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Anyone else notice that property tax assessments after inheritance can get really messed up? After inheriting my grandmother's house, the county somehow flagged it and reassessed the value WAY higher than even the market value. Had to file an appeal with the county assessor's office and provide the professional appraisal from when she died. Just a heads up to check your property tax statements carefully after inheriting - could save you thousands!
This is such a complex situation! I went through something similar with my aunt's property last year. One thing I learned the hard way is that you'll also want to consider the timing of your sale carefully. If you're planning to sell within the next few months, make sure you have all your documentation ready - the estate appraisal, any rental income records, receipts for improvements or repairs, and depreciation calculations. Also, don't forget about state taxes! Oregon doesn't have a capital gains exclusion like some states do, so you'll owe Oregon state tax on any gains in addition to federal. The good news is that Oregon generally follows federal rules for the stepped-up basis. One more tip - if you haven't already, consider getting a current appraisal before listing. Sometimes the estate appraisal from a year ago might not reflect current market conditions accurately, and you want to make sure you're pricing it right. Plus, if property values have actually decreased in your area since the inheritance, that could affect your tax calculation too. Managing out-of-state rental property is definitely a hassle - I totally get wanting to sell and simplify things!
This is really comprehensive advice, thanks! I hadn't even thought about the potential for property values to have decreased since the inheritance - that's a good point about getting a current appraisal. Quick question about Oregon state taxes - do you know if they have any special rules for inherited property, or do they just follow the federal stepped-up basis completely? I want to make sure I'm not missing anything state-specific that could affect my planning. Also, you mentioned timing the sale carefully - is there any advantage to waiting until I've owned it for a full year, or does that not matter for inherited property since I got the stepped-up basis anyway?
Has anyone successfully used Form 8802/6166 to get a FULL refund of withheld Japanese taxes rather than just reducing future withholding? My Japanese client has been withholding at 10.21% for the past 6 months and I just learned about this form. Can I get back what they've already withheld?
Thanks so much for this information! I had no idea there was a separate process for getting refunds from the Japanese tax authority. Do you happen to know if there's a time limit for requesting these refunds? I've been dealing with this withholding for almost two years now.
Yes, there is a time limit! For Japanese tax refunds, you generally have 5 years from the end of the tax year when the withholding occurred to file for a refund. So if withholding happened in 2023, you'd have until the end of 2028 to apply. However, I'd recommend acting sooner rather than later because the Japanese National Tax Agency sometimes requires additional documentation that can take time to gather. Also, exchange rates can affect the refund amount you receive, so timing can impact your actual dollar recovery. Make sure to keep detailed records of all payments and withholding amounts - you'll need these for the Japanese refund application along with your Form 6166 from the IRS.
Just wanted to add a practical tip for anyone going through this process - make sure to coordinate the timing of your Form 8802 application with your Japanese client's payment schedule. I made the mistake of getting my Form 6166 right after my client had already processed their quarterly withholding calculations. Even though I provided the certification immediately, they couldn't adjust the withholding rate until their next quarterly period, which meant I still had to deal with over-withholding for another 3 months. Now I plan ahead and submit my Form 8802 application in November/December so I have my Form 6166 ready for the new tax year. This way my Japanese client can implement the reduced withholding rate (usually 0-5% instead of 10.21%) from January 1st. Also, don't forget to file Form 1116 (Foreign Tax Credit) on your US return for any taxes that were withheld, even at the reduced rate. You can claim a credit for the actual amount withheld, which helps avoid double taxation.
This is really helpful timing advice! I wish I had known about coordinating with quarterly periods earlier. Quick question - when you mention filing Form 1116 for the Foreign Tax Credit, does this apply even if I successfully get the withholding reduced to 0% through the treaty? Or is Form 1116 only needed when there's still some withholding happening at the reduced rate? Also, for anyone else reading this, does the timing coordination work the same way with other countries, or is the quarterly adjustment period specific to how Japanese companies handle their tax withholding?
I see people on TikTok still claiming to get early deposits, but I think they're just recycling content from previous years to get views. Literally everyone I know personally has gotten their refund exactly on DDD date this year.
This is super helpful info! I was going crazy wondering why my refund wasn't coming early like last year. Filed in February and my DDD is tomorrow - now I know to expect it exactly then instead of checking my account obsessively starting 5 days ago š The IRS really should have communicated this change better to taxpayers. Would have saved a lot of stress and confusion!
Totally agree about the communication! As someone new to filing taxes, I had no idea this change happened and was stressing out thinking something was wrong with my return. Would have been nice to get some kind of heads up from the IRS about this new system. At least now I know what to expect for next year!
Try checking your tax transcript instead. It'll give you way more info than the WMR tool or turbotax
Go to irs.gov and make an account, then look for tax records. But honestly that taxr.ai tool someone mentioned above is way easier, it reads all that transcript stuff for you
This is totally normal! The IRS "Where's My Refund" tool is always going to be more accurate than what TurboTax shows. TurboTax just confirms they successfully submitted your return, but the IRS tool shows the actual processing status. "Received" means they have it and are working on it - you should see it update to "approved" once they finish processing. Usually takes 21 days or so for e-filed returns.
thanks for breaking this down! so basically just gotta be patient and wait for the irs to do their thing. good to know the 21 day timeframe too
Liam Fitzgerald
The whole system is broken fr fr. Been waiting 3 weeks just to get approved š¤”
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GalacticGuru
ā¢first time? š¤£
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Heather Tyson
Just went through this same situation last month! The adjustment was minor in my case - they corrected a deduction I claimed that didn't match their records. The 48-hour timeline was spot on for me with Chase bank. To ease your anxiety, you can also check if Maryland sent you any correspondence through your OneStop portal explaining the adjustment details. Usually it's nothing major!
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Zara Shah
ā¢Thanks for sharing your experience! That's really reassuring to hear. I'll definitely check the OneStop portal for any correspondence - didn't even think to look there. Hopefully it's just a minor correction like yours was š¤
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