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Is anyone going to mention the Foreign Investment in Real Property Tax Act (FIRPTA)? Or does that not apply since it's a US citizen selling foreign property rather than a foreigner selling US property?
Good question! FIRPTA generally applies to foreign persons selling U.S. real property interests, not U.S. persons selling foreign property. In this case, the mother is a U.S. citizen selling property in Greece, so FIRPTA wouldn't apply to her situation. What she does need to worry about is properly reporting the sale on her U.S. tax return and paying any applicable capital gains tax on the appreciation since inheritance. She'll also need to be aware of any reporting requirements for foreign accounts if the proceeds are deposited overseas before being transferred to the U.S.
One thing I haven't seen mentioned yet is the importance of getting proper documentation of the property's fair market value as of the inheritance date in 2016. Since Greece may not have the same appraisal systems we're used to here, your mom should try to gather any official valuations, tax assessments, or comparable sales data from around that time to support the stepped-up basis calculation. Also, she should keep detailed records of any improvements or maintenance she's done to the property since inheriting it, as these costs can potentially be added to her basis and reduce the taxable gain. Even if she hasn't physically been there, any money spent on upkeep, repairs, or improvements through a property management company would count. The currency conversion aspect is tricky too - she'll need the EUR/USD exchange rates for both the 2016 inheritance date and the sale date. The IRS has historical exchange rate tables on their website that are considered official for tax purposes, so make sure to use those rather than just any online converter.
This is really helpful advice about the documentation! I'm wondering though - what happens if she can't find good records of the 2016 value? My understanding is that Greek property records might not be as detailed as what we're used to in the US. Would the IRS accept something like a real estate agent's estimate from that time period, or do they require more official documentation like tax assessments? Also, regarding the currency conversion - should she use the exchange rate from the specific date she inherited it, or would an average rate for that month/year be acceptable? I know the IRS can be pretty strict about these details, especially with international transactions.
this is getting rediculous... its MY money and I need it NOW! š¤
I'm in the same situation - filed on 1/25 and still showing "processing" on FTB. Really appreciate the tax professional's insight about the 4-6 week timeline due to fraud prevention. At least now I know it's not just me and there's a legitimate reason for the delay. Hoping we all see some movement soon!
Protip: If you have the IRS2Go app, sometimes it updates with your refund status a day or two before the transcript shows changes. Mine showed "refund approved" on the app while my transcript was still processing, and it gave me the correct post-offset amount. Might be worth checking both if you're anxiously waiting like I was!
Does the app show the breakdown of the offset though? Like will it tell you exactly how much went to the loans vs how much you're getting back? Or does it just show the final amount?
I went through this exact situation two years ago with defaulted student loans! Here's what I learned: Your transcript will show the full refund amount first with a deposit date, but then it gets updated to show the reduced amount after the offset is processed. The key thing to watch for is transaction code 898 on your transcript - that's the offset code. What really helped me was calling the Treasury Offset Program at 800-304-3107. You can enter your SSN and get automated info about any pending offsets without waiting on hold. They'll tell you exactly which agency is claiming money and approximately how much. For your car repairs situation, definitely look into the hardship refund option someone mentioned earlier. Since you need your car operational, that could qualify as a legitimate hardship. Contact your loan servicer directly and ask about their offset hardship refund process - the worst they can say is no, but you might get some of that money back faster than waiting for your regular payment plan. Good luck! The waiting and uncertainty is definitely the worst part, but at least once you know the numbers you can plan accordingly.
This is super helpful, thank you! I had no idea about that Treasury Offset Program number - definitely calling that today. Just to clarify though, when you say the transcript shows the "full refund amount first with a deposit date" - does that mean I might see a deposit date for like $4,500 (my expected refund) and then a few days later it changes to show only $2,000 after the offset? I'm trying to mentally prepare myself for either scenario since I really need to know what I'm working with for these car repairs.
I'm going through the exact same thing! Filed my Illinois return in February and I'm still stuck in processing limbo. The most frustrating part is that their website gives you absolutely no useful information - just that generic "still being processed" message that tells you nothing. From reading through all these comments, it sounds like there are several potential issues that could be causing the delay: - Address discrepancies (especially if you moved recently) - Identity verification requirements that they don't notify you about - Random manual reviews they're doing this year - Issues with credits or deductions triggering additional screening I'm going to try a few of the suggestions here - calling first thing in the morning at 8 AM, checking from a desktop computer instead of mobile, and looking more carefully through my mail for any notices that might have looked like junk mail. Has anyone had success with the taxpayer advocate service? I'm wondering if that might be worth trying since we're well past the normal processing timeframes at this point. It's ridiculous that we have to become private investigators just to get our own money back from the state!
