Has anyone actually had their passive losses audited? I've been carrying forward suspended passive losses for years (about $22k now) but honestly I'm not sure if I've been tracking them correctly between my different rental properties.

The interaction between passive losses and capital gains can be tricky, but you're on the right track with your understanding. Here's what I've learned from dealing with similar situations: For your capital gain netting question - yes, you can absolutely net your $195K passive capital gain against your $182K crypto losses. The IRS doesn't distinguish between passive and active sources when it comes to capital gain/loss netting. You'll end up with a $13K net capital gain. Regarding your passive losses, since you're disposing of a rental property with an overall gain, this triggers the "complete disposition" rule that allows you to free up your suspended passive losses. You should be able to deduct both your current year $52K passive losses and your $78K suspended losses (total $130K) against any type of income, not just passive income. One thing to watch out for - make sure you're properly documenting which specific property generated those suspended losses. The IRS can be picky about this during audits. Also, don't forget that the $105K depreciation recapture portion will be taxed differently (at 25% max rate) than the remaining capital gain portion. I'd strongly recommend getting this reviewed by a tax professional given the complexity and the dollar amounts involved. These passive activity rules have so many nuances that even small mistakes can be costly.

I just want to thank everyone who contributed to this thread - it's been incredibly helpful! I was in the exact same boat with my daughter's Coverdell ESA and her commuter college situation. Based on all the advice here, I called the financial aid office this morning and got their official Cost of Attendance breakdown. They confirmed that for off-campus students, they budget $9,800 for housing and $4,200 for food/meals per academic year. This gives me clear guidelines for what I can withdraw from the Coverdell ESA. The financial aid counselor also mentioned that many parents don't realize they can use these funds for off-campus housing when there are no dorms available. She said as long as we stay within their published figures and keep good records, we should be fine. One tip she gave me: save a copy of the Cost of Attendance document with the date you accessed it, since schools sometimes update these figures mid-year. This way you have proof of what the official allowances were when you made your withdrawals.

Great question about monthly variations in expenses! I actually asked the financial aid counselor about this exact issue since our utilities can swing pretty dramatically between summer and winter months. She explained that the IRS looks at your total annual withdrawals versus the school's annual allowances - they don't expect you to match exactly month by month. So if you have a high electric bill in January due to heating costs but a lower bill in April, that's perfectly normal and acceptable. The key is keeping your total annual room and board withdrawals within the school's published figures ($9,800 + $4,200 = $14,000 in our case). She recommended setting up a simple spreadsheet to track monthly expenses and running totals throughout the year, which helps you stay on budget and provides great documentation. One thing she warned about: don't try to "catch up" by withdrawing extra in December if you've been under-budget all year, since that could look suspicious. It's better to withdraw based on actual expenses as they occur, even if some months are higher or lower than others. The flexibility is definitely there as long as you're reasonable and well-documented!

As a newcomer to this community, I wanted to share my recent experience that mirrors what many others have described here! My aunt gave me $11,500 last year to help with some unexpected medical bills, and I went through the exact same worry cycle about tax implications. Reading through all these responses has been incredibly validating - what felt like a unique and scary situation to me is actually one of the most common family financial scenarios. The gift tax rules really are designed to make these normal family support situations simple and tax-free. What helped me the most was realizing that the $18,000 annual exclusion gives families substantial room to help each other without any tax complications. Your $13,500 from your mom is comfortably within that safe zone, so you can truly put those tax worries to rest. I also followed the documentation advice that several people mentioned - kept screenshots of the transfers and a simple text exchange with my aunt confirming it was a gift for medical expenses. While not legally required, having that clear paper trail eliminated any lingering anxiety I had about the situation. It's wonderful to see how supportive and knowledgeable this community is for newcomers dealing with these confusing tax questions. Between all the real-world examples people have shared, I now understand that family financial support is not only normal but also very well-protected under current tax laws. Your mom's help with your down payment is exactly the kind of family generosity these rules were designed to accommodate!

