That doesn't sound right. I've been reading that rental property can qualify for QBI as long as I meet the 250 hour test, even if I have another job. Could someone clarify this? Now I'm confused about whether I'm eligible at all.

There's some confusion here. There are actually two separate tests: one for being a "real estate professional" (which affects whether rental losses can offset other income) and one for the "safe harbor" for rental income to qualify for QBI. For QBI purposes, the IRS created a safe harbor where if you can document 250+ hours of "rental services" per year on a property (or group of properties), that rental activity can qualify as a "trade or business" eligible for QBI. This is true even if you don't meet the stricter real estate professional test. The 250 hours can include management, maintenance, repairs, collecting rent, etc. So yes, you can potentially claim QBI on rental income even with another job, as long as you meet the 250 hour requirement for your rental activities specifically.

That's a great idea. I actually do have some photos of the damage and after the repairs. Did you organize them in any specific way for your audit? Did they ask for anything else besides the photos?

I created a simple document with before/after photos side by side, each labeled with the date and a brief description of the work performed. Under each photo set, I noted how many hours I spent on that specific repair and any materials purchased. They also asked for my activity log (which matched the photo document), bank statements showing material purchases, and communications with tenants about the repairs/issues. Having text messages where tenants reported problems and my responses about fixing them was surprisingly helpful as supporting evidence. The auditor seemed most impressed with the thoroughness and consistency across all the documentation rather than any single piece.

Do you know if the father claiming them before will cause problems even if he never had the legal right to do so? My cousin let her parents claim her kid but now she wants to claim him herself.

If the grandfather claimed the children in previous years without having the legal right to do so (meaning without meeting the dependency tests or having proper documentation), then yes, it could potentially cause some questions when your cousin claims her own child. However, this doesn't mean she shouldn't claim her own child if she's legally entitled to. The IRS might send notices asking for clarification if they see a pattern change, but if your cousin is the custodial parent and meets all the tests for claiming her child, she should be able to claim them without issue. She should just be prepared to provide documentation showing that the child lives with her if asked. This could include school records, medical records, or other official documents showing the child's residence.

I used TurboTax last year for a somewhat similar situation with my girlfriend's kids. The key is to answer their questions literally and not overthink it. When they ask if someone "can" claim you as a dependent, that's a legal question about whether anyone meets the tests to claim you, not whether someone actually will claim you. Make sure to go through their special situations section too if your standard living arrangement doesn't fit their initial questions. It gets more detailed there.

Theres also something called a "tie-breaker" rule in most tax treaties that helps determine which country gets primary taxing rights when both claim you. Usually comes down to where you have stronger personal connections, permanent home, etc.

You're absolutely right about the tie-breaker rules. They're crucial in these situations. Most treaties follow a hierarchy of tests: permanent home first, then center of vital interests (personal/economic connections), then habitual abode, and finally nationality. For a company, the tie-breaker often comes down to where the effective management is located - which in the original poster's case would likely be New Zealand since that's where the actual decision-makers are physically located, regardless of where the company is registered.

How much does an international tax accountant usually cost? I'm in a similar boat with income from three different countries and I'm terrified of getting it wrong, but also worried about the cost.

Thanks for sharing your real-world experience! Do you track your inventory of supplies at all, or just expense them as you buy them throughout the year? My wife sometimes buys in bulk when there are deals.

I just expense supplies as I purchase them throughout the year, even when buying in bulk. Unless you're selling these products retail (which would make them inventory), supplies used in services are considered consumed when purchased for tax purposes. When my salon buys in bulk during sales, I still deduct it all in that tax year. The IRS understands this is normal business practice. Just keep your receipts organized in case of an audit, but don't overthink the timing of the deduction. This approach has worked for me for over 15 years without any issues.

What about things that fall into a gray area? Like those expensive brushes that last a few years but eventually wear out? Or the salon capes that might last 1-2 years? I'm never sure if those should be supplies or de minimis items.

How do you track stuff that you've held for years across multiple platforms? I've got some stocks I originally bought in 2018 on Robinhood, transferred to Fidelity in 2021, and then sold this year. No idea how to verify the correct cost basis with all those moves.

You need to keep your original purchase confirmations and transfer documentation. Any time you transfer assets between brokerages, print or save PDF copies of your statements showing the cost basis information before the transfer happens. For your specific situation, log into your old Robinhood account and download your account statements from 2018 that show the original purchase prices. Even if you've closed the account, you should still have access to your tax documents for several years. Then compare those original costs with what Fidelity is reporting on your 1099-B this year. If there's a discrepancy, you'll need to manually correct it on Form 8949 when filing your taxes.

Thanks for the real-world example! Did the IRS ever question any of your trades or ask for more documentation? I'm worried about audit risk with so many transactions.