I'm confused about something slightly different but related. If my ISOs were underwater when I exercised them (like yours), but then I hold them and they go up in value later, does that somehow trigger AMT retroactively? Or is AMT only based on the value at the exact time of exercise?

You're absolutely right to be confused about this - the ISO/AMT rules are pretty complex! But the good news is that when your ISOs have a negative spread (exercise price higher than FMV), you don't need to worry about AMT at all for those specific exercises. The AMT adjustment for ISOs only applies when there's a positive "bargain element" - meaning you're getting shares worth more than what you paid. Since your shares were worth less than your exercise price when you exercised, there's no bargain element to report. You should definitely keep your Form 3921 for your records though, as you'll need it when you eventually sell the shares to calculate your capital gains/losses. Your cost basis will be whatever you actually paid (the exercise price), not the lower FMV at exercise time. So no Form 6251 needed for these underwater ISOs specifically, unless you have other AMT-triggering items in your tax situation!

Has anyone noticed if having tax fees taken out of your refund affects the timing? I'm wondering if that extra step with the tax preparer's bank might cause delays compared to people who paid their filing fees upfront.

I'm with Brinks too and have a 3/15 DDD - still waiting as of this morning. Based on what I'm seeing here, it sounds like Brinks is pretty reliable about hitting the exact date rather than depositing early like some other banks. @Amina Bah, thanks for confirming you got yours today with the same DDD! That gives me confidence mine should hit soon. I'm curious though - for those who've used Brinks for multiple tax seasons, have you noticed any pattern with what time of day the deposits typically show up? Some banks seem to process these overnight while others do it during business hours.

Question about the property value - has anyone considered the potential for further appreciation during the 2-year rental period? If the property is already worth $1.8M and continues to appreciate while being rented, wouldn't that affect the calculations?

Great discussion everyone! I'm dealing with a similar situation and wanted to add a few considerations that might be helpful. One thing I learned from my tax attorney is that the "step transaction doctrine" mentioned earlier can be tricky with family arrangements. The IRS might look at the entire sequence - converting to rental, renting to family, then selling and exchanging - as one integrated transaction rather than separate steps. To avoid this, your parents should establish clear business motivations for each step. Also, regarding the depreciation point that Carmen mentioned - this is crucial. Once your parents start renting the property, they'll be required to take depreciation deductions (even if they don't claim them, the IRS assumes they did). This creates "depreciation recapture" that must be paid even in a 1031 exchange - it can't be deferred like capital gains. For the gift situation, consider having your parents charge you market rent but then help you in other ways that are clearly separate from the rental relationship - maybe contributing to a down payment fund for your future home purchase, but do this well before or after the rental period to avoid any appearance of connection. Finally, make sure to document everything meticulously. Keep records of comparable rents in the area, maintain the property like any other rental (repairs, maintenance, etc.), and treat it as a true business relationship even though it's family.

I ended up using TaxCycle for my 941X filings and it helped quite a bit with getting the calculations right. Still took almost 5 months to get the credit though.

I'm in a very similar situation - filed my 941X forms for 2020 ERTC in March and still waiting. Based on what I'm seeing here, it sounds like we're right in that 4-6 month window that seems to be typical. One thing that's been helpful for me is keeping detailed records of when I filed and what I submitted. I created a simple spreadsheet tracking my filing dates, amounts claimed, and any correspondence. This way when I do eventually call the IRS (probably around the 5-month mark based on the advice here), I'll have everything organized. For what it's worth, I did file electronically through my tax software, and my CPA mentioned that electronic filings might have a slight advantage in processing time since there's no manual data entry required. Though with the volume of claims they're dealing with, I'm not sure it makes a huge difference. Hang in there - sounds like most people are eventually getting their credits, it's just taking much longer than anyone expected!

Any idea what form I need to use for this? Is it just part of Schedule C if I'm a sole proprietor? Or does it go somewhere specific on my 1120 for my S-Corp?

This sounds like a fantastic marketing opportunity! As others have mentioned, this would definitely qualify as a deductible business expense under advertising/marketing. The $15,000 cost is substantial but could be very worthwhile if it generates good community buzz and brand recognition. One thing I'd add that I haven't seen mentioned yet - consider reaching out to local media ahead of time. Having The Sandlot actors at a community baseball event could generate some great press coverage, which would amplify your marketing investment. Local newspapers, radio stations, and TV news often love these kinds of nostalgic community events. Also, make sure to get photos and video of your company's signage and recognition at the event. This documentation serves double duty - it helps with tax compliance by proving the business purpose, and you can use the content for future marketing on your website and social media. The key is treating this as a serious marketing campaign rather than just a fun sponsorship. Document everything, measure what you can, and leverage it beyond just the single event. Good luck with it!