Great questions! I went through something similar last year when buying my home. A few additional considerations that might help: 1. **Timing the sales**: Since you're closing in mid-January, you have good control over the timing. Consider selling enough in December 2024 to stay within the 15% capital gains bracket, then complete the rest in January 2025. This could save you thousands compared to taking the full hit in one year. 2. **Estimated taxes**: Don't forget that if you realize significant gains in 2024, you may need to make an estimated tax payment by January 15th to avoid underpayment penalties. The IRS generally wants you to pay as you go, not wait until April. 3. **State taxes**: Depending on your state, there could be additional capital gains taxes to consider in your timing strategy. 4. **Cash flow timing**: Make sure you'll have enough liquid funds available for the closing after accounting for the tax withholding you should set aside from your stock sales. The margin loan interest deduction is tricky as others mentioned - the "tracing rules" mean the IRS looks at what you use the borrowed money for, not what secures the loan. Since it's for a personal residence, the interest likely won't be deductible. Definitely worth running the numbers with a tax professional before you pull the trigger on either strategy!

This is a really well-thought-out question, and the community has provided some excellent insights already! I wanted to add a few practical considerations from my experience helping clients with similar situations: **On the timing strategy**: The split approach is definitely smart given your income level. With $50k W-2 income plus $160k in capital gains each year, you'd likely stay in the 15% long-term capital gains bracket both years, versus potentially hitting the 20% bracket (plus the 3.8% NIIT) if you realize everything in one year. **Documentation tip**: If you do split the sales, make sure to keep detailed records of which specific shares you're selling when (especially if you have multiple purchase dates for the same stock). This will make tax filing much cleaner and help avoid any basis calculation headaches later. **Alternative financing consideration**: Instead of a margin loan, you might want to explore a pledged asset line of credit or securities-based lending. These products are often structured differently and may offer better rates or terms for large purchases like real estate, though the tax deductibility issue remains the same. **Closing coordination**: Work closely with your broker to ensure the stock settlement timing aligns with your closing date. T+2 settlement means you'll want to execute sales a few business days before you need the funds available. Have you spoken with your CPA or tax advisor about your specific situation yet? Given the dollar amounts involved, professional guidance could easily pay for itself in tax savings.

I went through a similar situation a few years ago and ended up switching to doing my own taxes. For someone with your tax situation (W-2 + K-1s, standard deduction), you're absolutely right that $950 is excessive, especially with the poor service you're getting. The "CPA protection" myth is exactly that - a myth. The IRS selection process for audits is largely automated and based on statistical models that flag unusual patterns or discrepancies. They don't care who prepared your return. In fact, some studies suggest that electronically filed returns (which most tax software does automatically) have slightly lower error rates than paper returns. What you should focus on instead is accuracy and proper documentation. Keep good records of all your K-1 income and any deductions you claim. The IRS audit rate for individual returns is actually quite low - around 0.4% for most income levels - and even lower for straightforward returns like yours. Given that you're already catching mistakes in your CPA's work, you're probably better equipped to prepare your own return than you think. Most tax software handles K-1s pretty well these days and will walk you through everything step by step. You'll save money and likely get better results.

I completely understand your frustration - dealing with poor service while paying premium prices is maddening. As others have mentioned, there's no special audit protection from having a CPA prepare your return. The IRS uses computer algorithms to flag returns based on statistical anomalies, not who prepared them. With your straightforward tax situation (W-2 + K-1s, standard deduction), you're paying way too much for subpar service. The fact that you're catching errors actually shows you have a good understanding of your tax situation already. One piece of advice: before making the switch, pull out your last couple years' returns and review them line by line. Make sure you understand where each number from your K-1s goes on your 1040. This will give you confidence that you can handle it yourself going forward. Most people in your situation find that modern tax software actually explains things better than their CPA ever did. The peace of mind you're seeking comes from accuracy and good record-keeping, not from paying someone else to potentially make mistakes on your behalf.

@Zoe Dimitriou - glad you figured out the letter mix-up! Just wanted to add that the 4883C process is actually pretty straightforward once you know what to do. You'll typically need to call the number on your letter with your Social Security card, driver's license, and a copy of your tax return. They'll walk you through the verification steps over the phone. It's actually faster than the online portal in most cases since you don't have to wait for additional notices. The phone reps are usually pretty helpful with 4883C cases too.

