


Ask the community...
Congrats on finally seeing that 846 code! I'm still waiting on mine - filed 3/8 and my transcript is still showing processing. It's reassuring to see someone with a similar filing date getting movement. Question though - did you have any complications with your return (amended sections, EITC, additional forms) or was it pretty straightforward? Trying to gauge if there's hope for us slightly-later filers or if I'm looking at another few weeks of transcript stalking. The waiting really is the hardest part of this whole process!
Hey Aaron! I'm in almost the exact same boat - filed 3/9 and still showing "processing" on my transcript. It's been driving me crazy checking every day! From what I've been reading in this thread and other forums, it seems like there's still hope for us early-to-mid March filers. The IRS processes returns in batches, so sometimes there's just random variation in timing even for similar filing dates. Have you tried checking both the IRS2Go app and the website? Sometimes one updates before the other. Fingers crossed we both see some movement soon! The transcript stalking is real though - I've probably checked mine 15 times this week alone š
Hey Freya, congrats on finally getting that 846 code! As someone who's been through this waiting game multiple times, I can definitely relate to the "molasses flowing uphill" analogy - that's exactly what it feels like! š I filed on 3/4 this year and I'm still stuck in processing limbo, so seeing your timeline gives me hope that mine might update soon too. It's interesting how the IRS batches seem to work - sometimes people who file later get processed first, and vice versa. Thanks for sharing your timeline as a data point - these real experiences are way more helpful than the generic "21 days" message we always get. Hopefully your direct deposit hits your account tomorrow or Friday!
I'm dealing with a similar situation right now and wanted to share what's been working for me. After reading through all these suggestions, I tried the warm transfer approach that Leila mentioned - calling the main IRS line first and asking to be transferred directly to the lien department. It actually worked! I got through after only about 45 minutes on hold (versus the 2+ hours I was experiencing before). The key was calling at 8 AM Eastern and being very specific about my real estate closing deadline when talking to the first agent. I also prepared a detailed summary sheet beforehand with all my information, which made the actual conversation much smoother. The lien department agent was surprisingly understanding about the time crunch and expedited my payoff letter request. For anyone else in this situation, don't give up on the direct calling approach - just modify your strategy. The warm transfer method seems to bypass some of the automated hold queues that keep disconnecting people. Also, definitely contact your title company about alternative arrangements while you're working on getting the letter. Mine was willing to discuss holding funds in escrow as a backup plan, which took some of the pressure off.
This is exactly what I needed to hear! I've been so stressed about this closing deadline, but hearing that the warm transfer method actually worked for you gives me hope. I'm going to try calling first thing tomorrow morning at 8 AM Eastern using your approach. One quick question - when you spoke to the first agent about requesting a transfer, did you mention the specific closing date right away, or did you wait until you were connected to the lien department? I want to make sure I emphasize the urgency at the right time without seeming pushy. Also, thank you for mentioning the escrow option with the title company. I hadn't thought to bring that up as a backup plan, but it makes perfect sense to have that conversation now rather than waiting until the last minute.
I've been following this thread closely since I'm dealing with a similar lien payoff situation for a closing next month. Based on everyone's experiences here, I wanted to share what I've learned from calling the IRS this week. The warm transfer method that several people mentioned really does seem to work better than calling the lien department directly. I tried both approaches - direct calling resulted in 3+ hour holds that ended in disconnections, but going through the main line (1-800-829-1040) and asking for a transfer got me connected in under an hour. The key seems to be calling right at 8 AM Eastern and being very clear with the first agent about having a time-sensitive real estate transaction. I said something like "I have a house closing in X days and need an urgent transfer to the lien department for a payoff letter." Most agents seem to understand the urgency of real estate deadlines. Also, for those considering the third-party services mentioned in this thread - I looked into a few of them and they do seem legitimate, but the warm transfer method costs nothing and appears to be just as effective if you time it right. One more tip: have your title company's direct contact information ready when you call. The IRS agent asked if they could send the payoff letter directly to my title company, which might speed up the process even more.
