Based on everything discussed here, I'd strongly recommend staying away from MyHealth CCM. The combination of red flags is overwhelming: 1. Creating an LLC specifically for tax benefits rather than genuine business operations 2. Requiring a large upfront investment ($125k) with promises of "free" money through tax savings 3. Aggressive sales tactics when you ask legitimate questions 4. Reluctance to show legal opinions until after you commit 5. As Dylan pointed out, legitimate CCM requires healthcare expertise and regulatory compliance you likely don't have The tax strategies mentioned by others (taxr.ai for document analysis, claimyr for IRS communication) seem like much better investments of your time and money. At minimum, run any proposal through professional analysis before risking six figures on what sounds like a tax shelter scheme. Remember: if the primary selling point is tax savings rather than legitimate business profits, that's usually your answer right there. The IRS has seen these structures before and has specific tools to combat them.

As a tax professional, I want to emphasize that the IRS has become increasingly aggressive in pursuing these types of arrangements. They've specifically identified healthcare-related tax shelters as a priority enforcement area. What you're describing sounds very similar to schemes the IRS has already challenged in court. In cases like *Stobie Creek Investments LLC v. United States* and *BB&T Corp v. United States*, courts have consistently ruled against arrangements where the primary purpose is tax avoidance rather than legitimate business activity. The key test is whether you would engage in this transaction absent the tax benefits. If the answer is no - meaning you wouldn't invest $125k in healthcare software to run a CCM business if there were no tax deductions - then you're likely looking at an arrangement the IRS will challenge. Also worth noting: even if the initial deductions are allowed, the IRS can audit you years later. The statute of limitations extends to 6 years if they determine there's a "substantial understatement" of income, and there's no statute of limitations for fraudulent returns. The peace of mind isn't worth the risk. I'd strongly recommend getting a second opinion from a tax attorney who specializes in tax shelters before proceeding with anything like this.

As someone who just joined this community after months of IRS phone frustration, I can't thank you enough for sharing this method! I've been trying to reach someone about a notice I received claiming I owe additional taxes, but every time I called the main line I either got disconnected after hours on hold or ended up talking to someone who couldn't access the right department. I'm planning to try your exact steps tomorrow morning - the detail about NOT selecting option 1 for refunds is something I definitely would have done wrong. I've been automatically choosing that option thinking it would get me to the right place faster. Quick question for anyone who's used this method: if you're calling about a specific notice (like a CP2000), do you still follow these same steps, or should you call the number listed on the notice instead? I've seen conflicting advice about this and want to make sure I'm taking the most effective approach. Really appreciate this community sharing real experiences instead of just the generic "call the IRS" advice you find everywhere else online!

As a newcomer to this community, I want to say thank you to everyone sharing their experiences here! I've been dealing with an IRS issue for months and was honestly feeling pretty hopeless about ever getting through to a real person. I tried Avery's method this morning at exactly 7:30 AM EST on a Thursday, following the steps to the letter (including NOT selecting option 1 for refunds - that tip was crucial!). I was skeptical after reading so many conflicting methods online, but I figured I had nothing to lose at this point. I'm happy to report that I got connected to a representative in about 35 minutes! Her name was Jennifer and she was incredibly patient and helpful. My issue was with a payment that got applied to the wrong tax year, and she was able to move it to the correct year and explain exactly what happened. One thing I noticed that might help others: when the automated system asked for my SSN and I didn't enter it (as instructed in step 6), it actually asked me four times instead of three before forwarding me to the next menu. So don't worry if it seems to be asking more times than expected - just keep waiting without entering anything. This community is such a valuable resource for people dealing with tax issues. The real-world experiences and specific tips you all share make such a difference compared to the generic advice you find elsewhere online!

Just wanted to add one important timing consideration that might help with your planning. You don't have to change the beneficiary immediately when your child is born. Since you're the account owner, you maintain control over when to make this change. This could be strategic from a gift tax perspective - you might want to wait until early in the tax year to make the change so you have the full annual exclusion available, or you could time it around other gifts you're planning to make to your child. Also, keep in mind that if your account values are substantial, you and your wife can each make separate gifts using your individual annual exclusions. So if you have $30,000 in the account, you could each gift $15,000 to stay under the annual limits (assuming 2023 limits), effectively doubling your gift capacity without needing to file Form 709. Congratulations on the upcoming arrival! It's great that you're thinking ahead about these tax implications.

