I'm dealing with a similar situation right now! Just got quoted $950 for my return which includes one rental property and a K1 from a partnership investment. What really helped me was asking the accountant to break down exactly what they'd be doing - turns out they include a consultation about tax planning for next year and will handle any IRS correspondence if issues come up. When I compared that to cheaper options, some were just basic preparation with no ongoing support. I ended up negotiating down to $800 by agreeing to have all my documents organized digitally beforehand. Maybe try asking your accountant what's included in that $1200 and see if there's any flexibility based on how prepared your paperwork is?

Shop around for sure! I had a similar experience last year - first accountant quoted me $1,400 for two rental properties and a K1, which seemed crazy high. I ended up finding someone who charged $750 for the exact same work and did a great job. The key thing I learned is that pricing varies wildly between tax preparers, even for identical situations. Some charge per form, others have flat rates for complexity levels, and some just seem to charge whatever they think they can get away with. I'd recommend getting at least 2-3 quotes and asking each one to explain their fee structure. Also ask about their specific experience with rental property taxes - you want someone who knows the ins and outs of depreciation, passive activity rules, etc. Don't just go with the cheapest, but definitely don't assume the most expensive is the best either.

I'm so sorry for your loss. I went through this same situation when my wife passed away three years ago, and I understand how overwhelming it can feel to handle taxes during such a difficult time. From my experience, filing jointly for the year of death is usually the better choice financially, even when one spouse had lower withholdings. The combined income often falls into more favorable tax brackets, and your higher withholdings will help offset any taxes owed from his income. One thing that really helped me was keeping detailed records of all his final paychecks, any accrued benefits paid out, and making sure I had his W-2 for the partial year. Don't forget to look for any retirement account distributions or other income sources that might not be immediately obvious. The qualifying widow status for the following two years is a real benefit - it essentially lets you keep using the married filing jointly tax brackets and standard deduction amounts. Take advantage of it when those years come around. If you're feeling uncertain about doing this yourself, there's no shame in getting help from a tax professional for this first year. The peace of mind might be worth the cost, especially since surviving spouse situations can have some unique considerations I hadn't thought of on my own.

I'm so sorry for your loss, Brielle. Going through tax filing after losing a spouse is incredibly difficult, and you're smart to seek guidance during this challenging time. Based on your numbers, filing jointly will likely be more beneficial even with your husband's lower withholdings. With your combined income of around $108k and total withholdings of about $6,320, you're actually in a pretty reasonable position. The married filing jointly standard deduction for 2024 is $29,200, which means your taxable income would be roughly $79k. At that level, you'd owe approximately $9,000-10,000 in federal taxes, so you might actually get a small refund or owe very little. A few important things to remember: make sure to mark "deceased" next to your husband's name on the return and include his date of death. Also, you'll want to gather all his tax documents - W-2s, any 1099s for side income, and documentation of any final employer benefits or retirement distributions. The qualifying widow(er) status for 2025 and 2026 will continue to give you the same favorable tax treatment as married filing jointly, so that's something positive to look forward to during this transition period. If you're feeling overwhelmed handling this yourself, there's absolutely no shame in getting help from a tax professional this year. They can ensure everything is filed correctly and help you understand what to expect for future years.

Has anyone tried using the relatively new safe harbor for rental real estate under Section 199A? It might not solve the passive activity loss issue directly, but it could provide a qualified business income deduction that offsets some of the S-Corp income.

Another consideration for your grouping election - make sure you're prepared to defend the "appropriate economic unit" determination if the IRS challenges it. The regulations under 469(c)(7)(A) list five factors they consider: similarities and differences in types of business, extent of common control, geographical location, interdependencies between activities, and extent of common ownership. In your case, you have strong arguments for several factors: common control (you own 100% of both), geographical location (same property), and interdependence (the S-Corp depends on the real estate for its operations). The fact that your S-Corp is the primary tenant actually strengthens the interdependence argument. One tip: when you file the grouping statement with your return, be very specific about which factors you're relying on and provide concrete details. Don't just say "common control and geographical location" - explain that you have 100% ownership of both entities and that the S-Corp operates exclusively from the LLC-owned property under a triple-net lease arrangement. Also keep detailed records of your material participation in both activities. The IRS may scrutinize whether you're truly materially participating in the rental activity or if it's just passive ownership.

As someone new to this community and currently dealing with my first major tax delay, I just wanted to say how incredibly helpful this entire thread has been! I'm about 3 weeks into my own congressional inquiry process after being stuck in the dreaded "additional information needed" limbo for months. Reading through everyone's timelines and experiences has given me so much more confidence that there's actually a structured process behind all this chaos. The specific advice about transcript codes from @Isabella Russo is gold - I had no idea those codes could give you real insight into what's actually happening with your return instead of just generic "under review" messages. @Emily Nguyen-Smith, your military paperwork comparison made me laugh out loud! At least with tax refunds, we eventually get our money back instead of just more forms to fill out. 😂 I'm bookmarking this thread to reference as my case progresses. Thanks to everyone for sharing their experiences and creating such a supportive space for those of us navigating this frustrating process. Hopefully I'll be back in a few weeks with my own success story to add to the collection!

Just wanted to jump in as someone who's been lurking in this community for a while but never had to deal with tax delays until now. This thread is exactly what I needed to see! I'm about 2 weeks into my own congressional inquiry after being stuck since April with the same "additional information needed" runaround that everyone here seems to have experienced. The detailed timelines everyone has shared are incredibly helpful - it's giving me realistic expectations instead of the wild hope that this would somehow resolve overnight. @Isabella Russo, that transcript code advice is brilliant! I had no idea there was a way to actually track what's happening instead of just calling and getting generic responses. @Emily Nguyen-Smith, your deployment paperwork comparison is spot on - except at least with military paperwork you know it's going to take forever from the start! 😅 With tax refunds, they get your hopes up with those early approval dates and then... crickets. Thanks to everyone for sharing their experiences and creating such a supportive community around what is otherwise a pretty isolating and frustrating process. I'll definitely be checking back to share my own updates as things progress. Fingers crossed we all get our resolutions soon!

Don't forget to get a good appraisal to support your purchase price allocation! I made the mistake of not documenting this well when buying into a partnership and got hammered during an audit because the IRS claimed my allocation was unreasonable.

This thread has been incredibly helpful! I'm dealing with a similar situation where I'm buying into an established LLC taxed as a partnership. One thing I want to add is that timing matters a lot for the Section 754 election - it has to be made by the due date (including extensions) of the partnership's return for the tax year when the transfer occurs. Also, don't overlook the impact on your depreciation deductions if the partnership owns depreciable assets. With a 754 election and proper basis step-up, you might get additional depreciation deductions on your share of partnership assets, which can provide significant tax benefits over time. For anyone considering this, I'd strongly recommend running the numbers both ways (with and without the election) to see the long-term impact. The election is generally irrevocable once made, so you want to be sure it makes sense for your specific situation.