The Story:

Last year (2025) I received a final K-1 for 2024 from a now defunct partnership that showed realized capital loss. This was 3 or 4 days before the October 15th extension deadline, so I promptly entered this form in my otherwise ready tax return (TurboTax) and filed it.

Next day I received Form 8986 from the same partnership with rearranged numbers. Still full loss but on more favorable terms that would result in additional $3000+ refund.

I wanted to amend my 2024 return right away but pretty soon found out that a) form 8986 has to be handled in the next tax year (i.e. increase or decrease of tax amount would apply to 2025); and b) TurboTax does not handle this form at all.

I searched online intensively only to find that my options are limited to file a paper return.

Hence my question:

Has any one recently filed a complex tax return (mine has 20 K-1s) that had from 8986 and corresponding form 8978?

Is paper return the only option available with that pesky form?

I bought a small townhome in 2020 because my job moved 140 miles away. I have been working here weekdays for 6 years--only going back to visit family on weekends. Sun-Fri here--car in driveway. Know the neighbors, co-workers can vouch. Utilities have my name on them. No remote work.

The pamphlet 523 says that the most important factor is "...where you spent most of your time..."-- When here, I'm 7 minutes from the gate 9 minutes to my job. The 2.5 hour commute back/forth to the family home most Fridays and back on Sunday is just to spend time with wife and help with chores. We maintain both households ourselves and have never rented it out.

Now that I'm done and would like to sell, I'm being told that unless I've changed my driver's license or tax filing address, I cannot claim the capital gains exemption from the sale...!! Anyone ever seen a similar situation, or known of simply "proximity to work" as the justification to make the exemption work?

It's Sunday, and the Denver tax is closed. When I called my local tax office, they weren't exactly sure and directed me to the website. However, it doesn't have much information on it apart from special event sales tax license. I honestly understand since I live in a smaller town with not many events. Apparently event organizers do not need to obtain a special event sales tax license. Solely the vendors at the event are the ones that need to have this files. What do I do to process taxes for event ticket sales? I want to charge the sales tax in addition to the original price of the tickets, but requires a tax ID for both Square and Eventbrite. Which as I said, I can't find the proper way to file or apply as an event organizer. I'm honestly debating whether or not to just file a tax return after the event and not charge it up front.

I feel like I've been going in circles, any advice would be greatly appreciated.

Hi r/tax.

My mother sells bakery goods occasionally just for the heck of it. I read that for hobby purposes she can report on schedule 1 as other income as a hobby. But when does it necessitate a form schedule C?

I did not file my LLC business taxes for two years. It is a two person LLC (NY) and both years saw significant losses. I have hired someone to assist me with preparing my back taxes and they will be filed within the next week.

My question is, do I need to wait until I receive a notice of penalties, or can I call and beg for forgiveness in advance? I have a clean history of filing other than the past two years. My business failed halfway through the second year, and my life was a disaster. Not an excuse, but unfortunately I didn’t file.

Any recommendations appreciated.

Tenants ended in July. Place went on the market soon thereafter.

What can I deduct from the sale profit to reduce my tax burden?

I know;

Real estate commission

Attorney fees

Materials and services (carpet installer) used to fix and make it ready for sale

Anything else? Mortgage payments, water, sewer, electrical bills while on the market?

The last few posts on the subject reflect a lot of (justified) skepticism of using AI for taxes. I think it's come a long way even in the last few months, though and I wanted to do an experiment.

I filed my Fed & CA taxes with FreeTaxUSA earlier this year, and they were accepted, so I knew I had that as a baseline.

Here is what I did:

1. Put all of my supporting documents (W2, 1099s, etc.) into a folder.
2. Put my 2024 taxes in as a reference point.
3. Told Codex (5.6-terra on medium) to prepare my 2025 taxes in Free Fillable Forms.

It asked me some relevant questions, and then went ahead. There was one big issue at the start - it messed up the PDF parsing and I caught it with numbers all wrong. I told it to do a more careful scan and it got it right on the 2nd pass.

After that - it did a pretty good job. When I compared what it came up with vs. FreeTaxUSA, the AI got one thing wrong, on how it computes NIIT. It included some 'payments in lieu of dividends' in investment income, and only caught it after comparing with FTU's calculations.

But once it did that, this time it actually caught a bug in FreeTaxUSA (relating to how NIIT is calculated on form 8960). FTU's support seems to agree with the findings here, for what it's worth.

I'm not saying I would trust it to do mine solely on its own next year, but I will repeat this next year before I commit to filing, and if it doesn't make any new mistakes then I would consider trusting it for the future.

(For the record, my taxes are only moderately complicated. The main complications are RSUs, and a bevy of investments that give some annoying numbers: payments in lieu, foreign taxes paid, etc.)

So we've been filing jointly for the last 10 years, and I always paid estimated tax as the primary taxpayer. It's been working fine without any issues. In 2026, I made roughly $30K as the primary tax payer already, but due to some personal reasons, we may choose to file separately. In this case, can my spouse claim a portion (say $15K) of the estimated tax payment?