One thing to keep in mind is that the growth in your 529 account since you opened it will also be considered part of the gift when you change the beneficiary. So if you originally contributed $20,000 but the account has grown to $25,000, the entire $25,000 would be treated as the gift amount, not just your original contributions. This is why timing can be particularly important if your accounts have performed well. You might want to consider making the beneficiary change sooner rather than later if you expect continued growth, since waiting could potentially push you over the annual exclusion limits. Also, don't forget that each parent can make separate gifts, so if you and your wife are both listed as account owners on separate 529s, you could potentially use both of your annual exclusions. Just make sure you're clear on which spouse is the account owner for each 529 to properly calculate the gift tax implications.

I agree with Tyler and Sara that the fundamental economics here don't make sense. You're basically throwing good money after bad. Even if you could somehow make this work as a rental property loss (which would require years of legitimate rental activity), you'd still be out significant cash. Consider this: at your income level, you're already maxing out most tax-advantaged strategies. The passive loss limitations mean you couldn't even use rental losses against your W-2 income immediately - they'd just carry forward until you sell the property or have passive income to offset. Have you exhausted all options with the builder? Some possibilities: - Negotiate a partial refund (even 50% back is better than losing it all) - Transfer the credit to someone else who actually wants to buy - Use it toward a smaller, less expensive property that might actually appreciate - See if they'll extend the deadline in exchange for a smaller forfeiture Walking away from $130k hurts, but it's better than turning it into a $200k+ loss. Sometimes the best tax strategy is simply not making bad investments in the first place.

As a newcomer to this community, I've been following this discussion with great interest since I'm facing a somewhat similar situation with a builder credit myself. What strikes me most is how everyone is focusing on the tax implications when the core issue seems to be risk management. Jackie, you mentioned you're both W2 employees making $520k combined - that suggests you have steady income and likely other investment options that don't involve the complexity and risk of this scenario. One thing I haven't seen mentioned is whether the builder has any flexibility on the timeline. Nine months feels arbitrary - is there any possibility they'd extend it for a fee that's less than the full $130k loss? Or could you use the credit toward a smaller property, maybe something in the $400k range that leaves you with a smaller net investment? I'm also wondering about the original reasons you backed out. You mentioned health concerns - are those fully resolved? Taking on a significant real estate investment (whether as a second home or rental) requires time, energy, and financial resources. If your health situation is still evolving, that might be another factor weighing against moving forward. Sometimes the best financial decision is accepting a sunk cost rather than compounding it. The tax strategies being discussed seem complex with limited upside given your income level.

I dealt with a similar situation after Hurricane Laura damaged my roof and garage. One thing that really helped my case was getting a "scope of loss" document from a public adjuster who reviewed what my insurance company missed or undervalued. Even though I had to pay the adjuster, it was worth it because they found an additional $12k in damages that insurance initially overlooked. For your chimney situation, you might want to consider getting a structural engineer's assessment showing that removing the chimney versus rebuilding it creates a permanent decrease in your home's structural integrity and value. This could strengthen your FMV decrease argument beyond just the aesthetic/functional loss. Also, don't forget that you can deduct the cost of temporary protective measures you took immediately after the hurricane (like tarping, boarding up windows, etc.) as part of your casualty loss. These often get overlooked but they're legitimate disaster-related expenses. Just make sure everything was within a reasonable timeframe after the federally declared disaster.

I went through a very similar situation after Hurricane Michael hit our area. One crucial detail that hasn't been mentioned yet - make sure you understand the timing rules for casualty loss claims. Since yours was a federally declared disaster, you actually have the option to claim the loss on either your 2024 return (the year it happened) OR amend your 2023 return to claim it there, which could get you a refund faster. The key documentation you'll need beyond what others have mentioned is a detailed timeline showing when the damage occurred, when you received the insurance settlement, and when you made the decision to go with the wall replacement instead of full chimney rebuild. The IRS wants to see that you made reasonable efforts to restore the property but were financially unable to do so. For your specific situation with the chimney-to-wall conversion, I'd strongly recommend getting an appraisal or real estate professional's written opinion on how this impacts your home's resale value. A missing chimney can affect both the aesthetic appeal and functionality (no fireplace option for future buyers), which supports your FMV decrease calculation. One last tip - if you're planning to sell your home within the next few years, keep all this casualty loss documentation. It could affect your capital gains calculation since the casualty loss reduces your home's adjusted basis.