All Posts

Mike -thanks for taking the time to reply!  I think 2023 & prior are correct (RE Pro status).  My husband just retired here in 2025, but has been a real estate professional which included managing our rental properties in 2024 & prior for many years.  So, for 2024 it was my intention to count him as a real estate professional (I am working under an extension with a due date of 10/15).  (We will have to change that when we do the 2025 taxes).  But I cannot find where to input the RE Professional designation in the 2024 Premier software (I have done this in prior years).  The only question I'm getting in the "interview" section has to do with are we "actively" participating.  And since I can't figure out how to designate the RE Pro, the rental property income is going over to form 8582 (line 1a), and is therefore being counted against the other passive losses.  (I even tried to manually override the "Passive Status" on the Activity Summary Smart Worksheet for my properties, which has "Active", to "RE PRO".  But that's not making the Form 8582 change). That's OK if I am still able to take the QBI deduction legitimately AND the passive loss offset.  (BTW, the software is giving me the QBI deduction AS WELL AS the Passive Loss offset right now.)  But that seems suspect to me and I don't want to screw up the return and get audited/penalties for underpaying, etc).   So I need to figure out how to get that RE Pro designation to work, or leave it as-is if I am legitimately entitled to the QBI deduction AND the passive loss offset. I really, really appreciate any insight/opinions you might provide.  I am really stuck and don't know how to proceed.

there's no way to tell, the ending balance sheet, Schedule L, likely would be all zeroes since all assets and liabilities should be gone leaving the balancing account partners' capital accounts at zero. may be a better way is to look at schedule L on each k-1 (if this was generated) which is supposed to be on the tax basis and compute the net of beginning capital, capital contributed during year, current year income (loss), and other increase/(decreases). this should be the partner's tax basis before any distributions for the year and before taking into account any change in liabilities for the year that affected tax basis.     it's even possible for there to be gain on liquidation, if liabilities allowed for the deduction of losses that exceeded the tax basis of what was actually contributed by the partners. Property contributions/distributions would affect gain/loss on liquidation. if items affecting tax basis weren't proportional each year, it's possible for one on you to have a gain on liquidation while the other has a loss.         i  

Do you mean the autorenewal for next year's program?  Or what exactly?  What do you want to change from and to?   How to update my Advantage account information https://ttlc.intuit.com/community/choosing-a-product/help/how-do-i-update-or-confirm-the-info-in-my-turbotax-advantage-account/00/25883   TO CANCEL ADVANTAGE You can sign into your TurboTax Advantage account and under Your Product, select to remove product. Once you remove the recurring product order, the TurboTax Advantage subscription will be cancelled, as well. How to Cancel my Advantage Account https://ttlc.intuit.com/community/downgrading/help/how-do-i-cancel-my-turbotax-advantage-subscription/00/25548    

When I try to file a substitute 1099R, it is asking me to explain how I tried to get a 1099R. I know I’ll receive it next year in 2026. But now, TT is saying I owe 10% on early distribution. From my understanding there is a new law that removes the 10% early withdrawal penalty on earnings removed with excess if you do it timely. Is the distribution code correct?  This is from Fidelity.   Are the earnings on my timely return of excess request subject to a 10% early withdrawal penalty if I am younger than 59.5? No, the SECURE 2.0 Act of 2022 removed the 10% early withdrawal penalty on earnings removed with excess and non-deductible contributions for IRA owners under 59.5. However, earnings must be included in income in the year the excess or non-deductible contribution was deposited into your IRA.

did you claim real estate tax professional status in 2023 but not 2024?  For 2023, if you did, the real estate activities would not be passive and not flow to form 8582.  So you would be left with those passive losses in 2023. if not, rental income with active participation should flow to 8582 line 1a, but with material participation should flow to 8582 line 2a and would offset the other passive business losses.   seems something is wrong with 2023   the special QBI rule for rental real estate does not transform it into a nonpassive activity.    rules to be a REP       1.Time Commitment: You must spend more than 750 hours during the tax year on real estate activities. This includes tasks such as property management, development, leasing, and brokerage. 2. Primary Focus: More than half of your total working hours must be dedicated to real estate. For example, if you work 1,500 hours a year, at least 751 hours must be in real estate activities. 3. Material Participation: You must demonstrate material participation in your real estate activities. This can be established by meeting one of the IRS's seven tests for material participation, with the most common being that you participate for more than 500 hours in the activity during the tax year.                                                                                             

1. When you made the Roth conversion you owed tax on that amount  2. If you make an IRA withdrawal in December 2025 and withhold the entire amount to cover the conversion tax owed you still will be taxed on the amount you withdrew in December and that amount is 2025 income. 3. Any distribution made in 2026 doesn’t affect your 2025 tax situation. 

The other day I called again and spoke to a supervisor. I faxed them my tax extension, the IRS IRA rules, and a formal statement. I received a transaction confirmation about two days later. It was not easy but yay it’s done.  When I receive the 2025 1099R next year, do I need to anything or do I just ignore it since I’m reporting it in 2024? Also, I had them reinvest the excess contributions and earnings this year 2025, just to confirm, the total contributions for this year includes the earnings too, correct? I want to make sure I report my IRA contributions correctly next year.  Thank you so much for your help! @Opus 17 @fanfare