I went through this exact situation with my ski condo in Colorado last year! My accountant initially allocated 20% to land based on county records, but after I showed her the 99-year land lease documentation, she corrected it to 0% land, 85% building, and 15% leasehold interest. The leasehold interest gets amortized over the remaining lease term (in my case 72 years), while the building gets depreciated over the standard 27.5 years. My returns actually got selected for a correspondence audit last year (random bad luck), and this treatment was accepted without any questions from the IRS.

This is such a helpful thread! I'm dealing with a similar situation with my rental condo in Miami Beach that has a 95-year land lease. After reading everyone's experiences, I'm realizing I need to completely redo my depreciation approach. Currently I've been using the county assessment ratio (about 25% land, 75% building) but it sounds like I should be allocating 0% to land since I don't actually own it. Instead, I need to figure out what portion of my purchase price represents the leasehold interest versus the building improvements. One question - for those who had success getting specific guidance from the IRS or professional help: how did you determine the exact percentage split between building and leasehold interest? My closing documents don't have a clear breakdown like some of you mentioned, so I'm not sure how to make this allocation properly. Also, @Evelyn Xu - great point about the HOA fees! I just checked and my monthly fees do include a "ground rent" line item. This could save me a lot compared to capitalizing everything into the purchase price.

I went through this EXACT situation last month. According to IRS Publication 2043, once a Direct Deposit Date is established, the IRS initiates the transfer but is not responsible for banking processing times. My Credit Karma deposit took exactly 30 hours after my DDD to appear, despite them advertising "early deposits." What finally worked was checking my account at precisely 3:14am when their overnight processing completed - suddenly there it was! The most frustrating part was that their customer service couldn't see it as pending either when I called them. For what it's worth, my brother-in-law had the same experience with his refund through Credit Karma two weeks ago.

I'm dealing with the exact same situation! My DDD was today (April 17th) and still nothing in my Credit Karma account. Reading through these comments is actually really reassuring - sounds like this is pretty common with Credit Karma this tax season. I didn't realize their processing could take an extra day or two even after the IRS sends the money. Going to try checking my account early tomorrow morning like Tyrone suggested. It's frustrating that they advertise early deposits but then take longer than traditional banks for IRS refunds. Has anyone here actually contacted Credit Karma support about this specific issue, or is it just a matter of waiting it out?

Curious for those who've dealt with this - is it worth paying points at all if you can't deduct them? I'm about to buy my first home and trying to decide if I should use my lender credit for points or for other closing costs that wouldn't be deductible anyway.

This is such a helpful thread! I'm dealing with a similar situation and was totally confused about the lender credit rules. What I'm still wondering about is the timing aspect - if I used some of my own cash AND some lender credit to pay for points, how do I figure out which portion is deductible? My settlement statement shows $15,000 in points total, but I had a $10,000 lender credit that covered part of it. So I effectively paid $5,000 out of pocket for points. Can I deduct that $5,000 portion, or does the fact that any lender credit was involved mean I can't deduct any of it? Also, does it matter how the lender credit is specifically allocated on the settlement statement? Like if the credit shows as covering other closing costs instead of the points directly, but the net effect is the same?

that EIC looking nice tho 🔥

Based on your transcript, you should receive a refund of $5,158 ($1,800 + $4,313 - $855). The code 150 shows your tax liability of $855, while codes 766 and 768 are credits that exceed what you owe. Your processing date of March 3rd means you're likely looking at getting your refund within 21 days from that date, so potentially by late March. The April dates you see are just system posting dates and don't affect your actual refund timing. Keep checking "Where's My Refund" on the IRS website for updates!

Has anyone considered that removing trees in a wildfire zone could potentially be classified as a casualty loss prevention measure? I read something about this where the IRS sometimes allows deductions for preventative measures against disasters, especially in designated high-risk zones.

Just wanted to add another perspective on the documentation side - make sure you keep really detailed records of everything. For my rental properties, I learned the hard way that the IRS wants to see not just receipts, but also documentation of WHY the work was necessary. For tree removal specifically, I'd recommend getting written estimates from certified arborists that explain the safety concerns or property risks. If your insurance company made recommendations, keep those letters. For the wildfire zone situation, see if your local fire department or county has any written guidance about defensible space requirements - that could really strengthen your case for the business deduction. Also, take before and after photos. I had a tree removal situation where the IRS questioned whether it was truly necessary maintenance versus cosmetic improvement. Having photos showing the trees were dead, leaning dangerously, or otherwise problematic really helped my case. The $4,800 total you mentioned is significant enough that you'll want bulletproof documentation if you get audited. Better to over-document now than scramble later!