For your situation, you're definitely on the right track with line 15a. Since this is a simple estate with minimal assets, here's what I'd recommend: Create a simple attachment titled "Statement 1 - Administrative Expenses" and list each deductible expense: - Court filing fees: $XXX - Required legal publication costs: $XXX - Postage for required notices: $XXX - Any other probate-related costs: $XXX Total: $XXX Enter the total on line 15a and write "See Statement 1" next to it. One important note: with only $6,500 in assets and $692 in cancellation of debt income, your total estate income is $7,192. If your administrative expenses exceed this amount, you'll have a loss that can potentially be passed through to beneficiaries on their final K-1. This could actually be beneficial tax-wise. Also, double-check that you're not missing any other income sources (like interest earned on estate accounts, even if minimal). The IRS gets copies of all 1099s issued to the estate's tax ID number, so make sure everything matches up. Keep detailed records of all administrative expenses with receipts - the IRS sometimes questions these deductions during audits of estate returns.

I just want to add that you should be careful about which administrative expenses are actually deductible on the 1041 versus which ones might be deductible on the estate's final Form 706 (if applicable) or on your personal return. For the 1041, you can definitely deduct expenses that are necessary for the administration of the estate and the collection of assets, like court fees, publication costs, and postage for required notices. However, some expenses like appraisal fees might need to be allocated between the estate return and your personal return depending on their purpose. Since you mentioned this is a small estate, you probably won't need to file Form 706 (estate tax return), but it's worth noting that funeral expenses would be deductible there if you did have to file one. Also, make sure you're not double-deducting anything. If you claim administrative expenses on the 1041, you generally can't also claim them as miscellaneous deductions on your personal return. Given the small size of this estate and the fact that you're doing the work yourself, the approach others have outlined with creating your own schedule for line 15a should work perfectly.

This thread has been incredibly helpful! I'm dealing with a similar situation but with a twist - I inherited a rental property from my parents about 6 years ago and have been taking depreciation since then. My question is: when I sell, do I only have to recapture the depreciation I've personally taken since inheriting it, or does the depreciation my parents took before I inherited it also carry over? I know the basis stepped up when I inherited it, but I'm not clear on how that affects the depreciation recapture calculation. Also, does anyone know if there are different rules for inherited property regarding the holding period for long-term capital gains treatment? I've heard conflicting information about whether inherited property automatically qualifies as long-term regardless of how long you've actually held it. Would really appreciate any insights from folks who have dealt with inherited rental properties!

Building on all the excellent advice here, I wanted to share a specific scenario that might help illustrate the calculations. I recently sold a rental property with a similar depreciation situation. My property: Purchased for $200K, took $65K in depreciation over 10 years, sold for $320K. Here's how the tax breakdown worked: - Total gain: $320K - ($200K - $65K) = $185K - Unrecaptured Section 1250 gain: $65K (taxed at 25%) - Remaining long-term capital gain: $120K (taxed at 0%, 15%, or 20% based on income) The key thing I learned is that you need to be very precise about your adjusted basis calculation. Don't forget to add back any capital improvements you made over the years - these increase your basis and reduce your overall gain. I had added a new roof ($12K) and HVAC system ($8K) that I initially forgot to include. Also, if you're in a high-tax state like I am (New York), factor in state taxes early in your planning. My effective rate on that $65K ended up being about 34% (25% federal + 8.82% NY state), which was a significant chunk of cash I needed to set aside. One last tip: consider estimated tax payments if this sale will create a large tax liability. You don't want to get hit with underpayment penalties on top of everything else!

I'm dealing with a similar CP134R situation right now and this thread has been incredibly helpful! Just wanted to add that when you file the 941-X, make sure to check Box 1 on line 1 to indicate it's correcting an error on a previously filed return. Also, in Part 2 where you explain the corrections, be very specific about what the IRS entered incorrectly vs. what the correct amounts should be. One thing I learned from my tax preparer is to also include a copy of your original 941 along with the 941-X so they can easily see the discrepancy. It might seem redundant since they should have it on file, but given that they made the data entry error in the first place, having a clean copy attached can speed up the process. Also, don't forget to sign and date the 941-X - sounds obvious but it's easy to miss when you're stressed about the whole situation!

This is such a frustrating but unfortunately common issue! I went through something very similar last year where the IRS had transposed two digits in my wage amount on a 941. What really helped me was creating a simple comparison chart showing their incorrect entry vs. my actual filing vs. my EFTPS payment history - all side by side. When I sent in my 941-X, I included this one-page chart as an attachment along with screenshots from my EFTPS account showing the payment dates and amounts. It made the discrepancy crystal clear for whoever was processing my correction. I think having that visual comparison really helped speed things up because I got my corrected account statement back in about 10 weeks instead of the 16+ weeks they initially quoted me. Also, pro tip: when you void the refund check, write "VOID - DATA ENTRY ERROR - SEE ATTACHED 941-X" across it. That extra context might help the person processing your return understand the situation immediately without having to dig through files.

Has anyone actually tried telling the IRS they just don't have the money? Like what happens if you literally can't pay?

I went through something similar last year - owed about $11k in self-employment taxes and was frantically looking for ways to reduce it. Unfortunately, as others have mentioned, charitable donations won't help with your current tax debt since they're deductions, not credits, and they only apply to future tax years anyway. What helped me was actually going through all my business expenses with a fine-tooth comb to make sure I hadn't missed any legitimate deductions when I originally filed. Things like home office expenses, business meals, professional development courses, even subscriptions to industry publications - it all adds up. I ended up finding about $2,800 in deductions I had overlooked and filed an amended return. For the remaining balance, I set up a payment plan with the IRS. The monthly payment was much more manageable than trying to come up with the lump sum, and the penalties/interest weren't as bad as I expected. The key is to contact them before they start collection actions - they're actually pretty reasonable to work with if you're proactive about it.

I just went through this exact same ID.me hell about two weeks ago! The "device not recognized" loop is absolutely infuriating. Here's what finally worked for me after trying everything else: I had to use my work laptop (different device) connected to my phone's hotspot (different network) and switch to a backup phone number for verification codes. Apparently ID.me flags your usual setup after too many failed attempts. Also try logging in super early in the morning like 6am - their servers seem less overwhelmed then. If you're completely stuck, the congressional office route someone mentioned actually works - my friend's mom did that and got a callback from the IRS within 48 hours. It shouldn't be this hard to access our own tax information, but at least there are workarounds. Don't give up!

I've been dealing with this same ID.me nightmare for the past month! What finally broke me out of the loop was using a completely fresh approach: I borrowed my neighbor's tablet, connected it to the coffee shop wifi down the street, and created a brand new ID.me account with my old college email address. The key was using a phone number I'd never used with ID.me before (my work cell). The whole verification process went smoothly since their system didn't have any failed attempt flags on that combination. Took about 20 minutes total and I finally got access to my transcripts. Sometimes you just have to outsmart their security system by starting completely clean. Also learned that if you've failed too many times from the same device/network combo, you're basically blacklisted for a while. Hope this helps someone else avoid the weeks of frustration I went through!