Something else to consider is that if your family member has never done owner financing before, they should really consult a real estate attorney to draft the proper documents. I learned this the hard way. Sold some land on owner financing using a template contract from the internet, and ended up with major problems when the buyer died unexpectedly and their heirs didn't want to continue payments. Make sure the contract addresses what happens in case of default, late payments, early payoff, transfer of property, etc. Also, depending on your state, you might need to follow specific foreclosure procedures if the buyer stops paying - it's not always as simple as just taking the land back.

Don't forget about property tax issues! When I did owner financing on my lakefront lot, we had to be very clear in the contract about who was responsible for property taxes during the financing period. Even though the title wasn't transferred yet, we agreed the buyer would pay the taxes directly.

From my experience working in tax prep, the IRS batch processes updates overnight but your individual transcript might not change daily. The system does update around 3-4 AM EST like others mentioned, but whether YOUR specific return gets processed depends on where you are in the queue at your processing center. Early filers and simple returns usually see faster updates, while complex returns or those with errors can sit for weeks without changes. Don't drive yourself crazy checking multiple times per day - once in the morning after 6 AM EST is plenty!

As someone who's been through multiple tax seasons, I can confirm what others are saying - the IRS does update transcripts overnight around 3-4 AM EST, but your specific return may not show changes every day. I've found that checking first thing in the morning (after 6 AM) is the sweet spot. Also, if you're getting anxious about the wait, remember that "no news" often just means you're still in the processing queue, not that there's a problem. The IRS processes millions of returns, so patience is key! Don't let the waiting stress you out too much - your refund will come when it's ready.

I'm dealing with a very similar situation right now with an inherited partnership interest from 2020. My GP also tried to tell me that Section 1231 gains "already account for basis" which made no sense to me either. After reading through this thread and doing more research, I found that IRC Section 742 specifically addresses basis of transferred partnership interests, and Section 1014 covers the stepped-up basis for inherited property. These sections make it clear that you get a stepped-up basis equal to FMV at date of death, completely separate from how the partnership calculates Section 1231 gains on its assets. I ended up getting a professional appraisal of my partnership interest as of the date of inheritance. It wasn't cheap ($2,500) but it gave me defensible documentation for the IRS. The appraiser used discounted cash flow analysis based on the partnership's real estate holdings and debt structure. One thing that helped me push back on my GP was citing Treasury Regulation 1.704-1(b)(2)(iv)(l), which requires partnerships to maintain capital accounts but clarifies that capital accounts are NOT the same as outside basis for tax purposes. Your GP seems to be confusing these concepts just like mine was. Don't let them push you around on this - you have every right to proper documentation of your inherited basis.

I've been following this thread closely as I'm dealing with a similar inherited partnership situation. Based on everything discussed here, it's crystal clear that your GP is wrong about Section 1231 gains already factoring in your outside basis. The key distinction everyone has made is spot-on: the partnership's internal basis calculations (which generate the Section 1231 gain on your K-1) are completely separate from your personal outside basis in the partnership interest. When you inherited that interest, you should have received a stepped-up basis equal to the fair market value at the date of death, per IRC Section 1014. Your GP's reluctance to provide a valuation is unfortunately common - it requires work and potentially professional appraisal costs that many smaller partnerships try to avoid. But that doesn't make their position legally correct. Given that you're running out of time for the amendment, I'd recommend documenting your request for the FMV basis calculation in writing immediately. If they continue to refuse, you may need to pursue professional valuation services or use the reconstruction methods others have suggested. The negative capital account issue is a red herring - as several people have correctly noted, capital accounts and outside basis are different tracking mechanisms entirely. Don't let that confuse the core issue of determining your proper inherited basis.

I've been through this exact same situation and it can be really frustrating! What you're experiencing is completely normal tax behavior, but I know it doesn't feel that way when you're used to getting larger refunds. Here's the key thing to understand: your refund isn't actually "shrinking" - what's happening is that you're getting your money throughout the year in your paychecks instead of as one lump sum refund. When you claim your children on your W4, you're essentially telling your employer "I have dependents, so withhold less tax from each paycheck because my final tax liability will be lower." The periods where they stopped withholding federal taxes entirely likely happened because your W4 indicated you'd have little to no tax liability based on your dependents and income at that time. But as your annual income grew, you ended up owing more than initially calculated. Here's what I'd recommend: use the IRS withholding calculator on their website (it's free!) to figure out exactly how much should be withheld based on your current income and family situation. You can then adjust your W4 accordingly - whether you want smaller paychecks with a bigger refund, or keep things as they are with more money in each paycheck. Remember, ideally you want to break even or get a small refund - that means you kept your money working for you all year instead of giving the government an interest-free loan!

This is such a common confusion and you're definitely not doing anything wrong! What you're experiencing is actually how the tax system is supposed to work, but I totally understand why it feels backwards. Think of it this way: your total tax bill is based on your income and family situation. When you claim your kids on your W4, you're getting the benefit of those dependent allowances spread out across every paycheck throughout the year (meaning less tax withheld from each check). When tax time comes, you've already received most of your tax benefits, so there's less left over for a refund. In your earlier years at lower income levels, you likely qualified for refundable credits like the Earned Income Tax Credit, which can result in refunds larger than what you actually paid in taxes. As your income increased, you phased out of some of these credits while moving into higher tax brackets. The good news is you're not losing money - you're just receiving it differently! That smaller refund means you had more money in your pocket each month. If you prefer a larger refund, you can adjust your W4 to have more tax withheld, but financially speaking, it's generally better to have proper withholding and keep your money working for you throughout the year rather than giving the government an interest-free loan. I'd recommend using the IRS withholding calculator to find the right balance for your situation and preferences.

For what it's worth, I checked with my accountant about a similar IRS TREAS 310 TAX REF deposit I received, and he explained that the IRS has been processing a backlog of corrections and adjustments from previous tax years. Many people are getting surprise refunds from tax years 2021-2023 as the IRS works through their processing delays. If you filed during the pandemic years, this could be a delayed adjustment from that period.

I work as a tax advisor and see this situation frequently with H1B holders. The IRS TREAS 310 TAX REF code specifically indicates a legitimate tax refund, so you can feel confident this isn't a mistake or something you need to worry about returning. Given your H1B status, there are a few likely explanations: 1) You may have qualified for tax treaty benefits between the US and your home country that weren't initially applied, 2) The IRS automated systems caught an error in your favor during their review process, or 3) You had excess withholding that created a larger refund than expected. To verify the exact reason, I'd recommend checking your IRS online account at irs.gov where you can see a detailed breakdown of your tax account activity. This will show you exactly which tax year and which specific adjustment generated the refund. This documentation is also helpful to keep for your records in case you ever need to reference it in the future. The money is yours to keep - just make sure to keep records of when you received it in case it affects any future tax filings.