How exactly do you track this stuff? Like if I sold some Tesla at a loss in December but then bought some again in January, do I have to manually figure out the wash sale or will my brokerage statement show it? This whole capital loss thing is making my head spin.

Most brokerages will track wash sales for you on your 1099-B forms and year-end tax statements. They'll have a column that shows "Wash Sale Loss Disallowed" or something similar. However, they only track wash sales within the same brokerage account - they won't know if you sold in one account and bought in another, or if your spouse bought the same security in their account. If you're doing your taxes with software like TurboTax or H&R Block, they'll usually flag potential wash sales when you enter your trading information. But it's always good to review your brokerage statements carefully and look for those wash sale notations, especially if you're an active trader or if you're trading the same securities across multiple accounts.

Great point! I just want to add that this is why tax software can sometimes get this wrong. It gets complicated fast when you have multiple types of gains and losses from different years. My tax guy showed me how one year I had long-term losses but short-term gains the next year, and the software didn't optimize how they offset each other. Had to manually override it which saved me almost $900.

That Excel approach sounds really helpful! Would you be willing to share a sanitized version of that template? I'm trying to create something similar but want to make sure I'm setting it up correctly.

I can't share the actual file for confidentiality reasons, but I can describe the basic structure. I have columns for each relevant CFCs and rows that calculate: The CFC's total E&P for the year, then the portion that's Subpart F and the portion that's GILTI. Below that, I list the total foreign taxes paid by the CFC. Then I compute the deemed paid taxes by multiplying the foreign taxes by the ratio of included income (Subpart F or GILTI) to total E&P. Don't forget that for GILTI inclusions under 960(d), you only get 80% of the deemed paid taxes. And everything needs to be tracked by separate income baskets too!

Thanks for pointing that out! I've been confused because some of the materials I'm looking at seem to describe different systems. So post-TCJA we're not using the pooling method anymore? Is there a good source you'd recommend that covers the current rules?

Thanks, that's really helpful! Actually, my dad has been meticulous about keeping records. He's got the original purchase documents from when he bought it, plus receipts for clearing some areas, putting in a gravel access road, and installing some drainage systems. Would all of those count as improvements to the property?

Yes, all of those would likely qualify as capital improvements that increase your basis! Clearing land, access roads, and drainage systems are classic examples of improvements that add to your cost basis because they're not regular maintenance but actual improvements to the property. Make sure you have those receipts organized and ready to provide if needed. The higher your documented basis, the less capital gain you'll have to report. This is exactly why keeping good records is so important with investment properties.

I thought capital gains on real estate was always 15% regardless of income? Is that not the case?

But doesn't the new W-4 not have allowances anymore? I thought they got rid of the "0 allowances" option in 2020 when they redesigned the form.

You're absolutely right, and I should have been more clear. On the new W-4 form, I don't check the multiple jobs box, and I don't claim any adjustments to income or deductions. This effectively results in maximum withholding (similar to what "0 allowances" used to do on the old form). The principle is the same though - I let my main job withhold at the standard rate, and then my smaller job also withholds at the standard rate. Since the withholding tables don't "know" about my other job, I end up with a bit more withheld than necessary, which gives me a refund rather than owing taxes.

Ugh, the same thing happened to me! I checked the multiple jobs box on both W-4s and my take-home pay was depressingly small. Huge refund but it wasn't worth struggling all year.

5 If OP did have to file though, would the loss on Bitcoin be deductible against other income? Or do you have to have gains to report crypto stuff?

13 Capital losses (including from crypto) can be deducted against capital gains, and up to $3,000 can be deducted against regular income. In OP's case, the loss is so small (only a few cents) that it wouldn't make a meaningful difference on a tax return. Even if OP had other income that required filing, reporting a 7-cent loss wouldn't result in any tax benefit worth pursuing. If the amount was larger (say, $100+), then it might be worth reporting to offset other income.

21 The age doesn't change the tax rules, but if you're claimed as a dependent on your parents' tax return (which many 18-year-olds are), there are different filing thresholds. For dependents with unearned income (which includes crypto gains), you're required to file if that unearned income exceeds $1,150. In OP's case, there was a loss, not a gain, so it doesn't trigger any filing requirement regardless of dependent status.