I just wanted to say thank you to everyone who shared their experiences here! As someone who was completely lost about this process when I first posted, this thread has been incredibly helpful. I'm planning to make the call next week and feel so much more prepared now thanks to all the detailed advice and real experiences you've all shared. Special shoutout to everyone who mentioned the practical tips like having snacks ready for the hold time, writing down the reference number, coordinating with USPS mail forwarding, and calling outside of tax season when possible. These are the kinds of details you don't think about until someone who's been through it mentions them! It's really reassuring to hear that the IRS agents are generally helpful with this process and that it's more routine than scary. You've all definitely helped calm my nerves about making that call. I'll report back once I get it done in case my experience adds anything useful for future first-timers! 🙏

Just wanted to add my recent experience to this helpful thread! I updated my EIN address about two months ago and it went pretty smoothly. Called the 800-829-4933 number around 10 AM on a Thursday and waited about 40 minutes on hold. One tip I'd add that saved me some hassle - before calling, I logged into my IRS online account to double-check what address they currently have on file. Turns out they had a slightly different version of my old address than what I thought (they had "St" instead of "Street"), so I was able to reference the exact address format they use in their system. This helped the verification process go much faster. Also, the agent told me something interesting - if you have employees and file payroll taxes, you might need to separately update your address for payroll tax purposes too. It's a different system apparently. Just something to keep in mind if that applies to your situation! The whole process took about 15 minutes once I got through, and I received a confirmation letter at my new address about 3 weeks later. Definitely not as scary as I thought it would be!

I completely understand your anxiety about this - I've been in your exact shoes! The disconnect between USPS informed delivery and what shows up in your IRS online account is incredibly frustrating but unfortunately very normal. From my experience, there can be significant delays - sometimes 2-3 weeks - before letters appear in your online portal. The IRS has multiple processing systems that just don't sync up in real-time, which is why you're seeing this gap. The Kansas City Service Center handles a massive volume of routine correspondence - payment confirmations, processing updates, account adjustments, form acknowledgments, etc. The fact that this is coming via regular mail rather than certified is actually a good sign, as the IRS typically uses certified mail for urgent matters requiring immediate attention. I'd strongly recommend sticking to your plan to file next week. Most routine IRS correspondence doesn't impact current year filings, and if this were something that would affect your return, they would have communicated that through your online account or sent it certified mail with clear instructions. When the letter arrives (should be within a day or two), look for the notice number at the top - it'll start with "CP" or "LTR" followed by numbers. This will immediately tell you what type of correspondence it is and help you assess whether any action is needed. Try not to let the mystery derail your tax preparation. In my experience, the anticipation and worry is almost always much worse than the actual content of these letters!

I've been through this exact scenario multiple times and completely understand your anxiety! The lag between USPS informed delivery and your IRS online account is unfortunately very common - I've seen delays ranging from a few days to over a month before letters appear in the online portal. Kansas City Service Center sends out tons of routine correspondence that looks much scarier than it actually is. In my experience, they handle things like payment acknowledgments, return processing confirmations, account balance updates, or acknowledgments of previously submitted forms. The fact that it's regular mail (not certified) is actually reassuring - the IRS reserves certified mail for urgent matters with strict deadlines. Regular mail is typically just informational or routine administrative updates. I'd definitely stick with your plan to file next week unless the letter specifically instructs otherwise. Most routine correspondence from KSCS doesn't impact current year filings, and if it did, they would have flagged your online account or sent certified mail with clear guidance. When it arrives, look for the notice number at the top (CP### or LTR####) - this will immediately tell you what type of correspondence it is. Most of these letters are straightforward once you read them; it's the waiting and speculation that's torture! Try not to let this mystery derail your tax prep. The anticipation is almost always worse than the actual content. You'll have your answer within a day or two!

Something nobody's mentioned yet - don't forget that when you eventually sell the rental property, all that mortgage interest you've been deducting on Schedule E will affect your depreciation recapture and capital gains calculations! The fact that you're deducting it as a business expense means you're reducing your basis in the property over time.

