I went through this exact situation last year with my first rental property. What helped me was creating a detailed timeline showing when I bought the property, what repairs I was doing, and when I planned to have it ready for rent. The key insight I learned is that you can start deducting ordinary repairs as soon as you can demonstrate you're actively preparing the property for rental use - you don't have to wait until you actually have a tenant signed up. I started advertising "Coming Soon - Available August 1st" while still doing minor repairs, and that helped establish my intent. For your $3,700 in repairs, focus on documenting that these were necessary to make the property rentable (fixing roof leaks, patching drywall) rather than improvements that add value. Keep all your receipts and take before/after photos if possible. One thing that really helped me was keeping a simple log of all the work I was doing and when, plus screenshots of any rental listing drafts or communications with property managers. This created a paper trail showing continuous progress toward getting the property ready for rent. Your accountant is being conservative, which isn't necessarily wrong, but there's definitely room for legitimate deductions if you can properly document your rental preparation activities.

This thread has been incredibly helpful! I'm dealing with a similar situation with my first rental property purchase from last month. One thing I'd add based on my research is that the IRS Publication 527 (Residential Rental Property) specifically addresses this "placed in service" concept. What I found particularly useful was the distinction between startup costs (which may need to be amortized over 15 years) versus ordinary repair expenses (which can be deducted immediately). For example, if you're fixing existing issues to make the property rentable, those are generally repairs. But if you're adding new features or significantly upgrading systems, those would be improvements. I've been keeping a detailed spreadsheet categorizing each expense and the reason for it (e.g., "Fixed leaky faucet in kitchen - necessary for property to be rentable" vs "Upgraded to granite countertops - improvement"). This level of documentation should help support my position if there are ever any questions. The timeline approach that several people mentioned here is spot-on. I started my "available for rent" marketing about 2 weeks after purchase, even though I knew I'd need another month of repairs. Having that documented intent to rent seems to be the key factor in establishing when the property is considered "in service.

Based on my experience helping clients with inherited property basis determinations, I'd say your approach of using Zillow estimates and tax assessments is understandable but carries some risk, especially since you're planning to rent the property and claim depreciation. The $30,000 spread between your Zillow estimate ($425,000) and tax assessment ($395,000) is actually reasonable - about 7.5% variance, which isn't unusual for property valuations. However, the IRS prefers "best evidence" of fair market value at the date of death, and online estimates or tax assessments alone may not hold up well under scrutiny. Here's what I'd recommend as a practical compromise: Use the Zillow estimate as your baseline since it's higher and more favorable for your stepped-up basis, but strengthen your documentation significantly. Get a comparative market analysis (CMA) from a local real estate agent specifically dated to your uncle's date of death - many agents will do this for free, especially if you mention potential future business. Also, pull comparable sales data from properties that sold within 3-6 months of the death date in the same neighborhood. Document the property's condition with photos and any known issues that might affect value. This creates a defensible paper trail showing you made good-faith efforts to determine fair market value. Given the property value and your depreciation plans, consider this documentation as insurance against potential audit issues. The small cost and effort now could save significant headaches later.

I went through a very similar situation when I inherited my father's house last year. Like you, I was torn between wanting to avoid appraisal costs and ensuring I had solid documentation for the stepped-up basis. Here's what I ended up doing that worked well: I used the higher of my estimates (similar to your Zillow figure) but created a comprehensive documentation package. I got a free CMA from a local realtor who was experienced with estate properties, took extensive photos of the property's condition, and gathered sales data for 5 comparable properties that sold within 4 months of the date of death. The realtor was actually really helpful once I explained it was for establishing tax basis on an inherited property. She made sure to clearly date the analysis and document her methodology, which created a professional paper trail. One thing I learned that might help you: since you're planning to rent it out and claim depreciation, consider that your basis calculation will be scrutinized multiple times over the years through your rental property tax returns. Having solid documentation from the start gives you confidence in those ongoing filings. The combination approach (online estimate + professional CMA + comparable sales data + property photos) created what my tax preparer called a "defensible position" without the full cost of an appraisal. For a $400k+ property with rental income plans, it seemed like the right balance of thoroughness and cost-effectiveness.

Don't forget you can deduct expenses even for those small gigs! I did face painting at birthday parties last year - all under $600 per client - and was able to deduct all my supplies, travel costs to events, and even a portion of my phone bill for taking bookings. It actually made a big difference and almost cancelled out the taxes I would have owed on that income!

