Has anyone else noticed that the K-1 equivalent info from DST investments sometimes doesn't match up with the 1099-MISC? My DST sponsor sends a "Tax Information Statement" that shows different amounts than what's on my 1099. Confused about which numbers to use on my Schedule E.

Just wanted to add my experience with DST passive losses since I see a lot of confusion here. I've been invested in DSTs for about 4 years now and initially made the mistake of not properly tracking my suspended passive losses year over year. The key thing to understand is that these losses accumulate on Form 8582 if you don't have other passive income to offset them against. I learned this when I finally sold one of my DST interests and suddenly had a huge passive loss carryforward that I could finally use - it saved me thousands in taxes on the gain from the sale. Make sure you're keeping detailed records of your annual passive losses from each DST investment. When you eventually dispose of a DST interest (whether through sale or exchange), all those accumulated losses become deductible against any type of income, not just passive income. It's actually a pretty powerful tax planning tool once you understand how it works over the long term. Also, don't forget that if you do a 1031 exchange from your DST into another investment, the passive losses stay with you and continue to accumulate. Only an actual taxable sale triggers the release of all those suspended losses.

I've encountered this a couple times with older small business owners who are still doing everything manually. While it's technically valid if all required fields are present and legible, I always recommend having the client contact the employer to request a properly printed version if possible. It just looks more professional and reduces the chance of processing delays or questions from the IRS. If they can't provide a printed copy, make sure to keep extra documentation of the client's actual payments received to back up those numbers.

I'd recommend treating this as a yellow flag rather than an immediate red flag. While handwritten 1099-NECs are uncommon, they're not automatically invalid. The key things to verify are: 1) All required fields are complete and legible, 2) The EIN matches IRS records, 3) Your client's records support the reported amounts. Construction companies, especially smaller family-owned ones, sometimes lag behind on technology adoption. That said, I'd definitely document everything thoroughly and consider having your client request a printed copy for their records. If the employer refuses or the numbers don't add up, that's when I'd be more concerned about potential issues.

One thing that hasn't been mentioned yet - if you're having trouble getting clear answers from your broker or the settlement company, you can also check your MLS system or transaction management platform. Many brokerages use systems like DocuSign, SkySlope, or dotloop that keep detailed records of who received what payments and when. I'd also suggest reaching out to other agents in your office who've been through this before. Most experienced agents are happy to help newcomers navigate the tax reporting confusion. And if your broker is being vague, try talking to the office manager or transaction coordinator - they usually handle the administrative side and might have better answers about who issues the 1099s. Don't panic though - as others mentioned, even if you never receive the forms, you can still file your taxes correctly with your settlement statements and commission records. The key is just making sure you report all the income, regardless of what paperwork you do or don't receive.

Adding to what others have said about tracking expenses - don't forget about your business license fees and any association dues you paid! Even if you only closed one deal, you likely had to pay for your real estate license renewal, NAR dues, and local board fees. These are all legitimate business deductions. Also, if you drove to showings, open houses, or client meetings (even if they didn't result in sales), keep track of that mileage. The IRS standard mileage rate for 2024 was 67 cents per mile for business use. Even as a new agent, those miles can add up quickly! One more tip - if you're planning to continue in real estate for 2025, consider getting a business credit card to keep all your real estate expenses separate. Makes tax time SO much easier when everything is clearly separated from your personal expenses. Good luck with your taxes!

Great advice from everyone here! I went through a similar situation with my grandmother's CD last year. One thing I'd add is to also check if the CD had any beneficiaries listed directly on the account. Some CDs have "payable on death" (POD) designations that can affect the transfer process and timing. In my case, the CD was set up as POD which meant it transferred automatically to me without going through probate. This made the valuation date clearer since the bank had specific records of when ownership transferred. If your father-in-law's CD went through the will/probate process, the valuation might be slightly different. Also, don't be surprised if the bank asks for a certified copy of the death certificate - they usually need this for their records even after they've transferred ownership. Keep multiple certified copies handy since you'll likely need them for other inheritance-related paperwork too.

As someone who works in estate planning, I want to emphasize that you're absolutely correct about using the stepped-up basis as of the date of death (March 11, 2023). This is one of the key tax benefits of inheritance - you essentially get a "fresh start" on the asset's value. One additional consideration: make sure to document not just the CD's principal value on the date of death, but also any accrued interest up to that date. The accrued interest from the original purchase date through March 11, 2023 should be reported as income on your father-in-law's final tax return (Form 1041 for the estate), not on your wife's return. I'd also recommend getting a written statement from the bank showing the exact breakdown of principal vs. accrued interest as of the date of death. This will make your 2025 tax filing much cleaner and provide solid documentation if the IRS ever has questions. Some banks are more helpful than others with this, but it's worth asking for since it's a legitimate tax documentation request.

This is such a thorough and helpful discussion! I'm new to the community and just starting to research launching my own 3D printing side business, so this thread is incredibly valuable. I wanted to ask about something I haven't seen mentioned yet - what about the costs for post-processing supplies? I'm planning to make miniatures and decorative items that will need sanding, priming, and painting. Would items like sandpaper, primer, paints, and brushes go under line 22 "Supplies" or would they be considered materials that become part of the finished product and belong in COGS? Also, I'm curious about 3D printer maintenance costs. Things like replacement hot ends, thermistors, and stepper motors - are these considered repairs (which I believe go on line 21) or supplies? Since 3D printers require fairly regular maintenance and part replacement, I want to make sure I'm categorizing these correctly from the start. One more question - if I'm using free design files from sites like Thingiverse but making modifications in CAD software, do I need to track any costs associated with those designs, or are they just considered free materials with no COGS impact? Thanks for all the great information everyone has shared. This thread is going to be my reference guide as I set up my business tracking systems!

This thread has been incredibly helpful for understanding Schedule C requirements for 3D printing businesses! I'm just getting started with my own setup and have been overwhelmed trying to figure out all the different expense categories. One thing I'd like to add based on my research is about the business use percentage for equipment. Even though you mentioned your computer is 100% business use, make sure you can genuinely document this if questioned. The IRS can be strict about equipment that could reasonably have personal use. I'd recommend keeping a simple log showing business activities on that computer, especially since it's a general-purpose device rather than specialized equipment like your 3D printer. Also, regarding your domain registration question - I've seen it handled both ways (line 17 vs line 25), but I lean toward line 25 "Office expenses" since it's more about maintaining your business presence rather than paying for professional services. It's similar to business phone or internet costs. For anyone else following this discussion, I found it helpful to create a simple spreadsheet with columns for date, vendor, amount, description, and tax category. This makes it much easier to sort expenses into the right Schedule C lines when tax time comes around. Thanks to everyone who shared their experiences - this community is such a great resource for small business owners navigating these tax complexities!