Don't forget to separate the land value when calculating depreciation! This is a common mistake. Land isn't depreciable, so you need to determine what portion of your property value is for the building only. Your county property tax assessment often breaks this down, or you can use a reasonable method to determine the split (like 80% building/20% land in many residential areas). Also, remember that anything with a useful life of less than 27.5 years (appliances, carpeting, etc.) can be depreciated on a faster schedule than the building itself. This is called component depreciation and can give you bigger deductions sooner.

I find that TurboTax actually does a decent job with rental property depreciation. It asks you questions about when you placed the property in service, the value, percentage used for rental, etc., and then automatically calculates everything, including filling out Form 4562 when needed. If you do use tax software, just make sure you have all your info ready: purchase price of the property, fair market value when converted to rental, percentage used for rental, and an estimate of land value (which isn't depreciable).

Another approach is to use the DRAFT versions of forms that the IRS posts before final versions. They're at irs.gov/draftforms. They usually post these a few months before final versions. Just remember you can't file draft forms! But you can use them to prepare and then transfer the info to the final form when released.

Thanks everyone for the helpful advice! I was definitely leaning toward just modifying the 2023 form but I'm glad I asked here first. @Jackson Carter your explanation about the forms being year-specific really cleared things up for me. I'll wait for the official 2024 version to be released rather than risk processing delays or penalties. In the meantime, I'll sign up for those IRS e-News subscriptions that @Ella rollingthunder87 mentioned - that sounds like a much better way to stay on top of when new forms are available than constantly checking the website. This community has been so much more helpful than trying to navigate the IRS website on my own!

Not to go off-topic, but what tax software do people recommend for reporting gambling? I tried using TurboTax last year and it was terrible for handling my gambling - kept wanting me to enter every single session separately which would have been hundreds of entries.

I feel your frustration completely. I've been dealing with similar issues as a poker player who travels to tournaments. The current system is absolutely backwards - you can win $10,000 in January, lose $12,000 over the rest of the year, and still owe taxes on that $10,000 "income" even though you're net negative $2,000. What really gets me is that the IRS treats gambling differently from other activities. If you're a day trader and lose money, you can deduct those losses against other income (up to $3,000 per year). But gambling losses? Only deductible against gambling winnings, and only if you itemize. I've been following the legislative side of this issue, and unfortunately Omar is right - reform isn't happening anytime soon. The revenue loss estimates kill any momentum these bills might have. The gambling industry keeps pushing for change, but Congress sees those billions in tax revenue and won't budge. My advice? Keep those meticulous records you mentioned, consider whether you might qualify for trader/professional status if your volume is high enough, and maybe look into some of the tools others have mentioned here for better organization. The system sucks, but we're stuck with it for now.

Has anyone here used specialized tax software for musicians instead of the general ones like TurboTax? I'm in a similar situation (musician + day job) and tracking mileage is just one part of what I need to figure out. Also need to handle equipment depreciation, home studio space, etc.

The advice here about Schedule C is spot-on. I've been filing as a self-employed musician for 3 years now after initially trying to figure out the QPA rules (which are basically obsolete for anyone with a day job). One thing I'd add about mileage tracking - consider using a smartphone app like MileIQ or Everlance to automatically track your drives. You can then categorize each trip as business or personal afterwards. This creates the contemporaneous log the IRS wants without having to remember to write everything down manually. Also, don't forget you can deduct other vehicle expenses beyond just mileage if you keep detailed records - things like parking fees at venues, tolls for gigs out of town, etc. Just make sure they're directly related to your music business activities. Your 8,500 miles at 58.5 cents per mile would be nearly $5,000 in deductions, so it's definitely worth getting this right. The key is showing you're operating as a business, not just a hobbyist who occasionally gets paid.

I work in tax prep and see this all the time. Code 152 is just a processing status code - nothing to worry about. However, if you want to know EXACTLY whats happening with your refund and when youll get it, use taxr.ai. Its this new AI tool that analyzes your transcript and gives you specific dates and explanations. Way more accurate than WMR or trying to decode everything yourself. Saves tons of time and stress. Only costs a buck too.

Code 152 just means they're still processing - totally normal! I had the same thing happen last year and it took about 26 days total. The bars disappearing is also super common, doesn't mean anything bad. Just means they moved your return to the next stage. As long as you haven't gotten any CP notices in the mail, you're good to go! Hang tight, refund should come soon 🤞