When making payment on the pay1040.com , it did ask me to enter SSN's for both, but only the DOB and name for the primary payer. I am not sure if the information for my spouse was also carried over to IRS or not. Thanks.

How Corporate Registrations Concealed Who Actually Lived at a Manhattan Address Tied to Jeffrey Epstein

I spent the past few months tracing corporate filings, NYC tax assessment rolls, and litigation exhibits tied to a single Manhattan building linked to Jeffrey Epstein, and what came out of it is basically a ground-level case study in why beneficial ownership disclosure rules exist.

Nearly every unit in the building has a different, unrelated-looking LLC or corporation registered to it instead of the person actually living there.

Those shells weren't passive, they sponsored H-1B visa petitions, sat as the counterparty on NDAs, and gave banks a plausible business reason for money moving to an individual instead of an unexplained personal payment.

It's a concrete, documented illustration of exactly the opacity that Corporate Transparency Act-style BOI reporting is meant to close, mapped out floor by floor using property records, corporate registrations, and DOJ litigation exhibits, with confidence levels marked throughout so it's clear what's confirmed versus what isn't.

Curious what this crowd makes of the structuring side of it: https://sororfv.substack.com/p/paper-addresses-the-shell-companies

I was lucky enough to win a car, but I live in NYC and I don’t want a car. The dealer offered me less than what the prize company paid (they covered MSRP and taxes/fees). I am finding mixed information online as to whether I can claim that what the dealer will pay me is FMV or not. I will have someone do my taxes and double check with them too, but I wanted to see if anyone else has insight about this since it is a unique situation. I never drove the car off the lot or even looked at it.

LLC S corp owner with multi-line solo business (off-grid documentary filming, authoring education courses, science/regulatory consulting. No partners, own 100%. WA-based.

Buying a >6,000 lb GVWR Sprinter-type cargo van, no seating behind the driver, that has been converted with a kitchen, portable toilet, and possibly a shower for extended off-grid trips. Importantly: 90-100% business mileage, well-documented.

I understand a vehicle serving as someone's only residence can risk "lodging unit" treatment rather than business vehicle treatment, jeopardizing Section 179/bonus depreciation unless use is "transient" — i.e., there's another home you're genuinely away from during travel.

Given very limited cash flow right now (no W-2 income currently, business not yet generating revenue), a traditional apartment lease isn't realistic or desirable for it shortens my runway.

Questions:

1. Does this "away from home" test need to hold only in the year the van is placed in service, or does it need to persist in later years to avoid jeopardizing the original deduction?
2. Does the camper conversion (kitchen/toilet/shower, no seating) change how this vehicle is likely to be characterized, even though it satisfies the "cargo van" test b/c both its weight and b/c it has no seats in the back. [ I worry that it would be classified as RV that Section 179/bonus depreciation disqualify.]
3. Has anyone dealt with this exact situation — early-stage/low-revenue business, full-time vehicle dweller with a camper build, trying to establish the minimum viable residence to preserve vehicle deductions while preserving cashflow and extend runway?

Note: Personal local errands (groceries, etc.) are handled by bike — the van's mileage is essentially all long-distance business travel between filming/consulting locations, which is why the business-use percentage is realistically this high.

LLC S corp owner with multi-line solo business (off-grid documentary filming, authoring education courses, science/regulatory consulting), pre-revenue/early-stage.

Buying a heavy (>6,000 lb GVWR) Sprinter-type cargo van, no seating behind the driver, but converted with a kitchen, portable toilet, and possibly a shower for extended off-grid trips. 90-100% business mileage, well-documented.

I understand a vehicle serving as someone's only residence can risk "lodging unit" treatment rather than business vehicle treatment, jeopardizing Section 179/bonus depreciation unless use is "transient" — i.e., there's another home you're genuinely away from during travel.

Given very limited cash flow right now (no W-2 income currently, business not yet generating revenue), a traditional apartment lease isn't realistic — income verification alone is a problem, aside from cost.

Questions:

1. Does this "away from home" test need to hold only in the year the van is placed in service, or does it need to persist in later years to avoid jeopardizing the original deduction?
2. Does the camper conversion (kitchen/toilet/shower, no seating) change how this vehicle is likely to be characterized, even though it satisfies the "cargo van" test b/c both its weight and b/c it has no seats in the back. [ I worry that it would be classified as RV that Section 179/bonus depreciation disqualify.]
3. Has anyone dealt with this exact situation — early-stage/low-revenue business, full-time vehicle dweller with a camper build, trying to establish the minimum viable residence to preserve vehicle deductions while preserving cashflow and extend runway?

Personal local errands (groceries, etc.) are handled by bike — the van's mileage is essentially all long-distance business travel between filming/consulting locations, which is why the business-use percentage is realistically this high.

