Does the 3-year carryback apply to options on futures too? I trade E-mini S&P options and had massive losses this year, but wasn't sure if they qualify for the same treatment as regular futures contracts.

Just wanted to add some practical advice for anyone considering the Section 1256 carryback - make sure you have all your trading records organized before starting the process. You'll need detailed records of your Section 1256 gains from the previous 3 years to calculate exactly how much you can carry back. Also, be aware that filing Form 1045 (Application for Tentative Refund) can sometimes trigger additional IRS scrutiny, especially if you're claiming large refunds. It's not a reason to avoid using the carryback if you're entitled to it, but just be prepared to potentially provide additional documentation if requested. The carryback can be a huge tax benefit for traders who have volatile years, but the paperwork can be complex. Don't let that discourage you from claiming what you're legally entitled to - just make sure you do it correctly or get professional help if needed.

Pro tip: set up alerts on your banking app instead of manually checking. Your neck will thank you later 💅

Been there! The waiting game is brutal but totally normal. TurboTax advance usually hits within 1-2 business days after your return gets accepted. Since yours was accepted 1/22, you're probably looking at Thursday or Friday at the latest. I know it feels like forever when you need the money, but try to distract yourself - obsessively checking won't make it come faster! 😅

Just want to echo what everyone else has said about single-member LLCs being perfect for this situation! I made the same transition with my rental duplex about 18 months ago and it's been seamless from a tax perspective. Still file Schedule E exactly like before, passive loss rules haven't changed, and I sleep better at night knowing my personal assets are protected. One thing I'd recommend is also updating your lease agreements for future tenants to reflect the LLC as the landlord. It's not required immediately since existing leases are still valid, but when you have turnover or renewals, having the LLC listed as the landlord reinforces that liability protection you're seeking. My property management company handled this update automatically, but if you self-manage, it's worth keeping in mind. The administrative overhead really is minimal once you get everything set up properly. The peace of mind from liability protection plus keeping the same simple tax treatment makes it a win-win situation for single-property landlords like us!

This has been an incredibly thorough discussion - thanks everyone for sharing your experiences! As a newcomer who's been researching this exact situation, I'm really grateful for all the practical insights here. One thing I'd add that might be helpful for others considering this move: if you're working with a mortgage lender who's approved the LLC transfer, ask them if they have any specific requirements for how the transfer should be documented. Some lenders want to see certain language in the deed or may require notification within a specific timeframe after the transfer is complete. I'm definitely moving forward with setting up a single-member LLC for my rental property now. The combination of liability protection while maintaining the simple tax treatment (continuing to use Schedule E, same passive loss rules) makes it a no-brainer for my situation. Plus all the tips about timing the transfer at the beginning of the tax year, getting separate business banking set up, and updating insurance/lease agreements gives me a clear roadmap to follow. Really appreciate everyone taking the time to share their experiences - this thread should be a go-to resource for anyone in a similar situation!

I'm so sorry for your loss, Jasmine. Dealing with financial decisions during grief is incredibly difficult, and you're asking all the right questions. From what you've described, you'll owe ordinary income tax on about $77,500 (the gain over the $32,000 cost basis). Unfortunately, you cannot roll this into your Roth IRA - that option only exists for qualified retirement accounts, not non-qualified annuities like this one. Given your current income situation with a stable government job, the stretch payments over 5 years will almost certainly be more tax-efficient than taking the lump sum. Taking $77,500 in additional income all at once could push you into a higher tax bracket, whereas spreading it out helps manage your tax liability. A few practical considerations: - Check if your annuity company charges fees for stretch distributions (some do, some don't) - Consider timing larger distributions in years when you might have tax deductions or lower income - You can adjust distribution amounts annually as long as everything is withdrawn by the 5-year deadline - Since you're already contributing to a 457b, you could potentially increase those contributions in higher distribution years to offset some tax impact Before making your final decision, I'd recommend getting a consultation with a fee-only financial advisor who can run the specific numbers for your tax situation. Many charge $200-400 for a one-time consultation, which is well worth it given the amount involved. Take your time with this decision - you don't need to rush, and the 5-year window gives you flexibility to plan strategically.

I'm so sorry for your loss, Jasmine. Having gone through a similar situation with my grandmother's non-qualified annuity two years ago, I completely understand how overwhelming this can feel during an already difficult time. From your description, you're looking at taxable income of about $77,500 ($109,500 - $32,000 basis). The key thing to understand is that this will be taxed as ordinary income, not capital gains, so your marginal tax rate will apply to the full gain amount. Given that you're 34 with a stable government job earning what sounds like a moderate income, the stretch payments over 5 years will almost certainly be your best option. Taking the full amount in one year could easily bump you into the 22% or even 24% tax bracket, whereas spreading it out should help keep you in a lower bracket overall. A few things that helped me navigate this: - The annuity company should provide projections showing different distribution schedules - You can typically adjust the amounts each year (bigger in some years, smaller in others) as long as everything is withdrawn by the 5-year deadline - Consider coordinating with your 457b contributions - you could increase those in years when you take larger distributions to help offset the tax impact Before you decide anything, definitely get a consultation with a fee-only financial advisor who can run the actual numbers for your specific tax situation. Given the amount involved, spending $300-500 on professional advice could save you thousands in taxes. Take your time with this decision - you have the 5-year window, so there's no need to rush into anything while you're still processing your loss.

Slightly different take - I've been a FreeTaxUSA user for years and they actually have a feature that lets you enter multiple 1099-INTs from the same institution but keeps them as separate line items on the final Schedule B. Look for the "Add Another Interest Payer" button after you enter the first one, and make sure to use the same payer name but fill in the amounts from each form separately.

Great discussion everyone! Just wanted to add that if you're using FreeTaxUSA and decide to enter them separately (which I agree is the safest approach), make sure to double-check that the software isn't automatically combining entries from the same payer. I've seen tax software sometimes consolidate entries behind the scenes, which could create the exact matching issue you're trying to avoid. Also, keep copies of all your 1099-INT forms even for small amounts. If you do get a notice later, having the original documents makes resolving any discrepancies much easier. The IRS automated matching system can sometimes flag things that look perfectly fine to a human reviewer. For $6 in interest, you're probably overthinking it, but your cautious approach will definitely save you potential headaches down the road!