Thank you for pointing this out! I had no idea about the 80% limitation. Does this mean I need to file any special forms for my 2024 taxes next year when I use the NOL? And should I be keeping copies of anything specific from my 2023 return as proof?

Yes, when you apply your NOL to your 2024 taxes next year, you'll need to file Form 1045 Schedule B to show how you're applying the carryforward. It's a good idea to keep a complete copy of your entire 2023 tax return, especially Schedule A of Form 1045 where you calculated the original NOL. Also keep any supporting documentation for the business losses that created the NOL - receipts, invoices, mileage logs, etc. The IRS tends to look more closely at returns with NOLs, so being able to substantiate everything is important. I recommend creating a dedicated "NOL documentation" folder with copies of everything, since you might be carrying this forward for several years.

Good point about state taxes! I've also seen some states limit the amount of NOL you can claim in a single year, regardless of the federal 80% rule. My state (Illinois) has its own NOL worksheet that's completely different from the federal one.

Thanks for mentioning this! I told my mom right away and she checked her online account with the IRS. Her return was processed correctly with me as her dependent, which makes this even more confusing. Seems like different IRS systems aren't talking to each other properly.

That's definitely the issue then - the system that processes tax returns correctly marked you as a dependent, but the system that distributes stimulus payments didn't get that information. Classic government tech problems! Based on everything I've seen in similar cases, you're very likely in the "safe harbor" category where you can keep the payment without worry.

I'm so sorry about your daughter. Yes, deceased person payments are one of the few cases where the IRS explicitly tells you to return the money. For dependent status confusion like OP's situation, they've been much more lenient. I think they realized the administrative cost of processing returns would exceed the benefits.

I've heard about 1031 exchanges but wasn't sure if they applied to properties you build yourself. Do you know if there are any special rules for self-built investment properties? And do I need to identify the replacement property before I sell?

1031 exchanges absolutely can work for self-built investment properties. The fact that you built it yourself doesn't matter for exchange purposes - what matters is that it was held as an investment property. Yes, you must identify potential replacement properties within 45 days of selling your property, and you must close on one of those identified properties within 180 days. This is absolutely strict - miss those deadlines by even one day and the entire exchange fails. Also critical: you cannot touch the proceeds from your sale - they must go directly to a qualified intermediary who will hold them until you're ready to purchase the replacement property.

That's not how QBI works for real estate. You'd need to be classified as a real estate professional and spend 750+ hours annually in real estate activities. A one-off project like this wouldn't qualify unless OP is regularly in the business of building and selling properties.

Is there any way to just add a specific extra amount without recalculating everything? Sometimes I just want to bump up my withholding by a set amount without all this complexity.

Yes, you can use Box 4(c) on the W4 form which is specifically for extra withholding. If you want to add exactly $348 more per pay period without changing your current withholding base calculation, just put $348 in Box 4(c) and leave the rest of the form the same as your previous submission. Make sure you don't fill out Step 2 or check any different filing status boxes if you don't want the system to recalculate your base withholding. The Box 4(c) amount will be added on top of whatever your current calculation method is producing.

This happened to me too! It was a nightmare to fix because our payroll department kept insisting they were doing it right. Had to get a manager involved.

That's a great point I hadn't considered. The property is just the first part of a larger inheritance that will come in phases. Would the estate planner work alongside the CPA and attorney, or would they typically handle different aspects of the situation?

Estate planners often work collaboratively with your CPA and attorney. They typically focus on the big picture and long-term strategy while the attorney handles immediate legal matters and the CPA addresses current tax implications. For a phased inheritance situation like yours, an estate planner would be particularly valuable. They can develop a comprehensive strategy that takes into account both current and future assets, helping you avoid potential pitfalls specific to non-citizens. For example, they might suggest specific trust structures that work better for non-citizens or strategies to minimize estate tax exposure across multiple countries.

DO NOT use regular tax software for international inheritance! I tried that last year and it was a disaster. The software doesn't ask the right questions about foreign assets and doesn't include all the necessary forms. I ended up having to amend my return and pay penalties because I missed filing several required information returns.