Has anyone here considered the impact on your personal assets if the rental property turns out to be a bad investment? Using personal assets as collateral puts them at risk if the rental doesn't generate enough income to cover the LOC payments. I did this with my stock portfolio and regretted it when the rental market dipped in my area.

Great question about using a LOC secured by personal assets for rental property purchases! You're correct that the IRS focuses on the "use test" rather than what secures the loan. Just make sure you have rock-solid documentation showing the funds went directly from the LOC to the rental property purchase - bank statements, closing documents, etc. One additional consideration: if you're buying the rental in an LLC (which many recommend for liability protection), make sure the loan documents don't prohibit lending to LLCs or business entities. Some personal LOCs have restrictions on business use that could create issues down the road. Also, consider getting a letter from your tax professional confirming the deductibility structure before you proceed. It's much easier to set things up correctly from the start than to fix issues later. The interest deduction can be substantial over time, so it's worth getting the details right!

I'm going through the exact same thing right now! Got a 570 code about 2 weeks ago and it's been radio silence since then. My return is pretty straightforward - just W2 income and standard deduction - so I'm hoping it's just routine review like others have mentioned. The waiting is definitely stressful especially when you see other people getting their refunds already. Thanks for posting this, at least I know I'm not alone! 🤞

I've been dealing with a 570 code for about 3 weeks now too and I know exactly how you feel! The uncertainty is the worst part. From what I've learned lurking in this community, the 570 usually just means they're doing additional processing on your return - could be anything from verifying income amounts to checking deductions. Most people seem to get their 571 release code within 4-6 weeks if there are no major issues. Try to stay patient (easier said than done, I know!) and keep checking your transcript weekly rather than daily. The fact that you haven't gotten any CP notices is actually a good sign - means they're not asking for additional documentation. Hang in there! 🤞

Has anyone used TurboTax for filing taxes with a mid-year move between states? My husband and I will be in a similar situation next year (moving from Washington to Colorado) and I'm wondering if I need to pay for a CPA or if tax software can handle this.

This is exactly the kind of situation where keeping detailed records will be your best friend. I went through something similar when my company relocated me from Ohio to North Carolina mid-year. A few key things that helped me: 1. **Document everything with dates** - When your wife starts work, when you sell the house, when your daughter graduates, when you both physically move. These dates become crucial for determining part-year residency periods. 2. **Don't overthink the "choosing" resident vs non-resident** - You can actually file as a part-year resident in both states. Your wife would file as a part-year resident of your current state (January 1 through move date) and a part-year resident of the new state (move date through December 31). 3. **The domicile question resolves itself** - Right now you're worried about having ties to both states, but that's totally normal during a transition. Your domicile will clearly shift to the new state once you sell your home, move your daughter, and establish your primary residence there. 4. **Corporate housing considerations** - The temporary nature of your wife's corporate apartment might actually work in your favor for the domicile argument early in the year, since it's not a "permanent" residence. Your tax professional's advice sounds reasonable, but I'd recommend getting a second opinion from someone who specializes in multi-state returns if you're still feeling uncertain. The peace of mind is worth it for complex situations like this.

been dealing w this for 2 months now...its ridiculous how broken the system is fr

Code 570 is basically the IRS putting a temporary hold on your refund while they review something. It's super frustrating but unfortunately pretty common. The good news is it's usually not a major issue - just takes time to resolve. I'd recommend checking your transcript regularly to see if any other codes pop up that might give you more info about what specifically they're reviewing. Also make sure you haven't missed any notices in the mail since those usually explain what they need from you.

Any chance the 1099-Q amount is under $1,500? If so, you might be able to ignore it altogether on your taxes if it was indeed a rollover to another education account for the same beneficiary. The IRS usually only requires reporting if the amount is substantial or if there were earnings involved that aren't getting rolled over.

I went through this exact situation two years ago and can confirm you can absolutely file this manually! The key thing to understand is that a Coverdell to 529 rollover is generally non-taxable as long as it's done correctly (same beneficiary, direct transfer). You'll need to report the 1099-Q on your tax return, but you won't owe taxes on it. I reported mine on Schedule 1 (Additional Income) Line 8z as "Other Income" and wrote "ESA Rollover - Nontaxable" next to the amount. The most important thing is keeping good records - I kept copies of all the account statements showing the withdrawal from the Coverdell and the deposit into the 529, along with any rollover documentation from the financial institutions. This proves it was a qualified rollover if the IRS ever asks. Don't let TurboTax hold you hostage for $70! This is definitely something you can handle yourself with a little patience and the right forms.