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If you sold for $21,500 and bought for $12,000, don't forget that's a $9,500 profit which is subject to capital gains tax! Since you held it more than a year, you'll get the lower long-term rate (0%, 15%, or 20% depending on your income) instead of your regular income tax rate.
It's also worth mentioning that if you had a loss instead of a gain on the land sale, you can deduct that too. A friend of mine had to sell some land at a loss due to financial hardship, and he was able to offset some of his other income with the capital loss. There's a limit of $3,000 per year for capital losses against ordinary income, with the rest carrying forward to future years.
One thing that hasn't been mentioned yet is the Net Investment Income Tax (NIIT). If your modified adjusted gross income exceeds certain thresholds ($200,000 for single filers, $250,000 for married filing jointly), you may owe an additional 3.8% tax on your capital gains from the land sale. This is separate from the regular capital gains tax and catches a lot of people off guard. The good news is that with a $9,500 gain, it's unlikely to push most people over those income thresholds unless they already have substantial other income. But it's something to be aware of when planning your tax strategy, especially if you're considering selling other investments in the same year. Cash App Tax should automatically calculate this if it applies to your situation, but it's worth understanding so you're not surprised by an unexpected tax bill.
That's a really helpful point about the NIIT! I'm nowhere near those income thresholds, but it's good to know about for the future. Quick question - does the 3.8% apply to the entire gain or just the portion that pushes you over the threshold? And are there any other "surprise" taxes on capital gains that people should be aware of when selling land?
I'm dealing with a Letter 12C situation right now too and this thread has been super helpful! Just wanted to add that I called the IRS customer service line last week about my verification and they confirmed that the N/A transcript status is completely normal during the review process. The agent told me that when they receive your faxed documents, they actually remove your return from the normal processing queue to manually verify everything - that's why it shows N/A instead of your usual return info. She said not to worry unless it's been more than 12 weeks total since you first faxed your response. @Ryan since you faxed on Feb 20th and it's been 4 weeks, you're still well within the normal timeframe. The peak tax season backlog is real but they do eventually get through everything. I'd definitely wait the full 8 weeks before calling again since they'll just tell you the same thing anyway. Keep that fax confirmation safe though - that's your proof you responded on time if any issues come up later! Hang in there, we're all in this waiting game together πͺ
Thanks @Ian for calling and getting that confirmation from the IRS! That's really reassuring to hear directly from an agent that the N/A status is just part of their normal verification process. I'm dealing with my first Letter 12C situation and honestly was starting to think something went wrong when my transcript didn't update after a few weeks. The 12-week total timeline you mentioned is good to know too - gives me a better sense of when I should actually start worrying vs just being patient. It's crazy how backed up they get during tax season but at least we know the system does work eventually. Really appreciate you sharing what the agent told you! π
I'm in almost the exact same situation! Got my Letter 12C about 5 weeks ago for a W-2 verification issue (different amount but same process). The waiting is absolutely nerve-wracking, especially when you see that N/A status on your transcript and start wondering if your documents got lost in the system. What's been helping me is keeping track of the timeline - like @Ian mentioned, the IRS agent confirmed that 12 weeks total is when you should actually start worrying. Since you faxed on Feb 20th, you're still well within normal processing time even with the peak season delays. I also used HelloFax like @Jessica suggested and got a confirmation receipt, which definitely helps with peace of mind. The online fax services seem way more reliable than traditional fax machines, especially when dealing with something this important. The hardest part is just the waiting game when your refund is sitting there in limbo. But from everything I've read and heard, as long as you responded within that 20-day window (which you did), you should be good. The IRS is just incredibly backed up right now. Hang in there - we're all riding this out together! π€
@Maya this is such helpful perspective! I'm brand new to dealing with IRS verification letters and honestly was starting to panic after reading Ryan's post. It's so reassuring to hear from multiple people that the N/A transcript status and the long waiting times are just part of the normal process. The HelloFax recommendation keeps coming up - definitely going to use that if I ever need to send documents to the IRS. Thanks for sharing your timeline and experience, it really helps calm the nerves knowing we're all going through the same thing! π
Jessica, I completely understand your panic about this situation! As someone who's worked in payroll administration for several years, I want to echo what everyone else has said - you absolutely should NOT have to guess at your employment classification. This is a legal determination that your employer is required to make based on Department of Labor guidelines. The fact that they're asking you to choose is honestly concerning and suggests either poor HR software design or a lack of understanding about FLSA compliance on their part. Employment classification affects your overtime eligibility, tax withholdings, and legal protections - it's not a personal preference you get to select. Here's what I'd do with your tomorrow deadline: **Tonight:** Send an email to your supervisor AND HR (if available) saying: "I'm completing my payroll forms and need clarification on my exempt/non-exempt classification. Since this affects overtime eligibility and must comply with FLSA requirements, could you please confirm which classification applies to my specific position and job duties?" **If no response:** Choose "non-exempt" as your default. About 60% of all employees are non-exempt, and it's much safer to potentially receive overtime pay you weren't entitled to (easily corrected) than to waive overtime rights you should legally have. **Document everything:** Keep records of your attempts to get proper guidance. This protects you if there are any payroll issues later. Please don't feel bad about asking - employment law is complex, and you're actually helping your company avoid potential compliance violations by seeking clarification. Any reasonable employer will appreciate your diligence rather than just guessing on something this important. You've got this! Focus on excelling in your actual job duties - that's what really matters in your first week.