This is a great discussion that really clarifies the mortgage interest deduction rules! As someone who's been dealing with similar questions, I want to emphasize how important it is to keep detailed records of all your mortgage payments and property expenses. One thing I'd add is that if you're doing any improvements to either property, make sure you're tracking those separately. Capital improvements to your rental property increase your basis (offsetting future depreciation recapture), while improvements to your primary residence might qualify for additional mortgage interest deductions if you finance them. Also, since you mentioned this is your first year with the rental property, don't forget that you may have some one-time startup expenses that are deductible in the first year, separate from your ongoing mortgage interest. Things like advertising for tenants, legal fees for lease agreements, etc. can all go on Schedule E alongside your mortgage interest. The key takeaway everyone's reinforcing here is correct - your rental mortgage interest has no cap and goes on Schedule E as a business expense, while your primary residence is subject to the $750k limit on Schedule A. Keep those two completely separate in your records and you'll be fine!

This thread has been incredibly helpful! I'm dealing with my first non-dividend distribution situation and was completely lost until reading everyone's experiences here. One thing I wanted to add that might help others - if you're using a discount brokerage like Schwab or Fidelity, they often have tax centers on their websites with calculators specifically for tracking basis adjustments from non-dividend distributions. I found Schwab's "Cost Basis Tracking" tool really useful for understanding how my distributions would affect future capital gains calculations. Also, for anyone still struggling with where to find this information in their tax software, look for sections labeled "Return of Capital" or "Box 3 distributions" rather than just searching for "non-dividend distributions." Different tax programs use slightly different terminology, which was confusing me initially. Thanks especially to @Emily Nguyen-Smith for the clear explanation about cost basis reduction - that finally made it click for me! And @Sophia Rodriguez, I'm definitely going to check out that taxr.ai tool you mentioned since I have some other complex investment situations this year.

This discussion has been so enlightening! I'm actually an enrolled agent who helps clients with these exact issues, and I wanted to add a few professional insights that might help others navigating non-dividend distributions. One thing I see clients struggle with is understanding that non-dividend distributions can actually be beneficial from a tax planning perspective. While they reduce your cost basis, they essentially allow you to receive money from your investment without immediate tax consequences (until you sell or your basis hits zero). This can be particularly advantageous if you're in a higher tax bracket now but expect to be in a lower bracket when you eventually sell. For those tracking basis adjustments, I always recommend keeping copies of all broker statements that show the distributions, not just the tax forms. Sometimes the 1099-DIV doesn't provide enough detail, and broker statements often include helpful explanations of the distribution type and company rationale. Also, if anyone is dealing with foreign investments or ADRs (American Depositary Receipts), the rules can be different and more complex. These might require additional forms like 8938 or FBAR depending on the amounts involved. The tools and services mentioned in this thread like taxr.ai and claimyr sound helpful for getting proper guidance when you need it!

The biggest thing to keep in mind is that the IRS has specific rules about when you can start claiming business expenses. Since your websites are offline and you're still in development mode, you're likely in what the IRS calls the "pre-opening" phase. For startup costs like yours, you generally can't deduct them until you actually begin business operations. However, once you do launch, you can elect to deduct up to $5,000 in startup costs in your first year of business (assuming your total startup costs don't exceed $50,000). My advice? Keep meticulous records of everything you're spending now - those receipts will be gold when you do launch. Consider getting an EIN from the IRS (it's free) and maybe register your business name if you haven't already. These steps help establish that you're serious about this being a business rather than a hobby. The silver lining is that when you do launch, you'll likely be able to claim most of those expenses right away rather than having to spread them over 15 years like some other startup costs.

I went through something similar with my e-commerce startup last year. The key distinction the IRS makes is between "investigatory costs" (researching whether to start a business) and actual "startup costs" (expenses to create the business). From what you've described - building websites, developing products - these sound like legitimate startup costs since you've clearly moved beyond just thinking about starting a business. The $650 you've spent should qualify for the startup cost election once you launch. One thing that helped me was creating a simple spreadsheet tracking not just the expenses, but also the business activities I was doing each month. This helped demonstrate to my tax preparer (and potentially the IRS) that I was actively working toward launching a real business, not just dabbling in a hobby. The fact that you're asking these questions and keeping receipts already puts you ahead of a lot of people! Just make sure when you do launch that you formally elect to deduct those startup costs on your first business tax return.