Just to add a quick data point - we're a local bakery and donated desserts for a charity gala last year. Our CPA classified it under 170(e)(3) and we were able to deduct our cost plus half the difference between our cost and retail price (limited to twice our cost basis). Made a nice deduction! Just make sure you document EVERYTHING - we took photos, kept all correspondence, got a formal acknowledgment letter, etc.

Based on all the great advice here, I wanted to share what I ended up finding for anyone else dealing with this situation. The key code sections are: **IRC Section 170(e)(3)** - This is the enhanced deduction for food inventory donations that everyone mentioned. It allows businesses to deduct cost basis plus half the difference between cost and fair market value (capped at twice the cost basis) when donating food to qualifying organizations. **IRC Section 162** - Ordinary and necessary business expenses, which applies if you received substantial marketing benefits in return. The IRS also has specific guidance in **Publication 526** (Charitable Contributions) and **Regulation 1.170A-4A** that covers the documentation requirements for food donations. What really helped me was realizing that the classification depends on your primary intent and what you received in return. If it was purely charitable with minimal recognition, go with 170(e)(3). If you got significant marketing value, you might need to split it between charitable contribution and business expense. My boss was impressed when I presented both the code sections AND the documentation requirements. Thanks everyone for pointing me in the right direction - this community is amazing!

I'm confused about the original post... are you talking about taxes for 2023 (filing now in 2024) or 2024 (filing in 2025)? If it's 2024 taxes, you don't need to worry yet since those aren't due until next year.

Based on your clarification that you're talking about 2023 taxes, yes - paying earlier will definitely save you money! The IRS charges interest that compounds daily from April 15th, 2024 until you pay in full, plus a 0.5% monthly penalty on unpaid amounts. For your $5,800 balance, paying now versus waiting until April 15th could save you roughly $50-75 in interest and penalties (depending on current IRS interest rates). It might not sound like a lot, but every dollar counts when you're already facing an unexpected tax bill. You can pay immediately through IRS Direct Pay without even filing your return first. Just make sure to note it's for your 2023 tax year when you make the payment. Then when you do file your return, the payment will already be credited to your account.

As someone completely new to estate planning and trust matters, this discussion has been absolutely invaluable. I had no idea how complex these QPRT situations could become or how many different factors need to be considered. What really stands out to me is how the "simple" solution of just transferring the property back to your father could actually create much bigger problems than maintaining the rental arrangement. The property appreciation since 2013 seems like it could be the deciding factor - if we're talking about a house that's doubled or tripled in value, the gift tax implications could be enormous. I'm also struck by how important the specific language in the original trust documents appears to be. Several people mentioned finding provisions they didn't know existed that changed their available options completely. It sounds like getting those documents reviewed by someone who specializes in QPRTs should definitely be your first step. The consensus seems clear that this isn't a situation where you can afford to make the wrong choice or delay indefinitely. Given your father's estate size and the upcoming changes to the estate tax exemption, the stakes are really high here. Thank you to everyone who's shared their expertise - as a newcomer, I've learned so much about how these complex estate planning vehicles actually work in practice versus theory. @Natasha Petrov, I really hope you'll update us on what you discover when you get that specialized advice!

As someone completely new to estate planning, this entire discussion has been absolutely eye-opening! I had no idea that trusts like QPRTs could become so complicated when they expire. What strikes me most is how many people are emphasizing that the "obvious" solution of just giving the house back to your father could actually create much bigger tax problems than keeping the current arrangement. The property appreciation since 2013 seems to be a huge factor that could turn what feels like a simple family decision into a massive gift tax situation. I'm also really impressed by how many specific resources people have shared - from the ACTEC directory for finding specialized attorneys to the detailed questions you should ask when interviewing them. It's clear this requires someone with very specific experience in expired QPRTs, not just general estate planning knowledge. The timeline pressure seems concerning too - it sounds like the IRS doesn't like situations that drift without proper resolution, but making the wrong choice quickly could be even more expensive than the original problem. Thank you to everyone who's shared their expertise and experiences. This has been incredibly educational for someone trying to understand these complex trust and tax issues. @Natasha Petrov, I really hope you'll update us on what you discover when you get that specialist consultation and current property appraisal!

Code 830 is definitely a good sign! It means your return has been processed and your refund has been approved. I got the same code about 3 weeks ago and was in panic mode not knowing what it meant. My refund finally hit my account yesterday via direct deposit! The timeline seems to vary but most people I've talked to get their money within 2-4 weeks after 830 appears. Since you filed in February you've definitely been through the ringer, but hang tight - you're in the home stretch now! 🙏

Hey everyone! New to this community but been lurking and reading all your posts about transcript codes. Just wanted to say this thread has been incredibly helpful - I've been stressing about my refund status for months and seeing all these explanations about code 830 finally gives me some peace of mind. Filed back in March and just got my 830 code yesterday, so sounds like I'm hopefully looking at a few more weeks of waiting. Thanks to everyone who's shared their timelines and experiences - it really helps us newcomers navigate this confusing process! 🙏

Has anyone tried using bonus depreciation instead of Section 179 to avoid this carryover headache? For 2023, bonus depreciation is 80% instead of 100%, but at least you don't have to deal with the business income limitation.

I had this exact same frustration last year! The key insight that helped me was understanding that Form 4562 is designed to handle multiple scenarios, which makes it confusing for straightforward carryover situations. Here's what I learned: Your carryover from 2022 should go on Line 10, but the critical step many people miss is ensuring your business income limitation on Line 11 is calculated correctly. If your business income is too low to absorb both your current year Section 179 election AND your carryover, then yes, you'll create another carryover. However, there are a few strategies to consider: 1. As Freya mentioned, make sure you're including ALL business income when calculating the limitation 2. Consider splitting your current year purchases between Section 179 and bonus depreciation to optimize your deductions 3. If you know your business income will be higher next year, it might make sense to carry more forward The carryover isn't "lost" - it will continue indefinitely until you have sufficient business income to use it. With $48K in equipment, you definitely want to maximize this deduction when possible!