Just want to echo what others have said about keeping meticulous records - this is SO important for homeowners! I learned this lesson when I got audited two years after buying my house and had to scramble to find documentation for various deductions. A few additional points that might help: **Moving expenses**: Unfortunately, these are no longer deductible for most people (only active military), so don't count on deducting your moving costs. **Home warranty costs**: These are generally not deductible, but if you have to make major repairs in your first year that aren't covered by warranty, those repair costs might be deductible under certain circumstances. **Escrow account**: Make sure you're only deducting property taxes and mortgage insurance that were actually PAID during the tax year, not just what went into escrow. Your mortgage servicer should provide a year-end statement breaking this down. **State-specific benefits**: Don't forget to check if your state offers any additional first-time homebuyer benefits or property tax exemptions. Some states have programs that aren't reflected on your federal return but can save you money on state taxes. The mortgage interest and property tax deductions alone often make itemizing worthwhile for new homeowners, especially in the first few years when interest payments are highest. Good luck with your filing!

One area that hasn't been fully covered yet is the timing of deductions for your first year of homeownership. Since you bought in April, you'll only be able to deduct mortgage interest and property taxes for the portion of the year you actually owned the home (April through December). Also, regarding your substantial closing costs - while most aren't immediately deductible, some items like prepaid interest, property taxes prorated to your ownership period, and any mortgage points ARE deductible in the year of purchase. Your closing disclosure should break these out clearly. A few other things to consider: **Property tax proration**: At closing, you likely paid the seller back for property taxes they prepaid for the portion of the year you'd own the home. This amount IS deductible on your return. **Title insurance**: Generally not deductible, but adds to your home's basis. **Home inspection fees**: Not deductible, but worth keeping the report for future reference if issues arise. Since you mentioned spending $7,500 on appliances and furniture, track those receipts! If you itemize and live in a state without income tax (or choose sales tax over state income tax), you can deduct the sales tax paid on these purchases. Make sure your lender sends you Form 1098 early next year - it will show your total mortgage interest and PMI payments for 2024, making your tax prep much easier. The mortgage interest alone might be enough to make itemizing worthwhile!

One thing to keep in mind that hasn't been mentioned yet - make sure you keep meticulous records of when you actually convert the property from rental to primary residence. The IRS will want clear documentation of the conversion date, which affects your qualified vs non-qualified use calculations. I'd recommend documenting things like: when you moved in, utility transfers to your name, voter registration changes, driver's license updates, and any lease terminations with tenants. Also keep records of any improvements you make after converting it to primary residence, as these can increase your basis and potentially reduce your taxable gain. The devil is really in the details with these conversions, and having solid documentation will save you headaches if you ever get audited. I learned this from a friend who had to reconstruct his timeline years later when the IRS questioned his conversion date.

This is such a valuable discussion! As someone who's been considering this exact strategy, I wanted to add a few points that might help others thinking about rental-to-primary conversions. One thing I've learned from researching this is that the "2 out of 5 years" rule for primary residence can be tricky with conversions. You need to live in the property as your primary residence for at least 2 years during the 5-year period ending on the sale date. But as others have mentioned, the non-qualified use periods (rental time after 2008) will reduce your exclusion proportionally. Also, don't forget about the timing of when you take depreciation. If you're planning to convert a rental property, you might want to consult with a tax professional about whether to continue taking depreciation right up until conversion or stop earlier. The depreciation recapture at 25% applies to ALL depreciation taken (or allowed to be taken), so this could affect your overall tax strategy. For anyone just starting to consider this path, I'd recommend running the numbers on multiple scenarios - different rental periods, different sale timing, etc. - before making the initial purchase. The tax implications can really impact the overall profitability of the investment strategy.

According to the IRS.gov website, offsets follow a specific priority order if you have multiple types of debt. Tax debts always get paid first, then other federal debts, then state tax debts, and finally child support. Each type uses the same TC 898 code but with different reference numbers. The IRS has a detailed FAQ page about the refund offset process here: https://www.irs.gov/taxtopics/tc203. The Bureau of Fiscal Service handles the actual offset program, and they're required to send you a notice after the offset occurs explaining what happened to your refund.

Thanks for posting this question - I've been wondering about the same thing! As someone who's dealt with IRS transcript codes before, I can confirm that TC 898 is indeed the key code to watch for. One thing I'd add is that if you're proactively monitoring for potential offsets, you might also see TC 971 (notice issued) appear on your transcript before the actual offset happens - this usually corresponds to when they send out notices about pending collection actions. The timing can vary, but typically the TC 971 appears 2-4 weeks before the TC 898 offset code. Also, if you have installment agreements in place, make sure they're current because even one missed payment can trigger an offset of your refund. The IRS doesn't always distinguish between "active" payment plans and ones that are technically in default due to missed payments.

