This is so helpful to read! I filed on 2/8, did my identity verification on 2/20, and I'm still waiting for any movement on my transcript. It's been almost a month since filing and I was starting to worry something was wrong. Seeing everyone's timelines here gives me hope that I should see my 570 code appear soon - it looks like there's usually a 2-3 week gap between verification and the code showing up. The pattern of getting the DDD 3-4 days before the 570 date seems really consistent across everyone's experiences. I've already started checking my transcript daily in anticipation! 😅 Happy early birthday btw - what perfect timing that would be if your refund hits right around then! This community has been such a lifesaver for understanding what to expect during this whole process.

I'm in almost the exact same situation! Filed on 2/9, completed identity verification on 2/23, and just saw my 570 code appear yesterday dated 3/26. Reading through everyone's experiences here is incredibly reassuring - the consistent pattern of receiving the DDD 3-4 days before the 570 date gives me so much hope that we're all in the final stretch now! I've definitely become an obsessive transcript checker too 😅 - there's something oddly comforting knowing I'm not the only one refreshing that page multiple times a day. The birthday timing would be absolutely perfect! Based on all the shared timelines here, it really seems like once you complete identity verification and see that 570 code, you're basically just waiting for the system to catch up. I'm cautiously optimistic we'll all see our 846 codes within the next few days. This community has been such a lifesaver for understanding what these codes actually mean and managing the stress of waiting. Thanks for sharing your timeline - it's so helpful to see we're all moving through this process together!

Excellent discussion on suspended passive losses! As someone who's been managing rental properties for over 15 years, I wanted to add a few practical points that might help with your planning. First, @Jason Brewer, your math looks solid on the depreciation calculations. Just make sure you're factoring in any potential bonus depreciation on qualifying property improvements when you convert - this could accelerate some of your deductions in the first year. Regarding the interplay with Section 1031 exchanges that @Luca Romano mentioned - this is where things get really interesting. In a like-kind exchange, your suspended passive losses don't get triggered because you're not "disposing" of the activity - you're continuing it with replacement property. The suspended losses carry forward to the new property along with your exchanged basis. However, if you do a partial exchange (where you receive some cash "boot" in addition to the replacement property), that boot portion is taxable and can trigger use of your suspended losses proportionally. One strategy I've used successfully is to accumulate suspended losses for several years, then do a strategic partial exchange where I take out some cash to reinvest elsewhere while still deferring most of the gain. This allows me to use some suspended losses while maintaining the rental activity for continued tax benefits. Also worth noting - if you ever decide to move back into the rental property as your primary residence (within certain time limits), there are special rules that could affect both your suspended losses and capital gains exclusion eligibility. Something to keep in mind for long-term planning. The key is keeping meticulous records from day one. I use a simple spreadsheet tracking annual suspended losses, property improvements, and depreciation taken - makes everything much easier come sale time!

This has been such an informative thread! As someone who's been considering converting my primary residence to a rental, I'm grateful for all the detailed explanations about suspended passive losses and their treatment upon sale. I have a follow-up question about documentation that I haven't seen addressed: What specific records should I be keeping each year to substantiate my suspended passive losses? I understand Form 8582 is key, but are there other supporting documents the IRS would want to see if they ever audited the suspended loss carryforwards years down the road? Also, for those who mentioned using tax software - has anyone found particular software packages that handle rental property passive loss tracking better than others? I want to make sure I'm using something reliable that won't miss the carryforward calculations like some people have experienced. One more consideration I'm wondering about: If I have other investments that generate passive income (like certain partnerships or S-corp distributions), would it make sense to try to generate more passive income to use up my suspended losses earlier rather than waiting until sale? Or is it generally better to let them accumulate for the eventual sale when they can offset any type of income? Thanks again to everyone who's shared their experiences - this is exactly the kind of practical guidance that's so hard to find elsewhere!

This is such a smart approach to learning taxes! I wish I had been this proactive when I started filing. One resource I haven't seen mentioned yet is the **IRS Interactive Tax Assistant (ITA)** on their website. It's like a decision tree that walks you through tax questions with yes/no answers and gives you personalized guidance based on your situation. Really helpful for understanding what applies to you specifically. Also, since you mentioned wanting to understand deductions and credits, try looking up **Publication 17** (Your Federal Income Tax) on the IRS website. I know it sounds boring, but it's actually written in pretty plain English and covers all the common scenarios. You can search for specific topics like "student loan interest" or "standard deduction" to get official explanations. Another practice idea: grab a tax scenario worksheet online (lots of accounting teachers post these) and work through it manually before using software. It really helps you understand the math behind what the apps are doing automatically. You're going to feel so much more confident come tax season! Taking control of your finances at 22 is going to pay off big time in the long run.

