Great discussion here! As someone who recently went through a similar family property transfer, I'd add that timing is crucial for your decision. One factor to consider is the current real estate market - if you expect significant appreciation in the coming years, transferring ownership now (through gifting or discounted sales) could be very beneficial since all future appreciation would occur outside your parents' estate and potentially at lower tax brackets for the kids. However, if your parents are in their 70s or 80s, the step-up in basis strategy Gabriel mentioned could be more valuable. You'd need to run the numbers comparing: (1) current capital gains tax on a sale now, (2) gift tax implications of transfers, and (3) potential estate tax vs. step-up benefits if held until death. Also worth noting - if you go the LP interest transfer route, make sure you understand the implications of being general vs. limited partners. The liability exposure and management responsibilities are quite different, which could affect your family dynamics around decision-making for the property. Have you considered what happens if some siblings want to sell their interest while others want to hold? The LP operating agreement should address buyout provisions and transfer restrictions to avoid future conflicts.

From a liability perspective, as limited partners you'd have much better protection - your liability would generally be limited to your investment in the partnership. However, LLCs typically offer even stronger liability protection for all members, which is why many families are moving away from LP structures for real estate holdings. Regarding professional help, I'd strongly recommend finding a tax attorney or CPA who specializes in family wealth transfer strategies. This type of planning really benefits from someone who can model different scenarios and their long-term implications. Look for someone with experience in both estate planning and real estate taxation - the intersection of these areas requires specialized knowledge. One additional consideration I haven't seen mentioned: if your family decides to hold the property long-term, think about succession planning for management responsibilities. What happens when your parents can no longer actively manage the property? Having clear governance structures in place now (whether LP or LLC) can prevent family conflicts later when someone needs to make day-to-day decisions about maintenance, tenant issues, major capital improvements, etc. The fact that you're thinking through these issues now while everyone is healthy and communicating well puts your family in a much better position than many families who wait until there's a crisis to address these questions.

I'm in a similar boat with a partnership that files late every year. After going through the stress of estimating and amending returns multiple times, I finally switched to just filing extensions and it's been so much better. One thing I learned the hard way is that even if your estimates seem reasonable, partnerships can have unexpected items that throw everything off - like surprise distributions, changes in debt allocations, or one-time events that don't show up in your estimates. I had a year where my estimate was off by over $3,000 because the partnership had an unexpected property sale that generated significant capital gains. The extension route eliminates all that uncertainty. Yes, you have to wait longer to file, but you're filing with complete and accurate information. Plus, if you're getting a refund, the IRS pays interest on refunds for extended returns just like regular returns, so there's really no financial downside. My advice: file the extension, make a conservative estimated payment, and use the extra time to organize all your other tax documents. By the time your K-1 arrives, you'll be ready to file everything at once without any stress about amendments or potential penalties.

I've been dealing with late K-1s from my REIT partnership for the past 3 years, and I've tried both approaches mentioned here. Initially I used estimates with Form 8082, but ran into exactly the issues people warned about - my return got flagged for review and I had to provide documentation explaining why I was using the form for estimates rather than actual disagreements. The IRS examiner was understanding but made it clear that Form 8082 isn't really intended for "I don't have my K-1 yet" situations. She recommended the extension approach for future years, which is what I've been doing since. What really sealed the deal for me was when my partnership had an unexpected Section 199A deduction adjustment in year 2 that my estimates completely missed. That would have been a nightmare to sort out during an examination if I hadn't already switched to filing extensions by then. Now I just file Form 4868, pay about 110% of what I paid the previous year, and wait for the actual K-1. Much less stressful and no more worried phone calls from the IRS. The few extra months of waiting is totally worth the peace of mind.

dont forget about state taxes too!! I got hit with a $900 penalty because I only did federal quarterlies my first year :

Great question! I went through this exact situation last year with my freelance writing business. Here's what I learned: You're on the right track with the self-employment tax calculation, but you'll also need to calculate the income tax portion. Since your household income is $310k, your consulting income will be taxed at your marginal rate (likely 32% federal). A simple formula I use: Take your net LLC profit × 0.9235 × 0.153 for SE tax, then add your net profit × your marginal tax rate for income tax. Don't forget state taxes if applicable. One thing that helped me was making the safe harbor payment - since your AGI is over $150k, pay 110% of last year's total tax liability divided by 4 quarters. This protects you from penalties even if you underpay slightly. Also consider maxing out business deductions: home office, business meals (50%), professional development, equipment, etc. Every dollar in legitimate expenses reduces your taxable income. The key is staying organized and setting aside money from each payment you receive rather than scrambling each quarter!

I went through this exact frustration two weeks ago! After reading through all these helpful responses, I want to add that if you're using the online version of H&R Block, there's actually a small "help" icon next to the box d field that wasn't obvious to me at first. When you click it, it shows you a sample W-2 with box d highlighted. That said, I ended up finding my control number in a really weird spot - it was printed vertically along the left margin of my W-2 in tiny text. My employer (a hospital system) apparently uses a non-standard W-2 layout. If all else fails, I agree with the folks saying to just do manual entry. I spent way too much time on the import feature when typing everything in would have been faster and less stressful. Sometimes the old-fashioned way really is better!

I'm dealing with this same issue right now and it's driving me crazy! I've been going through my W-2 with a magnifying glass trying to find this mysterious box d. My employer is a small business and their W-2 form looks different from all the examples I'm seeing online. After reading through all these responses, I'm wondering if some smaller employers just don't use control numbers at all? Has anyone else had experience with small business W-2s that might be formatted differently? I'm tempted to just call my employer's bookkeeper directly to ask, but I don't want to bother them during busy season if this is something I should be able to figure out myself. Thanks for all the helpful suggestions everyone - at least now I know I'm not the only one struggling with H&R Block's import feature!

I'm dealing with a similar situation right now and this thread has been incredibly helpful! Filed in February, got hit with the 60-day review in March, and just contacted my congressman last week after getting nowhere with regular IRS calls. Reading through everyone's experiences, it sounds like I should expect anywhere from 3-8 weeks once TAS gets involved, depending on what's actually causing the delay. The transcript code tracking that @Isabella Russo mentioned is something I definitely need to start doing - I had no idea those codes could tell you exactly what stage your return is in. @Emily Nguyen-Smith your timeline is almost identical to mine, so I'm cautiously optimistic that I might see movement in the next few weeks. The fact that you got assigned someone so quickly after contacting your congressman is encouraging. Has anyone found it helpful to proactively gather documentation before the TAS advocate asks for it? I'm wondering if I should start organizing W-2s, receipts, etc. now rather than scrambling later when they inevitably ask for "additional information" like they seem to do with everyone. Thanks to everyone for sharing their experiences - it's reassuring to know there's actually a process that works, even if it takes longer than we'd like!

As someone new to this community and currently dealing with my first major tax delay, I just wanted to say how incredibly helpful this entire thread has been! I'm about 3 weeks into my own congressional inquiry process after being stuck in the dreaded "additional information needed" limbo for months. Reading through everyone's timelines and experiences has given me so much more confidence that there's actually a structured process behind all this chaos. The specific advice about transcript codes from @Isabella Russo is gold - I had no idea those codes could give you real insight into what's actually happening with your return instead of just generic "under review" messages. @Emily Nguyen-Smith, your military paperwork comparison made me laugh out loud! At least with tax refunds, we eventually get our money back instead of just more forms to fill out. 😂 I'm bookmarking this thread to reference as my case progresses. Thanks to everyone for sharing their experiences and creating such a supportive space for those of us navigating this frustrating process. Hopefully I'll be back in a few weeks with my own success story to add to the collection!