This is such valuable information! I'm actually scheduled to close on my house in just 6 days and have been panicking about getting my lien payoff letter. Reading through everyone's experiences here has been incredibly helpful. I tried the warm transfer method this morning after reading your post, and it worked! Called the main IRS line at 8:05 AM Eastern, explained I had an urgent real estate closing, and got transferred to the lien department with only a 30-minute wait. The agent was very understanding about my timeline and said they'd expedite the payoff letter. One thing I want to add for others in this situation - when you mention the real estate closing to the first agent, be specific about your closing date. I said "I have a house closing on [specific date] and absolutely need a lien payoff letter before then." The urgency in my voice seemed to help get the priority transfer. Also, I second having your title company's contact info ready. The IRS agent offered to email the payoff letter directly to my title company, which should save at least a day in processing time. Thank you to everyone who shared their experiences - this thread literally might have saved my home sale!
I'm dealing with a similar depreciation mess on my rental property and this thread has been incredibly helpful! I made the same mistake of using FMV instead of adjusted basis when I converted my home to a rental about 3 years ago. One thing I'm still unclear on - when calculating the 481(a) adjustment, do I need to account for any improvements I made to the property between the original purchase and the conversion date? I added a deck and updated the kitchen during the time I lived there, so my adjusted basis should be higher than just the original purchase price, right? Also, for those who chose the 4-year spread option, do you report it as ordinary income each year, or does it get special treatment since it's related to depreciation recapture? I'm trying to plan out the tax impact before I file the Form 3115. Thanks to everyone for sharing their experiences - it's so much better than trying to figure this out from just reading IRS publications!
Yes, you're absolutely right about including improvements in your adjusted basis calculation! Any capital improvements you made while it was your primary residence (like the deck and kitchen updates) should be added to your original purchase price to get your true adjusted basis at conversion. Make sure you have documentation for those improvements - receipts, permits, contractor invoices, etc. The adjusted basis at conversion should be your original purchase price + qualifying improvements - any depreciation you may have claimed if you had a home office. Regarding the 4-year spread, it's treated as ordinary income each year, not capital gains. It goes on Schedule 1, Line 8z as "Other Income" with "Section 481(a) adjustment" noted. So yes, it will be taxed at your regular income tax rates, which is why the 4-year spread can be beneficial if you're in higher brackets. I'd definitely recommend getting professional help with the calculation if you have significant improvements to account for - it can get tricky to determine what qualifies and how to properly calculate the adjustment amount.
I went through this exact same situation two years ago and can confirm you're on the right track with Form 3115 and DCN 7. The relief of finally getting it sorted out is huge! One thing I'd add that hasn't been mentioned yet - make sure you keep really detailed records of your correction process. I created a spreadsheet showing year by year what I claimed vs. what I should have claimed, along with supporting documentation for my original purchase price and any improvements. This came in handy when I got a notice from the IRS about 8 months later (not an audit, just a clarification request). Having everything organized made it easy to respond, and they accepted my documentation without any issues. Also, if you're using tax software, some programs don't handle Form 3115 very well, especially the 481(a) adjustment calculations. I ended up having to do mine by hand and attach it as a PDF. Just something to keep in mind if your software seems to be calculating things incorrectly. The peace of mind of knowing everything is correct going forward is worth the hassle of fixing it properly!
For breeding cats like Ragdolls and Siberians with high initial costs, you're definitely on the right track treating them as depreciable assets rather than inventory. Given your $18,000 investment in foundation cats, this will help spread that cost over their productive breeding years. One thing to consider with high-value breeding cats is that you might want to explore the Section 179 deduction option Dylan mentioned earlier. For 2024, the Section 179 limit is $1,160,000, so you could potentially deduct the full cost of your breeding cats in the year you acquired them rather than depreciating over 5-7 years. This could provide a significant tax benefit in your first profitable year. However, run the numbers both ways - sometimes spreading the deduction over multiple years through depreciation works better for your overall tax situation, especially if you expect to be in higher tax brackets in future years. Also, make sure you're tracking all those breed-specific expenses like genetic testing, specialized nutrition, and show costs if you exhibition your cats. These are often overlooked deductions that can add up significantly for high-end breeding operations. The key is maintaining detailed records of everything - sounds like you're already doing this well with your separate business account and expense tracking.
