My sister got a property as a gift and the tax assessor's office somehow found out and reassessed the property value, which caused the property taxes to skyrocket! Make sure you check with your local tax assessor to see if the gift transfer will trigger a reassessment in your area.

Great point about potential property tax reassessment! This is something that varies significantly by state and locality. In Colorado specifically, gift transfers between family members sometimes qualify for certain exemptions from reassessment, but it's definitely not automatic. You'll want to contact the county assessor's office where the cabin is located to understand their specific policies. Also, since this is a vacation property rather than your primary residence, you'll want to be aware that if you decide to rent it out at any point, that rental income will be taxable. But you'd also be able to deduct legitimate expenses like maintenance, repairs, property management fees, and depreciation. Just another consideration for your long-term planning with this property!

I filed on January 28th, got accepted January 29th, and my refund hit my bank account this morning (February 20th). My cycle code has ended in 03 for the past three years. I checked my transcript on February 15th and saw my DDD was set for February 20th. So based on my experience, you should see movement very soon - possibly by this Thursday's update (February 22nd) with a potential deposit date of February 28th.

Thank you all for the detailed responses! This community is incredibly helpful. Based on everyone's input, it sounds like my cycle code 03 should indeed be weekly processing with Thursday transcript updates. I'm encouraged by @Alexander Zeus's timeline since we filed so close together. I'll definitely check my transcript tomorrow (Thursday) and hope to see that TC 846 code with a DDD. The medical expenses aren't critical until next week, so if I get a deposit date for February 28th like suggested, that would work perfectly. I'll update this thread once I see movement - fingers crossed! Really appreciate everyone taking the time to share their experiences and knowledge about the IRS processing patterns.

Just wanna point out that TurboTax DOES actually have a way to handle this situation properly, but it's not obvious. Instead of just entering what's in box 10, you need to go to the property tax section and choose "I want to enter my property taxes manually" option. Then it gives you a field to enter your prorated amount with an explanation box where you can note why your number differs from the lender's form.

This is such a common issue that trips up so many new homeowners! I went through the exact same confusion when I bought my first house mid-year. One thing that helped me was creating a simple spreadsheet to track all the numbers - the full year's tax bill, the exact closing date, days of ownership, seller credits, and what my lender reported. Having it all laid out visually made it much clearer that I needed to use the prorated amount based on actual ownership days. Also, don't forget to save your closing statement (HUD-1 or CD) forever - the IRS might want to see how the taxes were allocated at closing if they ever question your deduction amount. I keep mine in the same file as my tax returns for easy reference. The key thing to remember is that tax law is based on actual ownership, not what comes out of your pocket or what your lender reports. You owned the house for X days, so you can deduct X/365 of the annual property tax bill - period. Everything else is just accounting between you and the seller/lender.

I recently went through this exact process and found out something important that hasn't been mentioned yet. If you use any accounting software for payroll (like QuickBooks, Gusto, etc.), they usually require your EIN and legal business name to match EXACTLY what the IRS has on file. So even if you decide to wait for the IRS to process your name change, you might run into issues with your payroll software rejecting submissions in the meantime. When I called my payroll provider, they suggested adding the LLC as a "DBA" of the sole proprietorship in their system as a temporary workaround.

One thing I learned the hard way when I went through a similar transition is to keep detailed records of EVERYTHING during this process. I recommend creating a folder with copies of all correspondence with the IRS, your original EIN confirmation letter, your LLC formation documents, and any letters you send regarding the name change. The reason this is so important is that if there are any discrepancies or issues down the road, you'll need to be able to prove the timeline of your business structure change and that you followed proper procedures. I had an issue 18 months later where the IRS questioned some of my filings, and having that paper trail saved me from potential penalties. Also, make sure you're consistent with how you sign all tax documents during this transition period. Use your legal name as the member-manager of the LLC, not your old sole proprietor signature, even though you're using the same EIN. This helps establish the proper chain of authority for your business entity.

Make sure u keep REALLY good records of how u calculated everything!!! I got audited last year for my amazon biz and they questioned my currency conversion methods. Had to provide proof of every conversion rate I used. Without good records I woulda been screwed.

This is really helpful information everyone! I'm dealing with a similar situation but also have sales through Amazon's European marketplaces (UK, Germany, France). Should I be converting all of these different currencies to USD using the same methodology? And does anyone know if there are any special considerations for VAT that gets collected by Amazon on European sales - do I need to account for that differently on my Schedule C since it's not really "my" income?