Great question about Schedule E depreciation! I went through this exact same confusion last year. Here's what I learned that might help: The key thing to remember is that residential rental property depreciation is actually pretty standardized - you'll always use the 27.5-year straight-line method under GDS (General Depreciation System). The tricky part is just getting your basis calculation right for the rental portion. One thing that helped me was creating a simple spreadsheet to track everything. I calculated: 1. Total property value (minus land value - super important!) 2. Percentage used for rental (square footage or room count method) 3. Depreciable basis = (Property value - Land value) × Rental percentage 4. Annual depreciation = Depreciable basis ÷ 27.5 years For the first year, don't forget to use the mid-month convention if you started renting partway through the year. The IRS has tables in Publication 946 that show exactly how much to depreciate based on which month you placed the property in service. And yes, you'll need Form 4562 for the first year, then the depreciation amount flows to Schedule E line 18 in subsequent years. Once you get the hang of it, it's actually one of the more straightforward parts of rental property taxes!

One thing I haven't seen mentioned yet is the importance of keeping detailed records for your partial rental depreciation. The IRS can be pretty picky about this, especially if you get audited. I'd recommend documenting: 1. How you calculated the percentage split (square footage measurements, photos showing which areas are rented vs. personal use) 2. Your land vs. building value allocation method and sources 3. The date you first made the space available for rent (not necessarily when you got your first tenant) 4. Any improvements you made specifically for the rental portion Also, be aware that when you eventually sell the property, you'll need to "recapture" the depreciation you've claimed on the rental portion - it gets taxed at up to 25% rather than capital gains rates. This doesn't mean you shouldn't take the depreciation (you should!), but it's good to plan ahead for the tax implications down the road. The depreciation deduction can really add up over the years and significantly reduce your rental income taxes, so it's worth getting this right from the beginning!

I think a lot of people overlook the fact that Form 5471 has different categories of filers. For a 50% ownership in a foreign corp, you're most likely a Category 5 filer. The important thing is disclosure - the penalties for not filing can be steep ($10k+ per form per year). If the business truly has no operations, minimal expenses and no bank accounts, your Form 5471 would be pretty basic but still required. The cost shouldn't be that high for a simple filing with minimal info - you might find a US expat tax specialist who would do just this form for a reasonable fee rather than a full tax return.

I had a similar situation with a business i registered in australia that never really did anything. one important thing to consider: the statute of limitations doesn't start running on your tax returns until you've filed all required international forms. so if you don't file the 5471, theoretically the irs could audit your returns from that year forever!!!

I'm going through this exact same situation right now! Filed my amended return about 5 weeks ago after discovering I had completely forgotten to report some cryptocurrency gains from last year (rookie mistake, I know). Just like everyone else here, I can see the 971 code clear as day on my tax transcript, but that WMAR tool keeps telling me it can't find any information about my amendment. I was starting to think I had somehow filed it incorrectly or that it got lost in cyberspace! Reading through all these responses has been such a relief - it's crazy that so many of us are experiencing the exact same disconnect between these IRS systems. You'd think by 2025 they would have figured out how to make their databases talk to each other properly, but apparently not! I'm definitely going to stop wasting time checking that useless WMAR tool and just focus on monitoring my transcript for updates. Thanks everyone for sharing your experiences - it's so helpful to know this is just a system quirk and not something I did wrong. The IRS really needs to fix this because it's causing unnecessary stress for people who are already being responsible by filing amendments!

This thread is incredibly helpful! I'm dealing with the exact same issue - filed my amended return about 7 weeks ago after realizing I missed reporting some freelance income from a small project I did last fall. Like everyone else here, I can see the 971 code on my transcript clear as day, but that WMAR tool just keeps giving me the "no information available" message. I was honestly starting to panic thinking something went wrong with my filing! It's so reassuring to read that this disconnect between the transcript and WMAR tool is basically a known issue at this point. You'd think the IRS would at least put up a notice on the WMAR tool explaining this, but I guess that would be too helpful! 😅 I'm definitely going to stop checking that useless tool and just focus on monitoring my transcript weekly. Thanks to everyone who shared their experiences - it's amazing how much stress this community can help relieve when you realize you're not alone in dealing with these system quirks! For anyone else going through this, it sounds like as long as you see that 971 code, you're in good shape and just need to be patient with the processing timeline. The IRS systems may not talk to each other properly, but at least we know our amendments are actually being processed!