The $600 threshold is actually just an administrative rule for businesses - it determines when they have to send YOU a 1099 and report the payment to the IRS. But you're absolutely correct that you still need to report ALL income regardless of whether you get a form or not. Here's what I do to stay organized: I created a simple spreadsheet with columns for date, client/company name, description of work, and amount paid. I also keep screenshots of payment confirmations (Venmo, PayPal, Zelle, etc.) and any invoices I send. This creates a paper trail that satisfies the IRS if they ever ask questions. The key thing to remember is that unreported income can come back to bite you later. Even though the company didn't send you a 1099, they might still deduct that payment as a business expense on their taxes, which could create a mismatch if you don't report it as income on yours. Also, once your total self-employment income hits $400 (from all sources combined), you'll need to pay self-employment tax on it, so it's worth tracking everything carefully even if individual payments seem small.

This is incredibly encouraging news! I've been working in estate administration for about 5 years now, and the processing delays have been one of the most stressful aspects of the job. Having to constantly explain to grieving families why they can't access or distribute assets for 2+ years has been heartbreaking. The 18-month processing times you're seeing align with what we've experienced recently as well. We had two 706 returns come back within 15 and 17 months respectively, which was shocking after years of much longer waits. It's such a relief to be able to give clients more realistic expectations again. I'm particularly interested in your mention of the 706-NA processing in 11 months - that's remarkable! Non-resident estate returns used to be even slower than domestic ones in my experience. One thing I've been wondering about is whether this improvement extends to more complex estates with business valuations or significant charitable deductions. Have you seen faster processing across all types of estates, or mainly the more straightforward ones? I have a complex estate with a family business interest that we filed 8 months ago, and I'm cautiously hopeful it might move faster than the 30+ months we used to expect for these cases.

This is fantastic news to hear! As someone who recently started handling estate administration, the improved processing times give me so much more confidence in setting realistic expectations with clients. I've been using a combination of the tools mentioned here - both taxr.ai for ensuring complete submissions and Claimyr when I absolutely need to reach the IRS directly. The taxr.ai system has been invaluable for catching potential issues before filing, and I actually used Claimyr last month to get clarification on a complex valuation question that could have delayed processing for months. What really strikes me about this thread is how much the client experience has improved. Being able to tell families that their 706 will likely be processed in 14-20 months instead of 30+ months makes such a difference during an already difficult time. The beneficiary communication features in these newer tools have also been game-changers for managing expectations and reducing those anxious phone calls we all know too well. I'm cautiously optimistic that these improvements represent a real systemic change at the IRS rather than just a temporary backlog clearance. The combination of better IRS processing and these new professional tools is making estate administration much more manageable for both practitioners and families.

I understand your stress about this - medical bills can be overwhelming! The good news is that private hospitals cannot directly take your federal or state tax refunds. Only government agencies can use the Treasury Offset Program to intercept refunds for debts like federal student loans, child support, or back taxes. However, don't ignore the bills completely. Here's what could happen: • Hospital may send debt to collections after 90-180 days • Collections agency might sue if amount is significant • With a court judgment, they could potentially garnish wages (varies by state) • But tax refunds remain protected from private medical debt My advice: Contact the hospital's billing department directly. Many offer payment plans, financial hardship programs, or even debt forgiveness for qualifying patients. It's much better to communicate with them now rather than wait for collections. Your tax refund should be safe, but addressing the debt proactively will give you peace of mind and potentially better options.

I've been through this exact worry! Had a $3,200 emergency room bill last year and spent sleepless nights thinking they'd steal my tax refund. Here's what I learned after doing way too much research: **The short answer: Private hospitals CANNOT take your tax refund directly.** The Treasury Offset Program is like an exclusive club - only government agencies get membership. That means: ✅ Federal student loans - can take your refund ✅ Back child support - can take your refund ✅ Unpaid state taxes - can take your refund ❌ Private hospital bills - cannot take your refund **BUT** (and this is important) - don't just ignore the bills thinking you're completely safe. Here's what CAN happen: • They'll send it to collections (usually after 90-180 days) • Collections agency might sue you • If they win in court, they could garnish wages in most states • Your credit score will take a hit **My advice:** Call the hospital's financial assistance department ASAP. Many have hardship programs or will accept payment plans as low as $25/month. I ended up getting 40% of my bill forgiven just by filling out their financial hardship form. Your tax refund is safe from the hospital, but your peace of mind and credit score don't have to suffer if you act now!