Something nobody's mentioned yet - if this is going to be an ongoing issue, consider setting up separate business bank accounts for each gig job. I did this last year and it's made tracking expenses for each Schedule C WAY easier. Not helpful for your current situation but might save you headaches next year.

Great question! I went through something similar last year with Uber and Instacart. Here's what I learned from my tax preparer: The IRS generally accepts reasonable allocation methods when you don't have perfect records. Your best bet is to allocate based on a combination of factors that make sense for your situation: 1. **Income proportion** - If DoorDash was 70% of your gig income, allocate 70% of miles there 2. **Adjust for business type** - Since food delivery typically requires more driving per dollar than dog walking, you might weight the DoorDash allocation slightly higher For your 4,000 total miles, document your reasoning (maybe DoorDash gets 75% = 3,000 miles, Wag gets 25% = 1,000 miles) and keep a simple written explanation of how you arrived at these numbers. The key is being reasonable and consistent. At $0.67 per mile for 2024, that's still a significant deduction that's worth claiming properly. Just make sure to use the standard mileage rate consistently across both Schedule Cs - don't mix it with actual expense method. And definitely start tracking properly going forward! Even a simple phone app will save you this headache next year.

I got audited last year on this exact issue with a different commodity futures partnership! My advice: keep EXTREMELY detailed records of your basis adjustments. The IRS computer system often flags returns where the basis reported on Form 8949 differs significantly from what's on the 1099-B, even when you use the adjustment codes correctly. The auditor initially thought I was trying to avoid taxes until I showed my spreadsheet tracking each year's: - K-1 income by category (especially Section 1256 gains) - Distributions received - Basis adjustments calculated - Supporting documentation After reviewing everything, the auditor agreed my calculations were correct. But save yourself the headache and document EVERYTHING about your basis calculations!

Based on everyone's helpful responses, I want to add one more critical point that saved me significant time and potential errors: always request the "Partnership Basis Schedule" or "Outside Basis Statement" from the partnership if they provide one. Some partnerships like USO will provide a detailed basis tracking statement upon request that shows your cumulative basis adjustments from year to year. This can be incredibly helpful for complex situations involving multiple years of Section 1256 gains and distributions. If your partnership doesn't provide this, I highly recommend creating your own tracking spreadsheet starting from day one. Include columns for: - Beginning basis each year - K-1 income items (by line) - K-1 loss items (by line) - Distributions received - Ending basis This becomes invaluable when you sell, especially for partnerships with complex activities like commodity futures. It also provides clear documentation if you ever face an audit on the basis adjustments you report on Form 8949. The key is being proactive about tracking rather than trying to reconstruct everything when you sell years later!

ngl that taxr.ai thing mentioned above is clutch. used it last week and it broke down everything step by step. way better than trying to decode these transcripts myself lol

Had the exact same situation last year - 570/971 codes appeared after my EIC processed. The waiting is definitely stressful but in my case it was just routine verification. They wanted to confirm my child's social security number matched their records. Got my notice about 3 weeks after the 971 code date, sent back the requested docs, and refund hit my account about 6 weeks later. Keep checking your transcript for updates and respond to any IRS correspondence ASAP. The delay sucks but it's pretty standard for EIC claims nowadays.

Has anyone actually read the full IRS 2023-2 notice? It's super dense but from what I understand, it's addressing valuation issues more than step-up basis directly? I'm confused about why everyone is saying it changes step-up basis rules...

You're absolutely right to be confused - trust language can be incredibly difficult to parse! Based on what others have shared here, it sounds like the key is figuring out whether your father-in-law's irrevocable trust has any provisions that would still keep those properties in his taxable estate for step-up purposes. From what I'm gathering from this discussion, you'll want to look for things like "power of substitution" clauses or other retained powers in the trust documents. But honestly, this seems like something where you really need a professional to review the actual trust language - the specific wording apparently makes a huge difference. Given the $6.5M in assets involved, it might be worth getting a proper estate attorney to review the trust documents and explain your options in plain English that your father-in-law can understand. The cost of that consultation could save significant tax dollars down the road if there are planning opportunities you're not seeing.

Has anyone filed for the foreign tax credit (Form 1116) as a non-resident alien? I have dividends from ADRs in my Robinhood account that had some foreign tax withheld. Can I still claim this credit?

As someone who went through the exact same situation last year (NRA grad student with wash sales), I can definitely relate to the frustration! Here's what worked for me: I ended up using the IRS Free File program through FreeTaxUSA, which supports 1040-NR and handles wash sales correctly. The key thing is making sure your capital gains go on Schedule NEC (Not Effectively Connected income) rather than Schedule D - most regular tax software gets this wrong for non-residents. For the wash sale reporting, you'll still report the transactions as shown on your 1099-B, but the software should automatically adjust the basis and disallow the loss per IRS rules. The good news is that as a non-resident, you're only taxed on your US-source income at capital gains rates (0%, 15%, or 20% depending on your total income). A few tips: - Keep all your 1099s and any foreign tax documents - If you have treaty benefits from your home country, make sure to claim them - Consider e-filing if possible - it's much faster than paper filing Don't let those expensive services take advantage of your situation. The free options can absolutely handle this if you're willing to spend a bit of time learning the process!