Something important that hasn't been mentioned yet - you need to check the TRUST DOCUMENT itself. Many irrevocable trusts have specific provisions about how trust assets should be managed, and some even explicitly address whether properties should be income-producing. As trustee, you're bound by the terms of the trust. If the document says the properties should be maintained for eventual use by beneficiaries, you might be violating your duties by trying to rent them out. Conversely, if it says assets should be managed to produce income, you could be in breach by leaving them vacant. This isn't just a tax question - it's a fiduciary responsibility question. I'd strongly recommend having an attorney who specializes in trust administration review the document before making any decisions about tax treatment.

Be really careful here! I tried something similar with my family trust properties and got audited. The IRS agent specifically focused on whether I had a genuine profit motive or was just trying to create tax losses. What saved me was having documentation showing: 1) Multiple attempts to rent the properties (saved emails with real estate agents, copies of listings) 2) Competitive market analysis showing reasonable rent expectations 3) Records of property improvements specifically aimed at making them rentable 4) A written business plan showing projected income and expenses Without these, I would have been toast. The agent told me they see lots of trustees trying to claim "ghost" rental properties that are really just sitting empty with no real attempt to rent them.

I just want to point out that intentionally breaking up deposits to avoid reporting requirements (called "structuring") is actually illegal, even if the money is 100% legitimate. I've seen people mention this but want to emphasize it - depositing the full $4k at once is actually LESS suspicious than doing 4 separate $1k deposits.

I'm sorry for your loss. As others have mentioned, $4,000 is well below the $10,000 threshold for mandatory bank reporting to the IRS, so you should be fine depositing it all at once. One thing I'd add that might help ease your mind - keep a simple written record of what this money was for. Something like "Cash inheritance from Uncle [Name] - designated for funeral expenses, deposited [date] to pay credit card used for funeral costs." This isn't required for the bank, but it's good practice for your own records in case you ever need to reference it later. Also, while this cash won't trigger any IRS reporting, remember that inheritance itself generally isn't taxable income to you as the recipient - it's the estate that would handle any tax obligations. So even from a tax perspective, you're in the clear. Take care of yourself during this difficult time.

Before u switch make sure ur looking at the RIGHT prior year AGI. Its gotta be from the ACTUAL return u filed last year not what u put in turbotax this year

Check your 2023 tax return (the actual filed copy, not what's in TurboTax) for line 11 - that's your AGI from last year. The IRS is super picky about this matching exactly, down to the dollar. If you amended your 2023 return or there were any IRS adjustments after filing, you'd need to use the adjusted AGI amount instead. You can get your actual filed AGI from your tax transcript on the IRS website if you're not sure.

Has anyone tried just splitting the HSA contributions differently between spouses in OLT to get around this? Like instead of $4,250 and $900, maybe try entering it as $3,150 to the family HSA and $2,000 to the individual HSAs ($1,000 each)? OLT might be applying the catch-up contributions incorrectly when they're part of the family contribution, but might handle them correctly when entered as individual contributions.

I'm dealing with the exact same HSA calculation problem in OLT! My wife and I are both over 55 and had HDHP coverage for 8 months in 2024. OLT is completely ignoring our catch-up contributions and flagging legitimate contributions as excess. After reading through all these responses, I'm planning to try the redistribution approach first - entering our catch-up contributions as individual HSA contributions rather than family contributions to see if that tricks the software into calculating correctly. If that doesn't work, I'll definitely check out taxr.ai to get documentation of the correct calculation. It's frustrating that we have to work around these software bugs during tax season, but at least there seem to be several viable solutions here. Thanks everyone for sharing your experiences!

This is such a helpful thread! I've been playing social casino games for about two years and had no idea about the tax implications. I probably made around $400 last year from various apps but never thought to report it since I didn't get any tax forms. Reading through all these responses, it sounds like I need to go back and figure out exactly how much I made and report it as "Other Income" on my return. One question though - for those apps where you can only cash out to gift cards (not actual cash), does that still count as taxable income? I have probably another $200-300 in various gift cards I've redeemed from gaming apps over the year. Also, if I bought coin packages but never cashed anything out from a particular game, I assume there's no income to report from that one, right? Thanks everyone for sharing your experiences - this community is so much more helpful than trying to navigate the IRS website!

This is exactly the kind of situation I dealt with last year! I was playing multiple social casino apps and had small cashouts throughout the year that totaled around $650. What really helped me was creating a simple spreadsheet to track everything - date, app name, amount cashed out, and method (PayPal, gift card, etc.). One thing I learned that might help others here: keep screenshots of your cashout confirmations if possible. Some of these apps don't keep great records on their end, and if you ever need to verify your reported income, having those screenshots can be really valuable. Also, don't forget to check smaller apps - I almost missed about $80 from a word game app that let me cash out to Amazon gift cards. For the loss deduction question, remember you can only deduct losses if you itemize, and only up to the amount of your winnings. So if you won $800 but spent $1,200 on coin packages, you can only deduct $800 in losses. Make sure the math actually works out in your favor before choosing to itemize instead of taking the standard deduction!