Has anyone here dealt with reporting suspended EBIE on partner tax returns when there's a partial disposition of a partnership interest? The regulations aren't super clear on how to allocate the suspended EBIE in that scenario.

This is a complex area that I've been wrestling with in my practice as well. One thing to keep in mind is that the proposed regulations under 163(j) specifically address the treatment of suspended EBIE when partnerships change their election status. Even though Partnership A is making the 163(j) election going forward, the suspended EBIE from 2018 and 2019 doesn't just disappear. The key is understanding that this suspended amount is tracked at the partner level, not the partnership level. Each partner maintains their own "bucket" of suspended EBIE from each partnership. Beyond the CARES Act relief allowing 50% deduction of 2019 EBIE, the remaining suspended amounts will indeed carry forward until one of the triggering events occurs - either the partnership generates excess taxable income/excess business interest income in future years, or the partner disposes of their interest. What's interesting about your situation is that even with the 163(j) election, Partnership A could still potentially generate excess amounts in future years if its income profile changes significantly. The election doesn't permanently eliminate this possibility, it just makes it less likely given the trade-off you're making with depreciation periods. I'd recommend keeping detailed records of each partner's suspended EBIE by year and partnership, as this will be crucial for proper reporting when disposition or other triggering events eventually occur.

This discussion has been incredibly thorough and helpful! I'm facing a similar situation where my consulting business took off in 2023, pushing our household income well above $150k for the first time. One thing I'd add that hasn't been mentioned is the importance of considering state tax implications alongside the federal 110% rule. I discovered that my state (New York) has its own estimated payment requirements that don't necessarily align with the federal safe harbor rules. Even though I was perfectly compliant with the federal 110% rule, I still owed penalties to the state because their calculation works differently. Also, for anyone who might be in their first year of self-employment or consulting income, don't forget that the 110% calculation needs to include self-employment taxes from your prior year return, not just income taxes. I initially missed this and had to scramble to make an additional payment when I realized my safe harbor amount was higher than I'd calculated. The spreadsheet tracking approach mentioned by others is spot on - I created a simple tracker that shows federal vs state requirements side by side, which has been invaluable for staying organized across multiple jurisdictions and tax types.

As someone who just navigated this exact situation last year, I can confirm you're on the right track! The 110% rule was a lifesaver when my income jumped significantly due to a job change and stock vesting. One thing that really helped me was setting up automatic estimated payments through EFTPS early in the year. I calculated my 110% requirement based on our 2022 joint return, then divided it across the four quarterly deadlines. This gave me better cash flow management than making one lump payment in January. Also, make sure you're including ALL taxes from your 2022 return in the calculation - not just federal income tax, but also any self-employment tax, AMT, or other taxes that appeared on your return. I initially miscalculated by only looking at the income tax line and had to make a correction payment. The peace of mind is absolutely worth it. Even if you end up overpaying relative to your actual 2023 liability, you avoid penalties and any overpayment just becomes a refund or credit toward 2024. Given that you're keeping investments in place rather than panic-selling, you're making a smart strategic choice that the safe harbor rule is designed to support.

OMG I'm going through this RIGHT NOW too! 😫 I got my review letter on April 2nd and sent EVERYTHING they asked for the very next day. Still NOTHING! I'm so stressed because I need this money for summer childcare deposits due by June 1st! Has anyone tried calling the Taxpayer Advocate Service instead of regular IRS? I heard they can sometimes help if you have a financial hardship situation? I'm afraid if I wait the full 60 days they're saying it might take, I'll lose my childcare spot!

I'm in a similar situation - got my review letter about 3 weeks ago for mortgage interest verification and submitted everything through their online portal. The waiting is definitely nerve-wracking! From what I've read here and other forums, it seems like the 45-60 day timeframe is pretty standard, but it's encouraging to see some people getting theirs faster. I've been checking my transcript weekly (probably more than I should) but haven't seen any movement yet. @Jamal Brown - regarding the Taxpayer Advocate Service, I believe they can help if you can demonstrate financial hardship, especially with time-sensitive obligations like childcare deposits. It might be worth calling them since you have a specific deadline. For the rest of us, sounds like patience is the key, though I know that's easier said than done when you're waiting for your refund!

One thing that hasn't been mentioned yet is keeping digital records organized from the start for future donations. I learned this the hard way after scrambling to find documentation like you're doing now. Going forward, I'd suggest creating a simple spreadsheet or folder system where you save screenshots of each Amazon wishlist donation right after you make it. Include columns for date, charity name, item description, amount, and a link to the screenshot. This makes tax time so much easier. Also, some charities will automatically send you email thank-you messages when items are delivered through their wishlist - don't delete these! They serve as additional confirmation that your donation was received. I keep a dedicated email folder just for charity confirmations. For your current situation, definitely follow the advice others gave about contacting the charity directly for an acknowledgment letter. Most are very responsive to these requests, especially during tax season when they know donors need documentation.

Great question about Amazon wishlist donations! I've been doing something similar and found a few practical approaches that work well. The key is creating a paper trail that clearly shows your purchase was intended as a charitable donation. Here's what I do: 1. **Screenshot everything immediately**: Right after making an Amazon wishlist purchase, I take screenshots of the order confirmation page showing the charity's name and address as the shipping destination. 2. **Email the charity**: I send a quick email to the charity right after each donation mentioning what I purchased and when. This creates a timestamp and often they'll reply with a thank you, which serves as additional documentation. 3. **Use your credit card statements**: These show the Amazon charges with dates that correspond to your donation screenshots. For tax purposes, since you're making regular smaller donations (sounds like under $250 each), you don't technically need formal acknowledgment letters from the charity, but getting one year-end summary letter definitely strengthens your position if you're ever questioned. The combination of Amazon order details + payment records + some form of charity communication should give you solid documentation. Don't stress too much - the IRS recognizes that modern charitable giving doesn't always come with traditional paper receipts, as long as you can demonstrate the charitable intent and have reasonable documentation.

Does anyone know if we need to wait for the 1095-C before filing taxes? I usually file in February to get my refund faster, but my employer is always late sending these forms.

Great question! As someone who used to toss these forms too, I learned the hard way that you should definitely keep your Form 1095-C. While you don't need to attach it to your tax return, it's crucial documentation that proves you had qualifying health coverage. The form serves a few key purposes: it shows the IRS that your employer offered you affordable coverage that meets ACA requirements, which can affect your eligibility for premium tax credits if you ever shop for marketplace insurance. It also provides proof of coverage dates, which is important for your records and could be needed if you're ever audited. Even though the federal penalty for not having coverage is currently zero, some states still have their own individual mandates. Plus, if there's ever a discrepancy about your coverage or if you need to prove you had insurance for any reason, this form is your official documentation. My advice: keep it with your other tax documents for at least 3 years (the standard IRS audit window). It's one of those "better safe than sorry" situations where having it and not needing it is way better than needing it and not having it!