Jessica, I can absolutely feel your stress about this deadline! As a newer employee who went through something very similar, I want to reassure you that you're handling this exactly right by seeking clarification rather than just guessing. Everyone here has given you spot-on advice - this classification should definitely be your employer's legal determination, not your personal choice. The FLSA requirements are pretty specific about job duties, salary thresholds, and decision-making authority, and these factors should drive the classification, not employee preference. Since you're pressed for time, here's what worked for me in a similar situation: I sent a brief email to both my supervisor and HR saying "I'm completing my payroll setup and want to ensure I select the correct exempt/non-exempt classification for compliance purposes. Could you please confirm which applies to my role as [job title]? I want to make sure everything is accurate from day one." If you absolutely must choose without guidance by tomorrow, definitely go with non-exempt as your default - it's the safer option since most positions fall into this category, and it protects your overtime rights while things get sorted out. Don't worry about seeming inexperienced by asking this question. Honestly, employment classification is complex enough that even HR professionals sometimes need to research specific situations. You're showing good judgment by wanting to get this right rather than guessing. This is totally fixable if adjustments are needed later, so try not to let it stress you out too much. Focus on doing great work in your new role - that's what will really matter in the long run!
I've been dealing with this exact same frustrating situation! Filed back in February and have been getting that useless "still processing" message for months now. Reading through all these success stories has given me so much hope - I had no idea about the payment line strategy! I'm definitely going to try calling 800-829-1040 tomorrow morning at 7am Eastern and selecting the payment options instead of the refund inquiry. The fact that multiple people are getting through in 15-25 minutes versus hours on the regular line is incredible. I've got my SSN, last year's AGI, and expected refund amount ($2,100) all organized and ready to go. What really strikes me is how many of these delays seem to be simple verification issues that get resolved quickly once you actually reach a human being. My return included the Child Tax Credit too, so I'm wondering if that might be what's holding mine up as well. Thanks to everyone who took the time to share what actually worked for them - this community has been more helpful than anything on the official IRS website! I'll definitely report back with how the call goes. It's so encouraging to know there are real solutions out there instead of just waiting indefinitely and hoping something changes.
Good luck with your call tomorrow morning! The payment line strategy really does seem to be the most reliable approach based on everyone's experiences here. Having the Child Tax Credit on your return could definitely be what's causing the delay - I've seen several people mention that specific credits often trigger manual verification reviews. Your preparation sounds perfect - having all that verification info ready (SSN, last year's AGI, expected refund amount) will make the call go much smoother once you get through. The 7am Eastern timing on a weekday morning seems to be the magic formula that's worked for so many people in this thread. It's amazing how these delays that seem so mysterious and complicated from the outside often turn out to be simple verification issues that can be resolved in minutes once you reach the right person. Your $2,100 refund is definitely worth that early morning wake-up call! Please do report back with how it goes - these success stories are what keep all of us motivated to keep trying instead of just accepting the endless "still processing" limbo. Fingers crossed you'll be another success story to add to this incredibly helpful thread!
I've been struggling with this exact same issue for over two months now! Filed in February and still stuck with that maddening "still processing" message. After reading through all these incredibly helpful success stories, I'm feeling more hopeful than I have in weeks. The payment line strategy at 800-829-1040 seems to be the clear winner here - so many people getting through in 15-25 minutes versus the endless holds on regular refund lines. I'm definitely going to try the 7am Eastern approach on Thursday morning with all my documentation ready (SSN, last year's AGI, and expected refund amount of $3,800). What really gives me confidence is seeing how many of these delays turn out to be simple verification issues that get resolved immediately once you reach an actual human. My return included both the Child Tax Credit and American Opportunity Tax Credit, so based on other stories here, that might be exactly what's triggering the hold. Thanks to everyone for sharing what actually works instead of just the generic "keep waiting" advice you get everywhere else. This community has been more helpful than months of trying to figure this out on my own! I'll definitely update with results - hopefully adding another success story to this amazing thread. The fact that we all have to jump through these hoops just to get information about our own money is ridiculous, but at least we're not alone in this fight!
Miguel HernΓ‘ndez
Just be careful! A friend of mine tried to deduct the difference between flying and driving for a similar situation, and it triggered an audit. The IRS disallowed the deduction because they determined the primary purpose of the trip was personal (family event). They said personal trips with some business activities don't qualify for travel deductions.
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Sasha Ivanov
β’That's not universally true though. The rules are more nuanced. If the primary purpose is business, you can deduct business expenses even if you include some personal time. Your friend's situation might have had other issues or lacked proper documentation.
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Amina Diallo
The key distinction here is that you're not just adding some business activities to a personal trip - you're being forced to change your entire travel method specifically because of business equipment requirements. This creates a stronger case for deducting the incremental costs. I'd recommend documenting everything thoroughly: get quotes for what flights would have cost, keep all driving-related receipts (gas, hotels, meals during travel), and most importantly, document why the equipment was essential and couldn't be shipped or transported any other way. Client emails or contracts showing the equipment requirements would be valuable supporting evidence. One thing to consider is whether you could potentially ship the equipment separately and still fly yourself. If shipping isn't viable due to timing, fragility, or cost, make sure to document why. This helps establish that driving was truly the only reasonable business option, not just a preference. The IRS generally allows deductions for additional costs incurred solely due to business necessity, but they'll want to see clear evidence that the extra expense was unavoidable for legitimate business reasons.
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Sofia Rodriguez
β’This is really helpful advice! The documentation angle makes a lot of sense. I'm curious though - if the equipment is something that could theoretically be rented at the destination, does that weaken the case for driving being the only option? Like if there's a rental company 200 miles from the wedding location that has similar equipment, would the IRS expect you to explore that instead of hauling your own gear?
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