Great question! I went through something very similar with my LLC property sale last year. Here's what I learned: you're NOT paying capital gains tax twice. The $53k gain from the property sale flows through to you and your partner based on your ownership percentages (50/50 in your case). Each of you will report $26.5k of capital gain on your personal tax returns via Schedule D and Form 8949. The key thing to understand is that your withdrawal of $26.5k isn't a separate taxable event - it's simply you taking out your share of the proceeds. Your original $15k investment becomes part of your "basis" in the LLC. When you withdraw $26.5k, you're essentially getting back your $15k investment plus your $11.5k share of the gain, but you only pay tax on the gain portion once. The LLC will issue you each a Schedule K-1 (Form 1065) showing your share of the capital gain. Make sure to also consider if you've been taking depreciation deductions on the property - if so, you'll need to account for depreciation recapture on Form 4797, which gets taxed at 25% rather than the typical capital gains rates.

One thing I haven't seen mentioned yet is making sure your LLC operating agreement is clear about how property sale proceeds are distributed. We had a similar situation where the operating agreement wasn't specific about whether distributions would be proportional to ownership or based on capital contributions, which created some confusion at tax time. Also, if you're planning to reinvest in another property, you might want to look into a 1031 like-kind exchange for future sales. While it's too late for this transaction, it could help you defer capital gains taxes on future property sales if done correctly. The exchange needs to be structured before the sale closes, so it's something to consider for your next investment property. Make sure to keep detailed records of all your costs related to the sale (real estate commissions, legal fees, closing costs, etc.) as these can be added to your cost basis and reduce your taxable gain. Every dollar counts when you're dealing with capital gains!

I've been a tax preparer for over 15 years, and I can tell you that the IRS Withholding Estimator is one of the most frustrating tools out there, especially for married couples with pre-tax deductions like HSAs and health insurance. The core issue you're experiencing is that the estimator treats Step 4(a) as "additional income that needs to be taxed" rather than "income adjustments." When you entered your gross wages including pre-tax deductions, the estimator didn't realize those HSA and health insurance amounts aren't actually taxable income. Here's what I recommend to my clients in your situation: 1. **Use the simple approach**: Take your shortfall from last year ($2,145), add a small buffer (maybe $300), and divide by your remaining paychecks. Put that amount on Step 4(c) for extra withholding. 2. **Ignore Step 4(a) completely** for your situation - it's causing more confusion than help. 3. **Set a calendar reminder** for January to adjust your W-4 back down to a "maintenance" level once you've caught up on this year's shortfall. The estimator works better for simpler tax situations, but with multiple jobs, HSAs, and various pre-tax deductions, the old-fashioned math approach is often more reliable and definitely less stressful!

This is such a common problem! I went through the exact same frustration last year. The IRS Withholding Estimator really struggles with married couples who have pre-tax deductions. What worked for me was completely ignoring the estimator's Step 4(a) recommendation and going with the simple math approach several others have mentioned. I took what we owed last year ($1,800 in our case), added about $200 as a buffer, and divided by our remaining paychecks. The key thing I learned is that Step 4(a) is meant for income that ISN'T being withheld from (like freelance work or investment income), not for adjusting calculations around pre-tax deductions. When you put your HSA and health insurance amounts there, you're essentially telling your employer "please withhold taxes on this additional income" which is the opposite of what you want. Since switching to just using Step 4(c) for extra withholding, our tax situation has been much more predictable. No more surprises in April!

I've been going through this same nightmare for the past 6 weeks! The "Audit Status Unavailable" error seems to be a widespread issue that the IRS isn't acknowledging publicly. What's worked for me so far is a multi-pronged approach: I filed Form 911 with TAS (which @Sofia Perez mentioned), started calling the examination department number directly from my audit letter instead of the main line, and I'm also documenting everything with screenshots like @Jamal Washington suggested. The examination department has actually been more responsive - got through twice in the past week, though they couldn't access my status immediately either. One thing I learned is that they're experiencing "system modernization delays" (their words) that are affecting audit status displays specifically. The rep told me to expect 30-45 more days for the online systems to catch up, which is frustrating but at least gives a timeline. Also trying the certified letter approach that @Anastasia Kozlov mentioned as backup. Hang in there everyone - this seems to be a known issue they're working on, even if they're not great at communicating about it!

