Has anyone considered the possibility of a 1031 exchange if the trust wants to sell the house but avoid capital gains? Would an IDGT be eligible for that?

This is a great question that highlights the complexity of IDGT planning. One additional consideration I haven't seen mentioned is the potential for valuation discounts when the property was transferred into the trust in 2022. If your father retained a life estate but transferred the remainder interest, the value of that remainder interest for gift tax purposes would have been discounted based on his life expectancy at the time. However, for income tax basis purposes after his death, the entire property value (not just the remainder interest) should receive a stepped-up basis since the retained life estate causes inclusion under Section 2036. This creates a beneficial mismatch where the gift tax value was discounted but the step-up applies to the full property value. I'd also recommend documenting the property's condition and any improvements made while it's in the trust, as these could affect the basis calculation. If your father makes significant improvements to the property while living there, those improvements should also receive stepped-up basis treatment since they're part of the property included in his estate.

Has anyone tried using the IRS Publication 463 Worksheet for this? I'm going thru it but stil confused about how to split the meal costs when some are per diem and some are business meals with clients.

This is a common area of confusion for traveling consultants! The key principle is that per diem covers YOUR personal meals only. Here's how I handle it based on my CPA's guidance: When traveling and using per diem: - Per diem covers all YOUR meals for that travel day - If you buy meals for CLIENTS/CONTRACTORS as part of business discussions, their portion can be a separate business expense (not your portion) - Document who attended, business purpose, and keep receipts For your crew meals where you don't eat with them - if it's truly for business purposes (team meetings, morale for productivity, etc.), this could qualify as a separate business expense since it's not covering your personal meal. Local client meetings when not traveling are indeed 50% deductible business meals. The IRS looks at substance over form - are you legitimately incurring business expenses beyond your personal sustenance? Document everything with dates, attendees, business purpose, and amounts. When in doubt, separate your personal meal costs (covered by per diem) from costs incurred for business purposes with others. I'd recommend getting this reviewed by a tax professional familiar with your specific situation to ensure compliance.

Something nobody mentioned yet - I learned this from an expensive mistake. If both jobs are relatively similar in pay and hours, you might want to check the multiple jobs box on BOTH W-4s. But if one job pays significantly more than the other (like your $32/hr vs $21/hr scenario), then you should follow a different approach. The IRS recommends using their withholding calculator, but in my experience with variable hours, it's better to: 1. Check the multiple jobs box on the higher-paying job's W-4 ONLY 2. Leave the box unchecked on the lower-paying job 3. Then monitor your withholding for a couple months to see if it's enough If you're still under-withholding, then add an extra specific dollar amount on line 4(c). The withholding tables don't handle variable hours well, so you'll likely need to adjust mid-year anyway.

Has anyone actually tried the method where you calculate your additional withholding based on the tables in the W-4 instructions? I spent like 2 hours doing that and STILL ended up owing $800 at tax time. The tables don't work well for variable hours! I eventually just took my previous year's tax bill, divided by 24 (my annual pay periods), added 10% for safety, and put THAT number on line 4(c) of my higher-paying job's W-4. Been working great for the past 2 years. Much simpler than all the worksheets and calculators.

Is the 806 code my refund amount

No, the 806 code is NOT your refund amount - it's the total amount of federal taxes that were withheld from your paychecks throughout the year. Think of it as money you already paid to the IRS. Your actual refund is calculated by taking all your credits (including that 806 withholding amount) and subtracting what you actually owe in taxes. The refund amount will show up as an 846 code when it's processed and sent out.

File a complaint with the IRS Office of Professional Responsibility. That preparer is engaging in unethical practices and needs to be reported. Also file a complaint with your state's board of accountancy if they claim to be a CPA. These people need to be stopped.

I'm so sorry this happened to you. As someone who works in tax resolution, I see this kind of predatory behavior all the time and it makes me furious. These "specialists" target people when they're most vulnerable and desperate for their refunds. A few important points for anyone reading this: • 810 freeze codes are FRAUD INVESTIGATION holds - there is NO legitimate way to "trick" or bypass them • Any amended return filed without proper justification will only create MORE red flags in the system • The IRS has sophisticated fraud detection algorithms that flag inconsistencies - you can't outsmart them with fake amendments For your situation specifically, I'd recommend: 1. Call the Taxpayer Protection Program at 800-830-5084 (or use a service like Claimyr to get through faster) 2. Be prepared to provide identity verification and any documentation they request 3. DO NOT file any more amendments unless specifically instructed by the IRS 4. Report this preparer to the IRS Office of Professional Responsibility The resolution process typically takes 60-90 days once you provide the correct documentation, but the additional freeze codes from that fraudulent amended return may have extended your timeline. Stay strong - legitimate help is available, you just have to go through proper channels.