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Thank you @Katie-P . Yes, I did put the excess amount from 2023 in the form 5329 of 2024, part IV line 18 but I never filled 5329 in 2023. So my next step would just be to fill the 5329 for 2023 and pay the 6% of the excess (eg $2000)? Since I was below my contribution limit in 2024 the excess amount from 2023 was absorbed into 2024 I believe. Since line 22 for form 5329 Part IV in 2024 is 0. So do I need to do anything for the excess for 2023? Like withdraw it or something? 

Can I carry over the loss to future years when the property is rented?  How could you do a major renovation if the property is rented?  Is the only way to recoup the expenses by adding to the basis at the time of sale, which might be decades from now?  Will TurboTax walk me thru the steps to file correctly for this situation?  

Thanks for your reply and I have read the article you linked for safe harbor.  The cost of roof shingles replacement in 2023 was $4500 and it was less than 2% of the property value.  I am a small landlord.  How should I claim the deduction if it was claimed erroneously claimed at a 27.5 year amortization in my 2023 return?   TIA!

The IRS has created a new form relating to the new deductions passed in the One Big Beautiful Bill, Schedule 1-A. In particular, the Enhanced Deduction for Seniors is calculated on lines 31-37 of this new form, and then transfer to line 13b of the 1040/1040-SR. You can view the draft 2025 1040 and new form Schedule 1-A here: 2025 Draft Form 1040  2025 Draft Form 1040-SR  2025 Draft Schedule 1-A  Please note that these are draft forms which are subject to change and should not be used for filing a return.

If you have a rental property that is vacant, then you simply have no rental activity for those years.  The hobby rule is concerning earned income, not passive income which is how a rental activity is usually classified.    However, keep in mind that renovations and other expenses related to the property may not be deductible if the property was taken off the rental market.  The key for deductions is that the property is rented out or actively trying to rent.  And during the vacancy period, you will not be allowed to deduct the loss.

@erdls wrote: We bought a second home in another city 15 years ago.     The past two years we have lived in the second home due to the  availability of more medical services for a series of medical problems.     We maintained our mailing address and voting precinct with the primary home.       There are several problems.   You are calling the 30-year home your "primary home".  That seems extremely questionable if the 15-year home actually became your Principal Residence, rather than a temporary absence from the other home.   Even IF the 15-year home became your Principal Residence, there is another rule ("Nonqualified Use") that says you can only exclude 2/15ths of the gain (15 years of ownership; the time it was your Principal Residence was AFTER it was not your Principal Residence).  In other words, you could only exclude a small portion of the gain.   In addition to only being able to claim 2/15 of gain from that home, it also would mean that two years of the 30-year home was NOT your Principal Residence.  The same "Nonqualified Use" rules would result in that whenever you sell the 30-year home, you won't be able to exclude those two years (if you sold it two years from now, you could only exclude 30/32nd's of the gain because there were two years it was NOT your Principal Residence).    

Except for military or foreign service, there are no tax benefits for moving.  Your expenses are not deductible, and if your employer provides financial assistance, it is taxable like any other bonus.   Some states may still allow deductions for moving expenses if you itemize your deductions on your state return, because not all states go along with the 2018 federal changes.  (This means that moving expenses may still be listed in Turbotax--you will not get a federal benefit but you may get a state benefit depending on all your facts and circumstances.). Moving expenses are deductible based on time and distance rules, not the dollar amount.  The most common time and distance rule is that your new job must be at least 50 miles farther away from your old home than your old job (50 mile longer commute) and you must stay in the new location at least 39 weeks.  (That means that if your old commute is already 50 miles, your new job must be 100 miles away from your old home.)  To be more specific, we would have to know which state you are in.  

Your situation, with a large, unexpected tax bill and penalty, is common for couples where both spouses work. This often happens because the standard withholding calculations for two-income couples can fail to account for how their combined income affects their tax bracket.   To rectify this, you or your husband (or maybe both) must submit a new W-4 form to your respective employer(s). The goal is to increase the amount withheld from each paycheck going forward. You can use the IRS's Tax Withholding Estimator to help you fill out the form accurately.  IRS Tax Withholding Estimator  Lastly, I do believe it is worthwhile consulting a Tax Professional about the 2024 Tax Returns to see if something was missed that could reduced your Tax Liabilities for that year and perform an amendment of the 2024 Tax Return, if applicable. **Please say "Thanks" by clicking the thumbs up icon in a post ***Mark the post that answers your question by clicking on the "Mark as Best Answer"

When you sell a personal asset, it is either sold at a gain or a loss.  If there was a gain, you would have a long-term capital gain and possibly pay tax on the gain.  However, from your records, you are selling at a loss.  While a loss is not deductible, neither are the proceeds, in this case, going to be taxable.

There is a separate safe harbor for improvements that applies to small landlords, that would allow you to deduct the cost all at once, it is limited to items that cost 2% or less of the building's value or $10,000.  So that probably doesn't help you either. https://www.irs.gov/businesses/small-businesses-self-employed/tangible-property-final-regulations#Whatisthefactsandcircumstancesanalysis   Note that if you depreciate over 27.5 years but the shingles need to be replaced again earlier, the remaining depreciation can be claimed at that time.  (i.e. if the roof becomes unserviceable and needs to be replaced after 15 years, you can deduct the remains 12.5 years of depreciation then.  If the roof lasts 20 years, you deduct the remaining 7.5 year when you replace it.  And so on.)