This thread has been incredibly helpful! I'm dealing with the exact same "Audit Status Unavailable" error and it's been 3 weeks since I got my audit letter. Reading everyone's experiences makes me realize this is a much bigger system issue than I thought. I'm definitely going to try the TAS Form 911 route and look for my local office - had no idea those even existed. Also going to call the examination department number directly from my letter instead of wasting more time with the main IRS line. The "system modernization delays" explanation from @Axel Far actually makes sense, even though it's frustrating. Thanks everyone for sharing your solutions and keeping each other updated - this is way more helpful than anything I found on the actual IRS website! Will report back if any of these approaches work for me.

Great thread everyone! As someone who's been dealing with PFIC reporting for my international portfolio, I wanted to add a few practical tips that have helped me streamline the process: 1. **Document everything throughout the year** - Don't wait until tax season to gather your PFIC information. I keep a simple folder with quarterly statements and note any distributions immediately. 2. **Currency conversion timing matters** - Make sure you're using the correct exchange rates for the specific dates (January 1st for beginning values, December 31st for ending values). The IRS has specific guidance on which rates to use. 3. **Consider the QEF election alternative** - While MTM is simpler for most people, if your foreign fund provides the necessary annual information statements, the QEF election might be more tax-efficient long-term, especially for funds you plan to hold for many years. 4. **State tax implications** - Don't forget that some states don't conform to federal PFIC elections, which can create additional complexity in your state returns. For those struggling with the technical aspects, the key is really having accurate beginning and ending values. Everything else on Form 8621 flows from those numbers. And yes, you can definitely e-file - I've done it successfully with both TaxAct and Drake Tax for several years now.

This has been such a helpful thread! I'm dealing with a similar situation where I have PFICs in both taxable and retirement accounts. Just wanted to confirm what @Andre Dupont mentioned earlier - PFICs held in traditional IRAs, Roth IRAs, and 401(k)s are indeed exempt from Form 8621 reporting requirements under IRC Section 1298(f). This exemption can save a lot of headaches if you're able to hold your foreign investments in retirement accounts instead of taxable accounts. For those who are stuck with taxable PFIC holdings, I've found that keeping a simple annual calendar reminder to capture January 1st and December 31st values makes the whole process much smoother. I set alerts to screenshot the relevant fund pages on those specific dates, which eliminates the scramble to find historical data later. One last tip - if you're considering selling your PFIC investments to avoid the reporting complexity (as @AstroAdventurer mentioned), be aware that you'll still need to file Form 8621 for the year you sell, and you might face some additional complications if you haven't been compliant with PFIC reporting in previous years. Sometimes it's worth getting everything properly reported first before making the decision to divest.

I'm going through something similar but with adoption. We paid fees this year but won't finalize until next year. My tax guy said to keep ALL receipts because some expenses like this can be rolled into the following year's taxes when the child is actually your dependent. Not sure if it's the same for birth, but worth asking a professional.

I'm dealing with a similar situation and found it helpful to think about this in terms of timing and what the IRS actually considers "care." The key issue is that the Child and Dependent Care Credit requires three things: 1) you have a qualifying dependent, 2) care was actually provided, and 3) you paid for that care. Even though you're paying now, no actual care is being provided until your baby arrives. The deposit is essentially reserving future care, not purchasing current care. It's frustrating because you're out the money now, but the IRS timing rules are pretty strict. One thing that might help - ask your daycare how they'll handle that deposit once your baby starts. If they apply it directly to your first month's payment rather than keeping it as a separate "holding fee," it'll be cleaner to claim on your 2025 taxes. Some daycares are flexible about restructuring these payments if you explain the tax situation. Also worth noting that if your baby arrives before December 31st (even on New Year's Eve!), you can claim them as a dependent for the full 2024 tax year, which opens up other credits like the Child Tax Credit, just not the childcare credit for pre-birth expenses.