Just wanted to add some specific FreeTaxUSA navigation tips for your backdoor Roth situation: 1. Go to the Deductions & Credits menu 2. Select "Retirement/IRA" 3. When asked about Traditional IRA contributions, select "Yes" 4. Enter the $16,000 contribution amount 5. Indicate it was a non-deductible contribution 6. Later in the section, it will ask about conversions to a Roth 7. Enter the conversion amount and date The software should then generate Form 8606 correctly. HOWEVER - for the excess contribution (anything over $6,000), you'll need to also report that. Look for the section about "Excess Contributions" and follow those prompts too. I did this exact process last year and it worked perfectly. The key is making sure to indicate the contribution was non-deductible.

Your friend is in the middle of what's called a "backdoor Roth IRA" which is completely legal but needs specific reporting. The issue isn't just that the previous accountant missed it - the $16,000 amount is a red flag. The IRA contribution limit for 2022 was only $6,000 (or $7,000 for those 50+). Unless your friend was contributing for both 2021 and 2022 in that single transaction (which would be unusual timing in April), he's looking at an excess contribution situation.

23 Has anyone used TurboTax or H&R Block software for this type of situation? Do they have good guidance for vacant rental properties or do I need to talk to an actual tax professional?

I went through something very similar with my rental property last year. One thing I learned is that you should keep really detailed records of everything - realtor communications, showing schedules, advertising receipts, maintenance done to prepare for rentals, etc. The IRS wants to see that you're genuinely trying to rent it out, not just claiming rental deductions on a vacant property. Also, don't forget about depreciation! Once you convert to rental use, you can start depreciating the property even if it's vacant. The depreciation basis is usually the lower of your original cost basis or the fair market value when you converted it to rental use. This can be a significant deduction that people sometimes miss. One last tip - consider getting a property management company involved if you haven't already. Even if they don't find tenants immediately, having professional management can strengthen your case that this is a legitimate rental business activity rather than just holding onto a property you can't sell.

Does anyone know if tax advocate services are free? I'm in the same situation. Filed in March. Still waiting. Getting worried. Will they charge me? How long does it take to get help?

I went through almost the exact same situation last year - filed in February, got the runaround from phone reps, and didn't see my refund until November. What finally worked for me was getting my congressional representative involved. I called their local office and spoke to their constituent services team. They have a direct line to the IRS and can actually get real answers instead of the generic "it's processing" response. Within two weeks of contacting them, I had a caseworker assigned and my refund was released. Don't feel bad about using this option - you've paid your taxes and followed all the rules, so you deserve proper service. Most representatives' offices handle these requests regularly and they're usually very helpful with IRS issues.

Has anyone figured out how to efficiently import historical data from UltraTax to CCH Axcess? We've got about 200 business clients and manually reentering prior year data seems incredibly inefficient.

Going through a similar transition myself right now! One thing that really helped me was creating a comparison spreadsheet mapping the key functions between UltraTax and CCH Axcess. For multi-state returns, I found that CCH's state selection interface is actually more streamlined once you get used to it - instead of having separate screens for each state like in UltraTax, everything flows through the main return with state-specific worksheets. A couple of practical tips: First, spend time in the CCH Axcess demo environment before working on live client files. Second, for Caseware integration, make sure you understand how the trial balance imports work - it's quite different from the Thomson Reuters flow. The working papers sync much better once you get the mapping right. Also, don't hesitate to use CCH's screen sharing support sessions. They're more helpful than the generic training modules for learning the nuances of complex returns. Good luck with the transition!

Just a quick tip - make sure you're tracking ALL your expenses related to your 1099 work! That can make a much bigger difference than investment losses. I do similar contract work and track things like: - Home office space - Internet/phone used for work - Computer equipment & software - Professional subscriptions - Mileage for any work travel - Professional development/training These deductions directly reduce your 1099 income before taxes are calculated, so they lower both income tax AND self-employment tax, which is huge!

Great thread with lots of helpful advice! I'm also doing 1099 work for the first time this year and had similar questions about capital losses. One thing I want to add - if you're selling stocks at a loss specifically for tax purposes, be careful about the wash sale rule. If you buy back the same stock (or substantially identical securities) within 30 days before or after the sale, the IRS won't allow you to claim the loss for tax purposes. Also, since you mentioned you haven't been withholding taxes from your 1099 income, you might want to consider adjusting your W-2 withholding to cover some of the additional tax burden. You can submit a new W-4 to your employer to have extra taxes withheld from your regular paycheck. This can be easier than making quarterly estimated payments and helps ensure you're covered for the safe harbor rules others mentioned. The business expense tracking advice here is spot on too - those deductions can really add up and reduce both your income tax and self-employment tax burden!