23 Question for anyone who's dealt with this before - does it matter how long after the death you sell your share? I'm in a similar situation but it's been nearly two years since my mom passed and my brother just now wants to buy my portion of her house. Does that change anything tax-wise?

This is really helpful information everyone! I'm dealing with a similar inherited property situation and had no idea about the stepped-up basis concept. One thing I'm curious about though - if multiple siblings inherit a property and one buys out the others like in the original post, does each sibling report their individual sale separately? Or is there some kind of combined reporting required since it's technically one property being transferred within the family? Also, are there any special considerations when the buyer is a family member versus selling to a third party?

Has anyone here used a "blocker corporation" structure before conversion to help with the QSBS qualification? Our lawyers suggested this approach since we have some passive income that might otherwise disqualify us from the "active business" requirement.

This is such a timely question! I just went through this exact conversion process 6 months ago. One critical thing to add to the excellent advice already given - make sure you get a proper 409A valuation done right at the time of conversion, before any VC discussions get serious. The 409A valuation will establish the fair market value of your shares at conversion, which becomes crucial for both your tax basis and future QSBS qualification. We made the mistake of waiting until after we had a term sheet, and the valuation came back much higher than expected because the appraiser factored in the "investment readiness" of the company. This actually worked against us for the $50M gross assets test. Also, don't forget about potential state-level benefits. Some states like California don't recognize federal QSBS treatment, but others have their own versions or conform to federal rules. Worth checking what your state's position is before you commit to the conversion timeline. The 5-year holding period mentioned by Liam is absolutely critical to remember - I've seen founders get surprised by this when planning their exit strategies. Plan accordingly!

Welcome to the community! That negative balance is definitely your refund - congrats on getting $5,849 back! The minus sign threw me off when I first started checking transcripts too, but it just means the IRS owes YOU money. The changing "As Of" date is totally normal and nothing to stress about. It's just their computer systems doing routine updates and maintenance. Since you're getting a refund instead of owing money, that date doesn't affect your refund timing at all. Your return was processed on 2/24 (that 150 code), so your refund should hit your account soon if it hasn't already. Everything on your transcript looks completely standard for Head of Household with dependents and EIC. Just keep checking "Where's My Refund" for the most accurate timing - it's way easier to understand than trying to decode all these transcript codes! 😊

Welcome to the community! That negative balance of -$5,849 is actually great news - it means the IRS owes YOU that money as your refund! I know the minus sign is super confusing at first (it threw me off too when I was new to reading transcripts), but that's just how the IRS shows credits on your account. The changing "As Of" date is completely normal and happens to everyone - it's just their computer systems doing routine maintenance and updates. Since you're getting a refund rather than owing money, this date has zero impact on your refund timing. Your transcript shows your return was processed on February 24th (that 150 code), so you should see your money hit your account soon if it hasn't already. All your transaction codes look perfectly normal for Head of Household with dependents and earned income credit. I'd recommend sticking with the "Where's My Refund" tool for timing updates rather than trying to decode every little transcript change - it's much more user-friendly! Once you see an 846 code appear on your transcript with a date, that's when you'll know the refund has been officially sent. Hope this helps ease some of the confusion! 😊

Isaac, I was in almost the exact same situation a few months ago and can share what I learned. The performance-based vesting component doesn't change the initial valuation or 83b election treatment at all. The $0 FMV is based on what the units are worth TODAY, not their potential future value based on performance metrics. Think of it this way - even if the company hits all its performance targets over 5 years, your units still only represent future appreciation from this point forward. The performance metrics just determine WHETHER you'll receive the units, not their current fair market value. I filed my 83b with the $0 valuation and consulted with a tax attorney who confirmed this approach was correct. The key insight is that profit interests (which these sound like) are legitimately worth $0 at grant because they only provide value from future growth above the current company value. Don't overthink this one - file the 83b with the $0 valuation your company provided. The alternative (being taxed at potentially much higher values over the next 5 years as units vest) is much worse. Just remember the 30-day deadline and use certified mail!

Great to see this discussion helped you reach a decision, Isaac! You're absolutely making the right choice. The 83b election with $0 valuation is a no-brainer in your situation - you get to lock in zero current tax liability while preserving the potential for favorable capital gains treatment on any future appreciation. Just a couple of final reminders as you prepare to file: - Make sure the form is signed and dated - Send a copy to your employer as well as the IRS - Keep digital and physical copies of everything, including the certified mail receipt - Mark your calendar for when you file your 2025 tax return to attach a copy of the 83b election The fact that your company prepared the form with $0 FMV shows they've likely dealt with this structure before and understand the proper tax treatment. Don't second-guess it - profit interests are commonly valued at $0 upon grant, and the IRS has well-established guidance supporting this approach. Good luck with your equity award! Hopefully those performance metrics work out in your favor over the next 5 years.

When I got a random TREAS 310 deposit as an international student, it turned out to be from incorrectly filling out my 8843 form. Did you file Form 8843 with your 2021 return? If not, the IRS might have adjusted your status.

I had a very similar experience as an international student! Got an unexpected IRS TREAS 310 deposit for around $1,200 last year and panicked thinking it was an error. After finally getting through to the IRS (took forever), they explained it was a correction related to tax treaty benefits from my home country that weren't properly applied to my scholarship income. The key thing I learned is that NRAs can receive legitimate refunds for various reasons - incorrect withholding rates, treaty benefits not applied, or processing corrections. The important part is verifying it's legitimate rather than assuming it's a mistake. Your $1,400 amount is suspicious because it matches the stimulus payment amount, but as others mentioned, there could be other explanations like scholarship withholding corrections or treaty adjustments. I'd definitely recommend calling the IRS to confirm - better to spend time on hold than worry about potential problems later. Also, keep all documentation of this payment and any conversations you have with the IRS. If it turns out to be legitimate, you'll want proof for future reference.