Does anyone know if the tax treatment changes depending on whether this was inherited directly or through a trust? My dad left his rental properties in a living trust, and I'm trying to figure out if the depreciation rules are different.

I'm dealing with a very similar situation with my grandmother's duplex that I inherited 6 months ago. She had been depreciating a new furnace and water heater for about 3 years before she passed. One thing I learned that might help you - make sure to get a professional appraisal done close to the date of death if you haven't already. This establishes your stepped-up basis for the property itself, which is separate from continuing the depreciation on those specific improvements your mom was already depreciating. Also, if your mom used a tax preparer, definitely reach out to them first. They should have all her depreciation schedules and can walk you through exactly what needs to continue and what starts fresh. My grandmother's CPA had everything organized in a way that made the transition much smoother than trying to piece it together myself. The IRS Publication 946 has a section on inherited property depreciation that's actually pretty helpful once you get past all the technical language. Good luck with everything!

Random tip: If your AGI is under $73,000, you qualify for the IRS Free File Program which gives you access to free commercial tax software INCLUDING for things like Schedule 3. TurboTax deliberately hides their Free File version on their website and tries to trick people into paying. Go through the IRS website (https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free) to access the ACTUALLY free versions.

I went through this exact same frustration last year! TurboTax's "free" marketing is so misleading - they hook you in and then hit you with upgrade fees halfway through. Your 401k contributions are definitely what's triggering the Schedule 3 requirement for the Saver's Credit. But here's the thing - you don't need to pay TurboTax's ridiculous fees for this. I ended up switching to FreeTaxUSA after getting burned by the upgrade trap, and they handle ALL the schedules including Schedule 3 completely free for federal filing. The Saver's Credit can actually save you money on your taxes (up to $1,000 depending on your income), so it's worth claiming even if TurboTax is trying to charge you for it. Don't let them scare you into thinking you need their expensive version - there are plenty of legitimately free options that handle the exact same forms without the bait-and-switch tactics. Also, pro tip: if you do qualify for the Saver's Credit, make sure you're maximizing it by understanding the income limits and contribution amounts. It's one of the better tax benefits for people just starting to save for retirement.

" Update Spoke to someone with the IRS and was told that'it s still being reviewed. She did ask if I received any letters other than the one for me to verify my identity, which I told her I'haven t receive anything, she then placed me on hold for 5 to 7 minutes and returned to tell me that she was advised to tell me starting from todays date May 1st I have to give them 100 to 180 days which will be Oct 28th to either get my refund or letter asking for information etc. I know you'can t win with the IRS but'what s not fair is I did what I was suppose to do previous and waited only to possibly have to wait another 100 to 180 days. Hopefully, that'won t be the case and'they ll either send the refund or ask for verified information.'I m just ready to get the ballrolling...

So I filed my taxes in 4/5 and a week later 4/12 (before I received my original refund) I amended my taxes adding my baby whose ss card I didn’t have! I wasn’t told by my tax preparer that the IRS recommends you file an amendment AFTER original refund is deposited! I haven’t received any letters or notifications and this is what my transcript says! Folks on Reddit have been waiting 4 months and telling me based off my transcript and the information I gave I’ll be waiting until October! Should I call the IRS? I’ve already contact my local congressman and senator because it’s the off season (I’m a waitress) and this money always helps me along during the summer! Plus I only worked until July last year due to pregnancy complications!

I completely understand the confusion - I went through the same thing last year when my company switched to the new W4 system! The key thing to remember is that the new system is actually more precise, even though it feels more complicated. For your sister's situation with 3 kids under 5 making $52k, here's what I'd recommend starting with: 1. Put $6,000 on Line 3 (Child Tax Credit for 3 kids) 2. Leave Line 4(b) empty initially to be safe 3. Monitor her next few paychecks to see the change This conservative approach will still increase her take-home pay significantly without risking owing taxes. The $6,000 on Line 3 alone should reduce her withholding by about $230 per month. Once she sees how that affects her paychecks, she can always submit a new W4 later with additional adjustments on Line 4(b) if she wants to capture more of that projected $13k refund in her regular pay. It's better to adjust gradually than to risk a surprise tax bill! The beauty of the new system is you can update your W4 anytime during the year as your situation becomes clearer.

The new W4 system definitely takes some getting used to! I went through this same confusion when helping my daughter adjust hers last year. One thing that really helped us understand the system better was using the IRS's own withholding calculator at irs.gov/W4App. It's free and walks you through your specific situation step by step. For your sister's case, it will factor in her income, filing status, number of dependents, and estimated credits like EIC. The calculator will then tell you exactly what to put on each line of the W4 - no guesswork needed. It even shows you how your changes will affect each paycheck and your projected refund. Since your sister is getting such a large projected refund ($13k), the calculator might suggest putting amounts on both Line 3 (for child tax credits) AND Line 4(b) (for other adjustments). The key is that it does the math for you based on current tax law. I'd recommend running through the calculator together - it takes about 10-15 minutes and gives you confidence that you're making the right adjustments. You can always be conservative with the first adjustment and run the calculator again in a few months if needed.

Former 501c3 board member here. One legitimate arrangement to consider is a proper "supporting organization" structure. Some non-profits are specifically set up to support other organizations through grants or financial transfers. However, in those cases, the receiving organizations should also typically be non-profits, not for-profits. There are also complex arrangements like "social enterprise" models where non-profits own for-profit subsidiaries (not the other way around). But funds generally flow FROM the for-profit TO the non-profit in those cases. Either way, these relationships must be transparent, properly documented, and serve the charitable purpose of the non-profit.

This situation sounds very concerning from a tax compliance perspective. Based on your description of variable year-end transfers that match whatever excess funds remain, this appears to be a potential violation of the private benefit doctrine. The IRS is very strict about 501c3 organizations transferring benefits to private parties, especially when those parties are controlled by the same individuals. A few critical questions to help clarify the situation: Are these for-profit entities providing documented services throughout the year that would justify variable compensation? Do you have access to the organization's Form 990 filings? These are public documents that should disclose related party transactions and would show how they're characterizing these payments to the IRS. I'd also recommend reviewing the organization's conflict of interest policy (if one exists) and board meeting minutes where these arrangements were approved. If this is indeed what it appears to be - a scheme to funnel tax-exempt funds to private entities - it could result in severe penalties including loss of tax-exempt status, excise taxes on the participants, and potential criminal charges. You might want to consult with a nonprofit attorney who specializes in tax-exempt organizations before taking any action, as these situations can be legally complex.