quick question - wouldn't this situation be simpler if the parents just reported the entire sale on their return since they got most of the money? seems like unnecessary complication for the kid to report anything if they just got a small gift from the proceeds.

@Haley Bennett - I went through something very similar when my mom added me to her house deed before selling. Since your parents gifted you the ownership interest, you definitely need to report your portion even though you only received $6,800. Here's what worked for me: First, figure out your exact ownership percentage from the deed (sounds like it might be equal thirds if all three names are listed). Then on Form 8949, report only your percentage of the $240k proceeds. For basis, since it was a gift from your parents, you'll use your share of their original purchase price plus any improvements they made before gifting your interest. In FreeTaxUSA, when you get to the 1099-S section, there should be an option to edit or override the amounts. Enter your calculated portion and add a description like "Reporting 33.33% ownership interest per deed" in the description field. The key is making sure your reported numbers match your actual ownership percentage, not the cash you received. Don't stress too much - this is actually a common situation and the IRS sees it all the time with family property sales!

Hey OP, just curious - how long have you been trying to get this sorted? I'm in a similar boat and wondering how long I'm gonna be treading water 🏊‍♂️

Based on my experience, here's what I'd recommend for getting that Letter of Indemnity: 1. **Call early in the morning** (like 7-8 AM) - wait times are usually shorter 2. **Have your EIN/SSN ready** plus the exact bank routing/account info 3. **Be super specific** about what the letter needs to say - the IRS reps aren't mind readers 4. **Get a case number** for your request so you can reference it in follow-ups Also, some banks have specific forms they want the IRS to use, so check with your bank first about their requirements. Saved me a lot of back-and-forth when I had to do this for a business account issue. The whole process took about 2-3 weeks for me, but that was with one revision needed. Good luck! 🤞

Check the IRS2Go app daily if you're concerned. Most people see offset indicators within 24-48 hours of final processing. If you're really worried about student loans, studentaid.gov shows your current status. Don't wait until the last minute if you need this refund soon!

From my experience, the offset won't appear until your return is completely processed and the IRS has calculated your final refund amount. Since you mentioned you're still in processing, you're likely safe from seeing any offset indicators right now. However, since you graduated last year and are concerned about student loans, I'd recommend checking your loan status on studentaid.gov to make sure you're actually current. Sometimes people think they're in good standing but might have missed a payment or had a loan transferred to collections. Better to verify now than get surprised when your transcript updates with an unexpected offset code.

Question - I'm planning to hold my property for only 5-7 years. Does a cost segregation study still make sense in that case? I've heard there can be depreciation recapture issues when you sell.

I've been through this process twice now with different commercial properties, and I want to echo what others have said about not doing it yourself. The IRS Audit Techniques Guide for Cost Segregation is incredibly detailed and technical - it's not just about identifying components, but properly valuing and documenting them according to specific engineering principles. One thing I learned the hard way on my first property: make sure whoever you hire has experience with your specific property type. Industrial buildings have different segregation opportunities than office buildings or retail spaces. The cost segregation specialist should be familiar with the construction methods and systems typical to your property type. Also, don't forget about the "lookback" provision if you've owned the property for a while. You can still do a cost segregation study on properties you've owned for years and capture missed depreciation through a Form 3115 (Application for Change in Accounting Method). This can result in a significant one-time deduction in the year you file the study. The upfront cost stings, but the cash flow benefits are real. On my 1.2M industrial property, the study cost $12k but generated about $180k in additional depreciation deductions over 7 years.

Has anyone used TurboTax to figure out form 2210 for capital gains? I'm in a similar situation and wondering if the software handles the annualized income method properly.

Just want to add that you should also look into whether you can increase your withholding at your regular job for the remainder of the year. The IRS treats withholding as if it was paid evenly throughout the year, even if you actually increase it all at the end. So if you bump up your W-4 withholding significantly for your last few paychecks, it can help cover those earlier quarters and potentially eliminate penalties entirely. I did this when I had a similar situation with some unexpected freelance income. Had my employer withhold an extra $3,000 from my December paychecks, and it was treated as if I had paid $750 each quarter. Saved me from having to deal with Form 2210 calculations entirely since my total withholding ended up covering 100% of my prior year tax liability.