Make sure you understand your lender requirements!!! I ended up refinancing at a MUCH higher rate because I violated my second home loan terms by renting without permission. Read your mortgage documents carefully - mine specifically said I had to occupy the property "significant amount of time each year" and prohibited rental during the first year.

Just went through this exact situation last month! One thing that hasn't been mentioned yet is the importance of establishing a clear "placed in service" date for your rental property. The IRS considers your property to be placed in service as a rental when it's ready and available for rent, not necessarily when you get your first tenant. This matters because it affects when you can start claiming depreciation and certain expenses. I made the mistake of thinking I could backdate everything to when I first decided to rent it out, but my CPA corrected me - it's when the property is actually ready for rental use (repairs done, furnished if applicable, listed for rent, etc.). Also, keep meticulous records of any improvements or repairs you make during the conversion process. Capital improvements get added to your basis for depreciation calculations, while repairs can be deducted immediately. The distinction can save you thousands in taxes over time!

Wait, I'm still confused about Form 1065 Schedule K line 20 code AG. Is this something every partnership needs to fill out? We're a really small operation, just two partners with around $450k in annual revenue. Do we even need to worry about this section 448(c) stuff?

Great thread everyone! I just want to emphasize something important that might get overlooked - when calculating your gross receipts for code AG, make sure you're using the correct 3-year period. For your 2023 return, you need the average of 2020, 2021, and 2022 gross receipts, NOT including 2023. I made this mistake initially and included the current year in my calculation. The section 448(c) test specifically looks at the "3-taxable-year period ending with the taxable year that precedes such taxable year." So you're always looking backward, never including the current filing year. Also, keep good records of this calculation because you'll need to update it each year. The threshold can change annually (it was $26M for 2022, now $27M for 2023), and your 3-year average will shift as you drop the oldest year and add a new one to the calculation.

This is a great question that many people struggle with! I went through something similar last year and want to share what I learned from my tax preparer. You're absolutely right that the W-2G amount of $19,000 must be reported as income. For your losses, you need to think about it session by session: Visit 1: You started with $6,500, won $19,000, but only left with $12,800. This means during that session, you actually lost $12,700 of your winnings after hitting the jackpot. Visit 2: You brought $6,500 and lost it all = $6,500 loss. Your total gambling losses for the year would be $19,200 ($12,700 + $6,500). Since you can only deduct losses up to your winnings, you'd be limited to deducting $19,000 if you itemize. The key thing to remember is that you report the full W-2G as income, but then you can offset most or all of it with your documented losses if you have proper records. Make sure you keep detailed logs of each gambling session - date, location, amounts won/lost, and any supporting documentation like ATM receipts or player's club statements. It does seem unfair at first, but the system allows you to essentially break even tax-wise if you have good records of your losses.

One thing I'd add that hasn't been mentioned yet - if you're a frequent gambler, consider setting up a separate bank account just for gambling activities. This makes tracking so much easier come tax time. I started doing this after my first year dealing with W-2Gs became a nightmare to sort through. Now I only use that account for casino ATM withdrawals and any gambling-related deposits. At the end of the year, I can easily see my total gambling activity just by looking at the account statements. It also helps with the IRS documentation requirements since you have a clear paper trail that's separate from your regular spending. My tax preparer loves it because it makes calculating my net gambling position much more straightforward. For your specific situation with the $19k W-2G, having this kind of clean record-keeping would make it obvious exactly how much you lost in each session. Might be worth setting up for next year if you plan to continue gambling regularly.

I switched from TaxAct to FreeTaxUSA this year after having similar login problems. Their interface is way more reliable and honestly easier to use. Plus it's cheaper for most filing situations. Might be worth looking into for next year if you keep having issues.

I had the exact same issue with TaxAct last week! The login loop is so frustrating. What finally worked for me was completely logging out of all Google/Microsoft accounts in my browser first, then clearing all site data for TaxAct specifically (not just cookies), and then trying again. If you're still stuck, you can also try accessing TaxAct through their mobile app instead of the website - sometimes that bypasses whatever browser-specific issues they're having. The mobile app saved my progress when the website wouldn't let me back in. Really hoping they fix these server issues soon. It's ridiculous that we have to jump through so many hoops just to file our taxes!

This thread has been incredibly helpful! I've been making estimated tax payments for years but never fully understood the safe harbor calculation. The key insight that it's based on Line 24 (total tax AFTER credits) rather than before credits makes a huge difference in my situation. I have substantial credits from solar panels and energy-efficient home improvements, so my Line 24 was significantly lower than my pre-credit tax amount. I've been overestimating my safe harbor requirement and essentially giving the government an interest-free loan. For anyone else reading this - definitely make sure you're using the right line from your 1040. It's Line 24 "Total Tax" after all credits have been applied. Then apply either 100% or 110% depending on whether your AGI was above or below $150k. Simple once you know which number to use!

This discussion has been incredibly enlightening! I'm a newcomer to the community and have been struggling with estimated tax payments for my freelance work. Reading through all these explanations about using Line 24 (total tax after credits) for the safe harbor calculation has saved me from making a costly mistake. I was about to base my calculation on my pre-credit tax amount, which would have resulted in significant overpayment. The distinction between 100% vs 110% based on the $150k AGI threshold is also crystal clear now. One follow-up question for the group: if you're self-employed and your income varies dramatically month to month, is it better to make equal quarterly payments based on the safe harbor amount, or should you try to match your payments to your actual income flow throughout the year? I've heard the IRS prefers even payments, but I'm curious about practical experiences with uneven payment schedules. Thanks to everyone who shared their knowledge and experiences - this community is incredibly valuable for navigating these complex tax situations!