One thing nobody's mentioned - make sure you consider state tax implications too! Some states don't fully conform to federal treatment of Real Estate Professional status. I had a client in California who qualified federally but still had limitations at the state level. Also, if they're planning to expand their portfolio in 2025, they should start keeping track of their time spent researching properties, meeting with realtors, securing financing, etc. While these hours don't count toward 2024's 750-hour requirement, having this documentation ready for 2025 will strengthen their position going forward. Another consideration: have them create a formal business entity for their real estate activities. While not strictly necessary for Real Estate Professional status, having an LLC or other formal business structure helps establish the "trade or business" aspect rather than just being an investment activity.

Great discussion here! I want to add something that might help with the audit risk concern - documentation timing is absolutely critical. Since your client has already tracked 750+ hours, make sure those logs were created contemporaneously (at the time the work was done) rather than reconstructed later. The IRS can often tell the difference. Also, regarding the single duplex concern - I've seen successful Real Estate Professional claims with just one property when the taxpayer was doing significant rehab or dealing with high-maintenance situations. The key is demonstrating that this truly constitutes a "trade or business" rather than passive investment management. One practical tip: have your client start photographing their work as they do it, not just before/after shots. Time-stamped photos of them actually performing repairs, dealing with tenant issues, etc. can be powerful evidence if audited. And make sure they're documenting tenant interactions - phone calls, texts, emails about maintenance requests, lease renewals, etc. Since they're planning to expand, I'd also recommend they start treating this more formally as a business now - separate bank account, formal record-keeping system, maybe even business cards. This helps establish the "trade or business" nature of their activities.

I went through something very similar last year - filed early February, got the "approved" confirmation from my tax software, then weeks of "no record found" on the IRS website. It's absolutely maddening! Here's what I learned: the IRS system is basically broken in terms of communication. When they say "no record found" online but then acknowledge your return exists when you call, it usually means your return is sitting in some kind of review queue that doesn't show up in their public-facing system. A few things that might help: - Try calling the IRS again and ask specifically for your "account transcript" - sometimes different agents have access to different information - If you have any tax documents from your employer or school, double-check that all the numbers match exactly what you reported - Keep detailed records of every conversation with the IRS, including dates and what they told you The waiting is brutal, especially when you're counting on that money. But in my experience, these delays almost always resolve eventually - it's just a matter of the IRS working through their backlog. Hang in there!

I'm dealing with the exact same frustration right now! Filed through TurboTax in early February and it's been radio silence from the IRS for over a month. The "Where's My Refund" tool is completely useless - just keeps saying "still being processed" with no timeline or explanation. What's really annoying is that I know people who filed weeks after me and already got their refunds. It feels so random and unfair, especially when you're counting on that money for important expenses. I've been hesitant to call the IRS because I keep hearing horror stories about the wait times, but reading these comments makes me think I need to bite the bullet and try to get through to someone who can actually tell me what's going on. The not knowing is honestly worse than just being told there's a problem that needs to be fixed. Thanks for posting this - at least now I know I'm not the only one going through this nightmare!

Question about K-1 timing - my partnership never sends their K-1s until late March or early April! Is this normal or are they just being jerks? It gives me barely any time to file and I hate rushing with complicated forms like this.

I totally feel your pain with K-1s! They're definitely overwhelming at first. Here's what helped me get through my first partnership tax season: First, don't panic - most tax software (TurboTax, FreeTaxUSA, etc.) has a dedicated K-1 section that walks you through entering the information step by step. You don't need to figure out where everything goes manually. The key thing to understand is that a K-1 reports YOUR SHARE of the partnership's activities. So if the partnership made $100,000 and you own 10%, your K-1 will show $10,000 as your share. This flows through to your personal return on various schedules. Start with Part III of your K-1 - that's where most of the important numbers are. Common items include: - Box 1: Ordinary business income/loss (goes to Schedule E) - Box 5: Interest income (goes to Schedule B if over $1,500) - Box 6a: Ordinary dividends (goes to Schedule B) Pro tip: Keep all your K-1 paperwork together and don't throw anything away - you might need basis tracking information for future years when you sell your partnership interest. The learning curve is steep but once you do it once, subsequent years become much easier!

13 I'm probably in the minority, but I actually enjoyed reading IRS Publication 17 (the main tax guide for individuals). It's free on the IRS website and covers pretty much everything. Yes, it's dry, but if you're the type who likes to understand the actual rules rather than simplified versions, it's worth checking out.

This is such a great thread! I'm actually in a similar situation - my curiosity got the better of me and I've been diving into tax education lately. One resource I haven't seen mentioned yet is the AARP Tax-Aide program materials. Even if you're not eligible for their free tax prep services, their volunteer training materials are publicly available and really well-organized. They break down complex topics into digestible chunks. Also, if you're looking for something more interactive, TurboTax has a "Tax Knowledge Center" with articles and calculators that let you play around with different scenarios without having to sign up for their paid services. It's helpful for understanding how different life changes affect your taxes. The IRS also has a YouTube channel (who knew?) with some surprisingly helpful videos on specific topics like retirement account contributions and small business deductions. Not as polished as some of the independent creators, but the information is straight from the source. Thanks for asking this question - I'm bookmarking several of these recommendations for myself!

Don't forget to consider your tax situation too! Since you're contributing to a traditional 401k (I assume), those contributions will reduce your taxable income for this year. If you're in a higher tax bracket this year due to your full-time job earlier in the year + retirement payouts, it might be more beneficial to contribute now rather than waiting until next year when your income might be lower.

This is such a common confusion for people transitioning from government jobs! I went through the same thing when I retired from my federal position. The key thing to remember is that 457b plans are unique in that they have completely separate contribution limits from 401k/403b plans. One thing I'd add to the great advice already given - since you're only working part-time now, make sure your new employer allows you to contribute a high enough percentage to actually reach those limits. Some payroll systems have maximum percentage caps that might prevent you from contributing as much as you want with a smaller paycheck. Also, don't forget that your 457b might still be available for contributions if your former employer allows it (some do for a period after separation). But honestly, with the employer match available in your new 401k, definitely prioritize that first - it's free money that you can't get anywhere else!