One additional consideration that hasn't been mentioned yet - since you and your sister both received the property together via the quitclaim deed, you'll likely need to determine how to split the capital gains tax liability when you sell. The tax consequences will depend on whether you're considered joint tenants or tenants in common, which should be specified in the quitclaim deed. Also, make sure to factor in selling costs (realtor commissions, closing costs, etc.) when calculating your capital gains - these can be deducted from your gain to reduce the taxable amount. Given that the property has appreciated significantly since the 90s and you're using your father's original basis, every deduction will help minimize your tax burden. If the capital gains are going to be substantial, you might want to consider an installment sale if your buyers are willing - this allows you to spread the tax liability over several years rather than taking the full hit in 2025.

I went through something very similar with my father's property last year. One thing that really helped us was getting a professional appraisal of the property value as of the date your father executed the quitclaim deed, not just when he originally purchased it. While you can't get the step-up in basis that comes with inheritance, if your father made any significant improvements over the years, those can be added to his original basis. Also, don't forget about depreciation recapture if your father ever claimed depreciation on the property (like if he rented it out at any point). This gets taxed as ordinary income up to 25%, not at the capital gains rate. For the Form 709 question - yes, your sister should file this with his final return if the property value exceeded the annual gift exclusion ($17,000 in 2023). The good news is that it likely just reduces his lifetime gift/estate tax exemption rather than creating an immediate tax liability. One strategy we used was timing the sale carefully. Since you received the property in June, waiting until after June 2025 to close ensures you get long-term capital gains treatment. Even a few weeks difference in timing could save you significantly if it moves you from short-term to long-term rates.

I run a small business and got absolutely DESTROYED by one of these ERC mills last year. They convinced me I qualified for $175,000 in credits, took their 28% fee ($49,000!!), and then disappeared when the IRS sent me a notice questioning the claim. Now I'm working with a real CPA to sort through this mess, and it turns out I probably only qualified for about $30,000 in legitimate credits. So I'm potentially on the hook to repay $145,000 PLUS penalties and interest. Meanwhile, the ERC mill is nowhere to be found, and their website is down. The worst part is their contract specifically stated they're "not tax preparers" even though they literally prepared and filed the amended returns. They also claimed no responsibility for audit results. I'd 100% support banning these contingency fees.

Coming from a tax policy perspective, this move by the IRS makes perfect sense. The ERC mills exploit a regulatory gap - they're not technically "tax preparers" under current definitions even though they're preparing amended returns to claim tax credits. Something similar happened with the EITC (Earned Income Tax Credit) years ago. Preparers would charge huge contingent fees to file for credits that taxpayers often didn't qualify for. When regulations tightened around EITC claims, the accuracy of claims improved significantly. The big difference is timing - EITC fraud can be caught during initial processing, while ERC claims are often paid out first, then audited later. This means businesses can be hit with unexpected repayments years later, long after they've spent the money.

I'm dealing with a similar situation - have K1s from 3 different private equity funds and TurboTax keeps throwing errors when I try to enter some of the more complex line items. One of my K1s has income from like 8 different countries and TurboTax just can't seem to handle all the foreign tax credit calculations properly. Reading through these responses, it sounds like there are definitely better options out there. The taxr.ai suggestion is interesting - I've never heard of specialized K1 analysis software before but it makes sense that something purpose-built would handle this better than general tax software. Has anyone here dealt with K1s that include both regular partnership income AND REIT distributions? That's where I'm really getting stuck with the current software I'm using.

I've been wrestling with this exact same issue! Last year I had K1s from two PE funds and TurboTax was absolutely terrible at handling the foreign income components. One of my K1s had income from operations in Germany, UK, and Singapore, and TurboTax kept miscategorizing the foreign tax credits. I ended up having to manually override so many entries that I lost confidence I was doing it right. The worst part was when it came to the Section 199A deduction calculations - TurboTax seemed to have no clue how to properly separate the different types of income for the 20% pass-through deduction. Reading through all these responses, I'm definitely going to try some of the alternatives mentioned here. The Drake software suggestion sounds promising, and that taxr.ai tool is intriguing - I had no idea there was specialized software just for analyzing K1s. For anyone else in this boat, I'd also recommend keeping really detailed notes about what income goes where on your K1s. The PE fund administrators sometimes provide supplemental guidance that helps clarify the more confusing line items, but you have to ask for it specifically.

One thing nobody mentioned - make sure your brother opens all mail from the tax authority and responds to everything by the deadlines! My cousin ignored those notices thinking they'd "go away" and ended up with a tax warrant that could have been avoided with a simple response.

I understand how stressful this must be for you! The good news is that you're not responsible for your brother's tax debt just because you claimed him as a dependent. Tax dependency is strictly about qualifying for tax benefits - it doesn't create any legal liability for the dependent's separate tax obligations. However, I'd strongly recommend helping your brother address this sooner rather than later. $7,800 might not seem huge now, but with penalties and interest, it grows fast. Most state tax agencies are actually pretty reasonable if you contact them proactively to set up payment arrangements. Also, make sure he updates his address with Nevada immediately so he doesn't miss any more important notices. Missing deadlines can turn a manageable situation into a much worse one with additional penalties or even warrant issues. Your finances should be completely protected, but getting your brother's situation resolved will give you both peace of mind.

Don't panic - this is actually more common than you think! I work as a tax preparer and see this situation several times each filing season. Here's my recommended action plan: 1. **Pay immediately** - Go to irs.gov and use Direct Pay to submit your $2,400 payment today. This protects you from failure-to-pay penalties and stops interest from accruing. You'll get a confirmation number that proves when you paid. 2. **Check if it was actually received** - Create an account on the IRS website and pull your tax account transcript. Sometimes returns are received and being processed even when tracking shows "In Transit." The transcript will show if they have any record of your return. 3. **Call the Practitioner Priority Line** - If you can't get through on the regular line, try calling early morning (7-8 AM) when hold times are shorter. Have your SSN, filing status, and prior year AGI ready. 4. **Wait 6-8 weeks total before refiling** - Paper returns are taking much longer to process this year. I've had clients' returns show up in the system 7-8 weeks after mailing, even when USPS tracking never updated. 5. **Keep everything** - Save your tracking number, mailing receipt, payment confirmation, and any screenshots of your account transcripts. This documentation will be crucial if you need to request penalty abatement later. You're not going to get in trouble for a lost return - the IRS deals with this regularly. The key is making that payment ASAP to minimize any potential penalties!

I went through almost the exact same thing last year - mailed my return on April 2nd and the USPS tracking got stuck on "In Transit" for over a month. I was absolutely panicking because I owed money too! Here's what ended up happening: My return was actually delivered and received by the IRS, but their internal processing was just really backed up. It took almost 7 weeks before it showed up in their system, even though USPS tracking never updated past "In Transit." My advice based on what worked for me: 1. **Make your payment TODAY** - Don't wait another day. Use the IRS Direct Pay system to pay that $2,400 immediately. This is the most important step because it stops penalties and interest from building up. 2. **Give it 6-8 weeks total** before assuming it's truly lost. I know that feels like forever when you're stressed, but paper returns are taking much longer than usual to process this year. 3. **Check your bank account** - If you paid by check like I see you mentioned in another comment, look for whether the check has cleared. That's often the first sign the IRS received your return. 4. **Set up an IRS online account** to check your tax transcript. This will show if they have any record of receiving your return, even if it's not fully processed yet. I ended up not having to refile at all - my original return eventually showed up and was processed normally. The stress was awful, but everything worked out fine. Try not to panic (easier said than done, I know!) and focus on making that payment first.