One thing to consider is that MTM doesn't just eliminate long-term capital gains treatment - it also affects wash sale rules. With MTM, wash sale restrictions don't apply to you anymore, which can be a huge advantage for active traders who frequently trade the same securities. Last year, I had significant losses that were disallowed due to wash sales. If I had MTM status, I could have claimed all those losses immediately. Just something else to factor into your decision.

As someone who went through the MTM election process last year, I want to emphasize how important it is to get professional guidance on this decision. The tax implications are complex and can significantly impact your overall tax liability. One critical point that hasn't been fully addressed - if you're considering MTM for 2025, you need to make that election by the due date of your 2024 tax return (including extensions). You can't just decide mid-year in 2025 that you want MTM treatment. Also, regarding your NVDA shares - the previous comment about them being "marked to market" at year-end 2024 is correct. Any unrealized gains on December 31, 2024 would be treated as if you sold and repurchased them on January 1, 2025. This is called the "deemed sale" rule. For your specific situation with substantial NVDA gains, I'd strongly recommend running the numbers both ways - selling in 2024 to lock in long-term capital gains treatment versus keeping them and having them converted to ordinary income under MTM. The difference in tax rates (0%, 15%, or 20% for long-term capital gains versus up to 37% for ordinary income) could be substantial depending on your income level. The entity structure option (LLC/S-Corp) is possible but adds complexity and costs. You'd need to ensure proper business purpose and substance, maintain separate books and records, and the entity would need to qualify for trader status independently.

The IRS is so backed up rn its not even funny. My friend works there and says they're still processing returns from last summer 😬

Ugh, I feel your pain! Been dealing with a similar 810 freeze since April and it's absolutely maddening. The fact that your transcript shows everything processed correctly but they're still holding onto $6,541 is just cruel. At least you got the in-person verification done - I'm still waiting for my appointment. Have you tried reaching out to your congressperson's office? I know it sounds extreme but sometimes they can light a fire under the IRS when normal channels aren't working. The taxpayer advocate service might also be worth a shot since you're going on almost a year now 😤

Has anybody used TurboTax to handle this kind of mixed-use property situation? I'm wondering if it can correctly track the suspended passive losses from year to year when a property changes from full rental to mixed-use...

I want to add another important consideration that hasn't been mentioned yet - the short-term rental classification could actually work in your favor for future years. Since you mentioned most rentals will be weekend getaways averaging less than 7 days, this income would be classified as non-passive under IRC Section 469(c)(7) if you provide substantial services. If you're actively managing the property (cleaning, maintenance, guest services, etc.) and the average rental period is 7 days or less, the rental income becomes ordinary business income rather than passive rental income. This means you could potentially use those suspended passive losses from last year against OTHER passive income sources, while treating your current short-term rental as active business income. However, this creates a mixed situation where your prior losses remain passive (from when it was traditional rental) while current income is active - so they still can't offset each other. But it might open up better deduction opportunities for current year expenses and depreciation since you'd be treated as actively engaged in the rental business. Worth discussing with a tax professional who understands both passive activity rules AND short-term rental classifications!

Don't feel bad about being anxious! I messed this up my first time filing with daycare expenses and accidentally put down my employer's EIN instead of the daycare's lol. The IRS sent me a polite letter asking for the correct information. One tip: when you call, just say "Hi, I'm doing my taxes and need your tax ID number for the childcare tax credit." Every daycare knows exactly what you're asking for with that wording!

Just wanted to add that if you're really nervous about making the call, you can also visit the daycare in person during pickup/dropoff and ask at the front desk. Sometimes it's easier to have this conversation face-to-face, and they might even have a printed sheet with their tax information ready to go since this is such a common request during tax season. Also, don't worry about sounding clueless - childcare providers get asked for their EIN dozens of times every year between January and April. It's literally one of the most routine requests they handle! Most places are super understanding and will have the information ready to share immediately. If for some reason they don't have it handy, they might ask you to email them as a reminder, which actually works out great since you'll have the information in writing for your records.

Code 810 is definitely frustrating but you're not alone! I went through this last year and it took about 10 weeks to resolve. The key thing is to NOT panic - the IRS will eventually process your return. In the meantime, make sure to check your mail daily for any correspondence and keep checking your transcript for updates. The good news is that once it moves, you'll usually see your refund within a week or two. Hang in there! 💪

I feel your pain! Been dealing with a 810 code for about 8 weeks now and it's incredibly stressful when you're counting on that refund. From what I've learned lurking in these forums, the 810 freeze is basically the IRS saying "hold up, we need to double-check something" - could be anything from verifying your identity to matching up your income with what employers reported. The waiting is the worst part because you can't really do much to speed it up. Just keep checking your transcript weekly for any changes and definitely respond immediately if you get any mail from them. I've heard some people say calling helps but honestly most folks here say the phone reps just tell you to wait it out. Stay strong! 🙏