


Ask the community...
Has anyone used some of those "cost segregation" companies for a flip? My buddy says they can help maximize what gets added to basis but I thought that was more for rental properties?
Cost segregation isn't really applicable for flips. Those are for rental properties where you're depreciating components over different time periods. Since you're not depreciating a flip (just establishing basis), it would be a waste of money. Just track your expenses carefully in categories instead.
Thanks for saving me money on that! Sounds like my buddy was confusing flip strategy with his rental property approach. I'll stick with careful expense tracking instead.
Great question about tracking expenses for your flip! I went through this same situation last year with my one-time flip. One thing I learned that might help you - make sure to separate out any expenses that happened after you finished the renovation work. For example, if you're paying utilities while showing the house to potential buyers, those become selling expenses rather than basis additions. But utilities during active construction/renovation definitely add to your basis. Also, don't forget about some of the smaller expenses that can add up - things like permits, inspections, dumpster rentals, and even mileage to/from the property for renovation purposes. I kept a detailed spreadsheet with dates and categories which made tax time much easier. One last tip: if you're doing any of the work yourself, you can't add the value of your own labor to basis, but you can add the cost of materials you purchase. Keep those receipts organized by room or project type - it really helps if you ever need to explain your basis calculation to the IRS.
Have you tried checking your transcript on the IRS website? When this happened to me, I was able to see that someone had indeed filed a return using my SSN. Go to IRS.gov and access your account (or create one if you don't have it). Then view your transcript for 2022. If you see a return was filed but you didn't file it, that's confirmation of the issue.
Online transcripts saved me so much time when I had a similar issue! So much faster than calling. One thing to add - make sure you check BOTH your transcript and your spouse's. In my case, my transcript showed nothing unusual but my wife's showed someone had filed using her SSN.
This happened to me two years ago and it was absolutely panic-inducing! Turned out my ex-husband had mistakenly used my SSN as primary on his new return (we had been married filing jointly for years and he just went on autopilot). Here's what I learned from that experience: First, definitely check both your and your spouse's online transcripts as others mentioned - this will show you immediately if a return was actually filed. Second, the amendment you filed recently could be creating a temporary glitch in their system, especially if it's still processing. If the transcripts show a fraudulent return was filed, don't panic about the identity theft process - it's actually pretty straightforward once you get started. The IRS has gotten much better at handling these cases. File Form 14039 and submit your return by paper with a cover letter explaining the situation. One tip that saved me time: if you do need to call the IRS, have your spouse's information ready too since they might need to verify details about her SSN usage. And keep detailed notes of every conversation - case numbers, agent names, dates, etc. You'll likely need to reference them later in the process.
One thing nobody mentioned yet - check if your spouse has ever been a victim of identity theft. My wife and I had a similar rejection and after weeks of back and forth, we discovered someone had filed a fraudulent return using her SSN the previous year, which put a flag on her SSN in the IRS system. We had to go through the identity theft resolution process with the IRS and file an affidavit. It was a pain but eventually got resolved. Might be worth checking your credit reports too just to be safe.
Was there any indication of the identity theft before your tax rejection? Like weird credit card charges or anything? Or was the tax rejection the first sign something was wrong?
I went through something very similar last year! The key thing to understand is that the IRS rejection doesn't always tell you the exact problem - it just says there's a mismatch. In my case, it wasn't the SSN itself but how my husband's name was formatted. Here's what I'd recommend doing in order: 1. **Check the Social Security card character by character** - Look for spaces, hyphens, periods, or middle initials that might be on the card but not in your return (or vice versa). Even a missing period after a middle initial can cause rejection. 2. **Call SSA first, not the IRS** - The Social Security Administration at 1-800-772-1213 can tell you exactly how your spouse's name appears in their system. This is what the IRS cross-references against. 3. **Don't assume last year's format is still correct** - Sometimes the IRS tightens their matching algorithms or updates their systems, causing previously accepted formats to suddenly get rejected. If the SSA confirms everything matches and you're still getting rejected, then it might be worth exploring other causes like identity theft flags or prior year discrepancies. But start with the name formatting - that's the culprit in about 80% of these cases. The good news is once you identify the exact issue, the fix is usually simple and your amended return should process quickly!
Call your congressman/woman! Sometimes they can help speed things up when ur stuck in limbo
I feel your pain! I was in the same situation last month - no cycle code for weeks and constantly refreshing everything. What helped me was understanding that the IRS processes returns in batches, and some just take longer to get assigned a cycle. Try checking your transcript on Friday mornings since that's when most weekly updates happen. Also, make sure you're looking at your "Account Transcript" not just the "Return Transcript" - the cycle code shows up there first. Hang in there! ๐ค
Mei Wong
im in exactly the same boat as u right now lol. verified last thursday, status changed yesterday. from the research I've done, the change in wording is definitely step 1 of good news. Now we just gotta wait til our cycle days (I'm 05 too). Hoping we both wake up to good news tmrw!!!
0 coins
Zainab Yusuf
โขFingers crossed for both of us!! Let me know if you see anything tomorrow!
0 coins
Mei Wong
โขWill do! im setting my alarm for 6am to check lol ๐
0 coins
Sofia Ramirez
This is exactly what happened to me! Filed in March, stuck on "still processing" forever after getting the dreaded ID verification letter. Finally verified online and within 4 days saw that same status change to "being processed." My transcript was still blank too at first, which had me worried. But sure enough, on my cycle day (Thursday morning) my transcript updated with all the codes including my DDD. Got my refund deposited exactly 5 business days later. The status change really is a good indicator that your verification went through and your return is moving again. Hang tight - Thursday morning should bring good news for you!
0 coins