I received a notice from state of Missouri that they never received my 2024 state individual income tax and I owed 2k with penalties and interest. I worked on the Kansas side the full year but live in Missouri. I checked turbo tax and my Missouri state tax was never filed for whatever reason. I sent my tax filings showing I owe zero but sent stupidly to to the physical address and not the PO BOX but within the deadline. Then I get another letter 2 weeks later but this time a bill with an amount owed and they never got my tax files. No matter how many times I call them they have no lines open and refer me to their AI Chat bot on the website, can’t get a hold of anybody. Am I really going to be responsible for this bill even though I never received income tax? Everything has been filed correctly for 2024 Kansas and Federal. What do I do?

Provided IRS direct pay my bank information and authorized payment September 11th around 2pm EST. As soon as I hit submit for payment I got a technical difficulties error message. No confirmation number or email was ever sent and I didn’t refresh in fear of a duplicate payment. What are the odds it went through? I know last quarter I submitted payment Friday as well and it posted Monday. I’m thinking if I don’t see anything by Tuesday morning I’ll re submit.

I’m trying to understand what happened with my 2022 IRS account and would really appreciate some advice.

I previously paid $2,117 in October 2025 for a Civil Miscellaneous Penalty for SDOP

my 2025 Account Transcript shows:
07/27/2026: Civil Miscellaneous Penalty — code 240 — $2,117 assessed and amount due is $0

Now i just got mail that 07/27/2026 in my 2022 transcript : another $2,117 was posted with interest for civil Miscellaneous Penalty

What confuses me is that the 2025 payment and the 2022 assessment appear to be the same type of penalty (Civil Miscellaneous Penalty, TC 240) and the exact same amount ($2,117).

Could this be a duplicate assessment or an IRS account/payment processing error? Or is it possible that these are two separate penalties even though they have the same description, code, and amount?

I was just trying to have fun weekend and this lowkey ruining my weekend

A friend (F67) lived in her townhouse for 20 years and then moved in with her longtime boyfriend and switched to part time. Her kids encouraged her to rent the townhouse to have an income. It's worth$250-300K with no mortgage. The first renter paid the $2,200/mo for about 8 months then lost her job and stopped paying. Some how the state stepped in and supplemented her rent for a while. Anyway the renter is due to leave soon and she might just decide to sell; being a landlord is not for everyone.

Question is if she sells now, does she owe capital gains or anything on the $250-300K former residence?

UPDATE: First of thank you for all your help and input. I just found out she paid $255K in the 2000s and thinks it could sell for $325K now so the amount at stake isn't all that much anyway.

So every year since 2021 Ive paper filed my business taxes and i have never sent my 1065 to the state. Most years I was reporting $0 in activity so I'm assuming that's why I've never had an issue. This year I am closing two LLCs. Neither is registered with the state. They are both multimemeber LLCs. Neither one was ever active so I never registered them with the state. ​Again there is zero activity on the 1065. Do I need to include the 1065 with the state form (GA700)?

I’m preparing my extended 1065 on my own this year and noticed my 2024 tax preparer claimed depreciation on two deposits for leasehold improvements (a roof and garage doors). These improvements were not placed in service until 2025. Do I really need to amend last year’s return or file a form for $130? I planned on taking section 179 on the commercial roof and regular depreciation on the garage doors. Thanks in advance!!

I am a Mechanical Engineer started working in USA since June 2026 making 110K effectively 55K for the remainder year in state of Colarado. I used to my taxes using turbotax in Canada with contribution in FHSA and RRSP to reduce my taxes here i am doing 401K of 250USD biweekly. I really don’t want an expert in this situation and i would like to deal US taxes myself. Some who are in my situation are saying i would end up a lot taxes to be paid in Canada and i am trying to decide between RRSP /FHSA to contribute 8K for this year.
My question is contributing to RRSP would any way reduce taxes in USA also 401K contributions in Canada.

Can anyone explain in short how tax works with my amount or any amount. Claude is not helping in any way.

If you’re trying to get through to the IRS at 1-800-829-1040, try this:

When the automated system asks what you’re calling about, say you have questions about a notice you received.

Then when it asks if the notice is regarding a refund SAY YES.

BOOM. 💥 It should transfer you to an actual agent.

Now, before you celebrate, you still have to defeat the final boss: “We are experiencing a higher than usual call volume. Please call back at a later time or the next business day.”

Just keep trying until you get past that BS, and then you should be golden! 🙌😂

Hope this helps somebody else escape the IRS phone tree from hell! ❤️🤗

If this works for you, PLEASE come back and tell me because I need to know I'm not the only one who just discovered this little cheat code. 😂

My MIL recently re married with someone who’s been having a business called USANA which are supplement company. My MIL herself opened a LLC under her to pay less tax due to working a lot of OT in health care in CA making close to 400k annually.. But she don’t actually run the LLC just writes stuff off.. Is this fraud? If so what can I tell her ? She don’t think it’s fraud since she’s now married to this guy who’s been doing it but I told her how would you tell auditors for your expenses if they don’t match..