Just got my CP21B yesterday and honestly this thread is exactly what I needed! Was starting to stress that something was wrong but seeing everyone's experiences with the 2-3 week timeline is so reassuring. Already have direct deposit set up so fingers crossed mine comes through on the faster side. That taxr.ai tool sounds pretty interesting too - might be worth the peace of mind to know exactly what's happening instead of constantly wondering. Thanks everyone for sharing your stories, makes this whole waiting process feel way less scary! 🤞

Just got my CP21B notice this morning and was honestly panicking until I found this thread! Seeing everyone's experiences with the 2-3 week timeline is such a relief. I was worried something was seriously wrong with my return. Already signed up for direct deposit on WMR so hopefully that helps speed things up. That taxr.ai tool everyone's mentioning sounds really helpful too - might be worth the $5 just to stop checking WMR every hour like I have been 😅 Thanks @Freya for asking this question, clearly we're all dealing with the same stress! Good to know we're in this together 💪

Don't forget about tax treaties! Depending on what country you're from, there might be provisions in the tax treaty between your home country and the US that could affect your tax status. Some treaties have special rules for students that extend beyond the normal 5-year exemption period. Worth checking if your country has such provisions!

This is such a common confusion for people with complex visa histories! I went through something very similar a few years ago. One thing that might help clarify your situation: the IRS has a specific worksheet in Publication 519 (U.S. Tax Guide for Aliens) that walks you through determining your status step by step. It's called the "Substantial Presence Test" worksheet and includes special calculations for students. Since you mentioned TurboTax classified you as a resident but you expected to be non-resident, I'd recommend double-checking a few things: 1. Did you file Form 8843 in previous years (2013-2016)? This form is required for exempt individuals and helps establish your exemption history. 2. Make sure to count ALL days of physical presence, including partial days (arrival/departure days count as full days for the test). 3. Check if your home country has a tax treaty with the US that might provide additional student exemptions beyond the standard 5 years. The good news is that if you determine you filed incorrectly, you can always amend your return. But getting it right the first time will save you hassle later! Also, keep detailed records of your entry/exit dates - I-94 records are available online and can help you reconstruct your presence history accurately.

Don't forget about mortgage interest paid at closing! That's deductible too along with any points you paid. I just went through this with my tax guy. Also, keep in mind the SALT (State And Local Tax) deduction cap of $10,000. This includes your property taxes along with state income taxes. If you live in a high-tax state, you might hit this limit quickly and not get the full benefit of your property tax deduction.

Has anyone mentioned that some closing costs can increase your cost basis in the home? Things like transfer taxes, recording fees, and other acquisition costs aren't deductible now but they reduce your capital gains when you sell. This was a big deal for me when I sold my last house after 15 years - all those non-deductible closing costs from when I bought it ended up saving me thousands in capital gains taxes when I sold!

Something else to consider - did the executor file an estate tax return (Form 706) if required? If the estate was over the filing threshold, this is separate from the individual beneficiary obligations. If the estate included other assets besides the mobile home, you might need to look at the bigger picture.

This is a really complex situation, and I can see why you're confused! Based on what you've described, there are a few key things to consider: First, the stepped-up basis rule that others mentioned is crucial here. When your father-in-law passed away, the mobile home's tax basis "stepped up" to its fair market value at the date of death, not the original $65,000 purchase price. So if it was worth close to $97,500 when he died, there might be very little taxable gain. Regarding who owes the taxes - this gets tricky with your arrangement. Technically, whoever is named on the sale documents (the one person who received the proceeds) would be responsible for reporting the sale on their tax return. However, since they immediately distributed the money according to a signed contract, each beneficiary should report their proportional share of any taxable gain. I'd strongly recommend getting documentation to establish the mobile home's fair market value at the date of death - this could be through comparable sales, dealer estimates, or even a retroactive appraisal. Without this, you're essentially guessing at your tax liability. Also, don't forget about state taxes! Some states have inheritance taxes that are separate from federal requirements, and mobile home transfers might have specific state-level procedures. Given the complexity and the fact that mobile homes have unique tax treatment, you might want to consult with a tax professional who has experience with inherited property. The cost of professional advice could save you much more in potential penalties or overpaid taxes.

This is a great breakdown of the pro-rata calculations! I want to emphasize one important timing consideration that could affect your situation: make sure you complete this reverse rollover before making any new IRA contributions or conversions in 2025. The pro-rata rule looks at your IRA balances at the end of the tax year, so if you're planning to do another backdoor Roth conversion in 2025, you'll want to get that pre-tax money out of your IRAs first. Otherwise, you'll be back to dealing with the same pro-rata complications. Also, since you mentioned your rollover IRA has grown to $85,000, double-check that your 401(k) plan doesn't have any limits on incoming rollover amounts. Some plans cap rollovers at certain dollar amounts or have waiting periods between rollovers. One last thing - keep detailed records of this entire transaction. The IRS sometimes gets confused about partial rollovers from mixed IRAs, and having clear documentation of your basis calculation and the specific amounts transferred can save you headaches if they ever question it during an audit.

Just wanted to add another perspective on the calculation method since I see some great advice here already. You're absolutely correct to go with Option 2 - the basis remains at the fixed dollar amount of $6,825. Here's a simple way to think about it: when you paid taxes on that $6,825 during your backdoor Roth conversion, you essentially "bought" that amount as your after-tax basis in traditional IRAs. Market gains and losses don't change what you already paid taxes on - they just affect the overall account value. One thing I'd recommend is calling your 401(k) plan administrator before initiating the rollover to confirm: 1. They accept partial rollovers from IRAs (as others mentioned, some don't) 2. Their process for handling the pre-tax designation 3. Any paperwork they need from you to properly code the incoming funds Also, when you request the rollover from your IRA custodian, be very specific that you're rolling over "$78,175 of pre-tax funds, leaving $6,825 of after-tax basis in the IRA." Some custodians will try to do a proportional distribution if you're not crystal clear about your intent. This reverse rollover strategy will definitely clean up your future backdoor Roth conversions - you'll essentially have a "clean slate" IRA situation going forward!