Don't forget to check if your state has additional tax benefits for hurricane victims! Florida has some additional tax benefits that can help rental property owners affected by hurricanes. The state property tax relief programs sometimes get overlooked when everyone's focused on the federal tax implications. Your county property appraiser might have programs to reassess your property value after the hurricane damage which could lower your property taxes.

I went through something very similar with my rental property in Orlando after Hurricane Ian. The key thing that helped me decide between Schedule E and Form 4684 was looking at my overall tax situation for the year. Since you mentioned you're out $7,500 after insurance, that's a significant amount that could really benefit from the casualty loss treatment on Form 4684, especially if you have other income that could absorb the loss. The casualty loss route also gives you more flexibility with carryforward provisions if the loss exceeds your rental income. One thing I learned the hard way - make sure you document EVERYTHING. Take photos of the damage before any repairs start, keep all contractor estimates (even the ones you didn't use), and track every penny you spend on materials if you do any work yourself. The IRS is pretty reasonable about hurricane damage claims, but they want to see proper documentation. Also, don't forget about potential FEMA reimbursements or SBA disaster loans - these can affect how much you can actually claim as a loss, so factor those into your calculations even if you haven't received them yet.

I appreciate everyone's detailed responses - this has been incredibly educational! Based on what I'm reading, it sounds like I need to tackle the HR/payroll question first before even worrying about the banking side. The potential tax implications of having $45k treated as additional wages are much bigger than I initially realized. I'm going to schedule a meeting with our HR department this week to get clarity on exactly how they plan to handle this transaction. Specifically, I want to understand if they'll report it as compensation, how they'll handle any required withholding, and what documentation they'll need from me about the final sale price. For the banking piece, I'll definitely give my bank a heads up once I have clarity from HR about how this will be categorized. It sounds like being proactive and transparent with documentation is the key to avoiding any account holds or complications. Thanks especially to the tax professional who pointed out the wage vs. personal sale distinction - that could have been a very expensive mistake to figure out at tax time! This community has been incredibly helpful in breaking down all the different reporting requirements and considerations.

This thread has covered the key points really well! As someone who deals with these types of transactions regularly, I'd add one more consideration: timing of the sale relative to year-end. Since this could potentially be treated as additional wages (as the tax professional pointed out), completing the sale in December vs January could significantly impact which tax year the income gets reported in. If your employer does treat this as compensation, $45k in additional wages could push you into a higher bracket or affect other tax benefits for this year. You might want to discuss timing with both HR and a tax advisor to see if it makes sense to delay the sale until early next year to spread out the tax impact. Also, regarding the bank deposit - I've found it helpful to ask the buyer to include a brief memo line on the certified check indicating "equipment purchase" or similar. This small detail can help your bank understand the nature of the transaction when they're reviewing the deposit, especially if you've already given them a heads up about the incoming funds.

I'm dealing with almost the exact same situation right now! Filed on April 30th, got approved on May 15th with code 846 dated May 20th, and it's been radio silence ever since. My transcript hasn't updated with any new codes either. I've been checking my bank account obsessively and called the IRS line about 8 times with no luck getting through. Based on what everyone's saying here, it sounds like there might be some kind of system glitch or bank issue that's preventing the deposits from going through properly. I'm going to try calling my bank first like Sofia suggested to see if there's any kind of block on their end. If that doesn't work, I might have to bite the bullet and try one of those callback services people are mentioning. It's so frustrating because you'd think once they approve it and give you a deposit date, that would be it! But apparently there's a whole other layer of things that can go wrong. Keep us posted on what you find out - hoping we both get this resolved soon!

I'm going through the exact same thing right now! Filed on April 29th, got approved May 12th with code 846 dated May 18th, and still nothing in my account. It's been over two weeks since the 846 date and I'm starting to panic because I need this money for some unexpected car repairs. Reading through all these responses, it sounds like there are a few common culprits - bank blocks, system glitches at the IRS, or random review flags. I'm definitely going to call my bank (PNC) first thing tomorrow to see if they're blocking anything on their end. That's such a good point that I never would have thought of. For those who used the callback services, did you have to pay upfront or only if they successfully got you through? I'm getting desperate enough to try anything at this point. The regular IRS line is absolutely useless - I've tried probably 15 times and either get the "high call volume" hangup or wait for hours just to get disconnected. This whole situation is so stressful when you're counting on that money. Really hoping we all get some resolution soon! I'll update if calling my bank reveals anything useful.

Has anyone mentioned the impact on their other benefits? When my dad had a big capital gain, it not only increased his Medicare costs but also made him ineligible for some state senior benefit programs for two years. And the extra income pushed his Social Security into a higher tax bracket too.

One strategy worth exploring is a reverse mortgage on their current home. If your parents are 62 or older, they could potentially get a HECM (Home Equity Conversion Mortgage) to access the equity without selling and triggering capital gains. This could provide the funds needed for senior living while allowing them to keep the house for the stepped-up basis benefit. The downsides are that reverse mortgages have fees and interest accumulates over time, reducing the eventual inheritance. But depending on their ages and how long they expect to live, the math might work out better than paying capital gains taxes plus Medicare surcharges. Another angle - if any of you kids were planning to inherit and keep the house anyway, you could potentially buy it from them at a discount (still market rate for tax purposes, but maybe they "gift" you part of their annual exclusion). This doesn't avoid the capital gains entirely but could reduce the taxable amount while keeping the house in the family. Also, definitely double-check the timing. If they can delay the sale until January, that pushes the Medicare premium increases further out. And make sure they've maximized any home improvements that could increase their basis - things like major renovations, accessibility modifications, etc.

I can relate to your confusion as someone who also navigated the US tax system for the first time! The sequence you described - N/A transcript for 31 days, then verification, followed by the 570 code appearing within days - is actually exactly what should happen. Think of it as the IRS saying "okay, we've confirmed who you are, now we're putting your return back into the processing queue." The timing with your verification letter is completely normal too. From what I've observed in this community, most people see their 570 code resolve within 2-3 weeks with either a refund date or release code. The key thing that helped me was understanding that these codes are just the system's way of tracking progress, not indicators of problems. Keep checking your transcript weekly and try not to stress - you're right on track!

As someone who's been through the US tax system for several years now, I wanted to chime in with some reassurance! The sequence you're describing is actually the ideal scenario - it means everything is working exactly as it should. When your transcript shows N/A for an extended period and then suddenly updates with a 570 code right after verification, that's the system confirming they've processed your identity confirmation and are now actively working on your return. The timing with your verification letter is completely normal too - the IRS often sends those letters while simultaneously updating their systems. From my experience and what I've seen in this community, most people with this exact timeline see resolution (either a refund date or processing completion) within 2-3 weeks of the 570 appearing. The fact that your transcript updated so quickly after verification is actually a really good sign that your case is moving efficiently through their system. Try not to stress about the codes - they're just the IRS's way of tracking where your return is in the process, not indicators of problems!