since there's no filing requirement, there's nothing you need to report on your MFJ return either. One thing to keep in mind for future years - as that UTMA account grows and generates more income, you'll want to track when you might hit those thresholds. The $1,250-$2,300 range requires filing but no kiddie tax, and above $2,300 is when the kiddie tax rules kick in. But for now with $78, you're in the clear! It's also worth noting that even though you don't need to report anything, the IRS will still receive the 1099 information under your daughter's SSN. They'll see it's below the threshold and no further action is expected. So you can file your return with confidence knowing you're handling this correctly.