Has anyone here actually gotten in trouble for NOT reporting foreign accounts? I have about $30k in my home country that I've never mentioned on US taxes because I didn't know I had to. Been a green card holder for 4 years now... am I in big trouble?

I went through something very similar when I moved from Australia to the US. Had about $18k in savings that I needed to transfer. The key thing I learned is that the transfer itself isn't taxable, but you need to be careful about reporting requirements. Since you mentioned you're a green card holder, you're considered a US resident for tax purposes, which means you have worldwide income reporting obligations. The $20k you saved in Thailand won't be taxed when you transfer it (it's already your money), but any interest it earned while you've been a US resident needs to be reported on your tax return. Also, definitely check if your Thai account balance ever exceeded $10k while you've been a US resident - if so, you'll need to file an FBAR. The deadline is April 15th but there's an automatic extension to October 15th. One more tip: consider the transfer method carefully. I used a service like Remitly instead of a bank wire and saved hundreds in fees and got a much better exchange rate. Just make sure whatever service you use provides proper documentation for the transfer in case the IRS ever asks about the source of the funds.

I went through something very similar about 6 months ago! Completely forgot about a 1099-B for some mutual fund shares I sold at a loss. I was so worried I'd get penalized, but it actually worked out in my favor. The key thing to remember is that since it's a loss, you're not trying to hide income from the IRS - you're actually entitled to a tax benefit you didn't claim. I ended up amending my return and got back an extra $240 because the loss offset some of my other income. One thing I learned is that you definitely want to amend sooner rather than later, even though you have up to 3 years. The IRS matching process will eventually catch it anyway since brokers report directly to them, so it's better to be proactive. Plus, why wait for money that's rightfully yours? The 1040-X form looks intimidating at first, but it's really just showing what you originally reported versus what it should have been. Take your time with it and don't be afraid to call the IRS practitioner priority line if you get stuck on any part of the forms.

I've been following this thread and wanted to share some additional perspective as someone who's dealt with similar situations. The consensus here is absolutely correct - you should amend your return to include the 1099-B, even for a loss. A few key points that haven't been fully emphasized: 1. **The IRS matching process is real** - Your broker sent them the same 1099-B they sent you, so eventually their computers will notice the discrepancy. It's much better to be proactive than reactive. 2. **Capital loss carryforward** - If you don't use the full $600 loss this year (after offsetting any gains you might have), the unused portion carries forward to future tax years indefinitely. So even if it doesn't help you much this year, it could offset future capital gains. 3. **Documentation is key** - When you amend, make sure to keep copies of everything and send the 1040-X via certified mail. The IRS can take 12-16 weeks to process amendments, but having that paper trail gives you peace of mind. The good news is you caught this relatively quickly after filing. Many people don't discover these oversights until they get an IRS notice months later, which creates more stress and complications. Filing the amendment now puts you in control of the situation rather than waiting for the IRS to potentially contact you about it. The extra refund you'll likely receive is just a bonus for doing the right thing!

I'm so sorry you had to deal with such a nightmare situation during graduate school - losing both custodians and dealing with legal complications while trying to focus on your studies must have been incredibly stressful. The good news is that your situation is definitely not hopeless! The IRS doesn't have a statute of limitations on 529 withdrawals for qualified expenses, and your extraordinary circumstances actually strengthen your case for retroactive withdrawals. A few key points to consider: **Documentation is crucial** - Keep everything related to the custodian deaths, legal proceedings, bank correspondence, and any documentation showing you couldn't access the account. This timeline will be vital if you're ever questioned about the withdrawal timing. **The hybrid approach makes sense** - Using $10,000 for student loan repayment is straightforward under the SECURE Act and doesn't have the same calendar year matching considerations. For the remaining $8,000, you can work with a tax professional to handle the retroactive expense documentation properly. **Room and board could be your friend** - If you claimed AOTC or LLC credits during your program, focus your 529 withdrawals on expenses like housing and meal plans that qualify for 529 distributions but weren't used for those tax credits. This avoids the "double-dipping" issue entirely. **Professional guidance is worth it** - Given the multi-year complexity and unique circumstances, having a tax professional help with the documentation strategy could save you headaches and give you confidence that everything is handled correctly. Your situation is exactly what 529 plans are designed for - don't let bureaucratic complications prevent you from accessing funds that were meant to pay for these very expenses!

