5 If OP did have to file though, would the loss on Bitcoin be deductible against other income? Or do you have to have gains to report crypto stuff?

13 Capital losses (including from crypto) can be deducted against capital gains, and up to $3,000 can be deducted against regular income. In OP's case, the loss is so small (only a few cents) that it wouldn't make a meaningful difference on a tax return. Even if OP had other income that required filing, reporting a 7-cent loss wouldn't result in any tax benefit worth pursuing. If the amount was larger (say, $100+), then it might be worth reporting to offset other income.

21 The age doesn't change the tax rules, but if you're claimed as a dependent on your parents' tax return (which many 18-year-olds are), there are different filing thresholds. For dependents with unearned income (which includes crypto gains), you're required to file if that unearned income exceeds $1,150. In OP's case, there was a loss, not a gain, so it doesn't trigger any filing requirement regardless of dependent status.

How exactly do you track this stuff? Like if I sold some Tesla at a loss in December but then bought some again in January, do I have to manually figure out the wash sale or will my brokerage statement show it? This whole capital loss thing is making my head spin.

Most brokerages will track wash sales for you on your 1099-B forms and year-end tax statements. They'll have a column that shows "Wash Sale Loss Disallowed" or something similar. However, they only track wash sales within the same brokerage account - they won't know if you sold in one account and bought in another, or if your spouse bought the same security in their account. If you're doing your taxes with software like TurboTax or H&R Block, they'll usually flag potential wash sales when you enter your trading information. But it's always good to review your brokerage statements carefully and look for those wash sale notations, especially if you're an active trader or if you're trading the same securities across multiple accounts.

Great point! I just want to add that this is why tax software can sometimes get this wrong. It gets complicated fast when you have multiple types of gains and losses from different years. My tax guy showed me how one year I had long-term losses but short-term gains the next year, and the software didn't optimize how they offset each other. Had to manually override it which saved me almost $900.

14 Wait, we don't have a legal right to benefits even though we're forced to pay into the system? That seems completely unfair! How is that constitutional?

5 The court essentially ruled that Social Security is a social program, not a contract, and Congress retains the right to alter, amend, or repeal any provision of the Social Security Act. The case specifically involved a person who was denied benefits after being deported for being a member of the Communist party. While it might seem unfair, the constitutional basis is that Congress has broad powers to tax and spend for the general welfare. The FICA tax is considered a valid exercise of this power, and benefits are authorized spending programs that can be modified. This is different from private contracts or property rights that have stronger constitutional protections.

17 This is why I'm always confused when younger people say they're planning as if Social Security won't exist. Even if it faces funding challenges, some version of it will almost certainly continue. The political consequences of eliminating it would be too severe.

Thanks, that's really helpful! Actually, my dad has been meticulous about keeping records. He's got the original purchase documents from when he bought it, plus receipts for clearing some areas, putting in a gravel access road, and installing some drainage systems. Would all of those count as improvements to the property?

Yes, all of those would likely qualify as capital improvements that increase your basis! Clearing land, access roads, and drainage systems are classic examples of improvements that add to your cost basis because they're not regular maintenance but actual improvements to the property. Make sure you have those receipts organized and ready to provide if needed. The higher your documented basis, the less capital gain you'll have to report. This is exactly why keeping good records is so important with investment properties.

I thought capital gains on real estate was always 15% regardless of income? Is that not the case?

I actually moved in with him about 18 months ago to help take care of him before he passed. So I wouldn't qualify for that 2-year requirement yet. Do you know if I'd need to live there longer to get that exclusion? Or does the clock reset when I inherited it?

The clock doesn't reset upon inheritance - it's based on your actual residency. So if you've already lived there for 18 months, you'd need to stay another 6 months to hit the 2-year requirement. That could save you a lot if the house appreciates beyond your stepped-up basis. Also keep in mind that you'd need to claim it as your primary residence, not just occasionally staying there. But it sounds like you've already been using it as your main home, so that part should be covered.

We used a certified appraisal dated within 30 days of my mom's passing. Cost about $500 but worth every penny for documentation. I also kept comps from similar homes that sold in the neighborhood around the same time as backup evidence.