This situation is more common than you might think, and you're smart to address it now rather than letting it continue. Based on what you've described - especially the 83(b) election filing - you almost certainly should be treated as a partner rather than an employee for tax purposes. The key issue is that when you receive profit interests in an LLC, you become a partner in the partnership, which fundamentally changes your tax status. Partners don't receive W-2s or have taxes withheld - instead, they receive K-1s and typically make quarterly estimated payments. Here's what I'd recommend for your immediate situation: 1. **Don't file yet using just the W-2** - this could lock in the incorrect treatment and make corrections more complicated later. 2. **Get professional help first** - find a CPA who specializes in partnership taxation. This isn't standard tax prep territory, so make sure they have specific experience with profit interests and partnership issues. 3. **Gather all your documents** - profit interest agreement, 83(b) election filing confirmation, any other equity-related paperwork. Your tax professional will need these to assess your situation properly. 4. **Talk to your employer after you understand the issue** - approach them with solutions, not just problems. They probably don't realize the tax implications and will appreciate guidance on how to fix it. Regarding your future plans to potentially give back the units or move abroad - both are definitely possible, but the international tax implications of being a US partnership partner while living abroad can be quite complex. Address the current year first, then work with your professional to plan the best long-term strategy. The good news is that since taxes were being withheld and paid, you're not in a "no taxes paid" situation, which is what the IRS really cares about. This is fixable with the right professional guidance.

Yes, absolutely mention "profit interests" specifically when calling tax professionals! This is a very particular area of partnership taxation, and you want someone who has direct experience with Section 83(b) elections, profit interest valuations, and the employee-to-partner transition issues. When you call, you can say something like: "I received profit interests in my LLC employer, filed an 83(b) election, but I'm still being treated as a W-2 employee instead of receiving a K-1. I need help determining my correct tax status and fixing any compliance issues." A specialist in this area will immediately understand your situation and should be able to discuss the common approaches for resolving it. If they seem unfamiliar with profit interests or start asking basic questions about what they are, keep looking. Also, don't lose sleep over this! The IRS sees these situations regularly - small companies frequently mishandle the tax implications of equity compensation. The fact that you're proactively addressing it and that taxes have been getting paid puts you in a much better position than someone who just ignored it completely. You're taking exactly the right steps by getting professional guidance before making any filing decisions. This is definitely in the "complicated but totally fixable" category, not the "irreversibly screwed up" category!

Line 18 gave me headaches too! Does anyone know if you can go back and amend returns from previous years if you think you didn't get the right CTC amount? I think I might have had the same issue for the past 2 years.

I went through this exact same confusion last year! The key thing to understand is that line 18 shows your total Child Tax Credit after all the complex calculations, but it's not always the simple $2,000 per child math we expect. A few things that might explain your $2,800 vs $4,000 discrepancy: 1. **Tax liability limitation**: The non-refundable portion of the CTC can't exceed your actual tax liability. So if you only owed $1,400 in taxes, that's the max you could get from the non-refundable portion. 2. **Earned income threshold**: The refundable portion (Additional Child Tax Credit) has its own calculation based on your earned income. If your earned income is below certain thresholds, you might not get the full refundable amount. 3. **Other dependents**: Make sure both kids qualify as "qualifying children" for CTC purposes (under 17 at end of tax year, meet relationship/residence tests, etc.). I'd strongly recommend pulling up your Schedule 8812 - that's where all the CTC math happens. It will show you step-by-step why you got $2,800 instead of $4,000. TurboTax should have generated this schedule automatically if you claimed the CTC. Don't beat yourself up over this - the CTC calculation is genuinely complicated and even tax professionals sometimes need to double-check the worksheets!

Something no one has mentioned yet - have you considered using a Self-Directed IRA LLC (sometimes called a checkbook IRA) instead of ROBS? It might be better suited for real estate investments and doesn't require setting up a C-corp or dealing with the active business requirement. The downside is you can't personally benefit from the properties or be involved in day-to-day management, but for pure investment purposes it might be a cleaner structure. Just make sure you understand prohibited transaction rules because they're strictly enforced.

I've been following this discussion closely as I'm considering a similar structure. One thing I haven't seen mentioned is the potential impact of the Corporate Transparency Act (CTA) on ROBS structures. Since your C-corp would likely be considered a "reporting company" under the new beneficial ownership reporting requirements, you'll need to file FinCEN reports disclosing ownership information. This adds another layer of compliance but shouldn't affect the tax treatment of your ROBS. Also, regarding the LLC structure you mentioned - make sure you understand how the K-1 income will be treated at the C-corp level. Since C-corps don't get pass-through treatment, the rental income will be subject to corporate tax rates, and if you later want to access those funds personally, you'll face potential double taxation through dividends. Have you considered whether the rental income strategy makes sense given that corporate tax treatment, or would you be better off with a structure that allows pass-through taxation?

Has anyone looked into installment sales? My parents transferred their farm to me using a self-financed installment sale with minimal interest. They reported small portions of capital gain each year as i made payments, keeping them in lower tax brackets. And it established market value without an expensive appraisal because it was an actual sale.

This is such a common situation for family farms, and you're smart to think through all the options before moving forward. One approach that hasn't been mentioned yet is a grantor trust strategy, where you could sell the property to an intentionally defective grantor trust (IDGT) that your nephew is the beneficiary of. You'd take back a promissory note for the sale price, but since it's a "defective" trust for income tax purposes, you'd pay all the income taxes on the trust's income, which effectively allows you to make additional tax-free gifts to your nephew over time. The beauty of this approach is that any appreciation in the property value after the sale goes to your nephew without additional gift tax consequences to you. Plus, if the property generates income (like from farming operations), that income can be used to make the note payments back to you. Given that you mentioned this land has been in the family for generations, you might also want to look into whether your state has any specific family farm transfer programs or tax credits. Many states have special provisions to encourage keeping agricultural land in family hands and in agricultural use. Definitely echo what others have said about consulting with professionals who specialize in agricultural transfers - the tax savings usually far exceed the consultation fees.

Has anyone tried just not checking the waiver box? I underpaid last year too (about 20k short) because of unexpected consulting income, and I just calculated and paid the penalty. It was like $700 on a $20k underpayment. Seems easier than trying to get a waiver approved.

I went through almost the exact same situation two years ago with stock sales! Here's what worked for me: I did include a written explanation even though my software didn't require it. I kept it simple and focused on three key points: (1) this was my first time dealing with significant investment income, (2) I wasn't aware of the estimated tax requirements for capital gains, and (3) I paid the full amount owed when I filed my extension before the deadline. The IRS accepted my waiver request. I think the key was showing that I acted in good faith by paying everything as soon as I realized the issue during tax prep. Don't just say "I didn't know" - emphasize that this was an unusual circumstance for you and that you corrected it promptly. If your software won't let you attach the explanation, you can either mail your return instead of e-filing, or e-file and then mail a separate letter referencing your return. I'd definitely recommend trying for the waiver since your underpayment sounds substantial and the penalty could be significant.