Thanks for this info. Do you know if there's any time limit on when I need to start claiming the AMT credit? I paid this in 2022 and haven't done anything about it yet because I didn't understand I could recover any of it.

There's no time limit on when you can start claiming your AMT credit - it carries forward indefinitely until it's used up. So even though you paid in 2022, you can start claiming it on your next tax return and continue in future years until you recover the full amount. Just make sure you file Form 8801 "Credit for Prior Year Minimum Tax" with your tax return each year to claim the credit. If your income drops significantly after losing your job, you might actually be able to recover a larger portion of the credit than you expect in the coming tax year.

This is actually really smart advice. Tax planning before the end of the year can make a huge difference in AMT credit recovery. I'd suggest using one of those tax planning calculators to simulate different scenarios (like how many shares to sell this year vs next).

Do you know if the father claiming them before will cause problems even if he never had the legal right to do so? My cousin let her parents claim her kid but now she wants to claim him herself.

If the grandfather claimed the children in previous years without having the legal right to do so (meaning without meeting the dependency tests or having proper documentation), then yes, it could potentially cause some questions when your cousin claims her own child. However, this doesn't mean she shouldn't claim her own child if she's legally entitled to. The IRS might send notices asking for clarification if they see a pattern change, but if your cousin is the custodial parent and meets all the tests for claiming her child, she should be able to claim them without issue. She should just be prepared to provide documentation showing that the child lives with her if asked. This could include school records, medical records, or other official documents showing the child's residence.

I used TurboTax last year for a somewhat similar situation with my girlfriend's kids. The key is to answer their questions literally and not overthink it. When they ask if someone "can" claim you as a dependent, that's a legal question about whether anyone meets the tests to claim you, not whether someone actually will claim you. Make sure to go through their special situations section too if your standard living arrangement doesn't fit their initial questions. It gets more detailed there.

That doesn't sound right. I've been reading that rental property can qualify for QBI as long as I meet the 250 hour test, even if I have another job. Could someone clarify this? Now I'm confused about whether I'm eligible at all.

There's some confusion here. There are actually two separate tests: one for being a "real estate professional" (which affects whether rental losses can offset other income) and one for the "safe harbor" for rental income to qualify for QBI. For QBI purposes, the IRS created a safe harbor where if you can document 250+ hours of "rental services" per year on a property (or group of properties), that rental activity can qualify as a "trade or business" eligible for QBI. This is true even if you don't meet the stricter real estate professional test. The 250 hours can include management, maintenance, repairs, collecting rent, etc. So yes, you can potentially claim QBI on rental income even with another job, as long as you meet the 250 hour requirement for your rental activities specifically.

That's a great idea. I actually do have some photos of the damage and after the repairs. Did you organize them in any specific way for your audit? Did they ask for anything else besides the photos?

I created a simple document with before/after photos side by side, each labeled with the date and a brief description of the work performed. Under each photo set, I noted how many hours I spent on that specific repair and any materials purchased. They also asked for my activity log (which matched the photo document), bank statements showing material purchases, and communications with tenants about the repairs/issues. Having text messages where tenants reported problems and my responses about fixing them was surprisingly helpful as supporting evidence. The auditor seemed most impressed with the thoroughness and consistency across all the documentation rather than any single piece.

How do you track stuff that you've held for years across multiple platforms? I've got some stocks I originally bought in 2018 on Robinhood, transferred to Fidelity in 2021, and then sold this year. No idea how to verify the correct cost basis with all those moves.

You need to keep your original purchase confirmations and transfer documentation. Any time you transfer assets between brokerages, print or save PDF copies of your statements showing the cost basis information before the transfer happens. For your specific situation, log into your old Robinhood account and download your account statements from 2018 that show the original purchase prices. Even if you've closed the account, you should still have access to your tax documents for several years. Then compare those original costs with what Fidelity is reporting on your 1099-B this year. If there's a discrepancy, you'll need to manually correct it on Form 8949 when filing your taxes.

Thanks for the real-world example! Did the IRS ever question any of your trades or ask for more documentation? I'm worried about audit risk with so many transactions.

Do you need to have a separate phone for this to work, or can you deduct part of your regular personal phone? Also, how do you actually document the business use percentage?

You don't need a separate phone - you can deduct a percentage of your regular phone bill based on how much you use it for business purposes. For documenting the percentage, it's mostly about being reasonable and consistent with your estimate. I keep a simple log for a few weeks each year showing how many hours I use my phone for work versus personal use. Some people also look at their data usage from the delivery apps compared to overall usage. The key is having some method to back up your percentage if questioned, but it doesn't have to be super complicated. Just don't claim 90% business use if you're only doing deliveries part-time!

Thanks for mentioning this! I actually have bought some decent equipment - two insulated bags (around $45 total), a cup holder organizer ($20), and one of those phone mounts that clip to the air vent ($15). I didn't even think about deducting those. I'll definitely keep the receipts for all that stuff now!