There's actually another strategy no one has mentioned yet - if you have self-employment income or active business income (not from the rental), you might be able to offset some of the gain by increasing retirement contributions in the year of sale. Maxing out a SEP IRA, Solo 401k, or defined benefit plan can create substantial deductions.

Based on my experience dealing with similar depreciation recapture situations, I want to emphasize something important that wasn't fully covered - the timing of when you recognize your passive losses matters significantly. If you've been unable to use passive losses from your other rental property due to the passive activity loss limitations, those losses are "suspended" and carry forward. The key thing to understand is that when you dispose of your entire interest in a passive activity (like selling your rental property), ALL of your suspended passive losses from that specific property become fully deductible against any type of income - including active income, portfolio income, and yes, even depreciation recapture. However, suspended losses from OTHER properties you still own can only offset passive income, not the depreciation recapture. So if your current rental showing losses this year hasn't generated suspended losses yet, those current year losses likely won't help with your recapture tax. I'd strongly recommend reviewing your passive loss carryforwards from the property you're selling - you might have more tax relief available than you realize. The IRS Form 8582 from previous years will show your suspended losses by property.

After dealing with the same issue (verified identity but blank transcripts), I finally found a solution that actually worked! I used taxr.ai to analyze what was going on behind the scenes. It showed me my exact processing stage even though my transcripts appeared blank, predicted when updates would happen, and explained why there was a delay. Sure enough, everything updated exactly when it predicted. Totally worth checking out: https://taxr.ai

I went through this exact same situation last year! Verified my identity online and then had to wait what felt like forever for my transcripts to update. Mine took about 12 days after verification, but during that time I was checking obsessively (probably not helping my stress levels lol). One thing that helped me was realizing that the IRS systems don't communicate with each other in real time - so Where's My Refund might show one thing while your transcript shows another. The transcript system seems to be the slowest to update. Also, make sure you didn't miss any mail during this time. Sometimes they send additional requests or notices that can cause further delays. I almost missed a CP05 notice that would have extended my wait by weeks if I hadn't responded quickly. Hang in there - I know the waiting is brutal, especially when you filed so early and expected everything to be processed by now!

Great question! As others have mentioned, Section 179 absolutely applies to used equipment like your dump trailer. One thing I'd add is to make sure you document the business use percentage carefully. Since you mentioned this is for your landscaping LLC, you'll likely be at 100% business use, which is perfect. Also, consider timing - if you're planning to purchase near year-end, remember that Section 179 applies to the tax year when the equipment is "placed in service" (not just purchased). So if you buy it in December but don't start using it until January, it would apply to the following tax year. One more tip: keep detailed records of your business mileage and usage from day one. While you probably won't need it for the deduction itself, it's great documentation to have if you're ever audited. The IRS likes to see clear business purpose, especially for equipment that could potentially have personal use.

One thing to keep in mind with Section 179 is the business income limitation. You can only deduct up to your business's taxable income for the year. Since you mentioned your LLC was set up last year and business is picking up, just make sure you'll have enough business income to absorb the full $7,200 deduction. If your business income ends up being less than $7,200 this year, you can carry forward the unused portion to future years. But if you're expecting good income growth, taking the full deduction this year could be a great move to offset taxes on your increased revenue. Also, don't forget that the trailer needs to be used more than 50% for business to qualify for Section 179. For a landscaping company, that should be easy to meet, but it's worth documenting from the start just in case.

If your ex files bankruptcy, be aware that child support and alimony debts are NOT dischargeable in bankruptcy! I learned this when my ex tried to claim they didn't have to pay the judgment after filing Chapter 7. The bankruptcy court specifically excluded the support judgment from discharge, and we were able to continue collection efforts even during the bankruptcy process. Tax-wise, this became relevant because we received a large lump sum payment after the bankruptcy that included interest, which has different tax treatment than the base support amounts.

Based on my experience with a similar situation, the interest on judgments for support payments is treated differently from the underlying support amounts for tax purposes. Interest income is generally taxable to the recipient regardless of whether the principal support amounts are taxable. So in your case, any interest that accrues on the $37,000 judgment would likely be taxable income to you, even though the child support portion ($22,000) isn't taxable and the alimony portion ($15,000) may not be taxable due to your 2019 divorce timing. The IRS treats judgment interest as investment income, not as support payments. This means you'd report it on Schedule B of your 1040 as interest income. Keep detailed records separating the principal amounts from any interest awarded, as you'll need to report them differently. Also worth noting - if your state adds interest or penalties to the judgment, those typically follow the same tax treatment as regular interest income. Your court judgment should specify how much of the total award is principal versus interest/penalties.

I'm in almost the exact same situation! Just completed my ID verification through ID.me yesterday after being stuck since I filed in May. Got the same "Verification is Complete" screen with the 9-week warning that had me panicking. Reading through everyone's experiences here is really reassuring - seems like most people are getting their refunds way faster than that worst-case timeline. I'm definitely going to follow the advice about checking my transcript weekly instead of obsessing over WMR. Already pulled it up and I can see the 570 code that Emma mentioned, so hopefully I'll see that 571 and then 846 sequence soon. The fact that later filers seem to be moving through faster gives me hope too. Thanks for posting this question @AstroAce - exactly what I needed to see today! Hopefully we'll both have good news in the next few weeks instead of waiting the full 9 weeks they quoted us.

Just went through this exact process 3 weeks ago! Filed in April, got the identity verification letter in late January, and completed the ID.me verification process. I was terrified about the 9-week timeline too, but it ended up being much faster. Here's my timeline: - Verified identity on a Monday - Transcript updated the following Friday (4 days) with code 571 - Code 846 appeared the next Tuesday (10 days total) - Refund hit my bank account that Thursday (12 days from verification) The biggest thing that helped my anxiety was understanding that the 9-week timeframe is their legal CYA - they have to give you the worst possible scenario. In reality, once identity verification is complete, most returns process within 2-3 weeks unless there are other issues. Pro tip: Set up that IP PIN they mentioned ASAP once you get your refund. It'll save you from going through this verification nightmare again next year. I wish I had known about it sooner! You're past the hardest part now - just keep checking your transcript weekly and you should see movement soon. April filers who verify now are actually in a sweet spot timing-wise compared to those who got stuck early in the season.