Has anyone here dealt with the depreciation recapture tax when selling? That's my biggest hesitation with bonus depreciation. Sure you save taxes now, but when you sell you pay up to 25% on all that depreciation. Does anyone have experience with how this plays out in real life?

Great discussion here! As someone who's dealt with similar multi-building commercial properties, I'd strongly recommend getting that cost segregation study done immediately after closing. With 11 buildings totaling $1.7M, you're likely looking at substantial components that can be reclassified for accelerated depreciation. Given your high W-2 income of $260k, bonus depreciation could provide significant tax savings by offsetting your ordinary income at higher tax rates. Even though bonus depreciation is phasing down (80% in 2025), that's still a massive deduction opportunity on eligible components. One thing to consider with your long-term hold strategy: you might want to model out scenarios where you do a cash-out refinance in 10-15 years instead of selling. This would allow you to pull out equity tax-free while continuing to depreciate the property and avoiding recapture entirely. With 11 separate buildings, you also have flexibility to potentially sell individual buildings over time rather than the entire portfolio at once, which could help manage your tax liability. The key is running the numbers on your specific situation - your current tax bracket, projected future income, and exit strategy timeline all factor into whether maximizing bonus depreciation now makes sense.

I think you might be running into a classic depreciation recapture issue, but the $5,000+ tax increase seems way too high for your situation. Here's what's likely happening: When you used the standard mileage rate for your 7,500 business miles, you effectively claimed about $2,025 in depreciation (27 cents per mile for 2024). The IRS now wants to "recapture" some of that depreciation when you sell the vehicle. However, since you had an overall loss on the vehicle ($41,000 purchase vs $38,200 sale), the recapture should be limited. The business portion of your loss would be about $504 (18% of the $2,800 total loss), but you'd still need to recapture the depreciation you claimed. A few things to double-check: 1. Make sure you're calculating business use percentage correctly across the entire ownership period, not just 2024 2. Verify that TurboTax is properly accounting for the depreciation component of your standard mileage deductions 3. Check if the software is correctly limiting recapture to the actual depreciation claimed That tax increase suggests something is being calculated incorrectly. I'd recommend running through the numbers manually or trying a different tax software to compare results before filing.

I ran into this exact same issue when I sold my delivery vehicle last year! The $5,000+ tax increase definitely seems wrong - that's way too high for your situation. Here's what I learned after going through this mess: TurboTax sometimes doesn't handle partial business use vehicle sales correctly, especially when you're using the standard mileage rate. The software can get confused about how to calculate the depreciation recapture portion. Based on your numbers, your actual taxable gain should be much smaller. You had 18% business use on a vehicle that lost value overall ($41K to $38.2K), plus you only claimed about $4,387 in total mileage deductions (7,500 miles × $0.585). The depreciation component of that would be around $2,025 (7,500 × $0.27). A few things that helped me figure it out: 1. Double-check that you entered the original purchase price correctly in the business asset section 2. Make sure the software is using 2024's depreciation rate (27 cents per mile) not 2023's rate 3. Verify it's calculating business percentage correctly I ended up having to manually override some of TurboTax's calculations after consulting with a tax pro. The actual taxable amount was less than $800, not the $5,000+ the software initially calculated. Definitely get a second opinion before filing - this could save you thousands!

Just wondering - what site did your coworker use that got her a bigger refund? Maybe worth checking out for next year even if you can't file twice this year.

I totally understand the temptation to try filing again, but as others have mentioned, you really can't file a second return for the same tax year. The IRS system will reject it outright since your SSN has already been used. However, your coworker's situation might be totally different from yours - she could have different deductions, credits, or filing status that you don't qualify for. The difference in her refund might not apply to your situation at all. If you're really concerned you missed something, I'd suggest doing a quick review of common deductions people forget: student loan interest, charitable donations (even small ones), work-from-home expenses if you were remote, educator expenses if you're a teacher, or state and local tax deductions. You can also check if you qualified for any credits like the Child and Dependent Care Credit or Education Credits. If you find something significant you missed, then file Form 1040-X to amend your return. But honestly, if TurboTax walked you through everything and you answered the questions accurately, you probably didn't miss much. The peace of mind might not be worth the hassle unless you discover something really substantial.

Has anyone noticed a pattern with verification timing? I verified on March 22, 2024, and I'm wondering if there's a specific day of the week when updates typically happen. My last refund (2022 filed in April 2023) updated on a Wednesday night, but I'm not sure if that's consistent for post-verification updates.

I completed ID verification through ID.me on March 15th and finally saw movement on April 2nd - so about 18 days total. Here's what I learned from tracking my case closely: **Key observation points:** • Transcript updates typically happen overnight Tuesday-Wednesday or Wednesday-Thursday • Look for code 971 (notice issued) followed by 290 (additional account action) • My WMR didn't update until 3 days AFTER my transcript showed the codes • Direct deposit date appeared 5 days after the 290 code posted **Timeline breakdown:** - 3/15: Verification completed - 3/29: Still no updates (was getting worried) - 4/2: Transcript updated with 971/290 codes - 4/5: WMR finally showed "approved" - 4/7: DDD appeared - 4/10: Funds deposited The 2-3 week range seems most accurate based on my experience. The 9-week estimate they give is definitely worst-case scenario. I checked transcripts every Wednesday/Thursday as others suggested - that timing was spot on for when updates actually happened.

I've analyzed approximately 50 cases of post-verification processing patterns this season as part of a data collection project. The current verification backlog is causing significant delays compared to previous years. Technically speaking, the Identity Verification Program (IVP) follows this sequence: 1. Initial verification triggers Transaction Code (TC) 971 with Action Code (AC) 123 2. Successful verification generates Internal Processing Code (IPC) 0121-XX 3. System then removes the Refund Hold Indicator (RHI) via TC 571 4. Final processing occurs with Refund Release Authorization (RRA) and TC 846 The median processing time post-verification is currently 21 days, with a standard deviation of 8.4 days. Approximately 12% of cases experience extended delays of 45+ days due to Secondary Review Protocol (SRP) selection. I recommend documenting all verification confirmation numbers and checking transcripts weekly rather than daily.

Been through this three times now. Different every year. Verification is faster now. Online is quicker than phone. Phone is quicker than in-person. Don't trust WMR. Transcripts tell the real story. Most people see movement within 3 weeks. Some wait 2 months. No rhyme or reason to it. Just how the IRS works. Keep all verification confirmation numbers. Take screenshots. Document everything. Makes life easier if you need to call.