Has anyone actually done the math on whether cost segregation is worth it? I'm paying about $15k for a study on my $2M apartment building, and I'm not sure if the accelerated tax benefits are really worth the cost plus the hassle of all these depreciation questions.

Great question Dylan! I've been through this exact situation with multiple properties. The key thing to understand is that you DO have some control, but it's not as simple as just choosing how much to take each year. Here's what you can actually control: 1. **Bonus Depreciation Elections**: For each asset class identified in your cost seg study (5-year, 7-year, 15-year property), you can elect OUT of bonus depreciation on a class-by-class basis. This means instead of taking 80% bonus depreciation in 2025, you'd follow the regular MACRS schedule. 2. **Section 179 Elections**: You can also choose whether to take Section 179 expensing on qualifying property. 3. **Timing Strategy**: While you can't defer depreciation once you've established the method, you can make these elections strategically to spread the benefits. The important thing is these elections need to be made on your tax return for the year you place the property in service (or amend if you missed it). You can't just decide year-by-year how much to take - but you CAN structure it upfront to better match your income patterns. I'd definitely recommend working with a CPA who specializes in real estate taxation to model out different scenarios based on your specific income projections. The decision you make now will affect your taxes for years to come.

I went through something very similar with my father's estate two years ago. The stress and confusion you're feeling is completely normal - these IRS notices can be incredibly overwhelming, especially when you thought everything was properly handled. A few important points to keep in mind: 1. You are likely NOT personally liable for your mother's tax debts. As others mentioned, this depends on whether the notice is addressed to you personally or to "The Estate of [Mother's Name]." 2. The fact that you distributed assets after paying known debts and expenses doesn't necessarily create personal liability, especially if you had no knowledge of additional tax obligations at the time. 3. Document everything! Keep copies of all correspondence, your mother's final tax return, death certificate, and any estate settlement documents. One thing I learned is that the IRS often has incomplete information when they send these notices. Sometimes they're missing forms that were actually filed, or they have outdated address information that caused notices to go to the wrong place initially. Don't let this consume you - there are solutions, and many of these situations get resolved once you provide the proper documentation. The key is responding promptly and getting the right information to the right people at the IRS.

I'm so sorry you're going through this - dealing with unexpected tax issues after losing a parent is incredibly stressful. The good news is that you're not alone in this situation, and there are definitely steps you can take. First, don't panic about personal liability. As others have mentioned, if you acted in good faith as executor and distributed assets after paying all known debts, you're likely protected. The key word here is "known" - if the IRS is now claiming taxes were owed that you had no way of knowing about when you settled the estate, that's a very different situation than if you had ignored known tax obligations. I'd recommend taking these immediate steps: 1. Carefully read the notice to see if it's addressed to you personally or to your mother's estate 2. Call the phone number on the notice and ask for a payment plan or hardship consideration if needed - explain that the estate has been closed and distributed 3. Request copies of the tax transcripts the IRS is using to make this determination (you can do this online) 4. Consider reaching out to a tax professional or the Taxpayer Advocate Service if you're getting nowhere with regular IRS channels Remember, the IRS deals with estate situations like this regularly. They have procedures for when estates have been closed and assets distributed. Stay calm, respond promptly, and document everything. You've got this!

As someone who went through this exact situation last year with my EU-based Delaware LLC, I can confirm that the Form 5472 requirement is real and the penalties are no joke. Here's what I learned: 1. **ITIN Application**: You can file Form W-7 with your tax return, but I recommend applying earlier if possible since processing times are unpredictable. You'll need it for any future US tax filings. 2. **Form 5472 + Form 1120**: Even with zero activity, you still need to file Form 5472 with a "pro forma" Form 1120 as a cover sheet. This is specifically for foreign-owned disregarded entities and many tax preparers miss this requirement. 3. **State Requirements**: Don't forget Delaware's annual franchise tax ($300 minimum) and annual report. These are due by March 1st each year, separate from federal taxes. 4. **Mercury Bank Account**: If your balance ever exceeds $10,000, you'll need to file FBAR (FinCEN Form 114) by April 15th. This is separate from income tax reporting. 5. **Kickstarter Timing**: Yes, if your campaign concludes after April 15th, those funds would be reported on next year's return. Just make sure to track all related expenses from the start. The key is staying compliant from day one. The $25,000 penalty for missing Form 5472 is automatic and they don't care that you had no income. Better to file correctly even with zeros than to miss the requirement entirely.

