Don't forget about the FBAR and Form 8938 requirements if you have bank accounts in India associated with this rental property! The building-to-land ratio is important for depreciation, but missing foreign account reporting requirements can lead to massive penalties.

I went through this exact same situation with my inherited property in Pune! After trying multiple approaches, I found that getting a certified property valuation from a registered valuer in India was the most defensible method. The Indian government has a list of approved valuers, and their reports specifically break down building vs. land value using local market standards. For my property, the valuer used the "depreciated replacement cost method" which considers the current cost to rebuild the structure minus depreciation, then subtracts that from the total property value to determine land value. This gave me a 62/38 building-to-land ratio, which seemed reasonable for urban Maharashtra. The key is making sure your valuer is registered with the Insolvency and Bankruptcy Board of India (IBBI) - their reports carry more weight with the IRS. Cost me about ₹15,000 (~$180) but gave me complete peace of mind. I've been using this allocation for 2 years now with no issues. Also, definitely keep all your documentation in both English and the original language - the IRS appreciates thoroughness with foreign properties.

Regarding the e-filing question - Form 3520 currently cannot be e-filed and must be mailed as a paper form to the IRS processing center. The address is typically the Ogden, Utah location, but double-check the current year's instructions since processing centers can change. This is one of the few major tax forms that hasn't moved to electronic filing yet, which is why many tax software programs don't include it. You'll likely need to download it directly from the IRS website and complete it manually or use specialized tax software that handles international reporting forms. Also worth noting - the form is due by the same date as your regular tax return (including extensions), but the penalties for late filing are calculated separately and can be quite severe, so don't assume that filing for an extension on your regular return automatically extends the 3520 deadline.

I actually went through this exact situation two years ago with a $120K gift from my parents in the UK for my home purchase. The key thing that gave me peace of mind was being proactive with documentation from the start. Beyond just filing Form 3520, I created a comprehensive file with: the original gift letter, bank transfer records showing the exact conversion rates, screenshots of my uncle's bank statements (with his permission), and even a brief family tree document showing our relationship. This might seem like overkill, but having everything organized and readily available made both the mortgage process and tax filing much smoother. The IRS really isn't looking to make life difficult for people receiving legitimate family gifts - they just want to make sure foreign money isn't being used to hide taxable income or avoid other reporting requirements. As long as you're transparent and thorough with your documentation, you should be fine. The $140K amount, while substantial, isn't unusually large in the context of real estate down payments these days.

I tried doing this last year and it backfired on me. My employer messed up the W-4 change and didn't withhold enough. Just make sure you check your paystubs after submitting the new W-4 to confirm the additional withholding is actually happening!!!

This is exactly what I did when I started my consulting work alongside my full-time job! One thing that really helped me was keeping detailed records of my 1099 income and expenses throughout the year in a simple spreadsheet. This made it much easier to adjust my withholding if my freelance income was higher or lower than expected. Also, don't forget that you can deduct business expenses from your 1099 income (home office, equipment, software, etc.), which will reduce the amount you actually owe taxes on. Make sure to factor this into your withholding calculations so you don't over-withhold. The key is to be conservative in your first year - it's better to get a small refund than to owe money and potentially face penalties. Once you get a feel for your actual 1099 income patterns, you can fine-tune the withholding amount for following years.

Check your bank too. Not just WMR. Some banks hold IRS deposits. Mine shows pending two days early. Credit unions often faster. Big banks sometimes slower. Weekends delay everything. Tuesday DDDs are most reliable. Friday DDDs can mean Monday actual deposit. Transcript is most accurate source.

Great question! I've been tracking this pattern for the past few years as well. In my experience, WMR typically updates to "Refund Sent" about 1-2 days before your actual DDD, but there can be some variation. I've noticed that if your DDD falls on a Tuesday or Thursday (which are the most common IRS deposit days), WMR usually updates the night before or early morning of the day prior. However, if your DDD is on a Monday, it might update as early as the preceding Friday since the IRS doesn't process over weekends. One thing I've learned is that your transcript with the 846 code and DDD is always the most reliable source - that date is essentially set in stone once it appears. The WMR tool is more for general public updates and can sometimes lag behind their internal processing systems. Have you checked your transcript recently to see if your 846 code is showing yet?

Has anyone had success requesting an abatement for these late filing penalties? I paid mine through EFTPS using the advice here, but I had a legitimate reason for filing late (partnership docs came from my partner super late) and I've been perfect with my filings for the past 10 years.

I just went through this exact same process last month for my LLC's late filing penalty! You're definitely on the right track with selecting "Balance due on return or notice" - that's the correct option for penalty payments. The warning message about the tax period being out of the usual range is completely normal when you're paying an older penalty. Don't let it scare you - just click "Continue" and proceed with the payment. The system shows this warning for any tax year that's not the current or immediately previous year. A few tips from my experience: - Make sure you're logged into EFTPS with your LLC's EIN, not your personal SSN - In the reference field, enter something like "Form 1065 Late Filing Penalty 2019" to make it crystal clear what the payment is for - Print or save the confirmation page - you'll want that reference number - The payment typically processes within 1-2 business days The $2,600 amount sounds about right for a multi-year late filing penalty. Once you submit the payment, you can check your account transcript online in about a week to confirm it was applied correctly to your penalty balance.