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Has anyone ever used TurboTax for this scenario? I'm trying to figure out if it automatically prorates property taxes when you enter the "in service" date for a rental conversion or if I need to manually calculate the prorated amount before entering it.
I used TurboTax last year for my rental and it didn't automatically prorate anything! I had to calculate all the prorated amounts myself before entering them. The in-service date is mainly used for depreciation calculations, not for prorating your other expenses like property taxes or insurance.
I went through this exact same situation last year when I converted my home to a rental mid-year! The key thing to remember is that you can only deduct expenses for the period the property was actually used for rental purposes. For your June conversion, you'll need to prorate the property taxes from June through December (7 months) on Schedule E Line 16. The January through May portion would go on Schedule A as part of your personal itemized deductions if you're itemizing. One tip that saved me a lot of headache - make sure you document the exact date you placed the property in service as a rental. This could be when you first made it available for rent (not necessarily when you got your first tenant). Keep records like rental listings, advertisements, or any other evidence showing when you began holding it out for rental. Also, don't forget about starting depreciation from that same in-service date! That was a big deduction I almost missed in my first year.
One thing nobody mentioned - if youre tracking mileage for a bunch of diff't charities, the Stride app is free and lets you track diff't categories. I use it for my volunteer work at the animal shelter, food bank AND habitat for humanity and it keeps everything seperate. Super helpful at tax time!!
Does it calculate the deduction amount automatically? And is it easy to export for taxes? I'm using a paper logbook right now and its a huge pain to add everything up.
Yes, Stride automatically calculates everything using the current IRS rates (14 cents per mile for charitable work). At the end of the year, you can export a detailed report that shows total miles and deduction amounts for each organization separately. Way better than adding up a paper logbook! The export works great for uploading to tax software or giving to your accountant.
Great question! Yes, you can definitely deduct the full round-trip mileage for your volunteer work. The IRS allows you to claim both directions - from your home to the food bank and back home again. So if it's 15 miles each way, you can deduct the full 30 miles at 14 cents per mile for each volunteer day. Just make sure to keep detailed records with dates, destinations, and mileage. Also remember that you'll need to itemize deductions on Schedule A to claim this, so compare that total to the standard deduction to see which benefits you more. Keep up the great volunteer work!
Thanks for confirming this! I was worried I might be doing something wrong by claiming the full round trip. One more question - do I need to keep gas receipts too, or is just tracking the mileage enough? I've been saving all my gas receipts but wasn't sure if that was necessary when using the standard mileage rate.
You don't need to keep gas receipts when using the standard mileage rate! The 14 cents per mile already covers all your vehicle expenses including gas, maintenance, depreciation, etc. You're essentially choosing between two methods: either track actual expenses (gas, repairs, etc.) OR use the standard mileage rate - but not both. The mileage rate is usually simpler and often more beneficial for most people. Just keep your mileage log with dates, destinations, and miles driven - that's all you need for the standard rate.
So i had the same issue and i check my property tax statement direct from my county and it turns out some of the "other taxes" were actually school district taxes which ARE deductible!!! but some were for a local improvement district which AREN'T deductible. tax stuff is so confusing!!!
This is good advice - always check your actual property tax statement from the county rather than just relying on what your mortgage company reports. They often lump things together in confusing ways.
Great thread! Just wanted to add that if you're unsure about what qualifies as deductible property tax, the IRS has a helpful publication (Publication 530) that specifically covers this. The key test is whether the tax is based on the assessed value of your property and benefits the general public (like funding schools, police, fire departments, etc.). Things like special assessments for specific improvements to your neighborhood (new sidewalks, street lighting) typically aren't deductible because they increase your property value rather than benefit the general public. Also, if you've been combining these amounts for previous years and it turns out some of the "other taxes" weren't deductible, you might want to calculate whether it's worth filing amended returns. The statute of limitations is generally 3 years, so you could still amend 2021, 2022, and 2023 if the tax savings would be significant.
This is really helpful, especially the part about Publication 530! I had no idea there was a specific test for what counts as deductible property tax. The "assessed value + general public benefit" rule makes it much clearer. Quick question about the amended returns - if I've been accidentally claiming too much in deductions for the past couple years, would filing amended returns actually cost me money? I'm assuming I'd owe additional taxes if I reduce my deductions, but I want to make sure I'm doing things correctly going forward.
Has anyone mentioned looking at tax transcript? I get confused with all the different kinds (account, return, record of account) but one of them shows if you have balance due. I think its the account transcript.
You're right! The "Account Transcript" is the one that shows any balance due, payments, adjustments, penalties, interest, and refunds. You can order it online through the IRS website or by mail using Form 4506-T. It will have transaction codes that tell you exactly what's happened with your account.
