Based on everyone's helpful responses, it sounds like you've got the right understanding now! Just to add one more perspective from someone who went through this exact situation: The confusion with RSU taxation is super common because most people (including me initially) assume that if shares are sold, that's when you get taxed. But with RSUs, the taxation happens at vesting regardless of whether you keep or sell the shares. Think of it this way: on your vesting date, it's as if your employer handed you $56,150.60 in cash (which gets taxed as regular income), and then you immediately used that cash to buy 220 shares at $255.23 each. The fact that 83 shares were automatically sold to pay taxes doesn't change that fundamental transaction. One practical tip: when you do eventually sell those 137 shares you're holding, make sure to note on your tax return (or tell your tax preparer) that these are RSU shares where the compensation income was already reported in a prior year. This helps avoid any confusion if you ever get audited. Also, keep that release confirmation document you mentioned - it's great documentation showing the vesting details and will be helpful for your records. Good luck with the rest of your tax prep!

I dealt with a very similar RSU situation last year and wanted to share what I learned from my CPA about the reporting process. The key insight is that your 1099-B is only telling part of the story. When you see proceeds of $20,990.58 and cost basis of $21,195.09 on your 1099-B, that's just for the 83 shares that were automatically sold to cover taxes. Your broker calculated the basis as 83 shares × $255.23 = $21,195.09, which is technically correct for those specific shares. However, many brokers don't properly account for the fact that you've already paid ordinary income tax on the full vesting value. This is where you need to be careful on your tax return. When you report this on Schedule D/Form 8949, you should show a small capital loss of about $204 ($21,195.09 - $20,990.58) for those 83 shares. The important thing is that this loss represents the difference between the vesting price and the actual sale price - not any additional compensation income. For your 137 remaining shares, your cost basis is definitely $255.23 per share. Keep this documented because when you eventually sell these shares, you'll need to prove to the IRS that you're not double-counting the compensation income that was already taxed on your W-2. One last tip: if you're using tax software, look for options specifically related to "employee stock plans" or "equity compensation" - most major tax programs have special workflows for this exact situation.

I actually just went through this process myself about two weeks ago and can share some recent experience! You definitely don't need to wait for the verification letter - I never received mine either. I went directly to idverify.irs.gov and completed the verification online. The process was straightforward but here are some tips that helped me: 1) Have your 2023 AGI ready (line 11 from your 2023 tax return), 2) Pull up your credit report beforehand so you can reference account details and previous addresses, 3) Make sure you're in a quiet space since some questions require careful thought about dates and amounts. The knowledge-based questions weren't too tricky - mostly about previous addresses, credit accounts, and loan information from the past few years. What really surprised me was how quickly it moved after verification - my return went from "under review" to "refund approved" in just 5 days! Given your financial aid situation, I'd definitely recommend being proactive rather than waiting for mail that might be delayed or lost. The IRS mail system has been particularly slow this season, and many people are successfully verifying online without ever receiving the physical letter. Good luck with both your verification and your financial aid disbursement!

I was in your exact situation last month - submitted my return in early February, got the identity verification notice, but no letter showed up for weeks! Don't wait any longer - I went straight to idverify.irs.gov and completed the verification without the physical letter. The system worked perfectly. You'll need your 2023 AGI (from line 11 of last year's return), your current filing status, and be ready for some knowledge-based questions about your credit history and previous addresses. Pro tip: have your credit report pulled up in another tab - it really helps with the verification questions about account details and dates. My return moved from "under review" to processing within 2 days of completing the online verification, and I had my refund a week later. Given your financial aid timeline, being proactive here is definitely the right move. The IRS mail system has been incredibly slow this season, and many of us have successfully verified online without ever seeing that letter. Don't let bureaucratic delays impact your education funding!

Has anyone compared Free Tax USA to TurboTax for business filers? I've been using TurboTax for years but the price keeps creeping up every year. Now they want $170 just for the basic self-employed version before adding state filing!

I've been using Free Tax USA for my consulting business for two years now and it's been solid. One thing I'd add to what others have said - if you're worried about making mistakes, their customer support is actually pretty responsive via email. I had questions about how to handle some equipment depreciation and they got back to me within a day with clear guidance. The learning curve isn't too steep if you have your records organized. I keep a simple spreadsheet throughout the year tracking income and expenses by category, so when tax time comes I just reference that while filling out the forms. Takes me about 3 hours total now, compared to the 2-hour meeting + back-and-forth with my old CPA that cost 10x more. One heads up - make sure you understand the difference between business expenses and personal deductions before you start. The software will ask about both, but it's on you to categorize things correctly. When in doubt, err on the conservative side or do a quick Google search about what's deductible for your type of business.

Has anyone mentioned that if the house was the father's primary residence, he might have qualified for the $250,000 capital gains exclusion? Might not need to worry about basis at all.

The property tax assessment approach should work fine for your situation, especially since the difference between your 2021 assessment ($187,500) and 2024 sale price ($195,000) is relatively small. That $7,500 gain over 3 years actually suggests the assessment was pretty close to market value at the time of death. A few practical tips from someone who's been through this: First, make sure you have a copy of the official 2021 property tax assessment document - not just the amount, but the actual assessment notice. Second, consider pulling a few comparable sales from late 2021/early 2022 in your neighborhood as supporting documentation. You can find these on sites like Zillow, Redfin, or your county's property records website. The IRS generally accepts property tax assessments for establishing FMV, especially when they're reasonable compared to eventual sale prices. In your case, the numbers tell a logical story. Just keep good records and you should be fine. The stepped-up basis is one of the few tax breaks that actually works in your favor!

This has been an excellent deep dive into corporate liquidation tax rules! As someone who handles corporate restructuring, I see these Section 336 issues frequently and this discussion really captures the key nuances. One additional point that might be helpful: when advising clients on liquidations, it's important to consider the timing strategically. If Zenith had significant E&P and wanted to avoid the loss recognition (perhaps due to limitations on loss utilization), they could have considered distributing the loss property in a non-liquidating distribution first (where Section 311 would disallow the loss), followed by a later liquidation of remaining assets. Of course, that strategy has its own complications and may not achieve the shareholders' business objectives, but it illustrates how the choice between liquidating vs. non-liquidating distributions can have dramatically different tax consequences for the corporation. The explanations here about Section 336's "deemed sale" treatment and the 5-year anti-abuse rules under 336(d)(2) are spot-on. This is exactly the kind of technical analysis that helps distinguish between seemingly similar answer choices on these corporate tax problems. Really appreciate everyone's contributions!

This thread has been absolutely invaluable for understanding corporate liquidation tax rules! As a CPA working with small corporations, I encounter these Section 336 vs Section 311 issues regularly, and the explanations here have really clarified some concepts I've been struggling with. What I found most helpful was the step-by-step breakdown of why this is treated as a "deemed sale" under Section 336 rather than a regular distribution under Section 311. The key insight that complete liquidations have their own special tax regime really clicked for me. I've been making the mistake of trying to apply regular distribution rules to liquidation scenarios. The discussion about the 5-year rule under Section 336(d)(2) was particularly enlightening. I had a similar case last year where property was contributed 3 years before liquidation, and now I understand why only part of the loss was recognized. The built-in loss limitation makes so much sense from a policy perspective. For other practitioners dealing with these issues, I'd recommend always documenting the contribution dates and built-in gains/losses at the time of contribution. It's crucial for determining how much loss the corporation can actually recognize in a subsequent liquidation. Thanks to everyone who contributed - this has been one of the most educational threads I've seen on corporate tax!