All Posts

have you gone thru the section in Other Tax Situations / Underpayment Penalty to make sure TT has your 2023 info and the safe harbor penalty calcs on Form 2210 are correct.  You may also be able to reduce the penalty if you adopt the Annualized Income method depending on your situation.   Did you pay any estimated tax (ES) last year either regularly or specifically for this cap gain event?  When you have a large unexpected income event such as Roth conversion or large cap gain you can pay one-off ES and then use Form 2210 Annualized Income method to show the timing, otherwise you will get penalized because the calcs assume by default your total income was earned evenly thru the year and your estimated taxes need to match (withholding is also assumed to be paid evenly thru the year, it's just ES which come with specific dates) and the penalty is calculated quarterly - if you took the cap gain later in the year and don't adopt the AI method it will assume a quarter of that gain was in Q1 and penalize you since then etc.   The "safe harbor" to avoid penalty is to have paid "timely" during the year via withholding or quarterly ES either 100% of 2023 tax (110% if AGI > 150k) or 90% of 2024 tax, whichever is smaller.  If you didn't hit either of those you will certainly have a penalty.   The other issue you may now see is TT by default will generate ES vouchers for 2025 based on paying "100/110% of 2024 tax" in 2025 thru withholding or estimated taxes, which may now be too high if 2024 had some one-off high income.  You can go through Other Tax Situations / Form W4 and Estimated Taxes to provide estimates for 2025 to see if you can then adopt "90% of 2025 tax" instead, and determine if any withholding is enough or you need to pay ES.

If you are planning to use the townhome as a rental:   The basis of property used in a rental activity is generally its adjusted basis when you place it in service in that activity. This is its cost or other basis when you acquired it, adjusted for certain items occurring before you place it in service in the rental activity, such as major improvements.   Continue to track expenditures that can be added to the basis of the property while you are preparing it for rent, even if that continues until next year. When the property is held out for rent at a fair rental value, you start depreciating the property (excluding the land value).   See IRS Publication 527 for more information.  

But, you have found that 'trading fees' should definitely be included in any and all crypto cost basis, correct?  (including futures trading)   based on my research, all trading fees (crypto, stock, etc) should be included in cost basis.

To change your residency status, go over your DC return from the beginning. The first screen, We've recommended a residency status, allows you to Change Residency. Select Nonresident Request for Refund (Form D-40B).    @Sir Charles  

What if the married couple both live in Delaware and one works in Maryland? Are we able to take the two-income married couple subtraction on the Maryland tax return if only one of us has Maryland income?

See this TurboTax support FAQ for amending a prior year tax return - https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/amend-change-correct-return-already-filed/L4VjJ9BA2_US_en_US?uid=ld1n99kr