Question - I'm planning to hold my property for only 5-7 years. Does a cost segregation study still make sense in that case? I've heard there can be depreciation recapture issues when you sell.

I've been through this process twice now with different commercial properties, and I want to echo what others have said about not doing it yourself. The IRS Audit Techniques Guide for Cost Segregation is incredibly detailed and technical - it's not just about identifying components, but properly valuing and documenting them according to specific engineering principles. One thing I learned the hard way on my first property: make sure whoever you hire has experience with your specific property type. Industrial buildings have different segregation opportunities than office buildings or retail spaces. The cost segregation specialist should be familiar with the construction methods and systems typical to your property type. Also, don't forget about the "lookback" provision if you've owned the property for a while. You can still do a cost segregation study on properties you've owned for years and capture missed depreciation through a Form 3115 (Application for Change in Accounting Method). This can result in a significant one-time deduction in the year you file the study. The upfront cost stings, but the cash flow benefits are real. On my 1.2M industrial property, the study cost $12k but generated about $180k in additional depreciation deductions over 7 years.

I totally get your stress about this! I went through something similar a few months back. The 290 code with $0.00 is actually pretty common - it's basically the IRS saying "we looked at this, made an adjustment, but it didn't change anything." Since your 571 code posted (which releases holds), you're probably in the clear. I'd suggest checking your transcript weekly and keeping an eye on your mailbox for the next 2-3 weeks. If nothing shows up, you're golden! The IRS loves their cryptic codes, but in this case, no news is usually good news. Hope this helps ease your mind a bit! 🤞

As someone who's been through the IRS maze a few times, I can definitely relate to the anxiety these codes cause! The good news is that a 290 code for $0.00 combined with a 571 code is actually a pretty positive sign. It typically means the IRS reviewed something on your return, made a technical adjustment that didn't impact your bottom line, and then released any holds they had on your account. I'd recommend downloading the IRS2Go app if you haven't already - it makes checking your transcript super easy. Also, don't be afraid to call if you're still worried after a couple weeks. The wait times are brutal, but sometimes talking to a real person can give you peace of mind. Hang in there - you're probably closer to resolution than you think! 🙂

I've dealt with this exact issue before and it's frustrating! The negative foreign tax credit is definitely a software glitch, not how it should appear. Here's what worked for me: First, make sure you're entering the dividend information in the correct order. Enter the GROSS dividend amount (the total before any foreign tax was withheld) as your dividend income. Then, separately, enter the $142 as foreign tax paid - but make sure it's a positive number. If H&R Block keeps making it negative automatically, try this: Go to the dividend section first and verify the gross dividend amount is correct. Then find the foreign tax section and manually clear out any negative values. Re-enter just the $142 as a positive amount in the "foreign tax paid" field. The key thing to remember is that you're claiming a credit for tax that was already paid on your behalf to a foreign government. This reduces your US tax liability, so it should never be negative. If the software won't accept it, there might be an issue with how your broker reported it on the 1099-DIV form. Don't skip claiming this credit - $142 is real money that should reduce your tax bill!

I'm having a very similar issue but with FreeTaxUSA software instead of H&R Block. My foreign tax credit is showing up as negative too, and it's blocking my e-file submission. Reading through all these responses, it sounds like this might be a broader issue across different tax software platforms when handling foreign dividends. I have about $85 in foreign tax withheld from some Vanguard international index funds. Has anyone tried the approach of completely deleting all the dividend entries and then re-entering them from scratch? I'm wondering if starting fresh might avoid whatever input sequence is causing the negative values to appear in the first place. Before I spend money on any of these third-party services, I want to try every possible DIY fix. Also, for those who successfully resolved this - did you notice any difference in your final tax liability once the foreign tax credit was properly applied? I'm curious if this $85 credit will actually make a meaningful difference in what I owe or my refund amount.

Has anyone used TurboTax to figure out form 2210 for capital gains? I'm in a similar situation and wondering if the software handles the annualized income method properly.

Just want to add that you should also look into whether you can increase your withholding at your regular job for the remainder of the year. The IRS treats withholding as if it was paid evenly throughout the year, even if you actually increase it all at the end. So if you bump up your W-4 withholding significantly for your last few paychecks, it can help cover those earlier quarters and potentially eliminate penalties entirely. I did this when I had a similar situation with some unexpected freelance income. Had my employer withhold an extra $3,000 from my December paychecks, and it was treated as if I had paid $750 each quarter. Saved me from having to deal with Form 2210 calculations entirely since my total withholding ended up covering 100% of my prior year tax liability.

I went through this exact same panic last year! The "2024 Verification of Non-Filing Letter" threw me for a loop too, but it's completely normal since we haven't filed 2024 taxes yet. The key thing to look for is your 2023 Return Transcript - if you can access that, your return was processed successfully. State and federal are totally separate systems, so your state refund timing doesn't reflect anything about federal processing. I actually found it helpful to bookmark the "Where's My Refund" tool on the IRS site - it gives you real-time updates on your federal refund status using your SSN, filing status, and refund amount. Much less confusing than trying to interpret all the transcript options!

I completely understand your confusion - I had this exact same worry when I first saw the "2024 Verification of Non-Filing Letter" on my transcript page! It's actually totally normal and nothing to panic about. The key thing to understand is that this letter appears for 2024 because we're still IN 2024, and nobody has filed their 2024 tax returns yet (those aren't due until April 2025). The IRS system automatically generates this option for the current tax year. Since you mentioned you can see your 2023 Return Transcript in the list, that's actually great news! That means your 2023 federal return (the one you filed in February) was successfully received and processed by the IRS. The transcript wouldn't be available if there were any issues with your filing. Your state refund arriving weeks ago is completely normal too - state tax systems operate independently from the federal IRS system and often process refunds much faster. One has nothing to do with the other timing-wise. If you're waiting on your federal refund, definitely check the "Where's My Refund" tool on the IRS website with your SSN, filing status, and expected refund amount. That'll give you the most up-to-date status on your federal refund processing.