Has anybody used Kinder Spankneberg & Co for cost segregation? My CPA recommended them but their quote is about $1,500 higher than recostseg.

Thanks for starting this thread! I'm in a similar situation - just closed on my first duplex last month and my CPA mentioned cost segregation but I wasn't sure where to start. Reading through everyone's experiences has been super helpful. One thing I'm curious about - for those who've done cost segregation studies, did you do them in the first year of ownership or can you go back and do them later? I'm wondering if I should rush to get one done before filing this year's taxes or if I have more flexibility on timing. Also seeing a lot of mixed opinions on company selection. Sounds like the engineering-based approach and audit support are key factors to consider over just price. The potential tax savings everyone is mentioning definitely seem to justify paying for quality work!

Has anyone else noticed that the IRS instructions for 1040-ES are ridiculously confusing? They make these calculations way more complicated than necessary. Last year I underpaid by like $200 and got hit with a $73 penalty. This year I'm just adding an extra $500 to whatever calculation I come up with for peace of mind.

I'm a tax preparer and see this confusion with 1040-ES all the time! Here's a simple way to think about it: Line 12 is asking: "What's 90% of the tax you expect to owe this year?" This is one way to avoid penalties. Line 13 is asking: "How much tax will already be paid through withholding or credits?" This gets subtracted from your required payment. The key insight many miss: you're trying to find the MINIMUM you need to pay to avoid penalties. So you compare: - 90% of current year tax (line 12 calculation) - 100% of last year's tax (from your 2024 return, line 24) - $1,000 Use whichever is SMALLEST as your "required annual payment." Then subtract line 13 from that amount and divide by 4 for your quarterly payments. Since you're going from $68k employee to $92k freelancer, using 100% of last year's tax will likely be your best bet - it'll be lower than 90% of this year's higher tax bill. Just make sure you have enough saved for the final balance when you file!

I'm in a similar situation right now! Got the same 570/971 codes dated for next week and have been refreshing my transcript obsessively lol. Reading through everyone's experiences here is actually really reassuring - sounds like most people get through this within a few weeks once they handle whatever the notice asks for. @Yuki Tanaka thanks for sharing your timeline! 10 days after identity verification gives me hope. Did your transcript show any other codes between the 971 and the 846, or did it jump straight to refund issued? Also @Star Smith that substitute W2 situation sounds like a headache but at least you know what's probably causing the delay. Hopefully calling them helps move things along faster!

I've been through this exact scenario twice now and can share what I learned! The 570/971 combo with the same date is actually pretty standard - it's like the IRS saying "we need to double-check something, and we're sending you a letter to explain what." In my first case, it was for identity verification (just like @Yuki Tanaka mentioned) and took about 2 weeks total. Second time was because I claimed education credits and they wanted to verify my 1098-T form - that one resolved in about 10 days once I uploaded the documents through their online portal. The key thing is that $0.00 amount on both codes - that's actually good news! It means they're not adjusting your refund amount, just putting a temporary hold while they review something. Pro tip: set up informed delivery with USPS if you haven't already. That way you'll know when the notice is coming before it hits your mailbox. The waiting is seriously the hardest part, but most of these resolve pretty smoothly once you know what they need. Keep us posted on what the notice says when you get it!

I'm actually preparing taxes for my cousin who's in almost the same situation (F1 with pending I-485). Does anyone know if using a tax service like H&R Block is worth it for this kind of complicated situation? Or should I just use something like TurboTax?

Just went through this exact situation last year! As someone who had F1 status with pending I-485 and received foreign tuition payments, I can confirm what others have said - you don't need to report the $40k tuition payment as income since it went directly to your university. However, there are a couple of additional things to keep in mind with your mixed immigration status: 1. Make sure you're filing as a resident alien for tax purposes if you meet the substantial presence test, even though you're still on F1 visa. Your pending I-485 doesn't automatically make you a tax resident, but your physical presence might. 2. Keep detailed records of the wire transfer and your I-20 form showing the tuition amount. If USCIS asks for tax compliance documentation during your I-485 process, having clear proof that this was educational funding (not unreported income) will be important. 3. Double-check if your parents sent any additional money for living expenses directly to you - that would still be considered a gift and not taxable, but good to track separately from tuition payments. The key thing is that since the money never touched your accounts and went straight to an educational institution using proper F1 documentation, it's clearly not income to you. Good luck with both your taxes and your green card application!

The form you need is Form 4797 Part III for this situation. You'll report the business percentage of the car, the sale price, and your adjusted basis. The key is calculating that adjusted basis correctly by subtracting all the depreciation you took (or were deemed to have taken with standard mileage). The IRS Publication 463 has charts showing the depreciation portion of the standard mileage rate for each year. For example, it was 26 cents per mile in 2022, 25 cents in 2021, etc. Multiply your business miles each year by that year's rate to get your total depreciation.

This is a perfect example of why keeping detailed records is so important for rideshare drivers! What you're experiencing is completely normal but definitely confusing the first time you encounter it. The key insight that others have mentioned is that the standard mileage rate isn't just covering gas and maintenance - it includes depreciation too. So every year you claimed those business miles, the IRS was essentially saying "okay, we'll let you deduct this amount, but we're also going to reduce what you 'own' in this car by the depreciation portion." One tip for the future: if you do rideshare driving again, consider keeping a simple spreadsheet tracking your total business miles each year and the depreciation rates. That way when you eventually sell your next vehicle, you won't be surprised by the tax implications. You can find the historical depreciation rates in IRS Publication 463. Also, remember this "gain" will likely be taxed as ordinary income (depreciation recapture) rather than capital gains, so factor that into your tax planning!