Just a heads up - don't forget about the luxury vehicle limits if your truck isn't over 6,000 lbs gross vehicle weight. My tax preparer almost missed this on my Audi that I use for real estate showings. If it's a heavy truck/SUV you might be fine, but worth checking the exact specs. Also, make sure you're really using it 100% for business if you're planning to depreciate the full amount. Even a small percentage of personal use can complicate things.

Great question! As others have mentioned, you definitely cannot claim both depreciation and mileage deduction for the same vehicle - it's an either/or situation. The IRS agent you spoke with during your 2018 audit was absolutely correct that this is a red flag. Here's what I'd recommend for your $78k truck situation: 1. **Calculate both methods** before filing - with 44,000 business miles, that's about $30,800 using the standard mileage rate (assuming 2024 rates). Compare this to actual expenses plus depreciation. 2. **Consider the truck's weight** - if it's over 6,000 lbs GVWR, you can potentially use Section 179 expensing or bonus depreciation to deduct a large portion in year one, which might make the actual expense method more beneficial. 3. **Remember the commitment** - once you choose actual expenses/depreciation for a vehicle, you're locked into that method for the life of that vehicle. 4. **Document everything** - especially given your audit history, keep meticulous records of business use percentage, receipts, and mileage logs regardless of which method you choose. Given the high purchase price and significant mileage, I'd strongly suggest running the numbers both ways or consulting with a tax professional before making the decision. The savings difference could be substantial either way.

I see you've got your dates mixed up in the original post - you mentioned 02-16 and 02-17-2025 in the title, then 02-18 and 02-15 in the content. But regardless of the exact dates, everyone's right that this is totally normal! The IRS runs their batch updates usually between midnight and 6 AM, so your account data gets refreshed automatically. When you check your transcript later that day (or days later), you're seeing data that was already processed before you requested it. It's like checking yesterday's news today - the news (response date) happened before you read it (request date). No need to call the IRS, this won't affect your refund timeline at all.

Don't feel bad about the date confusion - I think we've all been there with IRS transcripts at some point! 😅 The whole system is honestly pretty counterintuitive when you first encounter it. Like everyone said, those "backwards" dates are completely normal - the IRS basically pre-processes your account info during their overnight batch runs, then stamps it with a response date. When you actually log in to view it later, that becomes your request date. So you're essentially viewing pre-processed data, hence why the response date comes before the request date. It's like the IRS prepared your transcript before you even knew you wanted it! Your refund processing will be totally unaffected by this timestamp quirk.

Has anyone dealt with reporting these adjustments on M-3? I'm trying to figure out how to properly reflect the timing differences since the income/loss adjustments relate to prior years but are being reported in the current year.

This is a great discussion that covers most of the key issues with Form 8986/8978 reporting. One additional consideration I'd add is documentation - make sure you're keeping detailed records of how these adjustments flow through to future years. I recommend creating a separate workpaper that tracks the original K-1 amounts, the 8986 adjustments, and the net effect on your NOL carryforwards and partnership basis. This will be crucial for accuracy in future years, especially if you receive additional 8986 forms or if the client disposes of the partnership interest. Also, don't forget to update your permanent file with copies of all the 8986 forms and your Form 8978 calculations. These adjustments can have ripple effects for years to come, and you'll want clear documentation for future reference.

Error Department usually means 60-120 days in my experience. They're severely understaffed. I'd prepare for a wait and follow up every 30 days. Sorry to be the bearer of bad news, but setting realistic expectations helped me deal with it when I was in your shoes.

I work as a tax preparer and see this fairly often. The good news is that "Error Department" doesn't mean you made a mistake - it's just their internal processing queue for returns that need human review. With the Child Tax Credit claim you mentioned, they're probably just verifying your kids' information against their records. A few tips while you wait: - Keep checking "Where's My Refund" tool weekly - Don't file an amended return unless they specifically ask for one - If you get a CP05 notice, that's normal - it just confirms your return is under review The wait is frustrating, but most returns in ERD do eventually process without any action needed from you. Hang in there!

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.