Don't forget the statute of limitations on this! If your car was repossessed in 2021 but the lender is just now sending the 1099-C in 2025, something seems off. The IRS generally requires lenders to issue the 1099-C in the year the debt was actually canceled, not years later.

@Mae Bennett, I went through something very similar when my truck was repossessed in 2022. The timing confusion is totally normal - lenders often wait months or even years before officially "canceling" the remaining debt, especially if they're still trying to collect or if the debt gets sold to collection agencies. Here's what I'd recommend: First, call the original lender (not any collection agency) and ask specifically about the 1099-C status. Get the exact date they consider the debt "canceled" - this determines which tax year it applies to. If they canceled it in 2024, it affects your 2024 taxes. If it was 2023, you might need to amend that return. The good news is you have options even without the physical form. Keep that official notice you received as documentation. You can report the canceled debt amount on your tax return using the information from that notice. Just make sure to explore the insolvency exclusion others mentioned - if your total debts exceeded your assets when the debt was canceled, you might not owe any taxes on it at all. Don't stress too much about "getting in trouble" - the IRS deals with missing 1099-C situations all the time. As long as you report the income (or properly exclude it), you'll be fine.

A big thing to ask is whether the buyer will want a covenant not to compete as part of the deal. This is super common with service businesses like property management. If they do, just know that payments for these are ordinary income, not capital gains. Sometimes buyers try to allocate a big chunk of the purchase price to the non-compete to get a faster deduction, while you'd prefer more allocated to goodwill for the capital gains rate.

Great point about the covenant not to compete! This is definitely something to negotiate upfront. In your case with the property management business, they'll likely want some kind of non-compete since you have existing relationships with landlords in the area. One strategy is to propose a shorter non-compete period (maybe 2-3 years instead of 5) with a smaller allocation, then push for more of the purchase price to be attributed to goodwill and the management contracts themselves. You might also consider whether there are any accounts receivable or prepaid management fees that should be allocated separately - those would be ordinary income anyway, so better to identify them clearly rather than have them lumped into other categories. Since you mentioned all the contracts were self-created, document that well. It supports treating them as part of the overall business goodwill rather than separately purchased intangible assets, which generally favors capital gains treatment when selling the entire business.

Wondering if either of you have student loans? This literally changed everything for my wife and me when we got married. If either of you are on income-based repayment, filing separately could save thousands in student loan payments even if you pay slightly more in taxes.

Great question! Since you're getting married in October, you'll be considered married for the entire 2024 tax year regardless of living separately. Here are the key things to consider: **Filing Status**: You'll have two options - Married Filing Jointly (MFJ) or Married Filing Separately (MFS). Head of Household won't be available once you're married. **W-4 Updates**: Yes, update your W-4s soon! With your combined income of ~$295k, you'll likely be in a higher tax bracket and may need to adjust withholdings to avoid underpayment penalties. **Children**: If filing jointly, you can claim both kids on one return. If filing separately, each claims their own child. **Property Considerations**: Since you both own homes, pay attention to the SALT deduction cap ($10k jointly vs $10k each if filing separately). With two properties, you might exceed this limit. **Run Both Scenarios**: Given your income levels and dual home ownership, definitely calculate both MFJ and MFS. Sometimes MFS works better despite losing some tax benefits, especially if you have high property taxes or state income taxes. The living situation doesn't matter for tax purposes - only your legal marital status on December 31st counts. I'd recommend using tax software to model both scenarios before deciding!

I went through something very similar last year! The timing of these notices can be really confusing because they're often generated automatically by the IRS computer system without considering recent payments. Here's what I'd recommend: First, check your bank account to confirm your payment cleared. Then, set up an online account at IRS.gov if you haven't already - this will show your most current balance and payment history. The online account updates faster than their notice system. Based on the amounts you mentioned ($1,492 vs $1,495.58), it does look like the CP22A is showing the original amount plus a small amount of interest that accrued before your payment was processed. This is completely normal. If your online account shows a zero balance or only a small remaining balance after your payment posts, then you know you're in good shape. If it still shows the full amount after 2-3 weeks, then you'll want to contact them with proof of your payment. Don't stress too much - this timing issue happens to a lot of people, especially during busy tax seasons. The IRS notices often cross in the mail with payments, creating this exact confusion you're experiencing.

I've been through this exact situation! The CP22A is almost certainly related to your CP2000 payment, and the small difference ($3.58) is likely interest that accumulated between when the original notice was generated and when your payment was processed. Here's what I'd do in your shoes: 1. **Check your bank** - Make sure your $1,492 payment has cleared 2. **Set up IRS online account** - Go to IRS.gov and create an account to see your current balance in real-time. This updates much faster than their notice system 3. **Wait 2-3 weeks** - Give the IRS time to process and apply your payment to your account 4. **Only pay the difference** - If your online account shows you only owe the small interest amount after your payment posts, just pay that The IRS computer system generates these notices automatically, often before recent payments are fully processed in their system. It's super common for the CP22A to cross in the mail with your payment, creating exactly this kind of confusion. Don't panic - you're handling this correctly by paying promptly. Just give their system time to catch up, and use the online account to see your true current status rather than relying on potentially outdated paper notices.

I'm dealing with a CP05 notice right now too, and the anxiety is real! Filed in early March and got the notice last week. What's been driving me crazy is not knowing WHY they're reviewing it - like you, everything seemed straightforward on my return. I've been reading that these reviews have become much more common lately, especially for returns with education credits (which I also claimed). The waiting game is brutal when you're counting on that money for expenses. One small tip that's helped my peace of mind: I screenshot my "Where's My Refund" status every few days so I can actually see if anything changes, rather than just relying on memory. The status hasn't updated yet, but at least I feel like I'm doing something! Keep us posted on how it goes - hoping we both get good news before the full 60 days are up! 🤞

I'm going through the exact same thing right now! Filed my return in early March and just got my CP05 notice yesterday. Like you, I was really counting on that refund for some upcoming bills and the 60-day wait is stressing me out. What's been helpful for me is remembering that this is actually pretty routine - my accountant told me these reviews have become way more common since the IRS is trying to prevent fraud. She said most of her clients who get CP05 notices end up getting their full refund, just with the delay. I've been checking the "Where's My Refund" tool obsessively (probably not healthy lol) but at least it gives me something to do while I wait. The hardest part is just not knowing exactly what triggered the review. Hang in there - from everything I've read here and elsewhere, the odds are really good that you'll get your refund once they finish their verification. The waiting just sucks when you need the money! 🤞