Great question! This is actually one of the most common misconceptions new homeowners have about property tax deductions. The IRS uses what's called the "cash basis" method for individual taxpayers, which means you can only deduct expenses in the year you actually paid them. Since you'll be paying your 2024 property taxes in January 2025, you'll need to claim that $4,200 deduction on your 2025 tax return (the one you file in spring 2026), not on your 2024 return. It doesn't matter that the taxes were assessed for the 2024 tax year - what matters is when you actually made the payment. This timing rule applies to all cash-basis deductions, so it's good to understand it early in your homeownership journey. Make sure to keep good records of your actual payment dates, as that's what the IRS cares about. Also, since you mentioned this is your first time itemizing, double-check that your total itemized deductions (property taxes + mortgage interest + charitable donations + other eligible expenses) actually exceed the standard deduction for your filing status. For 2024, that's $13,850 for single filers or $27,700 for married filing jointly. With property taxes around $4,200, you'll want to add up your mortgage interest and other deductions to see if itemizing actually saves you money compared to taking the standard deduction.

As a newcomer to this community, I really appreciate this detailed discussion! I'm in a very similar situation - just bought my first home and trying to figure out all these property tax rules. One question I haven't seen addressed yet: what happens if you're in a state where property taxes are assessed mid-year but due at the end of the year? For example, if my 2024 property taxes were assessed in July 2024 but aren't due until December 31, 2024 - would paying them in December 2024 allow me to deduct them on my 2024 return, or would I still need to wait since they were assessed mid-year? I'm trying to understand if there's any difference in the rules based on when during the year the assessment happens versus when payment is actually made. The cash basis rule makes sense, but I want to make sure I'm not missing any nuances about assessment timing that might affect when I can claim the deduction. Thanks to everyone for sharing their experiences - this thread has been incredibly educational for new homeowners like myself!

This post saved me! I was about to mail my FIRPTA cert to the old Philly address today. Quick question - does anyone know if there's a way to submit these electronically yet? Seems ridiculous that we still have to mail physical forms in 2025.

I can confirm the Ogden, UT 84201-0023 address is correct for FIRPTA certificates. I had to deal with this exact situation about 6 months ago when the Philadelphia address stopped working. What really helped me was calling the IRS Practitioner Priority Service line (if you have a PTIN) - they were able to confirm the address change and explain that many international tax form addresses were updated in late 2023/early 2024. One tip: when you send to the Ogden address, make sure your cover letter specifically mentions "Treasury Regulation 1.897-2(h) submission" in the subject line. The IRS processing center told me this helps ensure it gets routed to the right department faster. Also keep detailed records of your mailing - I used certified mail with signature confirmation and kept copies of everything including the tracking receipts. Don't stress too much about the timing issue. As long as you can document your good faith efforts to comply (like the returned mail from Philadelphia), the IRS is generally reasonable about address change situations.

For your first year with Uber income, make sure you're keeping all your receipts and tracking expenses properly going forward. I started driving last year and wish someone had told me this sooner. The Uber tax summary doesn't include a lot of deductions you're entitled to. Track EVERYTHING - car washes, portion of phone bill, mileage between passengers (not just with passengers), snacks/water for riders, car repairs, etc. I use a separate credit card just for Uber-related expenses to make it easier to track.

Don't forget about quarterly estimated taxes! This was my big mistake my first year as an Uber driver. Since there's no withholding on your Uber income like there is with your W-2 job, you might need to make quarterly payments to avoid penalties.

I went through a very similar situation with inherited property and an LLC last year. One thing that really helped me was understanding that the IRS treats contributions to multi-member LLCs differently than single-member LLCs. Since you mentioned your LLC has another member, you'll want to be especially careful about the valuation and documentation. Based on my experience, I'd strongly recommend getting a professional appraisal before making any transfers. The IRS can challenge valuations, and having a defensible fair market value is crucial whether you're calculating gift tax implications or capital gains. Also, make sure your LLC operating agreement clearly addresses how property contributions are handled and how they affect each member's capital accounts. One approach my tax advisor suggested was structuring it as a sale to the LLC with the LLC giving you a promissory note, rather than an outright contribution. This can help avoid immediate gift tax issues while still getting the property into the LLC. The note payments would then represent your withdrawal of capital over time. Just make sure the terms are at fair market rates to avoid imputed income issues. Whatever you decide, document everything thoroughly. The IRS pays close attention to transactions between related parties and LLCs, so having clean paperwork from the start will save you headaches later.

Just want to clarify something important that might affect your decision - you mentioned your grandmother "gifted" you the property, but then later referred to it as "inherited." This distinction is crucial for tax purposes. If your grandmother gave you the property while she was still alive (a lifetime gift), you receive her original basis of $190,000, which means you'd face capital gains tax on $285,000 ($475,000 current value minus $190,000 basis) if you sell. However, if you actually inherited the property after your grandmother passed away, you would receive a "stepped-up basis" equal to the fair market value at the time of her death. This could significantly reduce or even eliminate capital gains taxes depending on how much the property has appreciated since then. Could you clarify whether this was a lifetime gift or an inheritance? This will completely change the tax analysis and optimal strategy for transferring to your LLC. If it was truly inherited, you might have much more flexibility in your options without triggering substantial tax consequences.

This is such a helpful thread! I'm dealing with a similar situation where my single-member LLC had losses in 2023 but I'm expecting profits in 2024. One thing that's been confusing me is the interaction between NOL carryforwards and the QBI (Qualified Business Income) deduction. If I use my NOL carryforward to offset business income in 2024, does that reduce my QBI deduction for that year? It seems like the NOL would reduce my taxable business income, which would then reduce the amount eligible for the 20% QBI deduction. Has anyone navigated this combination of NOL carryforward and QBI? I'm trying to figure out if there's an optimal strategy for timing the use of my NOL to maximize both benefits.

This is exactly the kind of complex tax situation where having multiple moving pieces can create unexpected interactions. The NOL/QBI timing question is particularly tricky because you're essentially choosing between immediate tax relief and future deduction optimization. One approach I'd suggest is creating a multi-year projection model. Map out different scenarios: using all available NOL immediately vs. spreading it over several years to preserve QBI benefits. Don't forget to factor in potential changes to your business income, other income sources, and even possible changes to tax law. Also consider that the QBI deduction has income limitations (phases out completely at $364,200 for single filers in 2024), so if you expect your income to grow significantly, it might make sense to maximize QBI in earlier years when you're still under those thresholds. The 80% limitation on NOL usage gives you some natural spreading anyway - you can't use NOL to offset more than 80% of your taxable income in any given year. This might actually work in your favor for preserving some QBI benefit even when using carryforwards. Have you considered consulting with a tax professional who specializes in business taxation? This kind of multi-year strategic planning is where their expertise really pays off.