Random but semi-related question - has anyone used any particular tax software that handles QBI calculations well? I tried three different ones last year and they all seemed to handle it differently which freaked me out.

Just wanted to chime in as someone who went through this exact confusion last year. The "consulting" vs "product" distinction really comes down to deliverables in my experience. I run a data analytics firm and was initially worried we'd be classified as consulting, but after working with a tax attorney, we determined that our custom dashboards and automated reporting systems constitute tangible products rather than just advice. The key was documenting that clients receive specific, measurable deliverables that have ongoing value beyond our initial consultation. For the "principal asset" test, what helped clarify things for me was thinking about it this way: if I got hit by a bus tomorrow, could my business continue operating and delivering the same quality of work? We've invested heavily in proprietary software, standardized processes, and training multiple team members on each client account. That systemic approach helped us qualify for the QBI deduction. One practical tip - start documenting your business processes and systems now, even if you're unsure about qualification. Having clear documentation of your methodologies, intellectual property, and operational procedures will be crucial if you're ever questioned about whether your business depends primarily on individual skill versus systematic capabilities.

Don't overthink this - you're in a super common situation! I work in tax prep and see this all the time, especially with people in retail, consulting, military, and other jobs that require frequent relocations. The IRS processes millions of returns from people who've moved during the tax year. Your federal return is straightforward - just use your current address when you file. The different addresses on your W-2s won't cause any issues or trigger audits. The IRS computer systems are designed to handle this. For state taxes, you'll likely need to file as a part-year resident in each state where you lived and earned income. Keep your lease agreements, moving receipts, or any documentation showing your move dates - not for the IRS, but because state part-year forms will ask for specific periods of residency. One heads up: some states are more aggressive about claiming you owe taxes there, so double-check each state's residency rules. But overall, this is way more routine than you think!

Hey Danielle! I totally understand the stress - I went through something similar when I had to relocate three times in one year for work. The good news is that multiple addresses on your tax documents is way more common than you'd think, especially in today's job market where people are moving for opportunities. The IRS systems are built to handle this - they process millions of returns from people who've moved during the tax year. Your federal return is pretty straightforward: just use your current address (Nevada) when you file, and don't worry about the different addresses on your W-2s causing any red flags. Based on your moves, you got really lucky actually! Florida, Texas, and Nevada all have no state income tax, so you'll likely only need to file a part-year resident return in Ohio for the period you lived and worked there. Keep track of your exact dates in Ohio and the income you earned during that time - that's all you'll need. You're definitely overthinking it (which is totally understandable!), but this is much more routine than it feels. No special forms needed to explain your moves to the IRS.

I went through this exact same situation two years ago - filed 1040 instead of 1040NR as an F1 student, then panicked when I realized my mistake. Here's what I learned from the experience: First, breathe! This is honestly one of the most common mistakes international students make. The IRS sees this all the time and has a standard process for fixing it. You'll need to file Form 1040-X (amended return) along with the correct 1040NR. Make sure to include a clear statement explaining that you mistakenly filed as a resident when you should have filed as a nonresident alien. The key is being proactive about correcting it. Regarding your H1B concerns - I can personally confirm this won't affect your application. I went through the entire H1B process after amending my tax return and it never came up once. USCIS focuses on your employment eligibility, education, and employer petition - not your tax filing history. The most important thing is to file the amendment ASAP. Don't wait until next tax season. Include any documentation about your F1 status and be prepared that you might owe additional taxes if you claimed credits or deductions that nonresidents aren't eligible for. You've got this! The fact that you caught the mistake and are being proactive about fixing it shows you're handling it exactly right.

I completely understand your panic - I was in nearly the identical situation last year as an F1 OPT student who filed 1040 instead of 1040NR and then got selected for H1B. The good news is this is absolutely fixable and won't impact your H1B process at all. Here's exactly what you need to do: 1. File Form 1040-X (amended return) immediately with the correct 1040NR attached 2. Include a clear written explanation that you mistakenly filed as a resident when you should have filed as a nonresident alien due to your F1 status 3. Recalculate your taxes using 1040NR - you may owe additional tax if you claimed resident-only credits The key thing to remember is that USCIS and IRS operate completely separately. Your H1B application is based on your employment eligibility, education, and employer petition - not your tax filing history. I went through my entire H1B process after filing this exact amendment and it never came up once. Most importantly, the fact that you're proactively correcting this mistake shows good faith. The IRS sees this error constantly with international students and has standard procedures for handling it. File the amendment as soon as possible rather than waiting, and make sure to pay any additional tax owed to avoid interest charges. You haven't jeopardized anything - you've just got some paperwork to fix. Congratulations on the H1B selection!

