Not sure if this helps, but I bought a patent last year and my tax guy told me the key thing is whether you aquired any "goodwill" along with it. Since my patent was for a completely different industry than my business operates in, it was clearly just an asset purchase and not part of aquiring any business operations. I was able to amortize it over its useful life (10 yrs in my case) instead of the 15-year 197 schedule.

Based on everything discussed here, it really sounds like your patent purchase wouldn't qualify as a Section 197 intangible. The fact that you bought it as part of a liquidation sale with no transfer of business operations, goodwill, or customer relationships is key. One thing I'd add is to make sure you have proper documentation of the patent's remaining useful life for your amortization calculation. Since you mentioned it has 12 years left, you'll want to support that with the original patent filing date and term. The IRS sometimes challenges useful life determinations, so having the USPTO records showing the exact expiration date will be helpful. Also, since you paid $87,000 for the patent "along with some other property," make sure you properly allocate the purchase price between the patent and the other assets. You can only amortize the portion specifically attributable to the patent itself.

Don't forget about state taxes! Even if you understand the federal NRA rules, many states have their own withholding requirements for non-residents selling property. California was brutal with a mandatory 12.3% withholding on top of the federal FIRPTA withholding when I sold my San Diego property. Arizona has their own withholding for non-residents too, I think it's around 2-4% depending on the sale price. Massachusetts might have something similar for your Boston property.

This is such a helpful thread! I'm in a similar situation - moving back to the UK next year and have been stressing about the tax implications of selling my Denver condo. One thing I wanted to add that might help others: if you're planning to maintain any US ties (like keeping US bank accounts or investment accounts), make sure you understand how that might affect your NRA status determination. I learned from my tax advisor that the IRS looks at the totality of your connections to determine tax residency, not just the day count. Also, regarding the substantial presence test - don't forget that days when you're in the US for medical treatment or as a student can be excluded from the count in certain situations. There are some nuances that might help if you're borderline on the 31-day/183-day thresholds. The state withholding point is crucial too. Colorado has its own withholding requirements, and I discovered that some states don't have reciprocal agreements with certain countries' tax treaties, so you might get federal relief but still face state-level complications. Thanks everyone for sharing your experiences - this community is invaluable for navigating these complex situations!

Just a tip from someone who learned this the hard way - for next year, consider trading in tax-advantaged accounts like IRAs for some of your trades. Wash sale rules don't impact the tax consequences inside those accounts since you're not reporting gains and losses annually anyway.

I feel your pain - went through something very similar last year with day trading crypto. The wash sale rules are brutal when you're actively trading the same securities. One thing that helped me was getting organized with exact documentation of every trade and the dates. If you haven't already, make sure you have detailed records of all your trades with exact buy/sell dates and amounts. Sometimes there are calculation errors on the 1099s, and having your own records can help identify discrepancies. Also, if you sold any of those positions with built-in disallowed losses in early 2025 (and didn't repurchase within 30 days), you might be able to carry some of those losses forward. Definitely worth consulting a CPA who specializes in trading taxes - they've seen this situation countless times and might spot something you missed. The $8k tax bill is painful, but don't give up without exploring all options first.

Has anyone here actually calculated what the penalty would be for a missed Q4 payment? I'm trying to figure out if it's worth the hassle of making a separate payment now vs just handling it when I file in April. If I owe roughly $2,000 for Q4, how bad would the penalty be?

For the IRS website issue, you're absolutely right - since we're in 2025 now, the estimated tax payment option defaults to the current year. The workaround is to use "Make a Payment" and select "Apply Payment to Account" or "Amount Owed" instead of the estimated tax option. When you get to the payment screen, you can specify tax year 2024. Regarding the 1040-ES form - your buddy is partially right. You don't need to mail the form to the IRS, but you should still use it to calculate the correct payment amount rather than just guessing based on tax brackets. The form accounts for your specific situation, deductions, and credits. It's worth the 20 minutes to fill out, especially as a new self-employed person. Don't wait until you file your return. The underpayment penalty starts accruing from the original due date (January 16, 2025 for Q4 2024), not when you file. Even if the penalty isn't huge, making the payment now shows good faith and stops the daily interest charges. Plus, you'll have one less thing to worry about when tax season gets hectic. Welcome to self-employment! The estimated tax system takes some getting used to, but you'll get the hang of it.

Something else to consider - did the executor file an estate tax return (Form 706) if required? If the estate was over the filing threshold, this is separate from the individual beneficiary obligations. If the estate included other assets besides the mobile home, you might need to look at the bigger picture.

This is a really complex situation, and I can see why you're confused! Based on what you've described, there are a few key things to consider: First, the stepped-up basis rule that others mentioned is crucial here. When your father-in-law passed away, the mobile home's tax basis "stepped up" to its fair market value at the date of death, not the original $65,000 purchase price. So if it was worth close to $97,500 when he died, there might be very little taxable gain. Regarding who owes the taxes - this gets tricky with your arrangement. Technically, whoever is named on the sale documents (the one person who received the proceeds) would be responsible for reporting the sale on their tax return. However, since they immediately distributed the money according to a signed contract, each beneficiary should report their proportional share of any taxable gain. I'd strongly recommend getting documentation to establish the mobile home's fair market value at the date of death - this could be through comparable sales, dealer estimates, or even a retroactive appraisal. Without this, you're essentially guessing at your tax liability. Also, don't forget about state taxes! Some states have inheritance taxes that are separate from federal requirements, and mobile home transfers might have specific state-level procedures. Given the complexity and the fact that mobile homes have unique tax treatment, you might want to consult with a tax professional who has experience with inherited property. The cost of professional advice could save you much more in potential penalties or overpaid taxes.