Just a heads up that the person BUYING the property in this scenario also needs to consider tax implications. When my mom sold me her house below market value, I didn't have to pay gift tax (that was on her), but when I eventually sold the property years later, I had to use HER original basis for calculating capital gains, not the discounted price I paid. This is called "basis carryover" for related party transactions and it really surprised me at tax time.

One important thing I haven't seen mentioned yet is the timing aspect of getting your appraisal. The IRS expects the fair market value to be determined as close to the transaction date as possible. If you're using an appraisal that's several months old, they might question its validity, especially in a volatile real estate market. Also, make sure your appraiser knows this is for a family transaction that will likely involve gift tax reporting. Some appraisers will note this in their report and provide additional documentation about their methodology, which can be helpful if the IRS ever questions the valuation. I learned this the hard way when my first appraisal didn't have enough detail and I had to get a second one specifically for tax purposes. The key is having rock-solid documentation for every aspect of this transaction - the appraisal, the reasons for the below-market sale, and proper filing of all required forms. It's definitely worth consulting with a tax professional who has experience with family property transfers before you proceed.

FYI - if you're super anxious about this stuff (I was too!), you can also set up an appointment with your local Volunteer Income Tax Assistance (VITA) program. They offer FREE tax help to people who make under $60,000, and they can explain the basics to you. Google "VITA tax help near me" to find locations.

Hey there! I totally get the anxiety - I remember my first year working and having that same 3 AM panic about taxes. The good news is that you're already doing everything right! Since you mentioned you're getting taxes taken out of your paycheck, you're actually paying your taxes throughout the year automatically. The April 15th deadline is just for filing your tax return, which is basically a summary of what you earned and what you already paid. One thing that helped me feel more confident was creating a simple tax calendar reminder on my phone. I set it to remind me in late January to watch for my W-2 form from my employer, and then another reminder in early March to start thinking about filing. Having those reminders made it feel way less overwhelming and more manageable. You're definitely not going to jail or get in trouble - the IRS is actually pretty understanding with people who are making an honest effort to comply. The fact that you're asking these questions shows you're being responsible about it!

Looking at your transcript, that 971 code from 12/11/2024 is likely related to your amended return processing. Since you filed the amendment in July and it shows as processed in August (based on those codes), this new 971 could be the IRS issuing a final notice about your refund adjustment. The fact that they told you it was "released" is promising - usually when they say that, the money follows within 2-3 weeks. Keep checking WMR and your bank account. The 971 isn't necessarily a delay, just documentation that they're sending you something in the mail explaining the final numbers.

Code 971 with a December date after they told you the refund was released is actually a good sign! This usually means they're sending you a notice explaining the final refund amount or confirming the release. Since your amended return shows as processed back in August (those 767, 768, 806 codes), this 971 is likely just the final paperwork catching up. I'd expect to see your refund hit your account within the next 1-3 weeks based on that phone call. Keep checking WMR daily and watch your mail for that notice - it should explain everything!

8 Has anyone used the IRS's "Where's My Refund" tool with large donation deductions? I'm wondering if returns with big charitable contributions take longer to process or if they get refunds at the normal speed.

15 I work as a tax preparer and see large charitable deductions regularly. A few additional points that might help: The IRS has specific thresholds that can trigger computer screening - donations over certain percentages of AGI are more likely to get a second look, but this doesn't mean you'll definitely be audited. Having complete documentation is your best protection. One thing I always tell clients: make sure you're not exceeding the annual deduction limits. For 2023, cash donations to public charities are generally limited to 60% of your AGI, though there were temporary 100% limits during COVID that have since expired. Any excess can be carried forward for up to 5 years. Also, if any of your donations were appreciated property (stocks, real estate, etc.), there are additional documentation requirements and different percentage limits (usually 30% of AGI for appreciated capital gain property). Keep digital copies of everything and store them in multiple places. In an audit, missing documentation is often more problematic than the size of the deduction itself.

Has anyone noticed if this change to Schedule K-1 codes also affects how you report this info on your personal 1040? I'm worried that if I'm creating a Statement A for my S-corp K-1, I might also need to change how I report this on my individual return.

This is exactly the kind of confusion I was dealing with a few months ago! The transition from separate Box 17 codes to the Statement A approach definitely caught a lot of S-corp owners off guard. Just to add some clarity for anyone still struggling with this - the key thing to remember is that the underlying Section 199A information requirements haven't changed, just how they're presented on the K-1. You still need to track the same components (qualified business income, W-2 wages, UBIA of qualified property, etc.), but now they all go on an attached statement rather than being split across different box codes. One tip that helped me: if you're preparing your own K-1, make sure your Statement A is clearly labeled and includes all the required elements. The IRS hasn't published an official form for Statement A, so there's some flexibility in format, but consistency and clarity are key. Each component should be clearly identified and the amounts should tie back to your business records. Also worth noting - this change actually makes multi-shareholder S-corps easier to handle since you can provide detailed breakdowns for each shareholder's allocation without cramming everything into limited box space.