I went through this exact situation two years ago as a nonresident alien with a Delaware LLC formed through Stripe Atlas. Here's what I wish someone had told me upfront: **You absolutely need to file Form 5472 even with zero activity.** This is the most commonly missed requirement and the $25,000 penalty is automatic - no warnings, no grace period. The form goes with a "pro forma" Form 1120 that essentially acts as a cover sheet. **For your ITIN application:** File Form W-7 with your first tax return rather than separately. It's faster and you avoid the back-and-forth with the IRS. You'll need certified copies of your passport and other identity documents. **Delaware state requirements:** The annual franchise tax ($300 minimum) and annual report are due March 1st each year, starting the year after formation. So if you formed in October 2024, your first Delaware filing is due March 1, 2026. **Mercury account considerations:** Keep track of your highest balance. If it hits $10,000 at any point, you'll need to file FBAR by April 15th. This caught me off guard in year two when my business grew. **Pro tip:** Document everything from day one, even setup costs paid from your personal account. Those are deductible business expenses once you start generating income. The learning curve is steep but staying compliant from the beginning saves you massive headaches (and penalties) later. Feel free to ask if you need clarification on any of these points!

If you're tight on cash, also consider filing your taxes early but scheduling your payment(s) for later dates. You can file now in February and schedule payments for March and April. This way you know exactly what you owe but can still split up the payments. I do this every year when I owe.

Another option to consider is using the IRS payment estimator tool to double-check your calculation before making any payments. I made the mistake last year of calculating my owed amount wrong and ended up overpaying by about $200. It took months to get the refund processed! The tool is free on the IRS website and can help you verify that $850 figure is correct. It's especially helpful if you have any unusual income sources or deductions that might affect your final tax liability. Better to catch any errors now than deal with corrections later. Also, if you do end up needing more time to pay, the IRS short-term payment plan (120 days or less) doesn't have a setup fee, unlike the longer installment agreements. Just something to keep in mind as a backup option.

This thread has been incredibly helpful! I'm a newcomer here but going through the exact same situation right now. My transcript updated two days ago with code 846 and a refund date of next Wednesday, but WMR is still showing "processing" which has been making me anxious. Reading through all these detailed responses has really put my mind at ease though. Like many others here, I only see the 846 code with no 841 or offset codes, I double-checked that my banking info was correct when I filed, and I just called my bank this morning to confirm my account is in good standing with no restrictions. The explanation about the IRS honoring direct deposit unless there's a specific issue makes a lot of sense, and it's reassuring to see so many success stories from people who had the same pattern of codes. The tip about the automated refund hotline (1-800-829-1954) is something I'm definitely going to try today too. As someone new to tracking refunds this closely, I had no idea about things like the 3-deposit annual limit or how banking verification failures could trigger automatic paper checks. This community is amazing for sharing all this technical knowledge that you just can't find easily elsewhere! I'll make sure to update once my refund comes through to add to the collection of experiences here. Fingers crossed it's a smooth direct deposit as expected! Thank you to everyone who has shared their knowledge and experiences - it makes this stressful waiting period so much more manageable.

I'm also new to this community and currently going through the exact same situation! My transcript updated yesterday morning with code 846 and a refund date for next Tuesday, but WMR is still stuck on "processing." This thread has been absolutely invaluable - I had no idea about most of these technical details before finding this discussion. Like others have mentioned, I only see the 846 code with no 841 or offset codes, my banking information was correct when I filed, and I just verified with my bank that my account is in good standing. One thing I'm curious about that I haven't seen mentioned yet - has anyone noticed if the day of the week your refund date falls on affects anything? Mine is scheduled for a Tuesday, and I'm wondering if that makes any difference for direct deposit timing. The automated hotline tip (1-800-829-1954) that @Natasha Orlova mentioned sounds really helpful for additional peace of mind. I'm definitely going to try calling that today to see if the information matches my transcript. It's such a relief to see so many success stories from people who had similar patterns of codes and ended up getting their direct deposits as expected. The waiting is definitely nerve-wracking when you're counting on that money, but this community knowledge has made it so much more bearable! I'll absolutely update everyone once my refund comes through. Thank you to everyone who has shared their experiences and expertise here - it's making a huge difference for us newcomers navigating this process!