This is really helpful advice about the Section 179 deduction! I hadn't considered that option for my breeding cats. With my $18,000 initial investment, being able to deduct the full amount in my first profitable year could make a huge difference. I'm definitely going to run the numbers both ways - immediate deduction versus depreciation over several years. Since I'm expecting higher profits in future years as my breeding program matures, the timing of these deductions could really impact my overall tax situation. Thanks for mentioning the breed-specific expenses too. I've been tracking genetic testing and specialized food costs, but I hadn't thought about show expenses being deductible. I do show some of my cats for breeding reputation, so I'll make sure to keep records of those costs as well. It's reassuring to know that my record-keeping approach with the separate business account seems to be on the right track. This conversation has given me so much more clarity than all the conflicting advice I was getting before!
I run a small accounting practice and work with several animal breeding businesses, so I can add some clarity to your situation. First, you're absolutely correct that as an LLC taxed as a sole proprietorship, all your cattery income flows through to your personal return via Schedule C. The TurboTax advisor gave you accurate information there. Regarding the livestock classification - this is where a lot of confusion comes from. Cats are generally NOT considered livestock for IRS purposes. The IRS Publication 225 (Farmer's Tax Guide) specifically covers livestock, and domestic cats used for breeding are typically treated as regular business assets under Schedule C rather than agricultural livestock. For your breeding cats, treating them as depreciable business assets is usually the most advantageous approach. You can depreciate them over their useful breeding life (typically 5-7 years) or potentially use Section 179 to expense the full cost in the year of purchase if it makes sense for your tax situation. One important note: make sure you're prepared for self-employment tax on your net profit. Since this is Schedule C income, you'll owe both income tax and self-employment tax (Social Security/Medicare) on your cattery profits. Keep doing what you're doing with the detailed records and separate business account - that's exactly what you need for a clean tax filing. The fact that you're profitable in year one with good expense tracking puts you in a strong position.
Thank you so much for the professional perspective! It's really reassuring to hear from an accountant who actually works with breeding businesses. I had no idea about the self-employment tax implications - that's something none of the other sources mentioned. So I'll need to budget for both regular income tax AND the additional Social Security/Medicare taxes on my cattery profits. That's definitely important to plan for. Your confirmation about cats not being livestock and using Schedule C gives me confidence I'm on the right track. I was getting so confused by all the conflicting information, but hearing it from someone who deals with these situations regularly makes it much clearer. One quick question - when you mention Section 179 versus depreciation, is there a general rule of thumb for deciding which approach works better? My breeding cat investment was around $18k, and I'm trying to figure out if taking the full deduction this year or spreading it out would be more beneficial.
Payton Black
I've been having this exact same problem! After reading through all these suggestions, I tried the IRS2Go mobile app approach and it worked perfectly. The website has been completely unusable for me too - just endless spinning and crashes. The mobile app loaded my transcripts in under 30 seconds. Also want to second what others said about trying different networks - switching from my home WiFi to mobile data made a huge difference. It's frustrating that we have to jump through all these hoops, but at least there are workarounds. Thanks everyone for sharing your solutions!
0 coins
Andre Rousseau
ā¢So glad the IRS2Go app worked for you! I'm definitely going to try that next since so many people have had success with it. It's crazy that the mobile app is more reliable than their main website, but I'll take whatever works at this point. Really helpful to know about the network switching too - seems like that's been a common theme in the solutions that actually work. Thanks for confirming these methods!
0 coins
Sofia Martinez
I've been struggling with this exact same issue! After trying everything suggested here, what finally worked for me was a combination approach: downloaded the IRS2Go app, switched to my mobile hotspot instead of home WiFi, and tried accessing it around 6 AM EST. The mobile app was definitely way more stable than the website. Also cleared ALL my browser data (not just cache) before trying the website again. It's ridiculous that we have to do all this just to get our own tax documents, but these workarounds really do help. Don't give up - one of these methods will eventually work!
0 coins
Andre Laurent
ā¢Thanks for sharing your success story! I'm new to dealing with IRS transcript issues and this whole thread has been incredibly helpful. It's amazing how many different workarounds people have found. I'm going to try the IRS2Go app + mobile hotspot combo since that seems to be the most consistent solution. Really appreciate everyone taking the time to share what worked for them - makes me feel less alone in this frustrating process!
0 coins