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Don't overlook ATX. It's middle of the road on pricing but has a great interface and decent support. I handle about 75 returns each season with it after leaving my full-time tax job. One thing to consider: if you'll be filing any business returns (1120, 1120S, 1065) in addition to individual returns, some of the cheaper options mentioned here won't cut it. ATX has affordable bundles that include business returns.
I second ATX! Been using it 6+ years for my side hustle (40ish returns). The Max bundle is worth every penny if you do any business returns. And their training webinars are actually helpful unlike some other companies I've tried. Pricing is reasonable and it's way easier to learn than Drake imo. User interface isn't as pretty as the premium options but who cares as long as the math is right lol.
As someone who just started doing side returns this past season (about 12 clients), I can share what worked for me. I ended up going with Drake after researching all these options, and I'm glad I did. The unlimited federal + all states for one price was the deciding factor. Even though I only needed 3 states this year, knowing I won't get hit with surprise per-state fees as I grow was huge. The learning curve from UltraTax wasn't bad - took me a weekend to get comfortable with the interface. One tip: Drake offers a significant discount if you purchase early in the year (like June/July). I got mine for about 40% off the regular price. Their customer service during tax season was also excellent - never waited more than 5 minutes on hold. For anyone just starting out, I'd definitely recommend Drake if you plan to grow beyond 20 returns eventually. The upfront cost pays for itself once you hit that volume.
I went through the exact same thing last month! Topic 152 disappeared after being there for weeks, then about 5 days later I got my refund date. It's actually a good sign - means they're actively processing your return. The waiting is brutal but you're probably close to getting an update. Keep checking but try not to stress too much about it disappearing! 🤞
This is so reassuring to hear! I'm in a similar boat - filed early and have been obsessively checking WMR. Did you notice any other changes on your transcript before the refund date appeared? Like any new codes or cycle dates? @Paolo Rizzo
Zoe, I suggest calling the and getting the status. $5 discount for first time callers using Claimyr https://join.claimyr.com/be256b
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
Wow 10 months is crazy but so happy you finally got yours! I'm currently stuck with the same 570/971 codes since August and this gives me so much hope. Quick question - did your transcript ever update with any other codes before the 846 showed up? Mine has been radio silent for weeks and I'm starting to panic 😅
Hey! I totally get the panic - I was checking my transcript like every other day lol. Mine was pretty much silent too after the initial 570/971 codes showed up. No updates for literally months and then boom - the 846 refund code just appeared one day! I think the key is that once you see those codes, the IRS is working on it behind the scenes even though it looks like nothing is happening. August to now is definitely a long time but based on what others are saying here, you might be getting close! Have you tried that taxr.ai thing people keep mentioning? Might give you some peace of mind about where you're at in the process 🤞
This is so encouraging! I've been dealing with 570/971 codes since September and was starting to lose hope. Seeing that yours took 10 months but still came through makes me feel better about the wait. That's a nice chunk of change too - $28,582! 🎉 I'm definitely going to check out that taxr.ai site everyone's mentioning to see if I can get some clarity on my timeline. Thanks for sharing your success story and keeping the rest of us motivated! 💪
Congrats to OP for finally getting through! As someone new here dealing with the same codes since October, this thread has been super helpful. Just used taxr.ai based on all the recommendations and it actually broke down exactly what's happening with my case - apparently I'm in wage verification too and should see movement in 2-3 weeks! Worth every penny for the peace of mind. Thanks everyone for sharing your experiences, makes this whole process feel less lonely 🙏
Angel Campbell
Thanks for this detailed thread everyone! I'm actually dealing with a similar situation but with mixed-use properties (part rental, part business use). Does anyone know how the depreciation reporting works when you have properties that serve multiple purposes? I assume the depreciation still flows from Form 8825 to Form 1065 line 16, but I'm wondering if there are additional forms or allocations I need to consider. Our partnership owns a building where we rent out the first floor but use the second floor for our consulting business operations. Also seeing all these tool recommendations - has anyone used any of these services specifically for mixed-use property situations? The complexity seems to increase significantly when you're dealing with multiple depreciation schedules for the same building.
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Zane Gray
•Mixed-use properties definitely add complexity! For your situation, you'll need to allocate the depreciation based on the percentage of business use vs rental use. The rental portion would go on Form 8825 and flow to Form 1065 line 16, while the business use portion would typically be reported directly on Form 1065 line 16 as well (but calculated separately on Form 4562). You'll want to establish a reasonable method for allocation - usually based on square footage or fair rental value. So if your first floor rental is 60% of the building's square footage, then 60% of the building's depreciation goes to Form 8825, and 40% gets allocated to business use. Regarding the tools mentioned in this thread - I haven't used them for mixed-use specifically, but given the additional complexity you're dealing with, it might be worth exploring. The key is making sure whatever tool you use can handle the allocation calculations properly and generate the appropriate forms. You might also want to consider consulting with a tax professional for the first year to establish the proper allocation methodology, then use software to maintain it going forward. Document your allocation method well since the IRS may want to see your reasoning if they ever examine the return!
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Amara Eze
This is such a helpful thread! I'm a CPA who works with a lot of small partnerships, and I see this confusion about Form 8825 and Form 1065 line 16 constantly. A few additional points that might help: 1. Make sure you're using the correct depreciation method for each asset type. Most residential rental property uses straight-line over 27.5 years, but some improvements might qualify for different recovery periods. 2. For your roof and HVAC improvements - these are definitely capital improvements that need to be depreciated separately. The roof would typically follow the same 27.5-year schedule as residential rental property, but HVAC systems often qualify for 15-year depreciation. 3. Don't forget about the mid-month convention for real estate - depreciation starts in the middle of the month the property was placed in service, regardless of the actual date. 4. Keep detailed records of when each improvement was completed and placed in service. The IRS is particularly strict about depreciation start dates. One thing I always tell my clients is to create a depreciation schedule spreadsheet that tracks each property and improvement separately. This makes it much easier to complete Form 4562 and ensures consistency between Form 8825 and Form 1065. If you're planning to continue doing your own returns, investing in proper fixed asset tracking software (like some mentioned here) really pays off in the long run. The initial setup takes time, but it prevents a lot of headaches later!
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Dmitry Popov
•This is incredibly helpful, thank you! As someone new to partnership taxation, I really appreciate the breakdown of the mid-month convention - I had no idea about that rule. Quick follow-up question: when you mention creating a depreciation schedule spreadsheet, do you have any recommendations for what columns/information should be tracked? I want to make sure I'm capturing everything from the start rather than trying to reconstruct it later. Also, for the HVAC systems getting 15-year depreciation - is that always the case, or does it depend on the type of rental property (residential vs commercial)? We're dealing with residential rentals but I want to make sure I'm applying the right recovery period.
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