Your situation really resonates with me because I went through something similar when my father passed away during my junior year and left my 529 account in legal limbo for over a year. It's incredibly frustrating to have education funds sitting there while you're drowning in out-of-pocket expenses, but you definitely haven't missed your chance! The consensus here is spot-on about the hybrid approach being your best bet. The $10K student loan repayment option through the SECURE Act is bulletproof - no calendar year matching required, and it's specifically designed for situations like yours where traditional timing didn't work out. For the remaining $8K, I'd strongly recommend getting professional help, but don't stress too much about the retroactive aspect. The IRS understands that life happens, and your documented custodian situation gives you a very legitimate reason for the timing mismatch. One additional tip from my experience: when you do make the withdrawals, consider requesting the distributions be sent directly to your loan servicer for the $10K portion. This creates an even cleaner paper trail and eliminates any question about proper use of the funds. For the remaining amount, having it deposited to your account while maintaining your expense documentation should be fine. The most important thing is that you finally have access to money that was always meant for your education. Don't let the bureaucratic complications discourage you from using these funds for their intended purpose!

Great question! I've dealt with similar partnership situations involving active real estate management. The key is understanding that the nature of the income doesn't change based on who performs the work - it's still rental real estate activity. For your 1065 with mixed rental properties, everything should be reported on Form 8825 (Rental Real Estate Income and Expenses). The tools and equipment they purchased for property maintenance are legitimate business expenses that reduce the rental income, typically reported on line 14 (Repairs and maintenance) or line 18 (Other expenses). The fact that they're doing the work themselves actually strengthens the case that this is rental activity rather than a separate service business. If they were providing substantial services beyond normal property management (like daily housekeeping for short-term rentals), you might need to consider whether some activities rise to the level of ordinary business income. One thing to watch for: if any of the tool purchases are substantial enough to require capitalization rather than immediate expensing, you'll need to depreciate those over their useful life. But for typical maintenance tools, they're usually fully deductible as current expenses. The partnership structure keeps everything together on one return, but make sure you're properly tracking each partner's level of participation for the K-1 passive/non-passive determinations.

I've handled several similar partnership returns with active real estate owners, and you're right to be thoughtful about the classification. The good news is that in most cases, all of this activity stays on Form 8825 as rental real estate income and expenses. The key principle is that when partners perform maintenance and repairs on their own rental properties, it's still considered part of the rental real estate activity - not a separate business generating ordinary income. This is true even when they're very hands-on with the work. For the tools and equipment they purchased, these are legitimate rental expenses that should be reported on Form 8825. Smaller tools (hand tools, basic equipment) typically go on line 14 as repairs and maintenance expenses. Larger equipment purchases might need to be capitalized and depreciated depending on cost and useful life. One area to pay attention to with mixed rental types: if the Airbnb properties involve substantial services beyond typical property management (like daily housekeeping, concierge services, meal preparation), those activities could potentially be treated as ordinary business income rather than rental income. But basic services like cleaning between guests and general property maintenance still qualify as rental activity. The material participation rules others mentioned will affect the passive/non-passive classification on the K-1s, but won't change how the income is reported on the 1065 itself.

I'm going through a very similar situation right now with my grandmother's estate. The quotes I've been getting are all over the place - from $2,800 to $6,500 for what seems like comparable work. One thing I learned is that you should definitely ask about their experience specifically with 645 elections, because not all CPAs are familiar with this option. The CPA I ended up choosing explained that the 645 election can actually save money in the long run because it simplifies the tax reporting by treating the estate and trust as one entity for tax purposes. This means fewer separate returns to file over the administration period. However, you have to make this election on the first 1041 return, so timing is crucial. I'd recommend getting at least 3 quotes and asking each CPA to explain their approach to your specific situation. The cheapest isn't always the best choice, but neither is the most expensive. Look for someone who can clearly explain the process and timeline, and who has handled similar estates recently.

I went through this exact situation with my mother's estate last year and can offer some perspective on what you should expect to pay. The $5,200 retainer does seem high, but it's not completely unreasonable depending on your location and the complexity involved. Here's what I learned during my search for the right CPA: 1. **Get itemized estimates** - Any reputable CPA should be able to break down their fees by specific services (initial 1041 with 645 election, ongoing quarterly filings, K-1 preparation, final distributions, etc.). If they won't provide this breakdown, that's a red flag. 2. **The 645 election is actually beneficial** - Don't let the CPA convince you it's overly complex. It's a relatively straightforward election that simplifies administration by treating the estate and trust as one entity. This typically SAVES money over time by reducing the number of separate returns needed. 3. **Shop around but focus on expertise** - I got quotes ranging from $2,400 to $5,800 for similar work. The key is finding someone with specific trust and estate experience, not just general tax preparation. 4. **Ask about the timeline** - Make sure they understand your deadlines. The 645 election must be made on the first 1041 return, and missing this deadline can cost the estate significantly more in future filing requirements. For an estate with $350k in investments plus real property, I'd expect to pay somewhere in the $2,500-$4,000 range for comprehensive services, assuming you're not in a high-cost area like NYC or SF. The fact that most assets were in trust (avoiding probate) should actually make their job easier, not more expensive. Don't be afraid to negotiate or ask for a fixed-fee arrangement if the estate's complexity is fairly straightforward.