Don't overthink the building management fees! I spent hours researching this same question last year. The admin fee and move-in fee are definitely deductible in year 1 as rental expenses. The working capital contribution is trickier - technically it's a deposit into the building's reserve, so it's not immediately deductible. Also, make sure TurboTax is prorating your expenses correctly for the partial year. For things like property taxes and insurance, you can only deduct the portion that applies to when the property was actually a rental (Oct-Dec in your case). So that would be 3/12 of your annual amounts. This might be why some of your numbers look off.

I had a very similar situation with my first rental property! Your cost basis calculation is definitely off - with a $520k purchase price, that $134,628 figure suggests there's an input error somewhere in TurboTax. A few things to double-check: 1. Make sure you entered the correct land/building allocation. Based on your tax assessment ($215k land, $100k improvements), you should allocate roughly 68% to land and 32% to building from your purchase price. 2. Verify you didn't accidentally enter a partial ownership percentage or put in the wrong purchase price. 3. The bathroom renovation ($15k) should be added to your depreciable basis since it was done before placing in service. Your depreciable basis should be approximately: ($520k - $353k land value) + $15k renovation = ~$182k for the building portion. For the closing costs, most of what you listed (recording fees, title insurance, legal fees) get capitalized into your basis rather than expensed immediately. The admin fee and move-in fee to building management can typically be expensed in year 1, but the working capital contribution is usually treated as a capital asset. Also make sure TurboTax is correctly prorating your expenses for the 3-month rental period (Oct-Dec). Your actual deductible expenses should be much higher than $257 for three months of operation.

I'm dealing with a very similar situation with my raw land investment, and after going through this whole process last tax season, I wanted to share what I learned that might help you avoid some mistakes I made. First, you're absolutely right to be thinking about this now - documentation is everything with raw land improvements. The IRS is particularly strict about these deductions because so many people try to inappropriately deduct capital improvements as current expenses. Your gate, road work, and electrical installation are definitely capital improvements that must be added to your cost basis. However, don't overlook the expenses you CAN deduct currently: property taxes you've paid, interest on any loans used for the purchase or improvements, and professional fees (surveys, legal, etc.). One thing I wish I'd known earlier - start tracking whether your improvements are "land improvements" versus potential "depreciable assets" for when you eventually develop. Your underground electrical work, depending on how it's installed, might have components that qualify for depreciation once you build and place rental property in service. Also consider whether you want to explore any income-generating activities on the property (like the hunting leases someone mentioned) that could change your tax treatment. Even small amounts of income can sometimes shift how the IRS views your property from pure investment to income-producing. Keep every receipt, take photos, and document the business purpose of each expense. When you eventually sell or develop, this preparation will save you thousands in taxes and potential audit headaches.

I've been through a similar situation with my raw land investment, and I want to emphasize something that saved me from making a costly mistake. While everyone is correctly pointing out that your improvements need to be capitalized, make sure you're not accidentally capitalizing expenses that you CAN deduct currently. I was initially capitalizing everything because I was scared of getting it wrong, but my tax professional showed me I was missing legitimate current deductions like the property taxes I'd been paying, interest on the acquisition loan, and even some professional fees for surveys and legal consultations related to the improvements. Also, keep detailed records of the exact nature of each improvement. Your $12,500 electrical work, for example - if part of that was just getting service to your property line versus installing infrastructure for future buildings, those might be treated differently down the road. The utility company should have itemized billing that shows connection fees versus infrastructure installation. One more tip: if you're planning to eventually develop this into rental property, consider consulting with a tax professional who specializes in real estate development now rather than waiting. They can help you structure your documentation and future improvements in ways that maximize your depreciation benefits once you do start developing. The upfront consultation cost is tiny compared to the potential tax savings over the life of the investment.

I've been experiencing this exact same issue since last Tuesday! That "We are not able to provide assistance to you via the identity verification tool" error message is so frustrating and poorly worded - it genuinely makes you think there's something wrong with your specific account when it's clearly a widespread system problem affecting tons of people. Filed my return on February 1st and I'm well past the 21-day processing window. Like everyone else here, I've tried absolutely everything - different browsers (Chrome, Firefox, Edge), clearing cache and cookies, incognito mode, different devices, even tried from my work computer thinking it might be a network issue. Same error every single time! What really gets me is the complete lack of communication from the IRS about this. Instead of that scary-sounding error message that makes everyone panic, they could easily put up a simple status banner saying "Identity verification tool temporarily unavailable due to system maintenance." The current message honestly sounds like you're being investigated for fraud or something. I'm thankful the regular Where's My Refund tool is still working fine - just enter your SSN, filing status, and refund amount and it gives you the basic status. It doesn't have all the detailed processing information that the verification portal usually provides, but at least it's something while we wait for them to fix this mess. Really hoping the IRS gets this sorted out soon because tax season is already stressful enough without their main verification system being completely broken! It's such a relief to find this thread and know I'm not going crazy - definitely not just a "you" problem! 🤞

