I'm so sorry for your loss, Landon. Having just gone through a similar situation with my father's estate, I completely understand how overwhelming this feels when you're already dealing with grief. The good news is that you're actually in a very strong position here. The stepped-up basis rules under IRC Section 1014 are specifically designed for situations like yours. When you inherit property, your cost basis becomes the fair market value as of the date of death, which eliminates capital gains tax on appreciation that occurred during the previous owner's lifetime. Given that you sold the property only 6 months after your mother's passing, using the sale price as your FMV is not only reasonable - it's well-supported by IRS guidance. Treasury Regulation 20.2031-1(b) defines FMV as "the price at which property would change hands between a willing buyer and willing seller," and your arm's length sale is strong evidence of exactly that value. Here's what I'd recommend for documentation: 1. **Keep it simple** - Create a brief memo explaining you used the sale price as FMV because the property was sold within 6 months of inheritance with no major improvements or market changes 2. **Add one supporting data point** - Check the county tax assessment or get a realtor to pull comparable sales from around the date of death. This shows you didn't arbitrarily pick a number 3. **Maintain good records** - Save the will, probate documents, purchase agreement, and your valuation memo The fact that your cost basis and sale proceeds are nearly identical isn't suspicious - it's exactly how the stepped-up basis is supposed to work. Your estate attorney's advice aligns perfectly with established tax practice, and you shouldn't feel "lazy" about this approach. You're handling a difficult situation correctly, and the tax code is actually working in your favor here.

I'm so sorry for your loss, Landon. Having dealt with a similar situation when my grandfather passed, I completely understand how overwhelming this can feel during an already difficult time. After reading through all the excellent advice here, I wanted to add one practical tip that helped me immensely: document your decision-making process as you go. I created a simple folder (physical and digital) with everything - the will, sale documents, any valuations I gathered, and most importantly, a one-page summary of why I chose my FMV approach. The consensus here is absolutely right that using your sale price as FMV is reasonable given the 6-month timeframe. What gave me peace of mind was getting just one additional data point to show I'd considered alternatives. I ended up calling a local realtor who pulled recent comparable sales from around my grandfather's date of death - took about 10 minutes and cost nothing since I mentioned I might need their services later. The stepped-up basis really is designed to work in your favor here. You're not being "lazy" by using the sale price - you're following exactly how Congress intended these rules to work. The fact that your cost basis and sale proceeds are nearly identical means the system is working correctly, not that something's wrong. Keep your documentation simple but thorough, and trust that you're handling this the right way. Your estate attorney's advice aligns perfectly with what everyone here is telling you.

This thread has been super informative! I'm dealing with a similar situation where I received my final paycheck of 2023 on December 31st via direct deposit, but my pay stub shows January 1st, 2024 as the "pay period end date." My employer's HR department is insisting this makes it 2024 income, but based on everything I'm reading here about constructive receipt, it sounds like they're incorrect since I had the money in my account on December 31st, 2023. Has anyone successfully convinced their employer to correct this kind of mistake? I'm worried about getting into a back-and-forth argument with payroll when tax season is already here. Should I just accept their decision and file Form 4852 like someone mentioned, or is it worth fighting this?

I'm a tax preparer and see this confusion every year. The key thing to remember is that the IRS follows the "constructive receipt" rule - you're taxed on income when you have the right to receive it, not when it's officially "earned" or when the pay period ends. Since your money was deposited December 30, 2023, that's when you constructively received it, so it belongs on your 2023 W2. Your employer should include this in your 2023 W2, giving you 13 paychecks for that year. This is completely normal and happens whenever year-end pay dates fall this way. Don't let them tell you otherwise - the deposit date is what matters for tax purposes, not the pay stub date or pay period. If your employer insists on putting it on your 2024 W2, they're making an error that you'll need to address before filing your taxes.

Just to add another wrinkle - are you sure your FSA isn't already a "limited purpose" FSA? Some employers offer these specifically for people with HSAs. If it is, then you CAN contribute to both at the same time because a limited purpose FSA only covers dental and vision. Check your benefits documentation carefully. Sometimes these are called "LPFSA" or might be automatically converted to limited purpose if you enroll in an HDHP.

One thing to keep in mind is that even though you have to wait until January to start HSA contributions, you can still maximize your HSA for 2025. The annual contribution limit for 2025 is $4,300 for individual coverage or $8,550 for family coverage, and you can contribute the full amount as long as you're HSA-eligible on December 1st of the tax year (this is called the "last month rule"). So even though you're missing out on October, November, and December 2024 contributions, you won't lose out on the full 2025 contribution opportunity. Just make sure to use up that remaining $1,100 in your FSA before the end of the year - stock up on eligible medical supplies, prescription medications, or even things like contact lenses and reading glasses if your plan allows it. Also, double-check if your FSA has a grace period that extends into 2025. Some plans give you until March 15th to use the previous year's funds, which would extend your HSA ineligibility period even further. Better to know now than be surprised later!

This is such a timely question! I just went through this exact situation when I sold some rare baseball cards I'd been collecting for years. The confusion about collectible tax rates is totally understandable - even tax software sometimes gets it wrong. You're absolutely correct in your understanding. Collectibles are taxed at your ordinary income tax rate, but capped at 28%. So if you're in the 12% bracket, you pay 12% on collectible gains. If you're in the 32% bracket, you only pay the maximum 28%. One thing I learned the hard way is to keep really detailed records of what you originally paid for each comic, including any fees for authentication, grading, or storage. These all count toward your cost basis and can significantly reduce your taxable gain when you sell. Also, don't forget that if you hold the comics for less than a year before selling, they're taxed as short-term capital gains at your full ordinary income rate with no 28% cap protection. So there's definitely an advantage to holding collectibles for more than a year if you're planning to sell them.

This thread has been incredibly helpful! As someone who's been buying and selling vintage collectibles for a few years now, I can confirm everything that's been said about the collectible tax rates. One additional point that might be useful - if you're dealing with multiple collectibles sold throughout the year, you might want to consider bunching your sales into years when your overall income is lower. Since collectibles are taxed at your ordinary income rate (capped at 28%), strategic timing can really make a difference. For example, I had a big bonus year where I was temporarily in the 32% bracket, so I held off selling some collectibles until the following year when I was back down to 24%. Saved me 4% on the gains, which added up to real money. Also, if you're serious about collecting comics or other items as investments, consider keeping a detailed log of market research, time spent researching purchases, and any educational materials you buy about collecting. While you can't deduct these as business expenses if you're treating it as investment activity, having detailed records shows the IRS that you're approaching this seriously as an investment rather than just a hobby.

I wish I'd seen this thread earlier! I went with Liberty Tax's version of a refund advance this year and it was a MESS. Took over a week to hear anything, and then they only approved me for half of what I was expecting. Jackson Hewitt's process sounds much more streamlined from what everyone is saying here. Definitely switching next year. Has anyone compared the maximum advance amounts between the different tax prep companies? I'm curious if there's a big difference.

Just wanted to add my experience for Ruby and anyone else waiting - I got my Jackson Hewitt refund advance approved last month and the timeline was pretty much what Alexander mentioned. Filed on a Tuesday, got the approval text Thursday evening, and had my card activated by Friday afternoon. One tip that helped me: download the Jackson Hewitt app if you haven't already. You can track your application status there instead of just waiting for texts/emails. It updates in real-time and shows exactly where you are in the process. The advance amount they offered was about 80% of my expected refund, which seemed fair. Just make sure you really need the money now because even though it's "free," you're essentially getting your own money early at the cost of not having it available when your actual refund comes in. Good luck!