Has anyone used the foreign tax credit with Subpart F income? I'm in a similar situation with about $18k of Subpart F income from a UK company, and trying to figure out if I can offset some of the US tax with UK taxes that were already paid.

I went through this exact situation last year with a foreign corporation in Germany. The Subpart F reporting is definitely overwhelming at first, but it gets easier once you understand the mechanics. A few practical tips that helped me: First, make sure you get Form 5471 instructions and really read through Part III carefully - that's where your Subpart F income gets calculated and reported. Second, keep detailed records of any foreign taxes paid by the corporation since you'll likely want to claim foreign tax credits on Form 1116. The "paying tax on money you didn't receive" part is frustrating, but as others mentioned, you won't be double-taxed when distributions actually happen. Your basis gets stepped up, so it works out in the end. One thing I learned the hard way - if this is your first year with Subpart F income, consider whether you need to make estimated tax payments for next quarter since this income probably wasn't withheld from anywhere. I got hit with underpayment penalties because I didn't adjust my estimates. Also, definitely work with a CPA who handles international tax if your situation is complex. The rules around CFCs and Subpart F have a lot of nuances that can trip you up.

Is anyone using Quickbooks or other accounting software in a way that identifies which card was used? I have multiple cards (some business, some personal) that I use for biz and wondering how others are tracking this.

I've been doing exactly what you're describing for about 3 years now - using a personal credit card exclusively for business expenses. Never had any issues with the IRS, and my CPA actually recommended this approach when I was starting out. The key things that have worked for me: 1) I literally never put personal expenses on this card - it's 100% business only, 2) I keep all receipts and document everything in QuickBooks just like you're planning, and 3) I reconcile the card monthly so there's a clear paper trail. From what I've learned, the IRS audit triggers are more about inconsistent reporting, large deductions without proper documentation, or mixing personal/business expenses on the same accounts. Using a personal card that's dedicated to business actually creates cleaner records than mixing everything together on a business card. Plus, like others mentioned, the rewards are often better on personal cards. I've earned thousands in cashback over the years that I probably wouldn't have gotten with a business card. As long as you're disciplined about keeping it business-only, you should be fine!

As a newcomer to this community, I'm really grateful for all the detailed explanations about this $200 credit rumor! I've been seeing posts about it all over Reddit and TikTok for the past few weeks, and honestly, I was starting to believe it might be real since so many people were talking about it. I even called my tax preparer yesterday to ask about it, and they had no idea what I was talking about - which should have been my first clue that it wasn't legitimate! Reading through everyone's responses here with actual IRC citations and explanations about how tax legislation actually works has been incredibly educational. I had no idea that the 846 code on transcripts represents the final refund amount, or that the IRS would need time to implement any new credits even if Congress did pass something. It's honestly a bit embarrassing how close I came to adjusting my budget based on this false information. Thank you all for taking the time to provide factual, well-sourced answers instead of just perpetuating rumors. This community is exactly what confused taxpayers need during tax season!

As a newcomer to this community, I want to add my voice to the chorus of people who almost fell for this $200 credit rumor! I've been following this thread closely and it's been such an eye-opener. I was literally about to call my bank to ask when the "extra $200" would hit my account after seeing multiple posts about it on Twitter and various tax Facebook groups. What really struck me was how confidently people were claiming this credit existed - some even said their tax preparers told them about it! The detailed explanations here about IRC sections and how the IRS actually implements new legislation have been incredibly valuable. I had no clue that my 846 code amount was set in stone, or that any real congressional action would require formal announcements and implementation time. It's honestly frightening how quickly tax misinformation spreads on social media, especially when people are anxiously waiting for their refunds and hoping for good news. Thank you to everyone who took the time to provide factual, well-researched responses with actual tax code references. This community is a breath of fresh air compared to the speculation and wishful thinking I've encountered elsewhere. I'll definitely be bookmarking IRS.gov and checking official sources before believing any tax-related claims I see online in the future!

This is really helpful information everyone! I'm new to having multiple retirement accounts and had no idea about the combined loan limits. My HR department at my main job told me the same thing Miguel's coworker said - that I could borrow $50k from each plan since they have different sponsors. Reading through all these responses, it sounds like I need to be much more careful about this. The point about what happens if you leave one employer while having outstanding loans from both plans is especially concerning. I was actually considering taking a loan from my 403b to help with some home repairs, but now I'm wondering if I should just stick with one plan or maybe look into other financing options instead. Has anyone found good resources (besides the AI tools mentioned) to double-check what their plan administrators are telling them about loan rules? I want to make sure I'm getting accurate information before making any decisions.

Another resource worth checking out is the Summary Plan Description (SPD) for each of your retirement plans. Your plan administrator is required to provide this to you, and it should clearly outline the specific loan provisions for that particular plan. While the IRS sets the overall framework, each plan can have its own additional restrictions. Also, if you're still getting conflicting information after checking the official IRS publications Brandon mentioned, consider reaching out to a fee-only financial planner who specializes in retirement planning. They'll be familiar with the loan aggregation rules and can help you understand how they apply to your specific situation with multiple employers. One last thing - document everything when you speak with plan administrators. If they give you incorrect information and you act on it, having that in writing could be important later. I always follow up phone calls with an email summarizing what was discussed, just to have a paper trail.

I own 3 rentals and have dealt with this exact situation. Since the property isn't cash flowing anyway, and it's your future home, I'd definitely go with new appliances. Even though repairs can be fully deducted immediately, new appliances will: 1) Last longer when you move back in 2) Be more attractive to tenants in the meantime 3) Be more energy efficient 4) Still provide tax benefits through depreciation If you were going to sell soon, I'd lean more toward repairs since you wouldn't benefit from the longer life of the appliances.

Has anyone considered the de minimis safe harbor election? If each item costs less than $2,500, you can elect to deduct them immediately rather than depreciating them. You just need to have an accounting policy in place and make the election on your tax return.