@Anna Stewart - Looking at your specific situation, since you filed on time but are receiving letters, it's likely there was either an underpayment or the IRS processed something differently than you expected. Beyond checking lines 24 vs 33 as others mentioned, also look at line 25a-25d on your 1040 - these show estimated tax penalties that might not have been included in your original calculation. When you get those CP14 notices, they usually include a detailed breakdown of the original tax, any penalties, interest charges, and payments received. The key is to match up what the IRS shows as payments received with what you actually paid. Sometimes electronic payments can take a few days to process, or there might have been an error in how your payment was applied to your account. If there's still confusion after reviewing your forms, you might want to call the number on the notice itself - it goes directly to the department handling your specific case rather than the general IRS helpline.
This is really helpful advice! I never thought to look at lines 25a-25d for estimated tax penalties. As someone who's pretty new to dealing with tax issues, I'm wondering - is there a typical timeframe for how long it takes the IRS to apply electronic payments to your account? I'm asking because I'm in a similar situation and trying to figure out if my payment timing might be part of the problem. Also, when you call the number on the CP14 notice, do you usually get through faster than calling the main IRS line?
Andre Rousseau
@e97069fb8802 Don't worry at all - you're seeing exactly what you should be seeing! As someone who's been filing US taxes for about 8 years now, I can confirm that the partial personal information display is 100% standard IRS security protocol. They've been doing this since around 2018-2019 as a protective measure. What you're experiencing is totally normal newcomer anxiety (I went through the same thing!), but the masked name and address actually means you're on the legitimate IRS website and your account is secure. Scam sites often show complete information to look more "official," so the partial display is actually a good sign. Since you mentioned needing your refund for bills, here's what really matters on your transcript: make sure your AGI (Adjusted Gross Income), federal tax withheld, and any credits match what's on your actual tax return. Those are the numbers that determine your refund amount and processing. The header info being partially hidden won't affect your refund timing at all. If you filed electronically with direct deposit, you should see your refund within 21 days typically. The "Where's My Refund" tool on IRS.gov will give you the most current status updates. You're doing everything right by double-checking your documents - that's exactly what responsible taxpayers should do! š
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Isabella Ferreira
ā¢@e97069fb8802 @dc59f834f668 This whole discussion has been incredibly reassuring! I'm also relatively new to filing taxes here (third year) and had the exact same moment of panic when I first encountered the partial information on my transcript. It's amazing how something that seems concerning at first is actually a sign that the system is working properly to protect us! Andre's point about scam sites showing complete information is so important - I almost got caught by one of those fake sites last year because it looked "more complete" than the real IRS site. Now I know that partial masking is actually the green flag to look for! @e97069fb8802 Since you're waiting on that refund, one small tip that helped reduce my anxiety: I screenshot my "Where's My Refund" status each time I check it so I can see the progression. It's usually pretty steady - goes from "received" to "approved" to "sent" - and seeing that forward movement really helps with the waiting stress. Hope your refund comes through quickly and helps with those bills! The US tax system definitely has a learning curve, but you're clearly being thorough and responsible about it. š
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Liam O'Sullivan
@e97069fb8802 Hey there! I totally understand your concern - when I first moved to the US and saw my transcript with partial information, I thought there was some kind of error too! š But everyone here is absolutely right that this is completely normal and actually shows the IRS is taking good care of protecting your personal information. As someone who's been through the "new to US taxes" experience, here's what helped me feel more confident: I compared the important numbers on my transcript (like my total income and tax withheld) with my actual tax return, and everything matched perfectly even though the name and address were partially masked. That's really all that matters for your refund processing! Since you mentioned counting on your refund for bills, I'd definitely recommend using the "Where's My Refund" tool on IRS.gov - it updates every 24 hours and gives you a pretty clear timeline of where things stand. Most electronic returns with direct deposit process within 2-3 weeks, so hopefully you won't have to wait much longer! You're being smart by double-checking everything. That attention to detail will really help you as you get more comfortable with the US tax system. Don't stress too much - sounds like you've got everything handled correctly! š
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Romeo Barrett
ā¢@e97069fb8802 @d2bef0c1d010 Just wanted to add my voice to this incredibly helpful thread! I'm also fairly new to the US tax system (moved here about 18 months ago) and had the exact same initial panic when I saw my transcript for the first time last month. That partial information display really does look concerning when you're not expecting it! What really helped ease my mind was realizing that this masking is actually the IRS being proactive about protecting our data - especially important for those of us who might not be as familiar with all the potential scams out there. Liam's suggestion about comparing the key numbers to your actual return is perfect advice. @e97069fb8802 Since you're counting on your refund, one thing that gave me peace of mind was setting up text alerts through my bank for any deposits. That way I'd know immediately when the refund hit my account rather than constantly checking. The waiting is definitely stressful when you need those funds! It's so comforting to see how many of us newcomers went through this same initial confusion. Makes the whole system feel a lot less intimidating knowing we're all figuring it out together! Thanks everyone for sharing your experiences. š
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