Has anyone been able to qualify as a Real Estate Professional to get around these passive loss limitations? I'm trying to figure out if it's possible with my situation. I work full-time (about 2,000 hours per year) but also spend a ton of time managing my properties (maybe 15-20 hours per week).

I went through the exact same confusion with Form 8582 when I first started with rental properties! Those "unallowed losses" basically mean your rental losses are suspended because of the passive activity loss rules. Here's what's happening: If your modified adjusted gross income (MAGI) is over $150,000, you generally can't use rental property losses to offset your regular income like wages. The losses aren't gone forever though - they carry forward indefinitely until you either have passive income to offset them against, or you sell the property. There's a potential exception if your MAGI is under $100,000 and you actively participate in managing your rentals - then you can deduct up to $25,000 in losses against other income. But based on your situation with 4 properties generating losses in your first year, I'm guessing your income might be above that threshold. The good news is those suspended losses will eventually be useful when you sell the properties or if you generate passive income from other sources. Keep good records of the amounts each year - you'll need them later!

Sorry if this is a bit off-topic, but has anyone claimed the credit for a used EV or PHEV? I'm looking at a 2022 Chevy Bolt and wondering if I can get any tax benefits for buying used instead of new?

Thanks everyone for all the detailed responses! This has been super helpful. Just to summarize what I've learned for anyone else in a similar situation: 1. Regular hybrids (like a standard Prius) DON'T qualify - only plug-in hybrids (PHEVs) do 2. PHEVs need at least 7 kWh battery capacity to qualify 3. The credit amount varies by vehicle due to battery sourcing requirements - could be $3,750 or $7,500 4. You can either claim it on your taxes OR get it as an immediate discount at the dealership 5. Always verify with the IRS list rather than just trusting what dealers tell you I'm definitely going to check out that IRS qualified vehicles list before I go shopping this weekend. Sounds like I need to focus on plug-in hybrids specifically, not regular hybrids. Really appreciate everyone sharing their real experiences - way more helpful than the generic info I was finding online!

Great point about account types! Just to add some clarity for anyone reading - if this is a Roth IRA, the rules are different too. With Roth accounts, you can withdraw your original contributions (basis) at any time tax-free, but earnings withdrawals before age 59½ may be subject to taxes and penalties. For taxable accounts like the original poster seems to be describing, the proportional method mentioned earlier is typically the default, but as others have noted, you might have options like specific identification that could be more tax-efficient depending on your situation. Keep detailed records of all your transactions including dates, amounts, and any reinvested dividends - this will make basis calculations much easier whether you do them manually or use software to help.

One thing I'd add that hasn't been mentioned yet - if you're dealing with partial withdrawals regularly, it might be worth considering tax-loss harvesting strategies alongside your basis calculations. When you're withdrawing from investments that have gains, you could potentially sell other investments at a loss to offset some of the taxable gains. Also, timing can matter. If you've held the investment for less than a year, you'll pay short-term capital gains rates (taxed as ordinary income), but if you've held it for more than a year, you'll get the more favorable long-term capital gains rates. In your example with the $160 taxable gain using the proportional method, this rate difference could be significant depending on your income bracket. Just make sure you don't run into wash sale rules if you're planning to repurchase similar investments within 30 days of selling at a loss.

I went through this exact same process about a year ago and can confirm what others have said - you absolutely do not need to have your trade name/DBA figured out before applying for your EIN. The EIN is tied to your LLC's legal name from your formation documents, not any trade name you might use. I was in the same boat as you, spending way too much time trying to come up with the perfect business name before submitting my EIN application. Finally realized I was just delaying the inevitable and submitted the application with the trade name field left blank. Got my EIN approved within 48 hours. Six months later when I finally settled on a DBA name I liked, I registered it with my county clerk's office (requirements vary by state/locality). The whole process took about 15 minutes and cost $75. Never had to contact the IRS about it - they only care about your LLC's legal name for tax purposes. My advice: submit your EIN application now without the trade name. You need that EIN for so many other business setup tasks like opening bank accounts, getting business licenses, setting up payment processing, etc. Don't let the perfect business name decision hold up your entire business launch timeline. You can always add the DBA later when inspiration strikes!

I've been running my own single-member LLC for about 3 years now and went through this exact confusion when I first started. The trade name field on the EIN application is definitely optional - I left it blank on mine and never had any issues. What I learned is that your EIN is permanently tied to your LLC's legal name (the one filed with your state when you formed the LLC). The trade name/DBA is just an additional layer you can add later for marketing and business purposes, but it doesn't affect your tax ID at all. I actually didn't decide on my DBA until almost a year after getting my EIN, and the process was straightforward - just filed the paperwork with my state's business registration office and started using it. Your tax returns will always use your LLC's legal name and EIN regardless of what trade name you operate under. My recommendation: get your EIN now so you can move forward with opening business bank accounts and handling other setup tasks that require it. The perfect business name will come to you eventually, and when it does, adding the DBA is a simple administrative step that won't affect any of your existing tax or banking setup.

One important thing to keep in mind for future years - consider doing a backdoor Roth conversion instead of direct Roth IRA contributions if your income is close to or over the limits. Since you're married filing jointly and exceeded the 2023 Roth IRA income limits, you likely will again in future years. With a backdoor Roth, you'd contribute to a traditional IRA (no income limits for contributions, though you won't get a deduction) and then convert it to Roth. Just make sure you don't have any other traditional IRA balances that would complicate the pro-rata rule calculations. Also, for your current situation, double-check that your IRA provider reported the excess contribution withdrawal correctly on the 1099-R they'll send you for 2025. The distribution code should indicate it was an excess contribution return, which affects how it's taxed. This will be important when you file your 2025 return next year.

I went through almost the exact same situation last year! Here's what I learned from my experience that might help clarify things for you: For the "Name of Individual subject to additional tax" question - definitely use just your name since you're the owner of the Roth IRA. Even though you filed jointly, the Form 5329 penalty is specific to the individual account holder. You're absolutely correct about needing separate forms for both 2023 and 2024. Since the excess contribution sat in your account during both tax years, you'll owe the 6% penalty for each year. So that's $390 for 2023 and another $390 for 2024 (assuming the full $6,500 stayed in the account for both complete years). One thing to double-check - when you withdrew the $6,500 in January 2025, did your IRA provider also calculate and withdraw any earnings attributable to that excess contribution? This is important because those earnings (if any) would be taxable income on your 2025 return, and the IRS can be particular about this calculation. Also, make sure you're using the correct year's version of Form 5329 for each filing - use the 2023 form for the 2023 penalty and the 2024 form for the 2024 penalty. The forms do get updated yearly and line numbers can change. You can definitely mail both forms together in one envelope with separate checks (if paying by mail) or pay both penalties online and mail the forms separately. Just include a brief cover letter explaining what you're submitting.