Has anyone used TurboTax for reporting room rentals in their primary residence? I'm in a similar situation and wondering if I need to pay for their more expensive version or if the basic one will handle this correctly.

Just wanted to share my experience as someone who's been renting out rooms in my house for about 3 years now. One thing I learned the hard way is to keep extremely detailed records of everything - not just the big renovations like your bathroom project, but also all the smaller maintenance items throughout the year. Things like replacing faucets, fixing leaky pipes, repainting rooms between tenants, etc. can really add up and many of these qualify as immediate repairs rather than improvements. For your $22k bathroom renovation, definitely work with a tax professional if you can afford it. The distinction between repairs and improvements can save you thousands. For example, if you're replacing a broken toilet, that's a repair. But if you're upgrading to a fancy new toilet when the old one worked fine, that's an improvement. Sometimes a single project can include both elements. Also, don't forget about the home office deduction if you use part of your house exclusively for managing your rental business - storing supplies, doing paperwork, meeting with potential tenants, etc. It's another deduction that many accidental landlords miss!

Has anyone used H&R Block's software for trust returns? Their website says they support Form 1041 but I can't find much feedback about how good it actually is compared to other options.

Another option to consider is FreeTaxUSA's Business edition - they do offer Form 1041 preparation for trust returns at a much lower cost than most accountants. I used it last year for a straightforward trust with investment income and it worked well. The interface isn't as polished as some of the dedicated trust software mentioned here, but it gets the job done and includes e-filing. Cost me around $40 total, which was definitely worth it to avoid the $500+ accountant fee. One thing I learned is that most trust returns are actually pretty straightforward if you take time to understand the basics. The key is figuring out whether income stays in the trust or gets distributed to beneficiaries, and the software helps walk you through those decisions. If your trust document is clear about income distribution terms, you should be able to handle it yourself with any of these software options.

I completely understand your frustration with Surgent - you're definitely not alone in this experience! The practice-question-only approach is like trying to learn piano by only playing scales without understanding music theory. Here's what I wish someone had told me when I was in your exact situation: **Essential Study Materials:** - **Gleim EA Review** - Their textbooks are comprehensive and actually explain the "why" behind tax rules. Worth every penny. - **Passkey EA Review** - Great alternative with clear explanations and practical examples - **IRS Publication 17** (Your Federal Income Tax) - Use this as your reference bible - **Circular 230** - Essential for understanding EA practice requirements **The study approach that actually works:** 1. Start with understanding concepts through textbooks BEFORE doing practice questions 2. Read one chapter thoroughly, take notes, make sure you understand the underlying principles 3. Reference the corresponding IRS publications for official language 4. THEN practice questions to test your understanding 5. When you get questions wrong, go back to learn WHY, not just what the right answer is **Free IRS resources to supplement:** - Publication 334 (Tax Guide for Small Business) - Publication 535 (Business Expenses) - Publication 225 (Farmer's Tax Guide) The fact that you want to actually understand the tax code rather than just memorize answers tells me you're going to be an excellent EA. Don't let Surgent's limitations discourage you - there are much better resources out there that will give you the solid foundation you're looking for. You're asking all the right questions. Stick with it!

I feel your pain with Surgent! I went through the exact same experience and felt like I was going crazy trying to understand why I wasn't "getting it" from just practice questions. After reading through all these great recommendations, I wanted to share what finally worked for me. The key breakthrough was realizing that the EA exam isn't just testing memorization - it's testing your ability to apply tax principles to real-world situations. You can't do that without understanding the underlying concepts first. **My recommended study sequence:** 1. **Start with Gleim EA Review textbooks** - Yes, they're expensive, but they actually teach you the material systematically 2. **Use IRS Publication 17 as your reference guide** - Don't try to read it cover to cover, but use it to look up specific topics as you study 3. **Master one topic completely before moving to the next** - Read the textbook chapter, understand the concepts, then do a few practice questions to test comprehension **What changed everything for me:** Instead of asking "What's the right answer?" I started asking "What tax principle is being tested here?" Once you understand the principles, the specific applications become much clearer. The fact that you want to actually understand the tax code shows you have exactly the right mindset to become a great EA. Don't let Surgent's approach make you doubt yourself - you're not the problem, the study method is. Invest in proper textbooks that actually teach the material, and you'll be amazed at how much more confident you feel going into the exam. Stick with it - understanding the material properly is worth the extra time and investment!

Great question! The explanation about purchase commissions being added to cost basis and selling commissions reducing proceeds is spot on. Just wanted to add a couple of practical tips from my experience: 1) If you use multiple brokers, make sure you're consistent in how you handle fees across all platforms. Some brokers are better at clearly showing commissions on their 1099-B forms than others. 2) Don't forget about transfer fees if you moved stocks between brokers - these can usually be added to your cost basis as well since they're directly related to acquiring the securities. 3) Keep digital copies of all your trade confirmations, not just the year-end summaries. The IRS loves documentation if they ever have questions about your cost basis calculations. One last thing - if you're doing a lot of trading, consider whether you might qualify as a "trader in securities" for tax purposes. The rules are different and might actually be more favorable depending on your situation. Worth researching if you're making frequent trades!

This is such a common source of confusion! I went through the same thing when I started actively trading. One additional point that might help - if you're using a discount broker that charges per-share fees instead of flat commissions (like some do for penny stocks), those per-share fees work the same way. They get added to your cost basis on purchases and subtracted from proceeds on sales. Also, if you ever get into options trading, the same principle applies to options commissions and assignment/exercise fees. The key is always thinking about which side of the transaction the fee relates to - acquisition costs increase your basis, disposition costs reduce your proceeds. Keep good records throughout the year rather than trying to reconstruct everything at tax time. I learned that lesson the hard way my first year of serious trading!

I'm in my 3rd year of YouTube and my biggest mistake was mixing personal and business expenses at the beginning. For your sanity during tax season, get a separate card for YouTube purchases NOW, even if you're not making money yet. When tax time comes and you're trying to sort through hundreds of transactions to figure out which were for the channel... it's a nightmare. Trust me.

Great thread! As someone who's been through this exact journey, I want to emphasize something that saved me a lot of headaches: start treating it like a business from day one, even if you're not making money yet. Beyond what others have mentioned, here's what I wish I'd known: consider opening a business credit card (not just debit) for your YouTube expenses. Many business cards offer cash back on categories like office supplies, internet, and advertising - which are perfect for YouTubers. Plus, using credit responsibly helps build your business credit score for the future. Also, don't forget about the home office deduction if you're editing at home! Even if it's just a corner of your bedroom where you edit, you can potentially deduct that square footage. For 2025, you can use either the simplified method ($5 per square foot up to 300 sq ft) or calculate actual expenses. One last tip: start a simple spreadsheet or use an app to track everything monthly rather than waiting until tax season. I use a basic Google Sheet with columns for date, amount, category, and description. Takes 5 minutes a month but saves hours at tax time!