One thing to keep in mind with vacant land investments is the concept of "holding period" for tax purposes. Since you mentioned you're considering building on it eventually for personal use, you'll want to be very clear about when that transition happens. The IRS looks at your primary intent at the time of purchase and your ongoing actions. If you originally bought it as an investment (which sounds like your case), you can generally continue treating it that way until you take concrete steps toward personal use - like applying for building permits, hiring contractors, or starting construction. Also, don't forget that if you do any improvements to the land while it's still an investment property (like clearing, grading, utilities hookups), those costs can be added to your basis, which will help reduce any taxable gain when you eventually sell or convert it. Keep detailed records of all expenses related to the property during its investment phase.

I've been in a similar situation with vacant land, and one thing that really helped me was keeping a detailed investment journal from day one. I document everything - market research I do on the area, comparable sales I look up, any inquiries about potential uses, and even notes from conversations with real estate agents about appreciation potential. This documentation has been invaluable not just for tax purposes, but also for my own decision-making. When I eventually do convert to personal use, I'll have a clear paper trail showing my investment intent and activities throughout the holding period. Also, something I learned the hard way - if you're planning to eventually build on the property, consider having a survey done while it's still in investment status. Survey costs are deductible as investment expenses, and you'll need one anyway for construction. Better to get that deduction while you can rather than treating it as a personal expense later.

The distinction about whether you're selling now is crucial. If you haven't sold yet, you have time to pursue the late Section 754 election before any taxable event occurs. This gives you significant leverage. One thing I haven't seen mentioned yet - consider getting a current appraisal of the partnership assets to establish the potential tax savings from the late election. This helps justify the costs of pursuing relief and strengthens your case with the IRS by showing the magnitude of the inequity if relief isn't granted. Also, check if the partnership agreement has any provisions about basis adjustments or elections. Sometimes partnerships have language that could support your position or require the partnership to cooperate with beneficiaries on tax matters. The general partners have a fiduciary duty to act in the best interests of all partners, which could include helping you get this election filed if it benefits the partnership overall. Have you confirmed who the current general partner is and whether they're willing to cooperate with filing the late election request? That's really your first hurdle - without their cooperation, your options become much more limited.

Great to hear your uncle is willing to cooperate! That's half the battle right there. Since you have time before any sale, you're in a much better position than most people dealing with this issue. A few additional thoughts as you move forward: Make sure to document everything about why the original election wasn't filed in 2008. The IRS wants to see that the failure was due to reasonable cause, not neglect. Your uncle's comment about "nobody understanding the tax implications" could actually work in your favor if properly documented - it shows good faith rather than intentional avoidance. When you get that appraisal, try to get one that shows values both at your grandmother's death in 2008 and currently. This creates a clear timeline showing the appreciation that occurred before vs. after your inheritance, which strengthens your equity argument. Also consider having a tax attorney review your case before submitting the relief request. The stakes are high enough that professional help with the 301.9100-3 request could save you significant money in the long run. The IRS scrutinizes these requests carefully, and having it properly prepared increases your chances of approval substantially. You're in a much better spot than your original post suggested - having cooperative family members and time to plan makes all the difference!

I just went through this exact same nightmare and wanted to share what finally worked for me! After getting suspended twice and spending hours on this, I discovered that using Microsoft Edge (instead of Chrome or Firefox) made a huge difference - apparently their verification system plays better with certain browsers. I also learned that you should NEVER refresh the page or hit the back button during the process, even if it seems stuck. Just let it sit and wait, even if it takes 10+ minutes. Another thing that helped was doing the verification on a weekend morning around 7-8 AM when their servers are less busy. I know it's incredibly frustrating, but hang in there @f39c761ba9cc - you'll get through it! The system is definitely broken, but with the right combination of patience, timing, and browser choice, it can work. Also, make sure your phone number and address exactly match what's on your tax return - even small formatting differences can cause issues. Good luck! 🍀

I'm dealing with this exact same issue right now! Just got my account suspended this morning after the verification process timed out during the facial recognition step. Reading through all these comments has been super helpful - I had no idea that browser choice could make such a difference! I'm going to try the Microsoft Edge + early morning approach that @c0fcff525c77 mentioned, along with using a wired connection and being way more patient with the wait times. It's honestly ridiculous that we have to jump through so many hoops just to access our own tax information, but at least it's reassuring to know that pretty much everyone eventually gets through with enough persistence. Thanks to everyone who shared their experiences and tips - this community is a lifesaver! 🙏

