Has anyone addressed the potential need for a Form 8832 (Entity Classification Election) in this situation? When my father-in-law passed and left his S-corp to my husband, we had to file this to maintain the S election through the estate transfer process.

I went through a very similar situation when my mother passed last year and left me her S-corp. One critical thing I learned that hasn't been mentioned yet is the importance of getting the business properly valued as of the date of death for estate tax purposes and for establishing your stepped-up basis. The IRS requires a formal business valuation if the estate is large enough to require an estate tax return (Form 706), but even if you're below that threshold, having a professional valuation done can save you significant capital gains taxes if you ever sell the business later. The stepped-up basis rule means you inherit the business at its fair market value on the date of death, not what your father originally paid for it. Also, make sure you understand the quarterly estimated tax requirements. Since S-corp income passes through, the estate (and potentially you as beneficiary) may need to make quarterly payments to avoid underpayment penalties. The timing can get tricky when ownership transfers mid-year. I'd strongly recommend getting both a CPA experienced with estates and a business attorney involved sooner rather than later. The two-year limit on estates holding S-corp stock that Juan mentioned is real and has serious consequences if you miss it.

Does anyone know if other tax software handles this Section 121 exclusion for former primary residences better than FreeTaxUSA? I have a similar situation but haven't started my taxes yet.

I went through this exact same situation last year with FreeTaxUSA and it was definitely tricky to navigate. After trying several approaches, I found that Mei Zhang's workaround actually works well, but I'd add one important tip: make sure to print out and review your final forms before filing. When I used the "Sale of Home" section with my adjusted basis (original price minus depreciation taken), FreeTaxUSA correctly generated both Schedule D for the capital gain eligible for Section 121 exclusion and Form 4797 for the depreciation recapture. The key is being very careful with your basis calculation. I also recommend keeping detailed records of all the depreciation you claimed during the rental period - you'll need this for the recapture calculation. The IRS requires you to recapture depreciation even if you didn't claim it, so make sure you're accounting for all allowable depreciation during the rental years. One last thing - if your gain after the Section 121 exclusion is substantial, consider whether you need to make estimated tax payments since the depreciation recapture is taxed at 25% rather than the lower capital gains rates.

mine cleared after 4 months without me doing anything lol just gotta wait it out sometimes 🤷‍♀️

I've been dealing with tax issues for years and the 810 freeze code is actually pretty common - it doesn't necessarily mean anything is wrong with your return. The "Return Not Present" status combined with the freeze usually just means your return is stuck in a verification queue somewhere in the system. Since your transcript shows Single filing status and 00 exemptions correctly, the IRS did receive your return, it's just not fully processed yet. The blank fields for AGI and taxable income are normal when a return is in this limbo state. Try calling the practitioner priority line if you have a tax pro, otherwise the regular taxpayer advocate service might be able to help expedite things if it's been over 21 days since you filed.

8 One thing nobody's mentioned - make sure you check your state tax obligations too! I made the mistake of focusing only on my federal tax debt and completely forgot I also owed state taxes. Had to set up two separate payment plans.

I'm in almost the exact same boat - just ran my numbers and owe around $8,200 that I definitely don't have sitting around. Reading through all these responses has been super helpful, especially the clarification about filing first then setting up the payment plan. One question I haven't seen addressed - if I file my return showing I owe this amount, does that immediately trigger any kind of collections process? Or do I have some grace period to get the payment plan set up before they start sending scary letters? Also, has anyone here actually used the online payment agreement tool on the IRS website? I'm wondering if that's reliable or if I should plan on calling (or using one of those services mentioned above to help get through).

Have you considered using a free file service that offers an advance on your refund instead? Some tax prep companies will give you part of your refund immediately after your return is accepted, then the rest comes when the IRS processes it. Might be worth looking into if you need the money quickly. Just watch out for the fees - they're usually not worth it unless you absolutely need the cash right away.

I used Netspend for my tax refund two years ago and it worked fine - got my deposit on the same day my friend got hers through Bank of America. The main issue I ran into was the fees afterward. Between the monthly maintenance fee and ATM charges, I ended up paying about $15 just to access my own refund money over the course of a month. If you do go with Netspend, I'd recommend transferring the money out to a regular bank account or withdrawing it all at once to avoid getting nickel and dimed. Also make sure your name on the Netspend account exactly matches what's on your tax return - I've heard of people having issues with even minor spelling differences.