One thing to keep in mind when dealing with inherited jewelry collections like yours is to maintain detailed records of everything - even the less valuable pieces. I went through something similar with my aunt's estate and learned the hard way that organization is key. For the massive collection you're describing, consider creating a simple spreadsheet with photos, estimated values, and source of valuation (whether appraised, researched online, etc.). This becomes invaluable when tax time comes around and you're trying to remember what you sold and for how much. Also, don't overlook the fact that some costume jewelry from certain eras or designers can actually be worth more than you'd expect. Before selling everything in bulk lots, it might be worth doing a quick online search for any signed pieces or items that look like they might be from well-known costume jewelry makers like Trifari, Coro, or Weiss. You'd be surprised what collectors pay for vintage costume jewelry in good condition. The step-up basis rule everyone mentioned is definitely your friend here, but having good documentation will make your life much easier if you ever need to justify your valuations.

I went through a very similar situation when my grandmother passed and left behind what seemed like every piece of jewelry she'd ever owned! The volume was absolutely overwhelming - sounds just like what you're dealing with. One thing I wish I'd known earlier is that you should take photos of everything BEFORE you start selling, even the obvious costume pieces. I got halfway through selling things and realized I had no record of what the original collection looked like, which made it harder to justify my valuations later. For the tax side, the step-up basis rule really is your friend here. Since you inherited everything, your "cost" for tax purposes is the fair market value on the date of death, not what your wife's uncle originally paid. This usually works out much better for inherited items. I'd also suggest keeping a simple log as you sell things - date sold, platform used, sale price, and your estimated basis. It doesn't have to be fancy, but having it all in one place will save you major headaches at tax time. I learned this the hard way when I was trying to piece everything together from scattered eBay emails and PayPal records months later. The IRS generally expects a "good faith effort" to establish fair market value for inherited items, so don't stress too much about getting every costume jewelry piece perfectly valued. Reasonable estimates based on research are fine for lower-value items.

This has been an incredibly informative thread! As someone who's been managing rental properties for about 4 years and starting to think about my exit strategy, I'm glad I found this discussion before making any costly mistakes. The consensus seems clear that trying to avoid depreciation recapture through entity sales is a non-starter due to Section 751. But what I'm taking away are some really practical alternatives that I hadn't considered before - particularly the combination of installment sales and DST exchanges that several people mentioned. I'm especially intrigued by the point about analyzing each property individually rather than trying to find one strategy for everything. Some of my properties have appreciated significantly beyond depreciation, while others are probably in that category where just paying the recapture and moving on makes the most sense. For those who've gone through this process, how did you decide which properties were worth the complexity of advanced strategies versus just selling outright? Was it purely based on the dollar amount of potential tax savings, or were there other factors like property management headaches that influenced your decisions? Also, has anyone worked with tax professionals who specialize specifically in real estate investor exit strategies? My regular CPA is great for annual returns but seems less familiar with some of these more sophisticated approaches that have been discussed here.

This thread has been incredibly valuable - thank you everyone for sharing your real-world experiences! As someone newer to real estate investing (only 2 years in), I'm already thinking about my long-term exit strategy after reading about everyone's depreciation recapture challenges. One question I haven't seen addressed: for those of you who used installment sales, how did you handle the financing aspect with buyers? Did most buyers need traditional mortgages for their portion, or were you dealing with cash buyers who could handle the installment structure? I'm wondering if offering seller financing actually helped you sell properties faster or for better prices, even accounting for the tax planning benefits. Also, I'm curious about the practical side of managing installment payments over multiple years. Have any of you had issues with buyers defaulting on their payment plans? What kind of security did you require beyond the promissory note? I realize I'm getting ahead of myself since I'm still in the acquisition phase, but this discussion has made me realize I should be thinking about depreciation recapture implications from day one rather than as an afterthought years down the road.