I'm a real estate tax guy and see this situation all the time with clients. Here's my take: You absolutely need to report your portion of the 1031 exchange on your personal return, which typically means filing Form 8824. The key thing most limited partners miss is that you need to adjust your basis in the new partnership interest. The exchange doesn't reset your basis - it carries over from your old partnership interest (with some possible adjustments). If you don't track this correctly, you could end up paying too much tax when you eventually sell or paying tax on phantom income during ownership. Also, check if you received any cash or other non-like-kind property (boot) as part of the exchange. That would be immediately taxable even though the main gain is deferred.

Has anyone used TurboTax for reporting a K-1 from a 1031 exchange? I'm trying to figure out if I need to upgrade to their business version or if the premier version can handle this. Their support wasn't very helpful when I asked about form 8824.

I'm going through this exact same situation right now! Got my 2023 1095-A last week and sure enough - all zeros in Column B again. It's so frustrating that this keeps happening year after year. What really helped me understand this better was realizing that the zeros don't mean you did anything wrong. The marketplace systems seem to default to zeros when you pay full premium, even if you're actually eligible for tax credits based on your income. It's like they're saying "we didn't give you advance credits, so figure out what you're owed when you file your taxes." For anyone still confused about the process: when you use the SLCSP tool on healthcare.gov, make sure you enter the EXACT same information that was used when you originally enrolled (same zip code, household size, etc.). The SLCSP amount being higher than what you actually paid is actually a good thing - it means you were paying less than the benchmark plan, which is why you qualify for credits. I'm definitely going to file my 2023 return soon and not wait for my 2022 situation to resolve. Based on everyone's experiences here, it sounds like each tax year is handled separately by the IRS anyway. Thanks to everyone who shared their stories and solutions - this thread has been incredibly helpful for understanding what seemed like an impossible situation!

As someone who went through this exact 1095-A nightmare last year, I want to emphasize something important that might help with processing delays: when you file with the SLCSP amounts, make sure your tax software is calculating Form 8962 (Premium Tax Credit) correctly. I discovered that some tax software doesn't handle the "zeros in Column B" situation properly and can miscalculate your premium tax credit. This can trigger additional IRS reviews that delay your refund for months. Here's what worked for me: Before submitting, double-check that Form 8962 line 11 shows your actual monthly premiums paid (Column A amounts), and lines 12-24 show the SLCSP amounts you looked up, NOT zeros. The difference between these should equal your premium tax credit. Also, keep records of exactly how you looked up your SLCSP amounts - screenshot the healthcare.gov tool results, note the zip code and household size you used, etc. If the IRS has questions later, having this documentation readily available can speed up the resolution process significantly. The good news is that once you get through this process once and understand how it works, future years become much easier to handle. Don't let the zeros discourage you from claiming credits you're legitimately entitled to!

Has anyone tried setting up a Donor Advised Fund? My accountant mentioned this as a way to bunch deductions like someone mentioned above, but still distribute the donations to our church over time. Apparently you get the tax deduction when you fund it, not when the money actually goes to the charity?

I've been dealing with a similar situation with my small accounting practice LLC. One thing that's worked well for me is creating a clear separation between personal charitable giving and business community involvement. For my personal church donations (which are the majority), I use the bunching strategy someone mentioned above - I'll make 2-3 years worth of donations in December of alternating years to get over the standard deduction threshold. This at least gets me some tax benefit every few years. For my business, I focus on sponsorships and community involvement that have clear promotional value. For example, I sponsor our local church's financial literacy workshops and provide free tax prep seminars. I get my business name on materials, build relationships with potential clients, and can deduct these as legitimate marketing expenses. The key is making sure there's a genuine business purpose beyond just charitable giving. The documentation piece is crucial - I keep detailed records of any promotional materials, take photos of signage, and get written acknowledgments that specify what business benefit I received. This way if I ever get audited, I can clearly show these weren't just disguised charitable contributions. It's definitely possible to structure some of your giving to get tax benefits, but you need to be strategic about separating personal charity from legitimate business marketing expenses.

Do these update times apply to amended returns too? I filed a 1040X back in March and haven't seen any movement on the Where's My Amended Return tool.

Amended returns follow a completely different timeline than regular returns. The Where's My Amended Return tool typically updates every 3 weeks, not daily like WMR. According to IRS Publication 556, amended returns can take 16+ weeks to process, and the online tool reflects this slower pace. You won't see frequent updates like with regular returns - it's more of a "submitted/processing/completed" status that changes in major milestones rather than incremental daily updates.

Has anyone tried using the IRS's own penalty calculator on their website? I used it when I filed late last year and found it pretty accurate. You just enter some basic info from your tax return and when you plan to pay, and it estimates the penalties and interest.

As someone who's been through this exact situation, I completely understand your in-laws' hesitation! The anxiety of not knowing the exact amount can be paralyzing. Here's what I learned from my experience: The most important thing is to pay the amount shown on their completed tax return IMMEDIATELY. Every day they wait, more interest and penalties accrue. The IRS charges 0.5% per month for failure to pay, plus daily compounding interest. Since their online account isn't showing the debt yet (this is normal - it can take weeks or months to update), they should make the payment using Form 1040V or through EFTPS (Electronic Federal Tax Payment System) with their SSN and tax year. For the penalties and interest calculation, they have a few options: 1. Pay the base amount now, wait for the IRS notice (6-8 weeks typically) 2. Call the IRS at 1-800-829-1040 for current total (prepare for long hold times) 3. Use the IRS penalty calculator, though it can be tricky to navigate The key is getting that base payment in ASAP to stop the bleeding. They can always pay any additional penalties when they get the official notice. Better to have the IRS owe them a small refund than to keep accumulating charges!