As a newcomer to this community, I wanted to add my voice to this incredibly helpful discussion! I'm currently in a similar situation where my parents are planning to help me with some debt consolidation, and reading through everyone's experiences has been so educational and reassuring. What I find most comforting is seeing how consistent everyone's advice has been - family gifts under the annual exclusion limit are straightforward and tax-free for the recipient. The $18,000 threshold for 2025 really does provide families with substantial flexibility to support each other during major financial needs without creating tax complications. I particularly appreciate all the practical documentation advice that's been shared throughout this thread. The approach of keeping transfer records and simple written confirmations from the gift giver seems like a perfect balance - thorough enough to provide peace of mind without being overly formal or complicated. One thing that really stands out to me is how this discussion has highlighted just how common these family financial support situations are. Between down payments, medical expenses, education costs, weddings, and debt help, it's clear that families regularly assist each other with significant expenses, and the tax code is designed to accommodate these normal relationships. Your mom's generosity in helping with your down payment is wonderful, and you can definitely move forward with confidence knowing the tax implications are completely manageable. Thanks to everyone for making this such a welcoming and informative community for newcomers navigating these questions!

One thing I haven't seen mentioned yet is the importance of timing if you decide to go the gift route. Since you mentioned doing this next month, make sure to complete the transfer and get all documentation signed before the end of the calendar year. This way there's no confusion about which year's gift tax exclusion amount applies. Also, since you're transferring from Nevada to Arizona, your brother should call the Arizona MVD ahead of time to confirm exactly what documentation they'll need. Some offices are stricter than others about the gift affidavit requirements, and it would suck for him to make the trip only to find out he's missing a specific form or notarization. From a practical standpoint, I've found that having a written statement explaining the family relationship (like "gift from brother to brother") along with the official paperwork can help smooth the process at the DMV. It's not required, but clerks appreciate when everything is crystal clear, especially for out-of-state transfers.

Just want to add a practical consideration that might help with your decision - documentation and record-keeping requirements can vary significantly between gift and sale scenarios, especially across state lines. If you gift the vehicle, you'll want to be extra careful about documenting the fair market value at the time of transfer. This becomes important not just for potential future IRS questions, but also for insurance purposes if your brother ever needs to file a claim. Insurance companies sometimes question the stated value of gifted vehicles, so having solid documentation (like multiple valuation sources - KBB, Edmunds, maybe even a dealer appraisal) can save headaches later. On the flip side, if you sell it at the discounted price of $8,000, the sale price creates a clear paper trail, but you'll still need to document that it was an arm's length transaction between family members to justify the below-market pricing. Given all the excellent advice in this thread about Arizona's family transfer exemptions and the relatively straightforward gift process when under the annual exclusion amount, gifting seems like your best bet. Just make sure both you and your brother keep copies of all documentation - the signed title, gift affidavit, valuation evidence, and any correspondence with the DMVs. Good record-keeping now can prevent bigger problems down the road.

I'm dealing with this exact same situation and it's absolutely infuriating! Filed my amended return in late February to add some missing contractor payments I received, and here we are 5+ months later with nothing but that useless "received" status on their tracking tool. What really bothers me is the complete lack of accountability - if we filed late or made mistakes, we'd face penalties and interest charges, but when the IRS takes literally 3-4 times longer than their own estimates, there are zero consequences for them. I'm actually owed a refund from my amendment too, so they're essentially holding my money hostage with no timeline or communication whatsoever. I've called that amended return hotline probably 12 times and either get disconnected after an hour on hold or can't even get into the queue. The whole system feels designed to make us give up and just accept the delay. Based on everyone's success stories here, I'm definitely going to contact my congressman's office next week. It's completely ridiculous that we need political intervention just to get basic customer service from the IRS, but if that's what it takes to get actual information about my return, then so be it. Thanks for all the helpful advice and strategies - at least now I know there might be a way forward!

I've been following this thread and wanted to share my own experience since it mirrors what so many of you are going through. Filed my amended return in March to correct some HSA contribution reporting errors, and I'm now at the 4+ month mark with zero progress beyond "received" status. What's particularly frustrating is that this was a relatively straightforward correction - I had over-reported my HSA contributions initially, so the amendment actually reduces my tax liability and increases my refund. Yet somehow this simple math correction requires months of "manual review" while regular returns get processed automatically in weeks. The complete lack of transparency is what drives me crazy the most. At least when you're waiting for customer service with a private company, you usually get some kind of queue position or estimated wait time. With the IRS, it's just radio silence until one day (hopefully) it magically appears as "completed." I'm definitely going to try the congressional office approach based on all the success stories shared here. It's absolutely backwards that we need our elected representatives to intervene just to get basic information about our own tax returns, but if that's the only way to break through this bureaucratic wall, then that's what we have to do. Thanks everyone for sharing your experiences - it helps to know we're all in this together!