Just wanted to chime in as someone who went through this exact same confusion when I first got into real estate investing. The salvage value question really threw me for a loop too, because it seems like such a fundamental part of depreciation in theory, but then you find out the IRS basically ignores it for real property! One thing I learned the hard way - make sure you're being conservative with your land/building allocation. I initially tried to minimize the land portion to maximize my depreciable basis, but my accountant warned me that being too aggressive could trigger scrutiny. The property tax assessment method mentioned by others is solid because it's defensible and based on third-party valuations. Also, if you're planning to hold this property long-term, don't forget about depreciation recapture when you eventually sell. All that depreciation you're claiming now will be taxed at up to 25% when you sell, even if the rest of your gain qualifies for lower capital gains rates. It's still worth taking the depreciation (better to have the deduction now and pay later), but good to plan for it. The IRS publications mentioned are definitely worth reading, but honestly, having a good CPA who specializes in real estate is invaluable. The rules get complex fast, especially when you start looking at things like cost segregation, Section 1031 exchanges, and passive activity limitations.

This has been such an educational thread! As someone who's been dealing with similar real estate tax questions, I wanted to add a few practical tips from my experience: First, when you're doing that land/building allocation, don't overlook getting a professional appraisal if the numbers are significant. Yes, it costs money upfront, but having that third-party validation can be worth it if the IRS ever questions your allocation. I learned this after initially relying solely on property tax assessments and later wishing I had stronger documentation. Second, regarding the cost segregation discussion - if you're not ready to invest in a full engineering study right away, you can still do some basic component identification yourself. Things like carpeting, window treatments, removable fixtures, and specialized lighting often qualify for 5-7 year depreciation instead of the full 39. Just document everything well and be prepared to justify your classifications. Finally, I'd recommend setting up a good record-keeping system now for all your property-related expenses and improvements. When you eventually do sell or do a cost segregation study, having detailed records of what you spent on various components will be invaluable. I use a simple spreadsheet that tracks each expense by category and depreciation class - saves tons of headaches later. The tax planning benefits of understanding these depreciation rules properly are huge, especially when you start scaling up to multiple properties. Worth the time investment to get it right from the beginning!

I work at a bank (not SOFI). Digital banks often have different processing schedules for ACH transfers compared to traditional banks. While the Federal Reserve might process the transaction on the DDD, it can take 1-3 additional business days for the receiving bank to post it. Since your DDD was Tuesday, and today is Friday, I'd say wait until Monday before assuming there's a problem.

I'm having the exact same issue with SOFI! My DDD was 3/18 and it's now 3/22 with no deposit. Called SOFI customer service yesterday and they said they're "processing" it but couldn't give me a timeline. It's so frustrating because my transcript shows the 846 code with the correct date and account number. At least I'm not alone in this - seems like SOFI is definitely holding these deposits longer than they should be. Going to give it until Tuesday like others suggested before escalating further.

Has anyone here used QuickBooks Self-Employed instead of TurboTax Business for handling a partner buyout? I'm in a similar situation but use QuickBooks for my tax prep.

I went through a similar LLC partnership buyout situation about 18 months ago and can share some practical insights from my experience. The key thing I learned is that timing matters a lot for the tax implications. One issue that caught me off guard was the allocation of partnership income for the partial year before the buyout. Make sure you're clear on how to prorate the departing partner's share of income/losses up to their exit date. This affects their final K-1 and can get complicated if you have varying income throughout the year. Also, don't forget about the potential for "hot assets" (unrealized receivables, inventory, depreciation recapture) that could trigger ordinary income treatment rather than capital gains for the departing partner. This is especially important if your LLC has been claiming depreciation on equipment or other assets. For the mechanics, I found that creating a clear timeline of events helped enormously when filling out the forms. Document the exact date of the buyout, the valuation method used, and how the payment was structured. The IRS wants to see that everything was done at arm's length with proper documentation. TurboTax Business can definitely handle this, but make sure you have all your partnership records organized before you start. The software will walk you through most of it, but having a clear understanding of what happened and when will save you hours of confusion.

