Do you know if property management time counts toward the 750 hours? I spend about 10 hours a week managing our rentals, but I'm not sure if that's enough to qualify.

Yes, property management time absolutely counts toward the 750 hours requirement, so your 10 hours weekly would give you about 520 hours annually. However, that alone wouldn't reach the 750-hour threshold. The bigger issue is that you also need to spend more than half your total working time on real estate activities to qualify as a real estate professional. So if you have a full-time job outside of real estate (say 2,000 hours/year), your 520 hours of property management wouldn't meet the "more than half" test. This is why it's often easier for one spouse to qualify if they're primarily focused on real estate activities.

How do you determine the split between land and building value for depreciation purposes? My county tax assessment breaks it down, but I've heard that's not always the best method.

We made that election last year. It was definitely worthwhile for our German subsidiary where the effective tax rate was about 28%. Essentially allowed us to exclude that income entirely from GILTI calculations. But there's a caveat - you have to make the election for ALL your CFCs, so your Malaysian income would still be subject to GILTI if its effective rate is below the threshold. The calculations get super complex because you have to determine the effective foreign tax rate at the tested unit level. Worth talking to a specialist who's done this before.

Thanks for sharing your experience! That's really helpful to know about having to make the election for all CFCs. I hadn't realized that limitation. Do you know what the current threshold is for the high-tax exclusion? Is it still around 18.9% effective foreign tax rate? I need to calculate what our effective rates are for each country to see if this makes sense for us overall.

GILTI itself doesn't have industry-specific rules, but it definitely hits tech and software companies harder because of how it targets returns on intangible assets. Since your business model is centered around IP, you'll likely have a higher GILTI inclusion than businesses with lots of foreign tangible assets (like manufacturing). The qualified business asset investment (QBAI) exemption that reduces GILTI only applies to tangible assets, not IP assets. That's why many software companies get hit particularly hard - they have high foreign income but low tangible asset bases offshore.

Thanks for the insider perspective! So would you recommend I just go with my simplified approach for this year since I'm claiming less of a loss than I'm entitled to? Or should I spend the extra money to have everything properly documented transaction by transaction?

If you're claiming less of a loss than you're entitled to, from a practical risk perspective, you're unlikely to face issues. However, from a compliance standpoint, you should report transactions accurately. My recommendation would be to consider using specialized crypto tax software that can handle the volume of transactions correctly rather than manually simplifying. It would give you proper documentation if questions ever arise, and you'd get your full allowable loss. The peace of mind is often worth the investment, especially if you continue crypto trading in future years.

This! It's like getting pulled over by a cop even when you're not speeding. Your heart still races because you start second-guessing everything. "Did I signal that lane change? Is my registration current? Is there a taillight out I don't know about?

Thanks for the tip about FreeTaxUSA! Did it handle the scholarship question well? That's my biggest concern - making sure we properly categorize what's taxable vs. non-taxable.

FreeTaxUSA handled the scholarship situation really well. It specifically asks whether scholarship money was used for qualified expenses (tuition, books, required fees) versus non-qualified expenses (room and board, living expenses). It also provided clear explanations about which portions of scholarships are taxable and which aren't, something TurboTax didn't explain as clearly in my experience. The program walks you through it step by step and even has a help section specifically addressing graduate student scholarships and fellowships.

What about tax credits that weren't available before? I heard the income thresholds change when filing jointly and you might qualify for different credits?

Thank you for bringing this up! I'm actually using some of the money for education expenses this semester. How exactly do I document that to avoid the penalty on that portion?

For qualified education expenses, keep detailed records of all tuition, required fees, books, and required supplies paid during the tax year. The expenses must be for yourself, your spouse, or your dependents at an eligible educational institution. You'll use Form 5329 to report the early distribution and claim the exception. On line 2 of the form, you'll enter exception code "08" and the amount that qualifies for the education expense exception. This amount won't be subject to the 10% penalty, though it will still be taxable income if it's coming from earnings in your Roth IRA.

Fidelity let me do 45% last year when I needed to. I've heard TD Ameritrade caps at 50%. Probably worth calling your specific custodian to ask before counting on the 90% withholding strategy.