I did owner financing for my house in 2022 and the tax part wasn't that bad. Just make sure you have a proper loan agreement drawn up by a real estate attorney. Mine cost about $800 but worth every penny since it covered all the legal requirements and proper disclosures. For taxes, my accountant had me report it as an installment sale on Form 6252. The down payment and principal payments aren't taxable as long as they fall under your Section 121 exclusion. The interest gets reported as income on Schedule B each year.

This is such valuable information everyone! As someone who's been thinking about owner financing but was intimidated by the tax complexity, this thread has been incredibly helpful. One additional consideration I learned from my real estate agent - make sure you're comfortable being a lender for the full term of the loan. Unlike selling traditionally where you get all your money upfront, with owner financing you're tied to that buyer for potentially 15-30 years. If they default, you might have to go through foreclosure proceedings to get your property back. Also, consider the opportunity cost - that money you would have received from a traditional sale could potentially be invested elsewhere. Make sure the interest rate you're charging compensates for both the risk you're taking and any potential investment returns you're giving up. The tax advantages are great, but they shouldn't be the only factor in your decision.

I've been dealing with this exact same verification nightmare! After trying everything else, what finally worked for me was calling during off-peak hours (around 7 AM EST) and speaking to an agent who could do a "manual identity verification" using my previous tax return information. The key was having my 2023 AGI amount, exact refund amount, and Social Security number ready. The agent bypassed the phone verification completely and gave me immediate access to my transcripts. She also mentioned that international filers can request a "verification exemption flag" on their account to prevent this issue from happening again. One thing I learned: don't keep trying the online verification repeatedly - it actually locks your account temporarily after too many failed attempts. If you've already tried multiple times, you might need to wait 24 hours before the agent can reset your access. The whole call took about 75 minutes, but it was so worth it compared to waiting weeks for mail delivery overseas. Make sure to call the international taxpayer line at (267) 941-1000 rather than the general customer service number - they have different tools and actually understand the unique challenges we face as international filers.

I went through this exact same frustrating experience last month! The phone verification system is definitely broken for international filers. After weeks of trying everything, here's what finally worked for me: I called the IRS International Taxpayer Services line at (267) 941-1000 around 6:30 AM EST and asked specifically for a "manual identity verification override" due to my international filing status. Had my 2023 AGI, exact refund amount, SSN, and previous year's return ready. The agent was able to completely bypass the phone verification requirement and gave me immediate access to my transcripts. She also added what she called a "verification exemption note" to my account specifically for international filers, which should prevent this issue from recurring. Key tips: Don't use the regular customer service line - they can't override verification. Don't create a new ID.me account - it just creates more system conflicts. And definitely don't keep trying the online verification repeatedly as it can temporarily lock your account. The whole call took about 85 minutes, but getting immediate transcript access was so much better than waiting weeks for international mail delivery. The international agents actually understand our unique filing challenges and have the tools to help. Hang in there - there is a solution, you just need to reach the right department!

This is such a comprehensive and helpful thread! As someone who's dealt with IRS nightmares before, I can totally relate to the frustration of Error Code 6000. The fact that so many people are experiencing the same issue really highlights how broken their online systems have become this year. Based on all the success stories shared here, the taxpayer advocate service at 877-777-4778 seems like the clear winner for getting this resolved. The 7 AM calling strategy is brilliant - I never would have thought of that timing trick. @Ava Martinez - your situation with the $4,300 refund is exactly why we can't let these technical glitches defeat us. That's real money that belongs to you! The identity verification angle makes perfect sense, especially since you mentioned it's been almost 3 weeks. The system probably flagged something minor in your profile that's completely fixable once you get the right person on the phone. @Brandon Parker's professional insight about the 15-20% rate is eye-opening - this is clearly a systemic problem, not just isolated cases. It's reassuring to know there are proven workarounds even though the whole situation is ridiculous. Thanks to everyone for turning this into such a valuable resource. I'm bookmarking this thread for future reference - it's way more useful than anything on the official IRS website!