Another excellent practice resource is the **AARP Tax-Aide program materials**. Even though it's designed for seniors, they have some of the best beginner-friendly explanations of tax concepts I've ever seen. You can find their training presentations online, and they break down complex topics like itemizing vs standard deduction in really clear terms. For hands-on practice, I'd also suggest checking out your local library - many have tax prep software available for free use, and librarians are surprisingly knowledgeable about tax resources. Some libraries even offer basic tax workshops in January/February. One thing that really helped me was creating "tax scenarios" for friends and family members (with their permission) - like "what if my sister had moved states mid-year" or "what if my dad had started a side business." Working through hypothetical situations with the practice software helped me understand edge cases I never would have thought of with just my own simple situation. The fact that you're starting this learning process now instead of panicking in March shows incredible maturity. You're going to save yourself so much stress and probably money too by catching deductions you might have missed otherwise!

One thing I'd be concerned about is potential issues with other family members. When my grandfather passed, we found cash hidden in his home and it caused a HUGE family fight even though it wasn't nearly as much as you're talking about. If there's no documentation stating it was meant specifically for you, other family members might feel entitled to a portion, especially when it's such a large amount. Have you discussed this with your parents or siblings? It might be worth having those conversations before making any deposits, just to keep family relationships intact.

This is a complex situation that requires careful handling. First, I'd strongly recommend consulting with both a tax professional and an estate attorney before making any deposits. Here's why: The timing is crucial - since your grandfather passed 8 years ago, there may be statute of limitations issues that could work in your favor, but you need professional guidance to understand the implications. For the bank deposit, you're absolutely right that they'll file a CTR for amounts over $10k, but this isn't inherently problematic if you can document the source. I'd suggest preparing a written statement explaining: - When and where you found the money - Your grandfather's background (the Colombian business sale) - Any witnesses to his verbal statements about leaving you his "special savings" Consider having a family meeting before proceeding. Even if your grandfather verbally indicated this was for you, other family members may have legitimate concerns about such a large undisclosed asset from the estate. The IRS will likely have questions about why this money is surfacing now, but being proactive and transparent will help. A tax professional can help you prepare the proper documentation and determine if any estate tax issues need to be addressed. Don't rush this process - taking time to handle it properly will save you potential headaches later.

I'm a CPA who deals with S Corp issues regularly, and I want to emphasize that your accountant's approach is not only correct but really the only compliant way to handle this situation. The key principle here is that S Corp distributions must be pro rata (proportional to ownership). There's no way around this rule - it's fundamental to maintaining S Corp status. So when Jake needed $13,000 but you didn't need cash, you couldn't just distribute $13,000 to him alone. What your accountant did was essentially unbundle the economic transaction you wanted into two separate, compliant transactions: 1. Pro rata distributions of $6,500 each (maintaining S Corp compliance) 2. A separate sale of 2% equity from Jake to you for $6,500 This achieves your desired economic outcome while preserving your S Corp election. Yes, it creates some complexity with the tax reporting, but it's much simpler than losing your S Corp status and dealing with double taxation. One practical tip: make sure you issue an amended K-1 to reflect the ownership changes, and consider whether you need to adjust your estimated tax payments since your ownership percentages (and thus your share of future profits/losses) have changed. The documentation others mentioned is crucial - keep everything well-documented in case of an audit.

This is exactly the type of situation where having proper legal documentation becomes crucial. As someone who's helped several S Corp partnerships through similar ownership adjustments, I'd strongly recommend drafting a formal stock purchase agreement for the 2% transfer, even though it might seem like overkill for a small percentage. The agreement should specify the purchase price ($6,500), the effective date of the transfer, and include representations that both parties understand this is a separate transaction from the distribution. This becomes especially important if your partnership agreement has any buy-sell provisions or right of first refusal clauses that might be triggered by ownership changes. Also worth noting - if you're planning to make this a regular practice when one partner needs cash and the other doesn't, you might want to consider building a more flexible distribution mechanism into your operating agreement. Some S Corps include provisions for "special distributions" that can help handle these situations more smoothly in the future, though they still need to comply with the pro rata requirements. Your accountant definitely steered you in the right direction here. The complexity is worth it to maintain your S Corp status and avoid the double taxation that would come with C Corp treatment.