I tried claiming trader tax status for my crypto trading in 2023 (was doing 50+ trades daily) and got audited. The IRS initially rejected my TTS claim, but I appealed with documentation showing: 1. My trading schedule (8+ hours daily) 2. Analysis software I purchased 3. Separate business accounts for trading 4. Trading journal with strategies They eventually accepted my TTS claim! Key points from my experience: - Documentation is EVERYTHING - They scrutinized my holding periods (anything held >30 days counted against me) - Having a formal business structure helped (I had an LLC) - They wanted to see I was trying to profit from short-term market movements, not just buying dips Hope this helps someone! The tax savings were substantial, but be prepared to defend your position.

As someone who's been through the TTS qualification process for crypto trading, I want to add a few important points that might help clarify things for you: First, the IRS has been increasingly scrutinizing crypto TTS claims, so documentation is absolutely critical. You'll want to track not just your trades, but also the time you spend on market analysis, research, and strategy development. I keep a detailed log showing 4+ hours daily spent on trading-related activities. Regarding your specific questions: 1. Yes, Schedule C deductions are one of the biggest benefits of TTS - you can deduct trading software, data feeds, home office expenses, computer equipment, and even educational courses related to trading. 2. The self-employment tax is the trade-off - your trading profits will be subject to SE tax (15.3%), which can be significant. You'll need to calculate whether the deductions outweigh this additional tax burden. 3. Crypto traders can qualify, but the bar seems higher than for traditional securities. The IRS looks more closely at crypto TTS claims, so your documentation needs to be bulletproof. One tip: consider keeping separate crypto wallets/accounts exclusively for day trading versus any long-term holdings. This helps clearly demonstrate your trading versus investment activities if you're ever audited. Also, don't forget about the mark-to-market election deadline if you're planning to go the TTS route - it can be a game-changer for active traders but must be elected on time.

I've been through this exact same frustrating situation with a 570 hold that dragged on for weeks! Those transcript dates are absolutely confusing and don't give you any real insight into what's actually happening. From my experience, the "AS OF" date is basically meaningless - it's just when their system last touched your account and it can jump around randomly. The "RECEIVED DATE" showing March 3rd is likely when their internal processing system picked up your e-filed return, which often differs from when you actually submitted it. A 570 code without a accompanying 971 notice code typically means it's just a routine review - they could be verifying your income against W-2s/1099s, checking math, or validating credits like EIC or Child Tax Credit. Since you filed jointly, they might be cross-referencing both your and your spouse's income documents. The brutal truth is there's really nothing you can do except wait it out. Most 570 holds resolve automatically within 4-8 weeks, and since yours started around February 20th, you're still within that normal timeframe (even though it feels like an eternity when it's your money). Keep checking your transcript weekly for codes 571 (hold released) and 846 (refund issued). I know the waiting game is absolutely maddening, but try to hang in there - most people do eventually get through this!

I completely understand your frustration with the 570 hold - I've been dealing with the exact same situation since late February and it's been driving me absolutely crazy trying to figure out what all these dates mean! From what I've learned through this whole ordeal, the "AS OF" date (March 10th in your case) is basically just a system timestamp that shows when the IRS last processed or updated your account. It doesn't actually indicate when your return will be completed, and it can jump around randomly which is why you might see it appearing twice on your transcript. The "RECEIVED DATE" showing March 3rd is likely when their internal processing system picked up your e-filed return, which often differs from when you actually submitted it in early February. There can be delays between when you file and when it enters their processing queue. A 570 code without any accompanying notice codes (like 971) usually means it's a routine review - could be income verification where they're matching your W-2s/1099s, math checks, or credit eligibility verification. Since you filed jointly, they might be cross-referencing both your and your spouse's income documents. The waiting is absolutely brutal, but most 570 holds resolve automatically within 4-8 weeks. Since yours started around February 20th, you're still within the normal processing window. Keep checking your transcript weekly for code 571 (hold released) followed by 846 (refund issued). Hang in there - we'll get through this!