Has anyone dealt with currency conversion issues when reporting foreign property sales? I sold a house in Europe last year and the exchange rate fluctuated like crazy between when I inherited it, when I sold it, and when I transferred the money. My tax guy said I needed to use the exchange rate on the day of the sale for reporting capital gains, but use a different method for basis calculation?

This is a complex situation that definitely requires careful handling! One thing I haven't seen mentioned yet is the importance of getting proper documentation of the property's fair market value at the time of inheritance. Your cousin will need this for the stepped-up basis calculation everyone's discussing. I'd strongly recommend he get an official appraisal or valuation from the foreign country dated as close as possible to when his mother passed away. Without proper documentation of the stepped-up basis, the IRS might challenge his calculations and assume a much lower basis (or even zero), which would result in much higher taxes. Also, since he's bringing $300k into the US, he should be aware of the requirement to report large cash transfers. If he's wiring the money or bringing in more than $10,000 in monetary instruments, there are additional reporting requirements beyond just the tax return. Given all the complexities with foreign property, dual citizenship, currency conversion, and multiple forms (Schedule D, 8949, FBAR, possibly 8938), I'd really encourage him to work with a tax professional who specializes in international tax issues. The potential penalties for getting this wrong are significant, and the cost of professional help is usually much less than the cost of mistakes.

Have you tried the "Two Earners/Multiple Jobs" worksheet that comes with the W-4 form? It's specifically designed for couples where both spouses work. It helps you figure out the additional withholding needed to cover the combined income.

You're definitely being smart to check this now! I went through something similar when my wife and I both got promotions mid-year. The key thing to remember is that the safe harbor rule can help you avoid penalties - if you pay at least 100% of last year's tax liability (or 110% if your prior year AGI was over $150k), you won't owe penalties even if you end up owing money. Since you mentioned you're around $115k combined, I'd suggest running the IRS withholding calculator first to get a baseline. Then consider whether you want to be conservative and slightly overwithhold to avoid any surprises, or try to get it exactly right. One thing that caught many people off guard this year - if either of you got sign-on bonuses or other lump sum payments with your job changes, those are often under-withheld because they're treated as supplemental income. That could be contributing to your shortfall. The good news is you caught this in April with plenty of time to adjust! Much better than discovering it in January when filing.

Has anybody used TaxAct or TurboTax for nonprofit returns? I'm wondering if they handle these kinds of special situations or if I need specialized nonprofit tax software.

Just want to echo what others have said about documenting everything, even for that short initial period. I went through something similar with my nonprofit - we incorporated in late 2022 but didn't really start operations until 2023. For your situation, since you had zero revenue in 2023 and minimal expenses, the 990-N (e-Postcard) is probably your best bet for that first partial year (11/15/23-12/31/23). It's much simpler and you can file it online in about 10 minutes. The key eligibility factor is that your gross receipts were under $50K for that period, which they clearly were. Regarding penalties - yes, there can be late filing penalties ($20 per day up to $10K for small organizations), but the IRS is generally reasonable about waiving them for new organizations with legitimate reasons. When you file, include a statement explaining you were a newly formed organization waiting for 501(c)(3) determination and had no significant financial activity. I did this for our late first filing and never heard anything about penalties. One thing to keep in mind - make sure your fiscal year is properly established with the IRS. Since you're doing calendar year (Jan 1 - Dec 31), that should be straightforward, but double-check that it matches what you indicated in your 1023 application.

Has anyone actually dealt with getting the penalty reduced? I filed almost 90 days late for 2024 taxes and am looking at about $600 in penalties on a $2,500 tax bill. First time I've ever filed late.

Based on everyone's experiences here, it sounds like there are actually several penalty relief options that most people don't know about! For anyone dealing with penalties: 1. **First Time Penalty Abatement** - If you've had clean filing history for 3 years, you can get penalties completely removed for your first offense. Just call and ask specifically for this. 2. **Reasonable Cause Abatement** - If you had medical issues, natural disasters, or other circumstances beyond your control, you may qualify for penalty removal. 3. **Payment Plans** - Even if you can't get penalties removed, the IRS offers payment plans that are pretty flexible once you've actually filed. The key takeaway seems to be: **always file on time even if you can't pay**. The failure-to-file penalty (5% per month) is 10x worse than the failure-to-pay penalty (0.5% per month). And don't just accept penalties without exploring your options - sounds like many people are getting significant relief by simply asking for it or getting proper help understanding their situation.

Depends on your situation tbh. What forms are you filing? Any businesses? Investments? Rental income?

That's absolutely outrageous for a basic W-2 return! I'm a CPA and can tell you that $1,300 is what we'd charge for complex business returns with multiple entities. For a standard individual return, you should be paying $150-300 max. After 10 years, she's definitely taking advantage of your loyalty. I'd recommend getting quotes from other preparers or trying software like TurboTax/TaxAct first - you'll probably save over $1,000!