Don't forget to check your state's requirements too! Federal and state deadlines/processes for deceased taxpayers aren't always the same. My husband passed in 2022 and while the IRS accepted my extension with just "DECEASED" written on it, our state required me to include a copy of the death certificate with the extension request.

Just want to add one more practical tip that helped me when I went through this with my father's estate - keep detailed records of everything you do during this process. I created a simple folder with copies of the extension form, any correspondence with the IRS, and notes about what the tax professional advised. This documentation became really valuable later when we had questions about timing and what steps we'd already completed. The IRS can sometimes take a while to process extensions for deceased taxpayers, and having your own paper trail helps if there are any follow-up questions. Also, when you do meet with your tax professional, bring all the financial documents you've gathered so far. Even though you're filing the extension first, they can give you a more accurate estimate of what to expect and potentially catch any income sources you might have missed in your initial review.

Has anyone compared how different tax software handles this ACA premium deduction for self-employed people? I've been using TurboTax for years but I'm wondering if something like FreeTaxUSA or TaxAct might be better for this specific situation.

Just wanted to add another perspective here - I'm a CPA who works with a lot of self-employed clients in this exact situation. The confusion around ACA premium deductions is incredibly common, and you're definitely not alone in finding the IRS language confusing. For sole proprietors filing Schedule C (which includes independent contractors like yourself), your ACA marketplace premiums ARE deductible as long as you meet the basic requirements: the policy covers you (and potentially your family), you're not eligible for employer-sponsored coverage, and your business shows a net profit at least equal to the premium amount you're deducting. The "established under your business" language that's tripping you up is really aimed at other business structures. For sole props, having the policy in your personal name absolutely counts. One thing I always tell my clients: keep excellent records of your premium payments and make sure you understand how any premium tax credits affect your deduction amount. And if you're ever unsure about a significant deduction like this ($8,500 is substantial!), it's worth consulting with a tax professional for your specific situation. The peace of mind is usually worth the cost.

What happens if both people try to claim the mortgage interest? My gf and I split the mortgage payments (she's on the loan, I'm not), and her 1098 obviously shows the full interest amount. If I try to claim my portion as an "equitable owner" and she claims her portion, will that trigger problems?

I've been following this thread closely since I'm in a very similar situation. One thing I want to add that hasn't been mentioned much is the importance of timing when creating your written agreement. While you don't need to backdate anything, I'd strongly recommend creating that ownership agreement ASAP before you file your taxes. The IRS looks favorably on contemporaneous documentation - meaning paperwork that exists at the time the situation is happening, not created after the fact when you're trying to justify a tax position. Also, make sure your agreement is specific about percentages. Don't just say "in exchange for mortgage payments, I have an ownership interest." Be clear: "In exchange for paying 100% of the mortgage payments, I am entitled to X% ownership interest in the property's equity." This specificity will help a lot if you ever get questioned. One last tip - consider having your girlfriend explicitly state on her tax return that she's NOT claiming the mortgage interest deduction because someone else (you) is claiming it as an equitable owner. This coordination between your returns shows the IRS you're not trying to hide anything.

I've been an escrow officer for 15 years and I see this confusion all the time. Here's what actually happens: At closing, we calculate a prorated amount of taxes based on who owns the property on which days. This appears on your settlement statement. But that's just an adjustment between buyer and seller - it doesn't change what each of you actually PAID to the tax authority. For tax deduction purposes, you can only deduct property taxes YOU actually paid to the tax authority (usually through your mortgage company). If your Box 10 shows $5000, but your settlement statement shows the seller credited you $2000 for their portion of taxes, your actual deduction should be $3000. The IRS cares about economic burden - who actually bore the cost of the tax, not who physically sent the money to the tax collector.

This is exactly the kind of situation that trips up so many homeowners! You're right to question the "just use Box 10" approach - it's often not that simple when you buy mid-year. From what you've described, it sounds like you need to go with your second option: calculate (total tax bill) - (seller paid taxes at closing) = your deductible amount. The key principle is that you can only deduct property taxes that represent YOUR economic burden. Since you mentioned the seller-paid portion at closing was less than it should have been based on their ownership period, you essentially overpaid for their portion. But that doesn't change the fact that you can only deduct what you're actually responsible for as the property owner. Here's what I'd recommend: Look at your settlement statement for the property tax adjustment line. If it shows the seller credited you money for taxes, subtract that from your Box 10 amount. If it shows you paid the seller for prepaid taxes, add that to your Box 10 amount. The goal is to arrive at the total amount you actually paid that corresponds to your period of ownership. Don't worry about prorating based on days - focus on the actual financial transactions and adjustments that occurred.

This thread has been incredibly helpful! I'm in a similar situation with Energy Transfer and have been struggling with the same confusion about whether to enter the partnerships separately or combined. One thing I wanted to add that might help others - I found that keeping a simple Excel spreadsheet with columns for each tax year has made tracking my basis much easier. I have columns for: Starting Basis, Box 19A (return of capital), Taxable Income Allocated, and Ending Basis. It takes a few minutes each year but saves hours of reconstruction later. For anyone still confused about the partnership breakdown, I called Energy Transfer's investor relations line (1-800-248-4536) last year and they were actually pretty helpful in explaining how their K-1 structure works. They confirmed that yes, you should enter each entity separately using the breakdown information, not the combined totals. The representative also mentioned that they've been working on making their K-1 forms clearer because they get a lot of calls about this exact confusion. Hopefully future years will be less confusing for all of us!

As a tax professional who deals with MLP K-1s regularly, I want to emphasize a few critical points that haven't been fully covered: First, regarding the Energy Transfer structure - you're absolutely correct to enter ET, USAC, and SUN as separate partnerships. However, make sure you're allocating the income and deductions proportionally based on ET's ownership percentages in each subsidiary, not just copying the breakdown amounts directly. Second, be extremely careful with passive activity loss rules. Energy Transfer activities are generally considered passive for individual investors, which means any losses can only offset other passive income or be carried forward. This is particularly important if you have losses from any of the three entities. Third, for state tax purposes, you may need to file returns in multiple states where these partnerships conduct business. Energy Transfer operates across many states, and some states require non-resident returns even for small amounts of income allocation. Finally, I strongly recommend keeping detailed records of all your MLP investments beyond just basis tracking. The IRS has been increasing scrutiny of MLP reporting, and having comprehensive documentation is essential if you're ever audited. The complexity is real, but with proper attention to detail, MLP investments can be very tax-efficient over the long term.