The classification rules can definitely be tricky! One thing I'd add to the great advice already given - make sure you understand the difference between repairs and improvements when calculating your deductions. Repairs (like fixing a broken faucet or repainting) can be deducted in full the year you make them, but improvements (like adding a deck or renovating a kitchen) have to be depreciated over time. This distinction can really impact your first-year deductions if you're planning major work before renting. Also, since you mentioned buying with cash, don't forget about the startup costs associated with getting the property rental-ready. Things like advertising, professional photography for listings, legal fees, and even the cost of researching comparable rentals in the area can be deductible business expenses. One more tip - consider whether short-term rentals (like Airbnb) vs long-term rentals make more sense for your situation. Short-term rentals often generate higher income but require more active management, while long-term rentals might be easier to manage but could affect how the IRS views your level of participation in the rental activity. The LLC is definitely worth considering for liability protection, especially with short-term rentals where you have more turnover of guests. Just remember you'll still need to follow all the same tax classification rules regardless of the business structure.

This is such a helpful discussion! I'm dealing with a similar situation with a property I'm considering in Florida. One thing I wanted to add that might be useful for your planning - don't forget about state tax implications too. Some states have their own rules for vacation rental properties that can differ from federal treatment. Also, regarding your question about forming an LLC - while it doesn't change the federal tax classification rules, it can make bookkeeping cleaner. I ended up setting up a separate business bank account which makes tracking rental income and expenses much easier come tax time. Plus, some business credit cards offer better rewards for property-related purchases. One expense category I didn't see mentioned much is professional services beyond just property management. Things like having an annual inspection, pest control services, or even hiring someone to winterize the property (if applicable in your area) are all deductible business expenses that can add up. Since you're doing cash flow projections, make sure to factor in that with second home treatment, you can't use rental losses to offset other income - they can only offset rental income from that property or be carried forward. This could impact your break-even timeline depending on your expected rental income vs expenses in the first few years. Good luck with your purchase! Having this knowledge upfront will definitely help you make better decisions.

I'm dealing with the exact same situation right now! Filed through TurboTax about 2 weeks ago, WMR tool shows it was deposited Tuesday but my Chase account is still empty. Called my bank and they confirmed nothing was received on their end. It's so frustrating when the IRS system says one thing but reality is completely different. I'm going to wait until early next week like others suggested before calling the IRS directly. Really hoping it just shows up randomly like some people mentioned. Keep us updated on what happens with yours!

This is such a common issue during tax season! I went through the exact same thing last year with TaxSlayer. The "Where's My Refund" tool said my deposit was sent on a Wednesday, but it didn't actually hit my account until the following Tuesday - 6 days later. I called my bank multiple times and they kept saying they hadn't received anything, which made me panic. Turns out the IRS marks refunds as "sent" when they're just approved for processing, not when they're actually transmitted to your bank. The ACH system can take several more business days after that. Since you're only at Thursday and it showed as deposited Monday, I'd definitely give it until early next week before getting too worried. The timing sounds totally normal based on my experience. Hang in there!

I experienced this last year. It took 2 weeks to get a letter asking me to verify my identity, then another 3 weeks for them to process it after I verified. The whole thing took about 5-6 weeks total from when I first saw that message until I got my refund. Super annoying but pretty routine these days.

I went through this exact same situation last month! The "Action Required" message is basically the IRS's way of saying they need to take a closer look at your return before releasing your refund. Since you filed Head of Household, they're probably going to verify that you actually qualify for that filing status - it's one of the most commonly reviewed areas. Here's what I learned from my experience: Don't just wait around doing nothing. Get your account transcript from irs.gov right now so you can see what specific codes they've put on your account. The transcript will show you exactly what type of review they're doing (identity verification, dependent verification, income matching, etc.). The letter will eventually come (took about 2.5 weeks for me), but knowing what's happening ahead of time will save you stress and help you prepare the right documents. When I got my letter, they wanted proof that my kids lived with me - school enrollment records, medical records showing my address, etc. My refund was released about 10 days after I sent in the requested documentation. The key is responding quickly and completely once you get their letter. Good luck!

I completely understand your anxiety - that "Action Required" message is one of the most stressful things to see when you're counting on your refund! I went through something very similar last year. Here's what I've learned from my experience and from helping others in this community: **The good news:** Most people who see this message (especially with EIC claims like yours) end up getting their refund without having to do anything. The IRS often resolves these reviews internally. **Timeline expectations:** Based on what I've seen, EIC reviews typically take 3-6 weeks from when the message first appears. Since you're claiming EIC, this is likely just their standard fraud prevention check - totally routine. **What to watch for:** - If they need something from you, you'll get a letter (usually CP75, 4883C, or 5071C) - No letter after 2-3 weeks is usually a good sign - Keep checking WMR - it could switch to approved any day **My recommendation:** Wait another 1-2 weeks before taking any action. If you're still seeing the message after that and no letter arrives, then consider using one of the callback services others mentioned or checking your transcript for more details. The waiting is absolutely brutal when you need that money, but try to stay patient. The system is slow, but it usually works out in the end. Keep us posted on what happens!

I totally get the stress you're feeling - that "Action Required" message is like a punch to the gut when you're counting on your refund money! I had the exact same thing happen to me earlier this year. In my case, the message appeared after about 2 weeks of normal processing and stayed there for almost a month. I was checking WMR obsessively every day (sometimes multiple times a day, not gonna lie). Never got any letter in the mail, and then one random Tuesday morning I checked and it had switched to "Refund Approved" with a DDD for that Friday. Since you mentioned claiming EIC, that's almost certainly what triggered the review. The IRS does automatic fraud checks on EIC returns because there's so much abuse with that credit. But if your info is legit (which I'm sure it is), you should be fine. My advice: Try not to drive yourself crazy checking WMR constantly (easier said than done, I know!). Most people in your situation get their refund without having to do anything - the review just takes time. If you hit the 6-week mark with no movement, that's when I'd consider using one of those callback services to talk to an actual human. The waiting sucks, but hang in there! You're probably closer to resolution than you think.

Just a heads up based on my experience - if the stocks were held in a trust before your mom's death, but it was a irrevocable trust (not the typical revocable living trust), the step-up rules might be different. Most pour-over wills work with revocable living trusts, but it's worth confirming. We had a complicated situation where my grandma had created an irrevocable trust years before her death, and those assets didn't qualify for the same step-up in basis. Caused a lot of confusion when we were settling her estate.

I'm sorry for your loss and the confusion you're dealing with during an already difficult time. Based on what you've described, it sounds like there may have been a significant error in how the stock sales were handled. For a typical revocable living trust (which is what most pour-over wills work with), assets should receive a step-up in basis to fair market value as of the date of death. This means if your mom's stocks were worth $340,000 when she died, that becomes the new "cost basis" - so selling them shortly after for the same amount should result in little to no capital gains tax. The fact that they paid taxes on the entire $340,000 suggests they may have used your mom's original purchase price as the basis instead of the stepped-up value at death. This could be a very expensive mistake. I'd strongly recommend: 1. Get copies of all trust documents to confirm it's revocable 2. Obtain documentation of the stock values on the date of death 3. Have the trustee consult with an estate tax professional immediately 4. Consider filing amended returns if an error was made Given the amounts involved ($67,500 in taxes potentially overpaid), this is definitely worth pursuing professionally. Time may be limited for amendments, so act quickly.