Has anyone successfully e-filed with a Form 3115 attachment using TurboTax? I'm getting conflicting info about whether it's possible or if you have to paper file the entire return when using Form 3115.

I went through a similar Form 3115 situation last year for incorrect depreciation on my rental property, and I can confirm you're handling it correctly! The key things that tripped me up initially were the timing and making sure all the pieces fit together properly. Your approach of adding the overclaimed depreciation as miscellaneous expenses is spot on - that's your Section 481(a) adjustment. And yes, overriding TurboTax's depreciation calculation is necessary since you need to use the correct basis going forward. One thing to double-check: make sure your Form 3115 statement clearly shows the calculation of how you arrived at the adjustment amount. The IRS wants to see the math - like original purchase price vs. what was used for depreciation, years affected, and the total overclaimed amount. The $65 refund reduction sounds reasonable for a depreciation correction. That's essentially the tax impact of "catching up" the excess depreciation you claimed in previous years. For the filing process, you're correct about mailing Form 8453 and the 3115 copy with your e-filed return, plus sending the original 3115 to Covington. Just make sure to send the Covington copy no later than when you e-file - I sent mine certified mail the same day I e-filed for peace of mind. The good news is once this is filed, your depreciation will be on the right track going forward. It's always better to correct these things proactively rather than having the IRS catch it later!

I just want to echo what everyone else is saying - your parents' concerns are totally normal, but they're worrying unnecessarily! I'm a tax professional and see this confusion all the time. The simplest way I explain it to clients is this: Think of gift tax like a credit card with a $13+ million limit. The annual exclusion ($18k per person in 2024) is like paying with cash - no tracking needed. Anything above that is like putting it on the "credit card" (lifetime exemption) - you need to report it with Form 709, but you don't actually "pay the bill" (owe gift tax) until you max out that enormous credit limit. For your $200k situation: Your parents could give $72k total with zero paperwork ($18k from each parent to both you and your spouse). The remaining $128k would just need to be reported on Form 709 - no tax owed. One thing that might help convince them: have them look up their state's gift tax rules too. Most states (including the big ones like California, Texas, Florida) don't even have their own gift taxes, so this is purely a federal issue with those generous federal exemptions. The bottom line: unless your parents are secretly millionaires planning to give away over $27 million as a couple during their lifetimes, they'll never pay gift tax on helping with your house!

I'm dealing with almost the exact same situation right now! My parents want to help with a $185k down payment but they've been reading scary articles online about gift taxes and are convinced they'll owe thousands in penalties. What's been most helpful in our discussions is pointing out that the IRS designed these rules specifically to handle wealthy families transferring millions - not middle-class parents helping their kids buy homes. The $13.61 million lifetime exemption is intentionally huge because it's meant to catch people with serious wealth, not parents contributing to down payments. I've been trying to find simple ways to explain this to them, and honestly the analogies people have shared here (like the credit card example) are so much clearer than anything I found in official IRS publications. Sometimes you need to translate the tax code into everyday language! One thing that helped move the needle with my parents was showing them that even if they give us the full amount this year AND decide to help my sister with her house next year, they'd still only use up maybe 3% of their lifetime exemption. When they realized how much cushion they actually have, it made the whole thing feel much less risky. Has anyone found success with specific IRS resources that are particularly parent-friendly? I'm still working on convincing mine, and having some official documentation that's written in plain English would be really helpful.

Anyone know how the amortization works for the amounts above $5,000? My startup costs were about $8,200 and organizational were about $2,800. I understand I can deduct $5k of startup costs immediately, but how do I handle amortizing the remaining $3,200?

This is such a helpful thread! I'm in a similar situation with my new single-member LLC and had been stressing about these deductions. One thing I want to add - make sure you keep really detailed records of what you spent and when. I created a spreadsheet categorizing each expense as either startup or organizational from day one, which made tax prep so much easier. Also, for anyone wondering about timing - the IRS considers your business to have "begun" when you start offering goods/services to customers, not when you filed your LLC paperwork. So expenses before that date are typically startup/organizational, while expenses after are regular business deductions. This distinction was crucial for me since I had some overlap expenses right around my launch date. The election statement requirement that @Manny mentioned is super important - I almost forgot to include it and caught it at the last minute. Better to be safe than sorry with the IRS!

mine came through last week! took 97 days total. check your transcripts daily, thats how i knew it was coming

Been through this exact same situation last year. Got the 60-day letter in March, didn't see my refund until mid-July (about 110 days total). The waiting is brutal but most people do eventually get their money. The key is staying on top of your transcript - once you see the 846 code appear, your refund usually hits within a week. Don't give up hope!

Has anyone used the IRS online payment system when filing Form 8832? There's a user fee for late elections if you request a private letter ruling, but the IRS website is so confusing about how to actually pay it.

I went through this exact same situation with my LLC about 6 months ago! At $85,000 projected income, you'll definitely want to run the numbers carefully before electing corporate treatment. One thing that really helped me was creating a simple spreadsheet comparing the tax scenarios. As a single-member LLC (assuming that's your situation), you'd pay self-employment tax on the full $85K under default treatment. But with corporate election, you'd face potential double taxation if you take distributions. The sweet spot for corporate treatment is usually when you can justify a reasonable salary (subject to payroll taxes) that's lower than your total profit, leaving the remainder as retained earnings taxed at corporate rates. But at $85K, this might not provide much benefit. Also, don't forget about state considerations - some states have minimum franchise taxes for corporations that could eat into any federal tax savings. I'd strongly recommend running the actual numbers with a tax pro before making the election, especially since you can't easily reverse it once made. The 75-day window Keith mentioned is crucial - mark your calendar! And if you do elect corporate treatment, make sure you're prepared for the additional compliance requirements like corporate tax returns and payroll processing.