Slightly off topic but has anyone used cost segregation with bonus depreciation for apartment buildings recently? My K1 shows huge depreciation but I'm worried about depreciation recapture when we sell the property in 5-7 years. Especially since bonus depreciation is phasing down now (80% for 2023, 60% for 2024, etc). Seems like it just creates a tax time bomb for later.

You're absolutely right to be concerned about depreciation recapture! With bonus depreciation, you're essentially accelerating deductions that would normally be spread over 27.5 years for residential rental property. When you sell, all that bonus depreciation gets recaptured at a 25% rate (plus any regular depreciation recapture). The math can be brutal - if you took $200K in bonus depreciation over a few years, you're looking at $50K in recapture taxes at sale. Some investors are actually electing out of bonus depreciation for this reason, especially if they're not real estate professionals who can use the losses against ordinary income. One strategy to consider is a 1031 exchange when you sell to defer the recapture, but that just kicks the can down the road. The other approach is to make sure the tax savings today (especially if you can use them against high ordinary income rates) exceed the future recapture costs when discounted to present value. Have you run projections on what the recapture will look like at your expected sale price and timeline? It might influence whether you even want to elect real estate professional status or just treat it as passive income.

Just went through this nightmare myself! Filed Form 8822 back in November when I moved and STILL had issues with my refund going to the old address in January 🤦‍♀️ The IRS systems don't talk to each other apparently. Had to call that hotline like 5 times before someone finally noted my case and reissued the check. Definitely file the form ASAP but also call them directly - sometimes the form takes weeks to process and your refund could get sent out before they update your address in their system. So frustrating but you'll get through it! The reissued check only took about 3 weeks once they actually processed my address change.

This is such a common issue and it's so stressful when you're already waiting months! 😫 Everyone's advice here is spot on - definitely file Form 8822 immediately and call the IRS hotline. I went through something similar when I moved during tax season last year. What really helped me was doing BOTH the form AND calling on the same day, then following up with another call about a week later to make sure they actually processed the address change in their system. The representatives can see if your address update went through and flag your refund case specifically. Also keep records of when you filed the form and any confirmation numbers from your calls - you might need them later. The whole process sucks but you'll get your money eventually! Hang in there! 💪

Great question! I went through this exact situation two years ago when I got married. My husband had about $8,000 in capital loss carryover from some tech stock disasters, and I had RSU gains from my company totaling around $6,500. The good news is that when you file jointly, the IRS treats you as one tax entity, so his pre-marriage losses can absolutely offset your capital gains. We were able to eliminate all of my RSU tax liability and still had $1,500 in losses left over to deduct against our regular income. One thing I'd recommend - make sure you have clear documentation of your capital loss carryover amounts from your previous single filing years. The IRS may ask for backup if they have questions. Also, consider whether filing jointly vs. separately gives you the better overall tax outcome, though in most cases with this type of situation, joint filing comes out ahead. Our CPA estimated we saved about $1,400 in taxes by being able to combine our capital gains and losses this way. Definitely worth looking into!

This is such a timely question for me! I'm dealing with the exact same situation - I have about $25k in capital loss carryover from some really poor investment decisions I made as a single person (mostly from chasing volatile penny stocks that went to zero). My wife just started a new job at a tech company and will be receiving RSUs that will generate significant capital gains when she sells them. Reading through all these responses has been incredibly helpful in confirming that we can combine my pre-marriage losses with her gains on our joint return. The real-world examples showing tax savings of $1,400-$2,800 really demonstrate how valuable this strategy can be. One thing I'm wondering about that I haven't seen mentioned - does anyone know if there are any limitations on how much loss carryover you can apply in a single tax year when filing jointly? Or can you use as much as needed to offset all available gains? With $25k in losses, I want to make sure I can use them as efficiently as possible against her RSU gains.

Quick tip: keep track of time spent developing too! Hours worked can help justify your business status to the IRS if they ever question whether your game dev is a hobby or a business. Hobbies have way fewer tax advantages than businesses.

As someone who went through this exact situation two years ago, I want to emphasize something really important that might help reduce your stress: you're actually in a BETTER position by waiting until you turn 18 to cash out! Since you haven't converted your Robux to USD yet, you have more control over the timing and can plan better for taxes. I made the mistake of cashing out sporadically throughout the year without setting money aside, and it was a nightmare come tax season. Here's what I wish I'd known: Consider cashing out in smaller chunks rather than all at once, especially if $38k would push you into a higher tax bracket. You can also time it strategically - like cashing out some in December and some in January to split the income across two tax years. Also, start tracking your business expenses NOW before you cash out. Things like your computer setup, internet costs (business portion), any software subscriptions, even courses or books about game development - these can all be legitimate deductions that will reduce your taxable income significantly. The self-employment tax is the killer (15.3% on top of regular income tax), but proper expense tracking can really help offset that burden. You've got this!

I'm a new member here and this thread has been absolutely incredible for my peace of mind! I'm also dealing with a DDD of 5/22 and experiencing the exact same thing - absolutely nothing showing as pending in my Navy Federal account. This is my first year with them after switching from a local credit union, so I had no baseline for what to expect and was starting to think something went seriously wrong with my return. What makes this particularly stressful is that I'm relying on this refund to help cover moving expenses after relocating for a new job. The complete radio silence from Navy Fed's system had me convinced there was an error with my direct deposit routing information or that my return got flagged for review. Reading through everyone's experiences here has been such a huge relief - it's clear this is a widespread policy change affecting all members and not individual account issues. I especially appreciate those who called customer service to get clarification about the reasoning behind this change. While I understand they want to reduce confusion, the lack of any pending notification definitely creates more anxiety than it prevents! I'm definitely taking the advice about setting up account alerts and trying to stop the obsessive balance checking. Based on all the shared experiences from earlier in the tax season, it sounds like Thursday morning should bring good news for all of us with 5/22 DDDs. Thanks to this amazing community for providing both practical information and emotional support during what could otherwise be a really nerve-wracking waiting period!

I'm a new member here and this entire thread has been such a lifesaver! I'm also dealing with a DDD of 5/22 and experiencing the exact same issue with Navy Federal - absolutely nothing showing as pending. This is actually my first year filing taxes as an independent adult (just turned 18 and moved out), so I was completely panicking thinking I'd messed something up on my return. Reading through everyone's experiences has been incredibly reassuring. It's clear this is Navy Fed's new policy across the board and not individual account problems. I really appreciate all the members who took the time to call customer service and share what they learned - that context about why they made this change is so helpful even if I don't love their reasoning. What's particularly frustrating as a newcomer to both taxes and Navy Fed is having no baseline for what's "normal." The complete silence from their system had me convinced I'd entered wrong routing information or that my return got rejected somehow. But based on everyone's shared experiences from earlier this tax season, it sounds like Thursday morning should bring good news! I'm definitely setting up those account alerts that were mentioned and trying to stop refreshing my app every 30 minutes. Thanks to this community for providing both practical advice and emotional support - without finding this discussion, I would have probably called both the IRS and Navy Fed unnecessarily!