Quick question about multi-use buildings - I'm using a tax software for my rental/business property, but it doesn't seem to handle the split depreciation schedules well. Has anyone found a specific tax program that handles this situation correctly without manual overrides?

This is exactly the kind of situation where having proper documentation from day one makes all the difference. I went through something similar with a property I use 40% for my consulting business and 60% for rental income. One thing I learned the hard way - make sure you're consistent with your allocation method throughout the entire tax return. If you're using square footage to split depreciation, use that same percentage for utilities, insurance, repairs, etc. The IRS looks for consistency across all your deductions. Also, consider whether you want to elect out of bonus depreciation for the business portion. While bonus depreciation can give you a big first-year deduction, it might make more sense to spread it out over time depending on your income situation. You can make different elections for the rental portion versus the business portion since they're reported on different schedules. Keep detailed floor plans and photos showing the business vs rental areas - this documentation becomes crucial if you ever face an audit or need to justify your allocation percentages.

keep calling them every week thats what i did untill they fixed mine

Code 291 basically means they adjusted your refund amount down from what you originally claimed on your amended return. It's super common with amended returns - they just found something they disagreed with in your calculations. The good news is that once you see 291, you're usually pretty close to getting your refund processed. I'd expect maybe 2-4 weeks before you see the money hit your account, but amended returns can be unpredictable timing-wise. Just keep checking your transcript for updates!

I shorted Apple last year and paid out dividends. The way I handled it (confirmed by my CPA) was: 1. Report the full dividend amount from my 1099-DIV on Schedule B 2. The dividend I paid on my short sale gets added to the cost basis of the short position 3. When I closed my short position, the adjusted basis meant I had a smaller gain So you're not really "deducting" it directly from your dividend income. You're adjusting the cost basis of the short sale transaction, which affects your capital gain/loss instead.

This is a great question that catches a lot of people off guard! I went through the same confusion when I first started shorting stocks. The key thing to understand is that you cannot simply net the $27 against your $125 in dividend income on your tax return. Here's what you need to do: 1. **Report the full $125 on Schedule B** - This matches what your broker reported to the IRS on your 1099-DIV 2. **Add the $27 to your short position's cost basis** - The dividend payments you made while shorting increase the cost basis of that short sale 3. **The tax benefit comes when you close the short position** - Your capital gain will be $27 less (or capital loss $27 more) when you eventually close the position Think of it this way: the IRS wants to see dividend income and capital gains/losses reported in their proper categories. You're not losing the tax benefit of that $27 - you're just getting it through the capital gains calculation instead of directly reducing dividend income. Make sure to keep good records of these payments so you can properly adjust your cost basis when you close the short positions!

This is such a helpful thread! I'm dealing with a similar situation with my first rental property purchase. One thing I learned from my research is that even though MACRS assumes zero salvage value for the depreciation calculation, you should still keep good records of any major improvements you make to the property over the years. The reason is that improvements have their own depreciation schedules - so if you put on a new roof, install new HVAC, or do major renovations, those get depreciated separately from the original building. This can actually increase your total annual depreciation deduction. Also, I found IRS Publication 946 (How to Depreciate Property) really helpful for understanding all the nuances. It's dense reading but covers scenarios like partial business use, mixed-use properties, and how to handle improvements vs. repairs. Definitely worth checking out if you want to understand the full picture beyond just the basic residential rental depreciation.

Great discussion everyone! As someone who just went through this process with my first rental property, I want to add a few practical tips that might help others avoid the mistakes I made initially. First, when separating land and building values, don't just rely on the property tax assessment - it can sometimes be way off. I found it helpful to get a professional appraisal that specifically breaks down land vs. building value, especially since this affects your depreciation for the entire 27.5-year period. Second, keep meticulous records from day one. I created a simple folder system: one for the original purchase documents, one for improvements, and one for repairs/maintenance. This makes tax prep so much easier and you'll be prepared if you ever get audited. Finally, don't forget about the "mid-month convention" for real estate depreciation - you only get half a month's depreciation in the month you place the property in service, regardless of when in the month you actually start renting it out. This caught me off guard in my first year. The zero salvage value rule for MACRS really does simplify things compared to other types of assets. Just focus on getting that land/building split right and you'll be in good shape!

I went through this exact nightmare last year and can offer some real-world perspective! My business account got frozen right when my refund was due, and I was absolutely panicking. Here's what actually happened: The IRS attempted the direct deposit on a Tuesday, my bank rejected it that same day, and I got a paper check exactly 18 days later. No drama, no lost money, just an automatic conversion to paper check. BUT - and this is important - I called my bank first and they told me something crucial. They said government deposits (IRS, Social Security, etc.) are often handled differently than regular ACH transfers. In my case, even though my account was "frozen," they said they would have accepted the IRS deposit and just held it until the freeze was lifted. I wished I'd known this earlier! My advice: Call your bank RIGHT NOW and ask specifically: "If the IRS sends my tax refund via ACH direct deposit to this account while it's on hold, what exactly will happen? Will you accept it and hold it, or will you reject it back to the IRS?" Get the person's name and a reference number for the call. Also, double-check that your mailing address is current with the IRS just in case that paper check route becomes necessary. You've got this - your money isn't going anywhere, it's just taking the scenic route! 💪

I completely understand your panic - this exact situation happened to me with my 2022 return! Here's what I learned from going through it: First, breathe! Your refund won't disappear. The IRS has automated systems specifically designed to handle rejected direct deposits, and they deal with thousands of these cases every week. Here's my step-by-step recommendation based on what worked for me: 1. **Call your bank immediately** - Ask specifically about their policy for government ACH deposits to restricted accounts. Use these exact words: "If the IRS attempts to deposit my tax refund to this account while it's on administrative hold, will you accept and hold the funds, or reject the transaction?" Many banks have special protocols for government payments. 2. **Document everything** - Get the bank representative's name, the date/time of your call, and ask them to email you their policy in writing if possible. 3. **Contact the IRS Practitioner Priority Service** at 1-866-860-4259 if you can't get through the regular lines. Since you filed an amendment, there might still be time to flag your account before the direct deposit is attempted. 4. **Verify your mailing address** - If it does get converted to a paper check, make sure the IRS has your correct address. You can do this online through your IRS account or by filing Form 8822. In my case, the bank actually accepted the deposit and held it until my account issues were resolved about 10 days later. But even if they reject it, the typical timeline is 2-3 weeks for the paper check to arrive. You've got this! The system is designed to protect your money, not lose it. 💪