Just wanted to chime in as someone who went through this exact same confusion last year! The letter mix-up between 5071C and 4883C is super common - I did the same thing and spent forever looking for a control number that didn't exist. One thing to add to what others have mentioned: when you call the number on your 4883C letter, make sure you have your prior year tax return handy too (not just the current year). They sometimes ask questions about previous filings to verify your identity. Also, if you're calling during peak season (Jan-April), expect longer wait times but don't give up - the phone verification really is much faster than going through the mail process. The good news is once you complete the 4883C verification, your account gets flagged as resolved and you're less likely to get these notices in the future. Hope this helps!

I'm going through this exact same frustration right now! Just got rejected for the fourth time despite triple-checking everything against my EIN letter. The generic "information doesn't match IRS records" error is driving me crazy because it gives zero indication of what's actually wrong. This thread has been incredibly helpful - I had no idea there were so many potential causes for these mismatches. I'm particularly interested in the timing issue several people mentioned. My EIN was just issued 2 weeks ago, so based on what others have shared, I should probably wait another 2-4 weeks before trying again to let it fully propagate through all IRS systems. The business name formatting variations also make a lot of sense. I'm going to try removing "LLC" from my business name and testing different punctuation when I apply again. It's frustrating that such minor formatting differences can cause complete rejections, but at least now I have specific things to test instead of just guessing. Has anyone had success with the IRS e-services chat function, or is the phone call to the e-help desk really the only way to get human assistance with these validation issues? I'm trying to decide if it's worth waiting in the phone queue or if there are other support channels that might be helpful. Thanks to everyone sharing their experiences here - this is way more useful than any official IRS documentation I've found!

I've been dealing with this exact same EFIN rejection issue and want to add another potential cause that hasn't been mentioned yet - special characters in your responsible party information. I spent weeks trying different business name formats and address variations, but it turned out the problem was with my responsible party's name. I have a hyphenated last name (Smith-Johnson), and the EFIN system was rejecting it even though that's exactly how it appears on my EIN letter and all my tax documents. What finally worked was entering my name without the hyphen, just as "Smith Johnson" with a space instead. The IRS agent I eventually reached explained that some of their older validation systems don't handle hyphens, apostrophes, or other special characters consistently across all databases. This might seem like a minor thing, but if you have any special characters in your name, business name, or address (hyphens, apostrophes, periods, etc.), try variations with and without them. It's another formatting quirk that can cause these frustrating rejections even when everything looks correct on your documents. Hope this helps someone else avoid the weeks of trial and error I went through!

This is such a frustrating situation that so many remote workers are dealing with! I went through the same thing last year when my company suddenly decided that working from home 3 days a week meant I couldn't claim mileage for client visits anymore. What really helped me was putting together a clear timeline showing that my home office arrangement was officially established by my employer, not just something I decided on my own. I included emails where my manager confirmed my hybrid schedule, any home office equipment they provided, and documentation of the regular work I do from home. The IRS is pretty clear that if your employer has established your home as a regular work location (which yours has by officially allowing you to work remotely 3 days a week), then travel from there to temporary work locations like client sites is business mileage, not commuting. The key word is "temporary" - if you're visiting different client sites rather than going to the same location every day, that strengthens your case. I'd suggest creating a simple presentation for your boss showing: 1) Your official remote work arrangement, 2) The varying client locations you visit, 3) The relevant IRS guidance on home-based workplaces. Sometimes employers just need to see it laid out clearly to understand they're interpreting the rules incorrectly.

This thread has been incredibly helpful! I'm dealing with the exact same issue where my employer is claiming that since I work from home, any travel to client sites is considered "commuting" and not reimbursable. One thing I wanted to add that might help others - I found that documenting the *business necessity* of each client visit really strengthened my case. I started keeping a log that included not just the mileage and destination, but also the specific business purpose (client meeting, project site visit, equipment delivery, etc.) and who requested/approved each visit. When I presented this to HR along with the IRS guidance that others have mentioned, it became much harder for them to argue that these were personal commuting expenses. The documentation showed that these weren't routine trips to a fixed workplace, but legitimate business travel to serve different clients at varying locations. I think the key is showing that your situation fits the IRS definition of travel between work locations rather than home-to-office commuting. The more specific you can be about the business nature of each trip, the stronger your case becomes.