One thing to keep in mind is the timing of when you lived in different parts of the house. The IRS has specific rules about mixed-use properties where part was your primary residence and part was rental. If you've lived in the main part continuously as your primary residence for at least 2 of the last 5 years before selling, that portion should qualify for the Section 121 exclusion. However, for the rental unit portion, even if it's in the same building, the IRS typically treats it as a separate property for tax purposes. This means you'll definitely owe the 25% recapture tax on all depreciation taken for the rental unit, and that portion won't qualify for the primary residence exclusion. For your home office depreciation, this gets a bit more complex - if the office is within your primary residence area and you stop using it as an office before selling, you might be able to apply the Section 121 exclusion to that portion's gain, but you'll still owe recapture tax on the depreciation taken. I'd strongly recommend getting a tax professional to help you allocate the sale proceeds between the different uses of the property to make sure you're calculating everything correctly.

Great question about allocation methods! The IRS typically allows several approaches for determining the split between personal residence and rental portions, but square footage is the most common and defensible method. For example, if your rental unit is 800 sq ft and your total property is 2,400 sq ft, then 33% would be allocated to the rental portion and 67% to your primary residence. This percentage applies to both your original basis and the sale proceeds. However, you can also use other reasonable methods like: - Number of rooms (if they're similar in size) - Fair rental value comparison - Relative assessed values if your local tax assessor breaks them out separately The key is being consistent - whatever method you used when you first started taking depreciation deductions should generally be the same method you use when calculating the sale allocation. Keep good documentation of your methodology because the IRS may ask you to justify your allocation during an audit. One important note: if you've been using a specific percentage on your Schedule E forms over the years for the rental portion, stick with that same percentage for the sale calculation. Changing it could raise red flags.

I just went through this exact situation a few months ago with bank bonuses from three different institutions totaling around $1,500. Here's what I learned from the process: First, definitely file an amended return - don't wait or try to include it next year. The IRS automated matching system will eventually catch the discrepancy between what the banks reported and what you filed, and it's much better to be proactive about it. To find your missing 1099 forms, check a few places: your email spam/promotions folders (banks often send these electronically now), any online banking portals or document centers, and your physical mail from January-February. If you still can't find them, you can call each bank's customer service line and request duplicate copies - they're required to provide them. The good news is that Form 1040-X for this type of correction is pretty straightforward. You'll report the additional income, calculate the extra tax owed (probably around $180-$360 depending on your tax bracket), and include a brief explanation like "Adding previously omitted bank account opening bonuses." One important note: make sure you understand how each bank classified the bonus. Some report them as interest income (1099-INT) while others use miscellaneous income (1099-MISC). This affects which line of your tax return gets the adjustment, though the bottom-line tax impact is the same. The sooner you file the amendment, the less interest you'll pay on any additional taxes owed. I filed mine within 6 weeks of realizing the mistake and the whole process was much smoother than I expected.

I've been through this exact situation and want to emphasize a few key points that might help you avoid some of the stress I went through. First, don't panic about not finding the 1099 forms right away. The IRS wage and income transcript that someone mentioned earlier is your best friend here - you can access it online immediately and see exactly what each bank reported. This eliminates the guesswork about amounts and classifications. Second, while everyone's correctly saying you need to amend, I want to stress the timeline aspect. You have up to 3 years to file an amended return, but the sooner you do it, the less interest accumulates on any additional taxes owed. In your case with $1,200 in bonuses, you're probably looking at an additional tax liability of $180-$300 depending on your bracket. One thing I learned the hard way: if you received bonuses late in the tax year (November-December), some banks don't send the 1099s until late January or even early February. They might still be coming in the mail, so check with each bank's customer service before assuming they're lost. The amendment process itself is much simpler than it sounds. Most tax software can handle 1040-X preparation, or you can work with a tax preparer if you prefer. Either way, you'll sleep much better knowing it's handled properly rather than waiting for an IRS notice that will inevitably come.