My family did something similar last year and we learned that whoever pays the expenses is generally who gets the tax benefits. So if your parents still pay the property taxes and mortgage, they can claim those deductions. But the ownership for other purposes is split between life tenant (parents) and remainderman (you). The tricky part comes with calculating the actual value of each interest. The IRS has specific tables for this based on your parents' ages. Its super weird because technically you own a "future interest" that has a specific calculable value right now.

This is a really common estate planning setup, and you're smart to get clarity on the tax implications now! From what you've described, your parents retain most of the tax benefits while they're alive since they have the life estate. Generally speaking, your parents would continue to pay and deduct the property taxes and mortgage interest since they're the ones living there and making those payments. The life estate gives them the right to exclusive use of the property, which typically comes with the responsibility (and tax benefits) of maintaining it. You technically own the "remainder interest" right now, but it won't become active ownership until after your parents pass away. The good news is that when that time comes, you should receive a stepped-up basis to the fair market value, which can save significantly on capital gains taxes if you ever sell. One thing to double-check - make sure your parents filed any required gift tax forms when they created this arrangement, since transferring the remainder interest to you could be considered a gift depending on the property's value and your parents' ages. The IRS has specific actuarial tables to calculate this. Worth having a tax professional review the documents to make sure everything was handled correctly from the start!

Has anyone dealt with filing a tax return for a 4-year-old? Like what tax software even allows this? I'm trying to help my sister with her kid's acting income and we're confused about the logistics.

Just wanted to add my experience as someone who went through this exact situation! My 5-year-old son earned about $35k from a recurring role on a kids' show last year, and I was initially panicked about the tax implications. The good news is that you can absolutely still claim her as a dependent - the income threshold that disqualifies dependents only applies to "qualifying relatives" (like adult children or other family members), not "qualifying children" under 19. Since she's your 4-year-old daughter living with you, she meets the qualifying child test regardless of her income. A few practical tips from our experience: 1. Keep detailed records of ALL her work-related expenses - acting classes, headshots, travel to sets, etc. Many of these can be deducted on her return. 2. The "kiddie tax" rules might apply to any unearned income she has (like interest from her earnings), but her acting income is earned income and taxed normally. 3. Make sure to set aside money for estimated taxes if she'll have similar earnings next year - child actors often don't have enough withheld. Also, definitely look into your state's Coogan Law requirements if applicable. We had to set up a blocked trust account for 15% of his earnings here in California. It's actually a good thing long-term since it ensures she'll have money saved for when she's older!

Question for anybody who's filed Form 8828 before... Does turbtax handle this form correctly? I tried putting in my info and it's calculating a really high recapture amount that doesn't seem right based on what I've read.

Based on your situation, you're absolutely in the clear! Since you owned your home for 11+ years after getting your MCC in 2013, you're well past the 9-year recapture period. The recapture tax under Form 8828 only applies to homes sold within 9 years of receiving the mortgage credit certificate. You don't need to file Form 8828 at all, and you don't need to worry about any recapture tax liability. The 9-year timeline you mentioned is exactly right - it's designed to protect homeowners who stay in their homes long-term, which is exactly what you did. Just to put your mind at ease: even if you hypothetically needed to file the form (which you don't), married couples filing jointly would only need to submit one Form 8828, not separate forms for each spouse. But again, since you're past the 9-year mark, this is all academic for your situation. Congratulations on being a long-term homeowner - the MCC program worked exactly as intended in your case!

Has anyone calculated how much time they're losing on this? I've spent exactly 3.5 hours over 2 days trying to access my transcripts. Need them to verify my $4,750 refund status. Called IRS exactly 8 times with average wait time of 47 minutes before disconnecting. This is costing people real money in wasted time.

I'm experiencing the same issue! Been trying to access my transcripts since yesterday morning for a loan application and keep getting timed out. This is really concerning since I have a deadline coming up. Has anyone tried using the mobile app instead of the website? Sometimes different platforms have different server loads. Also wondering if there's an official IRS Twitter account or status page where they post about these outages?

Have you considered a Cash Balance plan? With your income level, it might be worth looking into. It's a type of defined benefit plan that could allow you to contribute significantly more than a Solo 401k, especially if you're a bit older and trying to catch up on retirement savings.

Speaking from experience as a self-employed photographer with similar income - don't overlook a backdoor Roth IRA in addition to whatever main retirement plan you choose. I max out my Solo 401k first but also do the backdoor Roth for that tax-free growth. The contribution is small compared to what you can put in a Solo 401k but the long-term tax benefits are huge.