Someone mentioned PFIC earlier and that's actually super important. If your foreign ETFs are considered PFICs (most are), you might need to file Form 8621 for each one, even if they're held in a US brokerage!!! That's separate from the 8938 question.

Thank you all for this incredibly helpful discussion! As someone who's been dealing with similar confusion, I wanted to add a few clarifications that might help others: 1. **Form 8938 vs FBAR**: Both commenters above are correct - since your Chase account is with a US institution, you don't need either form, regardless of what foreign investments are inside it. 2. **PFIC trap**: @Yara Assad and @Olivia Clark are absolutely right about this being a separate issue. Many foreign ETFs are indeed PFICs, and Form 8621 requirements apply regardless of where the account is held. This is often overlooked and can result in significant penalties. 3. **Common mistake**: I see people get confused because they think "foreign investment" = "foreign account" but the IRS distinguishes between the location of the financial institution vs. the underlying investments. @Tyrone Johnson - for your specific situation, I'd recommend asking your accountant to specifically verify whether any of those foreign ETFs qualify as PFICs. The portfolio manager at Chase should be able to provide you with a list of all foreign funds purchased during the year so you can check each one. The tax software and IRS callback services mentioned above sound like great resources for getting definitive answers on these complex international tax situations.

Just wanted to add a few key points that might help clarify things for you: 1. **Holding Period**: Since your uncle gifted these to you "a few years back," make sure you can establish that you held them for more than one year. The long-term capital gains treatment (with the 28% collectibles rate) only applies if the total holding period (including your uncle's ownership time) exceeds one year. 2. **Form 8949 Reporting**: You'll need to report each coin sale separately on Form 8949, then summarize on Schedule D. Don't forget to check Box B for collectibles held more than one year. 3. **Gift Tax Considerations**: Since you mentioned gift taxation in your title - the good news is that as the recipient, you don't owe any gift tax. That would have been your uncle's responsibility if the total value exceeded the annual exclusion limit when he gave them to you. 4. **Dealer Reporting**: If you sold through a coin dealer, they may send you a 1099-B form, but it might not show your correct basis. You'll need to adjust this on your return using the stepped-up basis from the original gift. The $180 per coin gain calculation mentioned earlier looks correct based on your numbers. Just make sure you have some documentation of the original purchase price - even an email from your uncle confirming what he paid would be helpful to keep with your records.

I went through a similar situation with some gold coins my grandmother gave me before she passed away. One thing that really helped me was keeping a detailed spreadsheet with all the information - date of gift, estimated original purchase date and price, date of sale, sale price, and any fees involved. Since you mentioned your uncle told you the approximate original price ($2,315), I'd suggest reaching out to him to see if he has any documentation like receipts, bank statements, or even just an email confirmation from when he purchased them. Even if he doesn't have the exact paperwork, having him write a simple statement confirming the purchase details can be valuable documentation for your records. Also, double-check with whoever you sold the coins to - some dealers keep records of what they've purchased and might be able to provide you with a detailed receipt showing the exact specifications of the coins (year, condition, etc.) which can help support your tax filing. The collectibles tax treatment can definitely feel overwhelming at first, but you're asking all the right questions and it sounds like you have the key information you need to report this correctly!

My husband and I were confused about this last year! One thing that helped us was opening separate accounts and each writing our own checks to our daughter rather than giving from our joint account. Our tax software flagged that we didn't need to file Form 709 this way since each gift was individually under the limit.

Great question! Just to add some clarity to the excellent answers already provided - the key thing to remember is that gift splitting is an election you make, not something that happens automatically just because you're married filing jointly. If your parents want to give your brother more than $18,000 each in 2025 (so more than $36,000 total), they have a few options: 1) Each parent can give up to $18,000 from their own funds without any paperwork, 2) They can give more and elect gift splitting on Form 709 (no tax owed, just reporting), or 3) They can give even larger amounts using their lifetime exemption. One practical tip: if they're planning a substantial gift for the down payment, they might want to consider timing it across tax years. For example, they could give $36,000 in late 2024 and another $36,000 in early 2025, effectively doubling the amount without triggering any gift tax consequences or filing requirements. Also worth noting that the recipient (your brother) never owes taxes on gifts received, regardless of the amount - that's always the giver's responsibility.

I'm in a very similar situation - small partnership that's been mostly dormant while waiting for our ERC to process. Based on all the responses here, I think I'm going to try TaxSlayer Business for around $70 since it seems like the most affordable option that still provides some guidance. The DIY route is tempting to save money, but I'm honestly worried about making mistakes on a partnership return, even a simple one. And while the taxr.ai recommendations are interesting, I'd rather stick with something more established for my first time doing this myself. Thanks everyone for the detailed breakdown of options - this thread has been incredibly helpful! It's reassuring to know there are affordable alternatives to the $200+ software packages.

I've been following this thread closely since I'm in an almost identical situation - partnership on hold waiting for ERC funds to come through. After reading all the suggestions here, I decided to go with TaxAct Business for around $80 this year. What really sold me was that several people mentioned it handles ERC-related entries well, which has been a concern of mine since our business situation is a bit unusual right now. The interface seemed more intuitive than TaxSlayer when I tried their demo, and the extra $10-15 felt worth it for the peace of mind. For anyone else in a similar boat, I'd recommend trying the free demos that most of these platforms offer before committing. It really helped me get a feel for which one would work best for my comfort level with tax software.

22 Has anyone here actually had their S-Corp inventory donation audited? I'm worried about the documentation requirements and wondering how strict the IRS really is about proving the cost basis.

One thing I haven't seen mentioned yet is the potential impact on your S-Corp's ordinary income when you donate inventory. When you donate inventory at cost basis, you're essentially removing it from your books without recognizing any income from a sale. This means you won't have to pay taxes on profit you would have made if you sold the inventory instead. However, you also need to consider whether the inventory donation makes sense from a cash flow perspective. You're giving up the cost basis as a deduction, but you're also not getting any cash from a sale. Make sure the tax benefit to you and your fellow shareholders justifies not pursuing other options like discounted sales or liquidation. Also, don't forget to properly remove the donated inventory from your books and adjust your inventory accounting accordingly. This should be done in the same tax year as the donation to ensure everything aligns properly on your 1120-S.