Your friend is definitely in a good position to claim those stimulus payments! I went through this exact process with my neighbor last year. One thing I'd add is to make sure they gather any W-2s or 1099s from 2021, even if they think their income was too low to require filing. The IRS sometimes has these on file already, and if there's a mismatch, it can delay processing significantly. Also, if they're expecting a large refund from multiple stimulus payments, consider having them set up direct deposit - paper checks for these late-filed returns can take even longer to arrive. The whole process took about 5 months for my neighbor, but she ended up getting over $3,000 in missed payments, so it was definitely worth the wait!

I'd definitely recommend starting this process soon! I work at a local tax prep office and we see this situation all the time. Your friend should gather their Social Security card, photo ID, and any income documents from 2021 (even if minimal). One thing people often overlook - if they received any unemployment benefits in 2021, there were special tax breaks for that too, so they might be eligible for additional refunds beyond just the stimulus payments. The IRS tends to be more thorough with first-time filers, so having complete documentation upfront will save headaches later. Also, make sure they keep copies of everything they mail since paper returns can sometimes get lost in processing. Good luck helping them navigate this - it's really great that you're stepping up to help someone get the money they're entitled to!

I think the IRS intentionally makes these forms confusing lol. Has anyone had their Form 8802 rejected? How long did it take to get a response? I'm supposed to start a position in Korea in 6 weeks and I'm worried about timing.

I went through this exact same nightmare with Form 8802 about 6 months ago! For line 4a when you check "Individual," you literally just need to write your full name exactly as it appears on your most recent tax return - nothing more, nothing less. Don't add your SSN, don't add extra info, just your name. Since you're working for a Singapore company, make sure you're also including copies of your most recently filed 1040 and any relevant schedules (like Schedule C if you have any self-employment income). The IRS uses this to verify your U.S. tax residency status for the foreign tax authority. One tip that saved me - call the IRS practitioner priority line if you get stuck. The regular customer service line is useless, but the practitioner line (even though you're not technically a practitioner) sometimes gets you through to someone who actually knows about international forms. Good luck with your deadline!

In my experience selling a similar property, Form 4797 is your friend. You'll need to use this form to report the sale of business property, which includes the rental portion. For the primary residence part, you'll use Schedule D and Form 8949. The trick is making sure the allocation method is reasonable and consistent. My CPA recommended documenting EVERYTHING about how we determined the split. Also, don't forget to account for any improvements made specifically to one unit or the other! If your mom renovated just her apartment, that would adjust the basis differently than improvements to the rental unit.

You're dealing with a classic mixed-use property situation, and yes, you're absolutely right that you need to treat this as essentially two separate properties for tax purposes. Here's what you need to know: **Allocation Method**: Use a reasonable method to split the property - square footage is most common, but you could also use fair market value of each unit or number of rooms. Whatever method you choose, document it thoroughly and be consistent. **Primary Residence Portion**: Your mom can claim the Section 121 exclusion (up to $250,000) on the gain allocated to her primary residence portion, assuming she meets the ownership and use tests (lived there 2 of the last 5 years). **Rental Portion**: This is where it gets tricky. You'll need to: - Calculate the adjusted basis (original cost basis minus accumulated depreciation) - Report any gain on Form 4797 (Sale of Business Property) - Pay depreciation recapture tax at 25% on the depreciation previously claimed - Any remaining gain above the recapture amount gets taxed at capital gains rates **Key Point**: Even if your mom never actually claimed depreciation on her tax returns, the IRS assumes she should have, so you'll still need to recapture the "allowable" depreciation. I'd strongly recommend getting a tax professional involved given the complexity, especially since there are specific rules about mixed-use properties that can trip people up.

Has anyone used the "simplified" method for calculating depreciation that I've heard about? My accountant mentioned there might be an easier way to handle all this for small landlords with just 1-2 properties.

This is exactly the kind of confusion I had when I started with rental properties! The key thing to understand is that depreciation carryover only applies if you owned the property in previous years - since this is your first year, you don't have any carryover amounts to worry about. For your kitchen improvements, those $8,500 in costs will need to be depreciated over their useful life (typically 5-15 years depending on what you installed), not deducted all at once. The depreciation starts when the property was "placed in service" - meaning ready for rent, not when tenants actually moved in. One tip: make sure you're separating the land value from the building value when calculating your depreciation basis. Only the building and improvements can be depreciated, not the land itself. You can usually find this breakdown on your property tax assessment or have an appraiser determine it. Keep detailed records of all improvements with dates and costs - you'll need this information every year going forward, and it becomes crucial when you eventually sell the property for calculating depreciation recapture.

I've been dealing with consolidated 1099s for years and they're always confusing at first! The key thing to remember is that these forms are designed to be comprehensive, so they include ALL possible sections even if only a few apply to your situation. For your specific case with only box 6 (acquisition premium) having a value, you're actually in good shape. As others have mentioned, acquisition premium is an adjustment that reduces OID income - but since you don't have any OID income to reduce (no values in boxes 1-3), there's nothing for you to report on your tax return. The reason brokerages can't just show zeros in empty boxes is actually due to IRS formatting requirements. They're only supposed to include boxes that have actual values or are relevant to your specific investments. It's counterintuitive, but that's how the system works. My advice: keep that 1099-OID page with your tax records, enter the information exactly as shown if your tax software asks for it, but don't stress about reporting anything additional. The acquisition premium will just sit there as informational data unless you have actual OID income in future years.

I completely understand your frustration with consolidated 1099s! They really do make things unnecessarily confusing. From what you've described with only box 6 (acquisition premium) showing a value, you're actually dealing with a pretty common scenario that doesn't require any action on your tax return. Think of it this way: acquisition premium is like having a coupon that reduces the cost of something you're buying - but if you're not actually buying anything, the coupon doesn't matter. Since you don't have any OID income to report (which would show up in boxes 1-3), that acquisition premium amount is essentially just sitting there unused. I'd recommend just entering the information exactly as shown if your tax software prompts you for 1099-OID data, but don't expect it to change your tax liability. The software should recognize that there's no reportable income and handle it appropriately. And definitely keep that form with your tax records - it shows you received the proper documentation even though it doesn't impact this year's taxes. The good news is once you understand how these work, future years will be much less stressful when you see similar "incomplete" forms!