I actually had a very similar question last year when I saw my 846 code! After going through this process, I can tell you that the transcript is definitely the most reliable source for offset information. When an offset happens, you'll typically see a TC 898 code on your transcript that shows the offset amount and which agency it went to. The 846 code will then show your net refund amount after the offset has been taken. However, I learned that timing is really important here - sometimes there's a delay between when the 846 code appears and when the 898 offset code shows up. In my case, I saw the 846 first and got worried when the amount seemed right, but then the 898 appeared about 48 hours later showing an offset to my state tax agency. If you want immediate peace of mind, I'd definitely recommend calling the Treasury Offset Program hotline at 800-304-3107. It's completely automated (no waiting on hold!) and will tell you right away if there are any offsets pending against your SSN. That way you'll know exactly what to expect when your refund hits your account instead of being surprised by a different amount. The WMR tool tends to be pretty vague about offsets - it'll just say something generic about obligations without giving you specifics. The transcript gives you way more detailed information about what's actually happening with your money.

I went through this same anxiety last tax season! Based on my experience, the transcript is definitely your most reliable source. When I had an offset for old student loans, it showed up as a TC 898 code on my transcript with the exact amount that went to the Department of Education. The 846 code reflected my final refund amount after the offset was already deducted. One thing I wish someone had told me is that these codes don't always appear at the same time. My 846 showed up first with what looked like my full refund amount, but then 2 days later the 898 offset code appeared and I realized the 846 amount had actually been updated to reflect the net amount after offset. It was confusing at first! The WMR tool just gave me a generic message about "obligations" but didn't specify amounts or which agency. If you want to know for sure right now, definitely call that Treasury Offset Program number others have mentioned (800-304-3107) - it's automated and super quick. That's how I found out exactly what was happening before I got my deposit. Hope this helps ease some of the uncertainty! The waiting and not knowing is honestly the worst part of the whole process.

You're absolutely right to be concerned about this situation. As the custodial parent, you have the legal right to claim your children as dependents, but you need to be proactive about protecting that right. Here's what I'd recommend: 1. **File your taxes as early as possible** - The IRS processes returns in the order they receive them, so filing early gives you the best chance of claiming your children before anyone else tries. 2. **Document everything** - Keep records showing you provide more than half of your children's support (housing, food, clothing, medical care, etc.). Even though you live with grandma, if you're paying for these things, you're the primary support provider. 3. **Have a conversation with grandma** - Since you live together, try to resolve this amicably. Explain that as the parent, you have priority under IRS rules and that you need these tax benefits to continue supporting the children. 4. **Don't sign Form 8332** - This form would give the father permission to claim the children. Since they haven't lived with him since 2012, he has no legal basis to claim them anyway. If someone does file first and claims your children, you'll need to file a paper return and let the IRS sort out the duplicate claims. As the biological parent who lives with and supports the children, you should win any dispute - just make sure you have documentation ready. The key is acting quickly and having your paperwork in order. Good luck!

As someone who's dealt with family tax disputes, I'd strongly recommend getting ahead of this by having a direct conversation with both the father and grandmother before tax season gets too busy. For the father - since your kids haven't lived with him since 2012, he legally cannot claim them as dependents under IRS rules. You might want to send him a polite but firm text or email explaining this, referencing that the children must live with the claiming parent for more than half the year. Sometimes people don't realize the rules have changed or assume they can still claim kids they used to support. For the grandmother situation - this is trickier since you share a household, but as the biological parent, you still have priority under IRS tiebreaker rules. Consider proposing a family meeting to discuss finances openly. Maybe work out an arrangement where you claim the kids but contribute more to shared household expenses with part of your refund. Document your support now - start keeping receipts for groceries, kids' clothing, medical appointments, school expenses, etc. Take photos of receipts with your phone so you don't lose them. This preparation will save you major headaches if anyone does try to claim your children and you need to prove your case to the IRS. The peace of mind from having this sorted out beforehand is worth the potentially awkward conversations!