Has anyone used TurboTax to handle this specific PAL situation? I'm in literally the exact same boat (property rented in 2020-2021, vacant in 2022, then sold) and I'm trying to figure out if TurboTax will walk me through this correctly or if I need to go to a CPA.

I had a very similar situation with my rental property! Bought in 2018, rented 2019-2020, then sat empty for almost 18 months before I sold it in late 2022. I was also worried about whether I could still claim my suspended PALs since the property wasn't generating rental income when I sold. The good news is that you absolutely can claim those suspended losses against your sale gain. The key thing the IRS looks at is that you're disposing of your entire interest in the passive activity - it doesn't matter if the property was vacant at the time of sale. One thing I'd recommend is making sure you have good records of exactly what your suspended PAL amount was from 2021. I had to dig back through my tax software to find the Form 8582 from that year to get the exact carryforward amount. Also, don't forget that if you took any depreciation during the rental period, you'll have depreciation recapture to deal with separately from the PAL situation. The whole thing ended up saving me about $4,200 in taxes, so definitely worth getting right!

Has anyone actually had to USE their tax preparer bond? I'm curious about real-world experiences. Like, have any clients actually made claims against your bond, and what was that process like? I'm trying to understand not just which bond to get, but how this actually works in practice.

This is such a helpful thread! I'm in a similar situation as the original poster - just starting out and feeling overwhelmed by all the requirements. One question I haven't seen addressed: Do the bond requirements change if you're planning to offer additional services like bookkeeping or business consulting alongside tax preparation? I'm wondering if I need separate bonds for different services or if a comprehensive tax preparer bond covers everything. Also, for those who've been through this process - how far in advance should I get my bond before I actually start accepting clients? I want to make sure I have all my paperwork in order well before tax season begins.

Just adding more confirmation that losses in an IRA don't have the same wash sale concerns as taxable accounts. I did this exact move last tax season, selling tech in my IRA at a loss and buying similar (but not identical) ETFs in my brokerage account. My tax software didn't flag anything and my accountant confirmed it was fine. Just be careful if you're selling at a GAIN in your IRA and then repurchasing elsewhere. That's not a wash sale issue, but you'd be realizing gains inside the IRA that you don't get to offset with losses, which isn't optimal from a tax perspective.

Great question! I went through something similar with my tech holdings a few years back. The key thing to remember is that wash sale rules only apply when you're trying to claim a tax loss, but since IRA losses aren't tax-deductible anyway, you're in the clear. One thing I'd add to the excellent advice already given - when you do move those investments to your taxable account, consider whether you want to buy the exact same stocks or use this as an opportunity to diversify a bit. You could look into broader tech ETFs or even mix in some other sectors while still maintaining exposure to the companies you believe in long-term. Also, since you're 30-40 years from retirement, you might not need to swing all the way to "safe" investments in your IRA. Maybe consider a middle ground approach where you reduce risk but still maintain some growth potential. Time is still very much on your side! The silver lining with those ARKK losses is that they're giving you a valuable lesson in portfolio management relatively early in your investing journey. Better to learn these lessons now than closer to retirement.

This is why the tax system is so frustrating! I'm also a tutor and my accountant told me something completely different last year. He said I couldn't deduct equipment used for both w2 and self-employed work at all unless I kept a detailed log of hours used for each???

This is such a helpful thread! I'm in a very similar boat - started tutoring privately last year and bought way more equipment than I earned initially. One thing I learned from my research is that the IRS actually expects new businesses to have startup costs that exceed income in the first year or two. The key is showing you have a genuine profit motive and are treating it like a real business, not a hobby. For documentation, I've been keeping a simple spreadsheet tracking when I use my equipment for private tutoring vs my regular job. Nothing fancy - just dates, hours, and which type of work. It's been really helpful for calculating that business use percentage everyone mentions. Also wanted to add - don't forget about your home office deduction if you're tutoring from home! Even if it's just a corner of a room, you might be able to deduct a portion of utilities, rent, etc. Every little bit helps when you're starting out.

One more question - if I wasn't a dependent in 2023 but my dad claimed me anyway, can I file an amended return for myself? I just realized he did this last year and I probably left money on the table.

This is such a frustrating situation but you're absolutely in the right here! I went through something very similar with my parents when I was 26. The key thing to remember is that dependency status is determined by IRS rules, not house rules or family dynamics. Based on what you've described - being 28, having two jobs, and paying for all your own expenses except housing - you almost certainly don't qualify as a dependent. Even if we factor in the fair rental value of your housing (which should be calculated based on your portion of the home, not the entire house value), you're likely providing more than half of your own support. I'd suggest documenting all your expenses for the year - every grocery bill, gas receipt, phone payment, etc. This will help you calculate exactly what percentage of your total support you're providing yourself. With two steady jobs, I suspect you'll find you're well over the 50% threshold needed to be considered self-supporting. Don't let family pressure override tax law. File as independent and claim your full refund - you've earned it!