I'm experiencing the exact same issue! Been getting that frustrating "We are not able to provide assistance to you via the identity verification tool" error for the past 6 days now. Filed my return on January 29th so I'm definitely well past that 21-day processing window. What's really bothering me is how that error message is worded - it makes you feel like there's something suspicious about your account when it's clearly just a widespread system issue. I was genuinely worried I'd been flagged for identity theft or something until I found this thread and realized tons of other people are dealing with the same thing. I've tried literally everything - Chrome, Safari, Firefox, clearing all cookies and cache, incognito mode, different devices, even tried from my friend's house thinking it might be an IP issue. Nothing works! The fact that it seems to be affecting people randomly while others can still access it fine really confirms this is a backend problem on their end. The most frustrating part is the complete radio silence from the IRS about this. Like seriously, how hard would it be to put up a simple banner saying "Identity verification tool temporarily unavailable for maintenance" instead of that scary message that makes everyone think they're under investigation? Their communication is absolutely terrible. At least the regular Where's My Refund tool is still functioning - just need your SSN, filing status, and exact refund amount. It doesn't give you all the detailed processing info like the verification portal does, but it's better than nothing while we wait for them to fix this mess. Really hoping they get this sorted out soon because tax season stress is bad enough without broken government websites making it worse! Thanks for posting about this - it's such a relief to know I'm not going crazy and it's not just me! 😤

FYI, I've filed the final 990-N for two small organizations and it's super easy! You just go to the IRS website, log in to the e-Postcard system, and there's literally a checkbox for "This is the final return." You check that, enter the dissolution date, and that's pretty much it. The whole process took me maybe 10 minutes.

Just want to add that you should definitely not ignore the IRS notice, even for a dissolved nonprofit. I learned this the hard way when I thought I could just let a tiny organization "fade away" without proper closure. The IRS will eventually revoke your tax-exempt status retroactively, which can create complications if anyone ever questions the organization's tax status during the years it was active. Even though your nonprofit only had minimal income, having a clean closure on record protects you from any future issues. The 990-N filing really is straightforward once you know what to do. Since you already transferred the assets to the parent organization in 2023, you have everything you need to complete the final filing. Just make sure to use 2023 as your dissolution date when you file the final return.

This entire thread has been incredibly helpful and comprehensive! As someone who's been investing in Bitcoin ETFs (IBIT and FBTC) through my employer's 401k throughout 2024, I was experiencing the exact same confusion about that digital assets question. After reading through all the detailed explanations, professional confirmations, and research shared here, I'm now confident that the answer is "No" for Bitcoin ETF investments in retirement accounts. The key distinction that really clarified it for me is understanding that we're purchasing shares of SEC-registered investment companies that provide Bitcoin exposure - we're not directly acquiring, owning, or controlling any actual Bitcoin. What really drove the point home was realizing that when I check my 401k account, my Bitcoin ETF holdings appear right alongside my S&P 500 index funds and target-date funds - they're all just securities in my retirement portfolio. I don't have cryptocurrency wallets, can't transfer Bitcoin anywhere, and have no direct control over the underlying digital assets. The fund managers handle all the actual Bitcoin transactions at the institutional level. The IRS question was clearly designed to capture direct cryptocurrency activities like mining, staking rewards, receiving crypto as payment, or trading on exchanges. The massive adoption of Bitcoin ETFs by traditional retirement investors through standard brokerage channels wasn't what they had in mind when crafting this question years ago. I really appreciate everyone who went the extra mile to verify this through multiple channels - CPAs, direct IRS contact, major brokerages like Fidelity and Vanguard. When you see that level of consensus across different professional verification methods, it gives real confidence that we're interpreting this correctly. Thanks to this community discussion for saving so many of us from unnecessary anxiety and potential filing errors!

This entire discussion has been incredibly valuable! I've been dealing with the exact same situation - investing in Bitcoin ETFs through my 401k and Roth IRA throughout 2024 and feeling completely confused about that digital assets question. After reading through all the detailed explanations and professional confirmations shared here, I'm now confident the answer is "No" for Bitcoin ETF investments in retirement accounts. What really clarified it for me was understanding that we're buying shares of SEC-registered funds, not directly owning or transacting with Bitcoin itself. The key insight is that the IRS question targets direct cryptocurrency activities - mining, staking, receiving crypto payments, trading on exchanges like Coinbase. When we invest in IBIT, FBTC, or other Bitcoin ETFs through retirement accounts, we're simply purchasing securities through normal brokerage channels, just like any other mutual fund or ETF investment. The fund managers handle all the actual Bitcoin transactions at the institutional level - we're just passive shareholders getting exposure to Bitcoin's price movements without any of the complexity of actually owning cryptocurrency. No wallets, no private keys, no direct control over digital assets. I really appreciate everyone who took the time to verify this through multiple sources - CPAs, direct IRS contact, major brokerages. When you see that level of consensus across different verification methods, it gives real confidence in the interpretation. The timing was definitely confusing with Bitcoin ETFs becoming popular right as we're filing taxes with this broadly-worded question, but this community discussion has been invaluable for clearing up the confusion. Thanks to everyone for sharing their research and experiences!