One thing I haven't seen mentioned yet is the potential requirement for Form 3520 if the inheritance exceeded certain thresholds. Since your wife received both property ($135,000) and cash ($85,000) totaling $220,000 from a foreign estate, you may need to file this form to report the foreign inheritance to the IRS. Form 3520 is required when you receive more than $100,000 from a foreign estate in a single tax year. The penalties for not filing this form can be severe - up to 35% of the inheritance amount in some cases. This is separate from the capital gains reporting on Schedule D that others have mentioned. Also, double-check whether any of the estate settlement process involved foreign trusts. If the property was held in a foreign trust before distribution, there could be additional reporting requirements on Form 3520-A. The good news is that filing Form 3520 doesn't create any additional tax liability - it's purely informational reporting to the IRS. But it's one of those "gotcha" requirements that many people miss when dealing with foreign inheritances.

I've been following this thread with great interest since I'm dealing with a similar situation - inherited property from my grandmother's estate in France. One thing I want to emphasize that's been touched on but bears repeating: **timing is absolutely critical** with these foreign inheritance reporting requirements. Based on what you've described, you likely have multiple filing obligations across different tax years: 1. **2023 Tax Year**: Form 3520 for the inheritance itself (both the property interest and cash), due to the $220,000 total exceeding the $100,000 threshold 2. **2024 Tax Year**: Schedule D and Form 8949 for the capital gains from the property sale, plus potentially Form 1116 for foreign tax credit if taxes were paid abroad Don't forget about **Form 8938** (FATCA reporting) if the total value of your foreign assets exceeded the filing thresholds at any point. Since your wife held an interest in foreign real estate, this might apply even if the money ultimately came to your US account. The stepped-up basis calculation using the fair market value at date of death is your friend here - it will likely minimize your capital gains tax. Just make sure you have solid documentation of that valuation, preferably from the foreign estate proceedings. Given the complexity and the significant dollar amounts involved, I'd strongly recommend getting professional help from a CPA or EA who specializes in international tax matters. The cost of professional guidance is minimal compared to potential penalties for missed forms or incorrect reporting.

I've seen a lot of posts about this issue with Credit Karma/TT refunds. Have you tried calling Credit Karma's customer service directly instead of relying on the app? I remember from last year that sometimes they can see pending deposits in their system before they show up in your account. Also, does your Credit Karma account have any history of holds on tax refunds from previous years?

This happened to me too! SBTPG showed funded on Tuesday, TT app was still pending, but the money actually showed up in my Credit Karma account Wednesday morning around 6 AM - a full day before my official DDD. The TT app didn't update to "completed" until Thursday afternoon, which was honestly ridiculous. Since you were funded on April 4th and your DDD is tomorrow, I'd bet money you'll wake up to the deposit in your account tomorrow morning. The apps are just terrible at syncing with the actual money movement. Check your CK account first thing when you wake up rather than stressing about what the TT app says. Good luck with your gig equipment purchases!

I'd strongly recommend getting a second opinion from a tax professional who specializes in 1031 exchanges before filing. While everyone here is correct that the boot is generally taxable in the year of sale, there can be some nuances depending on exactly how your exchange was structured. For example, if there were any complications with the original sale (like delayed closings or escrow issues) or if your QI agreement had specific language about when funds are considered "received," it might affect the timing. I've seen cases where the technical details of the exchange documents made a difference in how the IRS viewed the transaction. Given the significant tax bracket difference you mentioned between 2023 and 2024, it's worth investing in professional advice to make sure you're not missing any legitimate planning opportunities. A qualified tax attorney or CPA with 1031 experience should be able to review your specific documentation and confirm the proper reporting year.

I appreciate all the detailed responses here - this has been incredibly helpful in understanding the timing rules for cross-year 1031 exchanges. It sounds like the consensus is pretty clear that the boot portion needs to be reported in 2023 when I sold the original property, regardless of when I actually received the cash distribution. The advice about getting a specialist review is well taken, especially given the tax bracket difference I'm facing. While it seems like there's probably no way around reporting this in 2023, having a 1031 expert review my specific exchange documents could at least give me peace of mind that I'm not missing anything. For anyone else in a similar situation, it sounds like the key takeaway is to plan your sale timing carefully if you know you'll have boot in a 1031 exchange. The year you sell determines when you pay the tax, not when you get the money back from the qualified intermediary. Thanks again everyone - this community has been way more helpful than my QI was on the timing question!

To all those having trouble reaching a human at IRS. I just ran across this video that gave me a shortcut to reach a human. Hope it helps! https://youtu.be/_kiP6q8DX5c

Hey Phillip! I've been seeing this same message for about 10 days now. From what I've gathered talking to others and doing some research, this is basically the IRS's standard "we got your return and we're working on it" message. It doesn't necessarily mean there's a problem - they just haven't finished processing it yet. The 21 day timeframe is more of a guideline than a guarantee, especially during busy filing season. If it's been longer than 21 days from when they received it, that's when you might want to call them directly. In the meantime, just keep checking WMR every few days for updates. Hope this helps ease some worry!

My sister dealt with this exact situation! Her husband was in the Philippines while she was in the US with their son. The IRS actually flagged her return for review when she filed as Head of Household because they had record of her marriage from the I-130 petition. She had to provide extra documentation showing she qualified as "considered unmarried" for tax purposes. Just something to be aware of!

This is such a stressful situation, but you're definitely not alone in dealing with this confusion! Based on what you've described, you have a few paths forward: Since your husband is living abroad and you're supporting your daughter, you might actually qualify for Head of Household if you can demonstrate that you're "considered unmarried" for tax purposes. This requires living apart from your spouse for the last 6 months of the tax year and paying more than half the costs of maintaining your home. However, given the complexity with the I-130 petition and potential IRS scrutiny (as others have mentioned), Married Filing Separately might be the safer route to avoid any flags or requests for additional documentation. For the address issue with your husband's country not using postal codes - you can write "Foreign" in the ZIP code field or use "00000" as many tax software programs require something in that field. Definitely amend last year's return from Single to the correct status. The IRS is pretty understanding about honest mistakes, especially in complex immigration situations like yours. Have you considered consulting with a tax professional who specializes in international tax situations? They might be able to run the numbers both ways (HOH vs MFS) to see which gives you the better outcome while minimizing audit risk. Hang in there - tax season is stressful enough without immigration complications!