Random question - does anyone know if smart home devices (like Nest thermostats, smart locks, Ring doorbells) count as deductible expenses or depreciable assets for a vacation rental? I've been listing them as expenses but now I'm second-guessing myself.

As someone who's been through this exact situation with my first rental property, I completely understand the overwhelm! You're absolutely right that the tax code doesn't give you the choice to just depreciate everything for convenience - trust me, I tried to argue that with my CPA too. One thing that really helped me was setting up a system for future purchases right away. I created a simple rule: anything over $300 that I expect to last more than a year gets photographed and goes in my "depreciation" folder, everything else goes in "expenses." It's not perfect, but it prevents the massive sorting nightmare you're dealing with now. For your current situation with all those mixed receipts, consider this a one-time painful lesson. Go through them systematically - maybe tackle one store at a time (all IKEA receipts first, then Home Depot, etc.). Create a simple spreadsheet with columns for: Date, Store, Item Description, Amount, and Category (Depreciate/Expense). The good news is that since you're carrying losses forward anyway, getting this organized now will really pay off in future years when the property becomes profitable. Plus, if you ever decide to sell, having proper depreciation records will save you major headaches with basis calculations.

Just a tip about timeshares - download the actual deed and check exactly what you own. I learned the hard way that some timeshares have multiple tax bills. I had a Westin one where I had to pay: 1) Maintenance fees to the resort 2) Property taxes to the county directly 3) A special assessment fee to the local tourism district Could be that you've been paying the maintenance fees but not realizing there were separate property tax bills. Double check if your timeshare has a real deed or if it's a "right to use" contract, as the tax implications are different.

I'm so glad your timeshare didn't sell at auction! Your situation highlights a really important gap in how timeshare companies handle inherited properties. As a newcomer here, I've been reading through similar cases and it seems like this communication breakdown between resorts and county tax offices is unfortunately common. The fact that you were keeping up with maintenance fees shows you were acting in good faith. One thing I'd add to the great advice already given - when you contact the county tax assessor about penalty abatement, also ask if they can set up automatic email notifications for future tax bills. Many counties now offer this service, and it would prevent this situation from happening again. Also consider requesting that any future tax notices include both your current address AND a note that this is for inherited property. Some counties will add special flags to inherited properties to help prevent these kinds of mix-ups. Your story is actually really helpful for others in similar situations - the combination of inheriting property young, losing a parent, and dealing with address changes creates a perfect storm for these tax issues. Thanks for sharing the update too!

If I was in your shoes, I'd consider starting up the business again for real this time, maybe using some of the same equipment or concept. Wouldn't that give you a legit reason to claim some of those costs as part of the "new" startup phase?

Unfortunately, you're likely out of luck for claiming those 2017 startup costs against your current tax liability. The IRS has strict rules about when business expenses can be deducted, and there's generally a 3-year statute of limitations for amending returns to claim missed deductions. Since your wife's business never filed any Schedule C returns and has been inactive since 2018, the IRS would view this as an abandoned business venture rather than an ongoing concern. You can't carry forward unclaimed business expenses from a defunct business to offset current year W-2 income - business losses can only offset business income or be carried forward within the same continuing business entity. Your best bet at this point would be to look for legitimate current-year deductions you might have missed, or consider whether either of you could start a side business this year that would allow for legitimate business deductions going forward. But those old 2017 costs are unfortunately beyond the reach of current tax planning.

One thing to consider - if you're using tax software to file your amended return, make sure you enter the 1099-R exactly as it appears on the form. I made the mistake of just putting in the gross distribution and indicating it was nontaxable without using the proper distribution code, and I got a letter from the IRS months later. The distribution code (like your code G for direct rollover) is super important because it tells the IRS system why the amount is nontaxable. Without that code properly entered, their automated system might flag your return for review.

I just want to mention that amended returns can't be e-filed - you'll have to mail them in. And with 1099-R situations, I strongly recommend including a brief explanatory statement with your 1040-X to clarify what you're amending and why. Something like "Amending to include previously unreported 1099-R with $0 taxable amount from direct rollover (Code G)." This helped me avoid follow-up questions when I had to amend for a similar situation. The IRS processing centers are dealing with massive backlogs, so anything you can do to make your amendment crystal clear will help speed things up.

can u still see your transcripts? might give u more info than wmr

This happened to me too! The disappearing amount usually means they're doing some kind of review or adjustment. Could be something simple like verifying your income against what employers reported, or maybe they're double-checking a credit you claimed. The fact that the status bars are still there is actually a good sign - means they haven't rejected your return or anything. Just hang tight and keep checking every few days. Most people see it come back within 1-3 weeks, though sometimes the amount might be slightly different if they made corrections.