Has anyone heard if business grants need to be treated differently for 2025 filing? I just received a similar grant and wondering if the reporting requirements have changed since the COVID relief period.

I went through this exact same frustration with H&R Block Business last year! The software definitely isn't designed to handle business grants properly. What worked for me was a hybrid approach - I used Connor's workaround of entering it manually as "Other Income" but I also kept a copy of the actual 1099-G in my records with a note referencing where I reported it on the return. One thing I'd add to the great advice already given - make sure you're also considering the timing of when you received the grant versus when you're reporting it. If you received the grant in late 2024 but it's for 2023 activities, there might be timing issues to consider. The IRS is pretty strict about matching 1099-G income to the correct tax year. Also, if your city required any specific reporting or has clawback provisions, document those thoroughly. I learned the hard way that some grants have strings attached that aren't obvious until later. Better to over-document than get surprised during an audit!

Be careful about assuming acceptance. I thought mine was accepted last year. Never got a rejection notice. Found out THREE MONTHS LATER that it was rejected due to an incorrect AGI from the previous year. Had to pay a penalty for late filing even though I filed on time. Always verify acceptance through multiple channels. Don't trust just one confirmation method.

As someone who just went through this same anxiety, I totally get your concern! Here's what I learned: the IRS actually has three different statuses - "transmitted," "received," and "accepted." Your confirmation email probably just means it was transmitted successfully. The quickest way to verify actual acceptance is to log into your tax software account and look for a status update (should say "IRS Accepted" not just "Transmitted"). You can also use the IRS Where's My Refund tool at irs.gov after 24 hours - just enter your SSN, filing status, and exact refund amount. Since you mentioned this is your first time with new software AND you have homeowner deductions now, I'd definitely recommend checking your tax transcript in a few days through irs.gov - that's the most definitive proof your return was processed. The mortgage interest and property tax stuff shouldn't cause delays, but it's always good to double-check when your situation gets more complex. Don't panic if it takes 48-72 hours to get full confirmation - that's totally normal during busy filing periods!

For what it's worth, I've used TurboTax to handle my Form 2555 for the past three years while working in various Middle East locations. Their interview process walks you through the combat zone exception pretty well and automatically calculates the prorated exclusion. Just make sure you have your exact dates of entry and exit from the combat zone and documentation from your employer confirming you were supporting US Armed Forces.

Just want to add another perspective here - I was in a similar situation as a contractor in Afghanistan for about 180 days last year. The combat zone exception definitely applies, but make sure you're crystal clear on which specific days count toward your physical presence. One thing that tripped me up initially was that travel days to and from the combat zone don't automatically count unless you're actually physically present in the designated area. So if you had layovers in Dubai or other non-combat locations, those days typically don't count toward your 163. Also, double-check that Iraq/Kuwait region work qualifies - it should under the Arabian Peninsula Area designation, but the IRS is very specific about which locations qualify. You can find the complete list in Publication 3 (Armed Forces' Tax Guide) to make sure your specific work sites are covered. The prorated calculation everyone mentioned is correct (163/365 × $120,000), but just be extra careful with your date documentation since the IRS tends to scrutinize foreign income exclusions more closely, especially for contractors.

I ended up having to call the IRS after getting weird errors on WMR for weeks. Turns out there was a simple issue with my return they needed to verify. after spending like 3hrs on hold I finally got someone who fixed it in 5 minutes. if the error continues maybe try calling

I've been having similar issues with the Where's My Refund tool lately! Filed about a month ago and it's been giving me random errors like this too. From what I've learned, it's usually just system maintenance or temporary glitches - especially if you're checking during weird hours like 5am. The IRS systems are pretty outdated and can be unreliable. I'd recommend trying again later today during normal business hours (like 10am-4pm) and see if it works better. If you keep getting errors for more than a couple days, then it might be worth looking into your transcript or calling them directly. But most likely it's just a temporary system hiccup!

This is such a helpful thread! I'm dealing with a similar situation but with a twist - my rental condo has a 99-year land lease AND I'm planning some major renovations (new flooring, updated kitchen, bathroom remodel). Based on what everyone's shared, I'm feeling confident about allocating 95-100% of my original purchase price to the building for depreciation purposes. But I'm wondering about the timing of my renovations - should I wait until after I establish my initial depreciation schedule, or does it not matter? Also, for those capital improvements mentioned by @Emma Olsen, do I need to depreciate them over the same 27.5-year period as the building, or do different improvements have different recovery periods? I'm particularly curious about flooring vs. kitchen appliances vs. bathroom fixtures. Thanks for all the great advice in this thread - it's exactly what I needed to hear!

This is such a valuable discussion! I'm a CPA who specializes in rental property taxation, and I wanted to add a few important considerations that haven't been fully addressed yet. First, regarding the 95-100% building allocation for leasehold condos - this is generally correct, but you should also consider the remaining term of the lease. With a 99-year lease that's relatively new, the leasehold interest has substantial value. However, if this were a lease with only 10-15 years remaining, the allocation might be different. Second, I'd strongly recommend getting a professional appraisal that specifically addresses the land/building allocation in your leasehold situation. While it costs around $400-600, it provides solid documentation that the IRS will respect if questioned. Many of my clients have found this small investment pays for itself quickly through increased depreciation deductions. Finally, make sure you understand the implications when you eventually sell the property. All that depreciation you're claiming will be subject to depreciation recapture at a maximum rate of 25%, so factor that into your long-term tax planning. The advice about documenting your reasoning and keeping the lease agreement on file is spot-on. I've never seen the IRS challenge a well-documented leasehold depreciation allocation that's based on sound reasoning.