As someone brand new to this community and completely confused by all the Amazon tax headlines, this discussion has been incredibly educational! I came here thinking Amazon was somehow "cheating" the system, but the explanations about loss carryforwards, R&D credits, and the difference between federal income tax versus total tax burden have completely changed my perspective. What really helped me understand was realizing that these tax provisions aren't loopholes - they're intentional policy tools designed by Congress to encourage business investment and growth. When you think about Amazon operating at massive losses for years while building their infrastructure, it makes perfect sense that they wouldn't owe federal income tax during those periods or immediately after becoming profitable. I'm in the early stages of starting a small online business, and I was initially worried I was missing out on some secret tax strategies. But now I understand the scale is completely different - Amazon's billion-dollar R&D credits come from massive research spending, while my relevant deductions will be things like home office expenses and equipment purchases. The recommendation to check SEC EDGAR filings instead of relying on headlines is brilliant. I just looked up Amazon's actual 10-K and you're absolutely right - they've paid billions in various taxes over the years, with variation in federal income tax based on legitimate credits and business cycles. Thanks to everyone who turned this into such an informative discussion rather than just another political argument. This is exactly the kind of educational dialogue that helps newcomers like me actually understand these complex issues!

As someone completely new to this community, I have to say this has been one of the most educational discussions I've ever read about corporate taxation! I came here with the exact same "$0 taxes" misconception about Amazon that seems to be everywhere on social media. The breakdown of how loss carryforwards, R&D credits, and stock-based compensation deductions actually work was incredibly enlightening. Understanding that these are deliberate policy tools created by Congress rather than sneaky loopholes completely reframes the issue. It makes perfect sense that Amazon wouldn't owe federal income tax during years when they were operating at massive losses to build their infrastructure. What really struck me was the distinction between federal income tax (which gets all the headlines) versus Amazon's total tax burden across all categories. After reading the recommendations here, I looked up their actual 10-K filings on the SEC EDGAR database, and seeing billions paid in various taxes over time was eye-opening compared to those viral social media posts. As someone planning to start a small freelance business, I was initially worried I was missing out on some secret tax strategies. But now I understand the scale is completely different - Amazon's billion-dollar R&D credits come from massive research spending, while my relevant deductions will be things like home office expenses and business equipment. The practical advice about focusing on small business tax strategies rather than getting distracted by corporate controversies really resonates with me. The hybrid approach of self-education through IRS publications combined with strategic professional consultations sounds perfect for someone just starting out. Thanks to everyone who made this such an informative and civil discussion - this is exactly the kind of community dialogue that helps newcomers actually understand complex policy issues rather than just react to clickbait headlines!

This is such a comprehensive thread with so many helpful solutions! As someone who works in IT support, I see similar account recovery issues all the time, and the advice here is spot-on. Just to add one more option that might help some folks: if you're comfortable with technology and want to avoid phone calls entirely, you can also try the IRS's "Get an Identity Protection PIN" process. Even if you weren't previously enrolled in the IP PIN program, going through their identity verification for that service sometimes allows you to update your contact information in the process. It's not widely known, but it can be another pathway to account recovery. The key takeaway from everyone's experiences seems to be: don't panic, be prepared with your tax documents, and use that 800-908-4490 number during optimal calling times. The IRS agents really are more helpful than people expect once you get through to the right department. Great job everyone on turning this into such a useful resource for retirees dealing with account access issues!

I'm currently dealing with this exact same frustrating situation! Just retired in February and my company deactivated my work email faster than I expected. I've been putting off tackling my IRS account access because it seemed so daunting, but this thread has been absolutely invaluable. The consistency in everyone's success using the 800-908-4490 number during Tuesday/Wednesday mornings is really encouraging. I love how @Heather Tyson's AGI tip and @Aaron Lee's detailed follow-up have created such a clear roadmap for the rest of us. One thing I'm wondering about - for those who successfully updated their accounts, did you notice any changes to your IRS online services beyond just being able to log in? I'm hoping to set up some quarterly estimated tax payments for my retirement income, so I want to make sure all the account features will be fully restored after going through this process. Planning to call this Wednesday morning with everything organized. Will definitely report back to help keep this amazing community resource going!