I've been dealing with Error Code 6000 myself recently and this thread has been incredibly helpful! It's amazing how many people are experiencing the same identity verification lockout issues. Based on all the success stories shared here, I'm definitely going to try the taxpayer advocate service at 877-777-4778 first thing in the morning. @Ava Martinez - don't give up on your $4,300 refund! The consistent advice about calling the advocate service right at 7 AM seems like your best bet. Having all your documents ready (exact refund amount, last year's AGI, address as filed) before calling will definitely help speed up the process. It's frustrating that we need to become IRS navigation experts just to check our own refund status, but this community has provided way better guidance than anything on the official website. The fact that even minor address discrepancies or missing middle initials can trigger this error shows how overly sensitive their new security system has become. Thanks to everyone for sharing their real experiences and solutions - this thread should honestly be pinned as a resource for anyone dealing with Error Code 6000!

I'm so sorry you're dealing with this stress! That $2,200 surprise on top of adjusting to single parenthood must have been incredibly overwhelming. Here's my recommendation for your W4 update: **File as Head of Household** - You'll qualify since you're providing more than half the cost of maintaining a home for you and your daughter when you claim her for 2024. **Include your daughter in Step 3** - This accounts for the $2,000 child tax credit you'll receive, which significantly reduces your tax liability. **Add extra withholding in Step 4(c)** - Given that you owed $2,200 this year, I'd suggest adding $80-100 per paycheck. I know it means smaller paychecks now, but it's so much better than another devastating April surprise. **Submit immediately** - Every paycheck you delay is a missed opportunity for proper withholding to accumulate throughout the year. Remember, your W4 is just for calculating withholding during the year - it doesn't lock you into any specific filing status when you actually file your return. You can file however you qualify at tax time. I'd also recommend checking the IRS Withholding Estimator around mid-year to make sure you're on track. You can always adjust if the extra withholding is too much. The first year post-divorce is always the most challenging for taxes because everything has changed. You're being incredibly smart by addressing this proactively instead of hoping it works out. You've absolutely got this!

I completely understand how overwhelming this must be! Getting hit with a $2,200 tax bill while adjusting to life as a newly single mom is incredibly stressful. Here's what I'd recommend for your W4 going forward: **Update your W4 immediately with:** - Head of Household filing status (you'll qualify since you're claiming your daughter and providing more than half the household costs) - Step 3: Include your daughter for the $2,000 child tax credit - Step 4(c): Add $75-85 extra withholding per paycheck as a safety buffer I know reducing your take-home pay feels scary, but think of that extra withholding as insurance against another April surprise. Based on owing $2,200 this year, that additional amount should help ensure you're covered for 2024. **Key points to remember:** - Your W4 is just for withholding calculations - it doesn't lock you into a filing status when you actually file your return - Submit your updated W4 ASAP so you benefit from proper withholding for as many paychecks as possible - Use the IRS Withholding Estimator mid-year to double-check you're on track The transition year after divorce is always the trickiest for taxes because everything changes. You're being smart by planning ahead now instead of crossing your fingers. I promise it gets easier once you get through this first year - you've got this!

Don't forget that the IRS has been cracking down on crypto reporting. They even added that question at the top of Form 1040 asking if you've dealt with virtual currency. Make sure whatever service you use, you answer that honestly and report everything. Not worth the risk of an audit just to save a few bucks on tax prep.

I've been using FreeTaxUSA for the past two years and can confirm it handles crypto reporting in their free federal filing. You'll need to manually enter your transactions on Form 8949 and Schedule D, but it walks you through the process step by step. The interface isn't as slick as TurboTax, but it gets the job done without charging extra fees for investment income. One tip - make sure you download all your transaction history from your exchanges before you start. Having your purchase dates, amounts, and sale prices organized will make the whole process much smoother. I keep a simple spreadsheet with all my crypto transactions throughout the year, which makes tax time way less stressful.