This is super important! Alaska has some unique property rules. OP should definitely check if the property was in an area with subsurface rights or native corporation interests because that can change everything about how it's reported.

Absolutely right about the subsurface rights. The other thing to consider is whether the property was received via a Native allotment or corporation, as these have different tax treatments than standard inherited property. There are special provisions for Alaska Native lands that don't apply elsewhere. If the property was in a remote area, sometimes the assessment records aren't as detailed as they would be in more populated areas, so you might need to look for comparable sales from newspapers or other records from 2007. Some Alaska boroughs have surprisingly good historical data available online now.

Which software did you end up using that worked? I'm in a similar situation for 2024 and worried about making the same mistake.

Thanks for this suggestion! Which tax software were you using? I'm on TaxAct for Business, and I'm wondering if that might be the issue.

I was using ProSeries when I had that issue. With TaxAct, you should be able to check for updates by going to the Help menu and looking for "Check for Updates" or something similar. If you're using their online version rather than desktop software, try clearing your browser cache or using a different browser entirely. Sometimes these issues can also be related to the subscription level you have - some tax years might not be available if your subscription doesn't cover that period. Might be worth checking with TaxAct support directly if the update doesn't resolve it.

I filed our partnership extension last week using UltraTax and had no issues selecting the 2023 tax year (for filing in 2024). Everything processed normally. So I don't think it's an IRS-wide system issue.

We're in Illinois. Do you know if there are any special requirements here? The commercial was for a regional grocery chain, and I don't think they mentioned anything about special accounts when we signed the contracts.

Illinois doesn't have a specific Coogan Law like California or New York, so you don't have the same legal requirement to set up a blocked trust account. However, it's still a good practice to save some of your children's earnings for their future. Since the commercial was for a regional grocery chain and the earnings were relatively modest ($1,200 each), you're mainly just dealing with the standard tax considerations that have been discussed in other comments. Just make sure to check those W-2s to see if any taxes were withheld, as that would be a good reason to file returns for them to get those withholdings back.

Do kids who act in commercials need an agent? And how does that work with taxes if the agent takes a percentage? Does that count as a deduction?

Definitely this! Also reach out to the SEC and FINRA if this "advisor" claimed any professional credentials. Even if they were overseas, these agencies track these scams and sometimes can help with recovery.

Thanks for this advice. We did file a police report but I didn't know about adult protective services or the IC3. I'll definitely look into those resources today. Mom is so embarrassed about all this that she's been reluctant to tell anyone, but I'm trying to get her all the help possible.

Good point about wash sales, but it likely doesn't apply here since this wasn't a normal market transaction where she sold at a loss. This was essentially theft through transfer. But you're right that she should avoid buying substantially identical securities within 30 days if she wants to ensure the loss deduction isn't deferred.

Thanks for bringing this up, but these are both primary residences. We've lived in our current home for 6 years, and the childhood home will become our new primary residence once we complete the purchase. So I think we should qualify for the capital gains exclusion rather than needing the like-kind exchange rules.

You're absolutely right that the primary residence exclusion is your best option here. Since you've lived in your current home for 6 years, you easily meet the 2-out-of-5 years requirement. I mentioned like-kind exchanges just as an alternative for readers in different situations, but your plan to use the Section 121 exclusion for primary residences is perfect for your situation. Just make sure to keep good records of both transactions for your tax files.

I used TurboTax last year for my home sale. It asks all the right questions about how long you lived there and the purchase/sale prices. Just make sure you have all your closing documents handy. The land contract part might be trickier though.