I'm in a similar situation and it's so frustrating! Filed in late February and still waiting. After reading through all these suggestions, I'm going to try the early morning calling strategy tomorrow. One thing I noticed from everyone's experiences is that it seems like Illinois is doing a lot more manual reviews this year without actually telling people. The lack of transparency is really the worst part - at least if they told us what they needed or why it was delayed, we could do something about it. I'm definitely going to check my mail more carefully too. That tip about the plain envelope from IL Dept of Revenue is really helpful - I might have missed something like that thinking it was junk mail. Thanks for summarizing all the potential issues! It's helpful to see them laid out like that. Hopefully we'll both get some resolution soon. This whole situation really shows how broken the system is when so many people are dealing with the same problem.
I'm dealing with the exact same issue! Filed my Illinois return in late February and have been stuck in that "still being processed" purgatory for months now. It's incredibly frustrating when you can't get any real information about what's actually happening with your return. After reading through all these experiences, I'm going to try several approaches: 1. Calling right at 8 AM tomorrow using that 1-800-732-8866 number 2. Double-checking my mail for any plain envelopes that might have looked like junk mail 3. Verifying my address information is correct in their system 4. Considering reaching out to my state representative's office if the phone calls don't work The most infuriating part is how they expect us to file on time and pay penalties for any delays, but then they can sit on our refunds for months with zero accountability. The lack of transparency in their system is unacceptable. For what it's worth, I've been documenting every attempt to contact them with dates and times. If this drags on much longer, I'm definitely going to file a complaint and escalate through whatever channels are available. Thanks to everyone sharing their experiences and solutions - it's helpful to know we're not alone in dealing with this broken system!
Morgan Washington
A creative solution some companies use is providing experiences rather than physical gifts. Team outings, special lunches, or tickets to events are sometimes classified differently than direct gifts if they serve business purposes like team building or promoting company culture. I personally think the best approach is transparency - if you're going to give something taxable, just be upfront that it might impact their taxes slightly but is still meant as a genuine thank you. Most employees would rather have a taxable gift than no gift at all!
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Kaylee Cook
ā¢I've seen my workplace do this! They sent our whole team to a baseball game last summer as a "thank you" for finishing a big project. They called it a team-building event but it was clearly a reward. Much better than getting a taxable gift and nobody had to deal with tax implications.
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Morgan Washington
ā¢Team experiences are often a win-win approach. When structured properly as occasional team-building or morale events, they can qualify as working condition or de minimis fringe benefits. Employees typically value these experiences highly, and they create shared memories that can strengthen workplace relationships. I find that most employees appreciate when employers are honest about tax implications rather than trying to hide them. If you're going to give something substantial enough to be meaningful (like a $250 gift), it's usually better to gross it up (increase the amount to cover the anticipated taxes) rather than pretending it isn't taxable when it is.
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Sophie Footman
From my experience working in payroll, the $200-250 range your manager is considering will definitely be treated as taxable compensation. The IRS is pretty strict about this - any gift from employer to employee in a work context gets taxed, regardless of the genuine appreciation behind it. One thing to consider is asking your manager to "gross up" the gifts - essentially increase the amount to cover the tax burden so employees receive the intended net value. For example, if she wants each person to effectively receive $200, she might need to give around $270-280 to account for federal, state, and payroll taxes. Another approach is splitting the appreciation into multiple smaller components: maybe a $50 gift card (taxable but smaller impact) plus a nice company-branded item under $75 (potentially de minimis) plus a team celebration lunch (generally non-taxable when occasional). This way the total appreciation is still meaningful but the tax hit is reduced. The key is being transparent with your team about any tax implications upfront so there are no surprises come W-2 time!
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Javier Torres
ā¢This is really helpful advice! The "gross up" approach makes a lot of sense - it shows the manager is willing to take responsibility for the tax consequences rather than passing them onto employees. I hadn't thought about splitting the appreciation into multiple components either. That seems like a smart way to maximize the impact while minimizing the tax burden. Thanks for sharing the payroll perspective - it's exactly the kind of practical insight I was hoping to find!
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