Wait, I'm confused about something. If you contribute property with a $1,000 basis but $0 fair market value, and later the partnership liquidates and you get nothing back for your interest, do you get to claim a $1,000 loss at that point? Or did you essentially lose the ability to claim that loss by contributing it instead of selling/disposing of it personally?

Before you make any decisions about contributing the collectible to the partnership, I'd strongly recommend getting professional advice on this specific situation. Partnership basis rules are one of the more complex areas of tax law, and there are several strategies you might want to consider. One approach others have mentioned is claiming the loss personally before the contribution. Another option could be structuring the partnership agreement to handle the built-in loss allocation more favorably. You might even want to explore whether this qualifies as a theft loss under Section 165, which could give you different tax treatment than a regular capital loss. The key issue is that once you contribute property with built-in loss to a partnership, you're locked into the Section 704(c) allocation rules, which can be restrictive. But if you handle the loss before the contribution, you might have more flexibility and better timing for the tax benefit. I'd suggest consulting with a tax professional who specializes in partnership taxation before you finalize your contribution strategy. The $1,000 loss might be significant enough to warrant getting the planning right from the start.

According to Internal Revenue Manual 21.5.6.4.35.3, the TC 570 indicates a refund hold while TC 768 confirms EIC computation. Per IRS Publication 5344, the PATH Act requires additional verification for certain refundable credits. I understand your frustration with the wait time - many taxpayers are experiencing similar delays this filing season. The status change is encouraging and suggests your return has completed the mandatory review period. Continue monitoring your transcript for TC 971 or TC 846, which would indicate further action or refund issuance respectively.

I went through this exact scenario two months ago! Had TC 570 over TC 768, stuck in PATH for 32 days, then status changed to processing just like yours. Got my refund deposited exactly 9 days after the status change. The combination of codes you're seeing is actually pretty standard for EIC claims during PATH season. Since your status just changed yesterday, I'd expect to see movement within the next week or two. Keep checking your transcript daily - you'll likely see a TC 846 (refund issued) code appear soon with your deposit date. The waiting is brutal but you're definitely in the home stretch now!

Has anyone tried using the free file fillable forms from the IRS for a zero-income return? I don't want to pay for tax software if I'm not getting anything back.

This is really helpful info! I had no idea about refundable credits for people with zero income. Just to clarify though - when you say "enter $1" as a workaround, does that create any problems later? Like, am I technically lying on my tax return if my actual income was $0? I want to make sure I'm doing this correctly and not accidentally committing tax fraud or something. Also, does anyone know if there's a time limit on filing these zero-income returns? Like if I should have filed last year but didn't, can I still go back and file for 2023 to claim any credits I might have missed?

Has anyone actually tried filing the revocation themselves? I'm worried I'll mess something up and make my situation worse.

I went through this exact same situation about 6 months ago - hired a tax attorney who did absolutely nothing for almost 2 years while my problems got worse. The revocation process is actually pretty straightforward once you know what to do. Like others mentioned, you'll need to file a new Form 2848 with the revocation box checked in Part 6. The key thing is to make sure you include ALL the same tax years and form types that were on your original power of attorney. If you're not sure what was included originally, you can call the IRS and ask them to read back what's currently on file. One thing I learned the hard way - don't wait to revoke it even if you haven't found a replacement yet. Having an inactive representative is actually worse than having no representative at all because the IRS will still try to communicate through them instead of directly with you. Once I revoked mine, I was finally able to get direct access to my account and start making progress on my own. Also, definitely send a certified letter to your current attorney letting them know you're revoking their authorization. Even though it's not legally required, it protects you if they try to take any action on your behalf after the revocation date.

One thing nobody mentioned yet - if you use actual expense method the first year you use a vehicle for business, you CAN'T switch to standard mileage rate later. But if you use standard mileage rate first, you CAN switch to actual expenses in future years. Something to keep in mind before you commit to actual expenses!

This is such a helpful discussion! I'm a CPA and want to add a few key points that might help clarify the record-keeping requirements: 1. **Contemporaneous records are crucial** - The IRS requires that mileage logs be created at or near the time of travel, not reconstructed months later. This is true for both methods. 2. **Sampling can work** - You don't need to log every single trip if you can establish a representative sample that demonstrates your typical business use pattern. A 3-month detailed log that shows consistent business use can often support your claimed percentage for the full year. 3. **Digital solutions are IRS-acceptable** - Apps, GPS trackers, and other digital tools are perfectly valid as long as they capture the required elements: date, business purpose, destination, and mileage. 4. **The 70% estimate concern** - Your gut feeling of 70% business use needs documentation to back it up. Without records, the IRS could challenge this during an audit and potentially disallow the entire deduction. My recommendation? Start with the standard mileage rate method for your first year since it's simpler and keeps your options open. Use a mileage tracking app to build good habits, then evaluate both methods next year when you have solid data to compare the actual dollar benefits.