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Another option - I use duplicate receipt books with "Buyer" and "Seller" clearly labeled at the top. That way I just fill in the info and circle which one I am in the transaction. Makes it super clear for tax time which role I was playing, especially when I'm buying from individuals.
Where did you find receipt books like that? I've looked at office supply stores but only find standard ones without those labels.
I actually got mine custom-printed online. It wasn't very expensive - about $15 for a pack of 5 books. Just search for "custom receipt books" and you'll find several companies that let you design your own layout. I added fields for "Item Condition" and "Serial Number" too since those are important in the computer parts business.
Don't overthink it honestly. I've been flipping computer parts for years and I just keep a google doc where I record all my purchases and sales. As long as you have some record of what you bought, when, and for how much, you're covered for basic tax purposes. Receipt books are great but not absolutely necessary.
Has anyone considered the potential partial interest rules here? If the property has a mortgage or if the OP is only donating a portion of the property rights, that complicates things significantly. The charitable deduction could be limited in ways beyond just the AGI limitations others have mentioned.
Don't forget about state tax implications too! Depending on your state, the rules for charitable deductions of property might differ from federal rules. Some states limit itemized deductions or have different AGI percentage limitations. In my state (CA), they have additional documentation requirements beyond what the IRS asks for.
11 Another tip - before going to your appointment, organize the Robinhood document a bit. I paperclip the summary 1099 page at the front, then group the detailed transaction pages together by category (stocks, dividends, crypto, etc.). My tax person really appreciated this small effort since it made finding specific information easier. Still bring all the pages though!
22 That's smart! Do you think it would be helpful to highlight the important numbers on each page too, or would that annoy a professional?
11 I'd avoid highlighting since different tax professionals look for different things on each page. The paperclip method works well because it organizes without obscuring any information. If you want to go the extra mile, make a simple cover sheet listing what types of investments you had (stocks, dividends, crypto, etc.) and on which pages they can be found. My tax person said this was extremely helpful and saved them time, which ultimately saved me money since many charge by the hour.
5 Question - does anyone know if we should be bringing previous years' Robinhood documents as well? I still have last year's 20-page monster file and wasn't sure if the tax preparer would need that for comparison or to check for carryover losses.
19 Definitely bring the previous year if you had any investment losses! I forgot mine and had to reschedule my appointment. My tax guy needed to check for capital loss carryovers from the previous year to offset some of my gains. Apparently you can carry losses forward for years.
Has anyone successfully used the IRS's "Get Transcript" online to get copies of previously filed 8606 forms? I need to see what I submitted for the last few years to fix my backdoor Roth basis calculations.
Yep! I used the Get Transcript tool on irs.gov last month. You need to request the "Tax Return Transcript" option, not the account transcript. It shows the filed 8606 information though sometimes it's just the line entries, not the actual form image. Was enough for me to see where I messed up my basis calculations.
For anyone else filing corrected 8606 forms for their backdoor Roth IRA: I just went through this process and prepared a simple cover letter to attach to my corrected forms that read: "Please find enclosed corrected Forms 8606 for tax years 2020, 2021, and 2022. These corrected forms properly reflect the basis of non-deductible IRA contributions and Roth conversions that were made in each year. The original forms contained calculation errors but the corrections do not change my tax liability for any year." The IRS processed them without issue and I received confirmation letters about 8 weeks later.
Philip Cowan
Another thing to consider is that if you pay your taxes with a credit card (through H&R Block or any tax software), there's always a processing fee of around 2-3%. So even if you could get cash back on the tax payment (which you can't), you'd still be paying that processing fee which would likely cancel out much of the benefit. I usually just set up direct payment from my bank account through the tax software to avoid those fees completely.
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Ben Cooper
ā¢What about using a credit card that gives really good cash back rewards? Would that make sense even with the processing fee? I have a card that gives 2% on everything.
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Philip Cowan
ā¢Even with a 2% cash back credit card, you'd basically break even or lose money. The payment processors that handle IRS payments typically charge 1.87% to 3.93% depending on which one you use. If you get 2% back on your card but pay a 2.5% processing fee, you're still losing 0.5% overall. It's generally not worth it unless you have a special promotion or really need to meet a minimum spend requirement for a big bonus on your card.
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Caesar Grant
Has anyone confirmed if the 16% is actually showing up in their Rakuten account after filing? Sometimes these offers have exclusions in the fine print. I saw it advertised but wanted to check if people are actually getting the full amount before I commit to H&R Block.
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Lena Schultz
ā¢I filed last week using H&R Block Premium through Rakuten. The 16% cash back showed up in my Rakuten account within 2 days. I paid $89 for the software and got $14.24 cash back. Make sure you click through the Rakuten link directly and complete your purchase in the same session!
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