This exact thing happened to me two years ago! Turns out my employer had accidentally processed a benefits change I made (adding dental insurance) as a complete W4 update and somehow marked me as exempt. I only found out when I got my W2 with $0 in Box 2. Here's what I learned from that nightmare: 1. Get a copy of your W4 from HR immediately - don't wait until Monday. Email or call them today if possible. 2. If it shows "exempt" and you didn't intend that, you have grounds to argue it was an employer error. Document everything. 3. Even if you owe a big chunk, don't let it stress you out too much. I owed about $5,200 on a $58k salary and set up a payment plan for $150/month. The IRS was actually pretty reasonable to work with. 4. File your taxes on time even if you can't pay - the late filing penalty is way worse than the late payment penalty. 5. Submit a corrected W4 RIGHT NOW for this year so you don't end up in the same situation again. The silver lining? After that scare, I learned way more about taxes than I ever wanted to know, and now I always double-check my paystubs every few months to make sure withholding looks right. You'll get through this!

I went through something very similar last year! The key thing is to stay calm and take action quickly. First, definitely get that W4 copy from HR - that's your smoking gun to figure out what went wrong. One thing that really helped me was using the IRS withholding calculator on their website (irs.gov/individuals/tax-withholding-estimator) to figure out exactly how much I should have been having withheld. When I brought those calculations to my employer along with the incorrect W4 they had on file, it made the conversation much more productive. Also, if it turns out your employer made the error, don't be afraid to ask if they can help with the situation. Some employers will issue supplemental payments or bonuses to help offset the tax burden if they acknowledge it was their mistake. Mine didn't, but I've heard of cases where they did. The payment plan with the IRS really isn't that bad - I set mine up online in about 10 minutes. The peace of mind was worth way more than the small setup fee and interest charges. You've got this!

Looking at your transcript, this is actually moving in the right direction! The 767 code removing the $9,095 credit was likely correcting an initial processing error - sometimes the system applies credits that need to be adjusted later. The 290 with $0 is essentially a "no change" marker that appears when they finalize processing. And the 971 notice is probably just explaining these adjustments - not necessarily bad news. Your negative account balance of -$6,595 is what you should expect as your refund. I went through something similar last year and got my 846 refund code about 10 days after these adjustment codes appeared. The February freeze was probably just routine verification that's finally been cleared. Keep checking your transcript - you should see that 846 code soon!

I see you've got the classic adjustment codes showing up! Based on your transcript, this actually looks like progress. The 767 removing that $9,095 credit was probably correcting an initial processing error - the system sometimes applies credits that need adjustment later. The 290 with $0 amount is just a processing marker (not actual additional tax), and 971 means they're sending you an explanation letter. Your account balance of -$6,595 suggests that's what your refund should be. The February freeze (810) was likely routine verification that's now resolved. Keep checking for an 846 code in the next week or two - that'll show your actual refund date!

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!

Has anyone considered the actual formation costs? I looked into both: Delaware LLC: $90 filing fee + $50-300 registered agent annually + $300 min annual franchise tax UK LLP: £10-£100 filing fee through Companies House + £13 annual confirmation statement Plus UK doesn't have that weird franchise tax concept! But I guess it all depends on long-term tax consequences rather than just setup costs...

I've been through this exact decision process recently and ended up choosing Delaware LLC after extensive research. Here's what tipped the scales for me: The key factor was future scalability - if you ever plan to raise investment from US venture capital or have US-based partners join later, Delaware is almost universally preferred. Many US investors won't even consider non-US entities. Also, while UK formation costs are lower upfront, the ongoing compliance burden can be heavier. UK LLPs require more detailed annual filings that become public record, whereas Delaware LLCs offer much better privacy protection for members. One thing I learned the hard way: check your state's "doing business" requirements. Even with a Delaware LLC, if you're physically operating from Minnesota, you might need to register as a foreign entity there anyway, which adds costs and complexity. Given that your operations are fully digital and global, I'd lean toward Delaware for the flexibility and investor-friendliness, but definitely run the numbers through one of those tax analysis tools mentioned above to see the actual financial impact for your specific situation.

Don't forget about continuing education! Tax laws change EVERY YEAR so even after you learn the basics, plan to spend 10-20 hours annually just keeping up with changes. The TCJA in 2018 literally made experienced preparers feel like beginners again in some areas.

Your timeline sounds pretty realistic! I've been preparing taxes for about 3 years now, and when I was starting out, I found that the biggest challenge wasn't just learning the software or forms - it was developing the intuition to know when something doesn't look right. One thing that really helped me was keeping a "learning log" where I wrote down every new concept I encountered and why it mattered. For example, when I first learned about the difference between above-the-line and below-the-line deductions, I wrote out scenarios showing how they affected AGI differently. Also, don't underestimate how much client communication skills matter! You'll spend almost as much time explaining things to clients as you do actually preparing returns. Practice explaining tax concepts in simple terms - it'll help solidify your own understanding too. The good news is that once you get comfortable with the fundamentals, each new scenario you encounter builds on what you already know. By your second tax season, you'll be amazed at how much more confident you feel!