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Has anyone used H&R Block's expat tax service? I'm in a similar situation (US citizen in Auckland) and wondering if they're any good for international situations. Their regular service messed up my taxes before I left the States so I'm hesitant, but they advertise an expat specialty service.
I used them last year and it was a disaster. The "expat specialist" didn't know about the US-NZ totalization agreement for social security, and they missed claiming foreign tax credits properly. Ended up having to file an amended return with a different preparer. Spent way more in the end than if I'd gone with a true international tax specialist from the start.
I went through this exact same situation last year! The key thing to remember is that the US tax year mismatch with NZ isn't as complicated as it seems - you just report your NZ income earned during the US tax year (Jan-Dec 2023) on your US return. A couple of practical tips from my experience: 1. Keep detailed records of your income from both countries with dates - this makes everything easier 2. The Foreign Tax Credit can be really valuable, but you'll want to calculate whether that or the Foreign Earned Income Exclusion gives you better tax savings 3. Don't forget about potentially reporting any NZ bank accounts on your FBAR if the total exceeds $10,000 at any point during the year One thing I wish I'd known earlier - make sure you understand NZ's tax residency rules too. Since you qualify as a tax resident there, you'll need to report your US income on your NZ return as well. The timing can get tricky since you might file your US return in April but your NZ return isn't due until July. If you're comfortable with TurboTax, their Premier version handles foreign income reporting pretty well. Just make sure you have all your NZ pay slips converted to USD using the proper exchange rates for when you earned the income.
Based on all the discussion here, I'd definitely echo getting professional help given the IRS scrutiny on conservation easements. One thing I haven't seen mentioned yet is making sure your land trust is a qualified organization under IRC 501(c)(3) - the IRS has been challenging deductions where the receiving organization didn't meet all requirements. Also, Diego, regarding your valuation concern - if your property is near a growing suburb, you might want to look into whether any zoning changes or development plans are in the works for your area. Sometimes local planning departments have information about future growth that could significantly impact your property's development value. An appraiser experienced with conservation easements in your region would know to research these factors. Don't rush the amendment - better to take time now to get everything right than deal with an audit later. The three-year window gives you plenty of breathing room to do this properly.
This is really helpful advice about checking the land trust's qualification status - I hadn't thought about that aspect. Diego, one other thing to consider is whether your state offers any additional tax benefits for conservation easements that you might be missing. Some states have their own tax credits or deductions that run parallel to the federal deduction. Also, since you mentioned the property has been in your family since the 1940s, make sure your cost basis documentation is solid. If the IRS does review your return, they'll want to see clear records of your basis in the property, which can be tricky with inherited or long-held family land. Having that documentation organized upfront will make the whole process smoother. The combination of getting proper professional guidance and taking time to verify all the details sounds like the right approach. Better to invest in getting it right now than potentially face complications down the road.
Diego, I'd definitely recommend getting that second appraisal opinion before filing your amended return. Given that your property is near a growing suburb, $78k for 45 acres with development potential does seem potentially undervalued. I've seen similar situations where the initial appraiser didn't fully account for future development rights or subdivision potential. The key is finding an appraiser who specifically specializes in conservation easement valuations - they understand the "before and after" methodology required by the IRS and know how to properly research zoning, future land use plans, and comparable sales of development rights in your area. Since you have three years to amend, I'd suggest this order: 1) Get a consultation with a tax attorney who handles conservation easements, 2) If they recommend it, get that second appraisal, 3) Review all your documentation against IRS requirements, then 4) File the amended return with confidence. Your situation sounds completely legitimate since it's genuine family land preservation, but the IRS scrutiny means the documentation has to be perfect. Taking the time to get professional guidance upfront will likely save you significant stress and potential audit issues later.
This is excellent advice about the appraisal methodology. I went through a similar process with my family's property last year, and the difference between a general appraiser and one who specializes in conservation easements was night and day. The conservation specialist looked at things like potential for subdivision, proximity to utilities, and even researched the local comprehensive plan to understand future development patterns in the area. Diego, one thing that might help is requesting a copy of your local comprehensive plan or zoning map from your county planning department. If there are plans for future residential or commercial development in your area, that could significantly impact the "before easement" value of your property. The appraiser should be factoring this into their highest and best use analysis. Also, since you mentioned the land trust recommended the original appraiser, you might want to ask them if they have a list of other qualified appraisers they've worked with. Sometimes getting a second opinion from their approved list can help ensure consistency with their documentation requirements while still giving you that validation on the valuation. The step-by-step approach Kayla outlined makes a lot of sense - especially starting with the tax attorney consultation to understand exactly what documentation standards you need to meet before investing in additional appraisals.
am i the only 1 who thinks its crazy we gotta jump thru all these hoops just to get OUR money back??? 𤔠system is broken af
Preach! š It's our money, not theirs. This whole process is a joke.
I've been dealing with this exact same issue! What finally worked for me was calling the practitioner priority line at 1-866-860-4259 instead of the main number. Even though it's technically for tax professionals, they sometimes transfer you to the right department and the wait times are way shorter. Also, if you press 2-1-3-2 in the phone menu, it usually gets you to a human faster than going through the automated system. Don't give up - I know it's frustrating but you'll get through eventually!
Pro Series crashes CONSTANTLY during peak season!!! Don't believe the hype. I lose at least an hour of productive time every day dealing with software glitches. Look at ATX instead if ur doing mostly simple returns.
What computer specs are you running? I had crash issues until I upgraded my RAM to 16GB and switched to SSD. Now it runs smooth.
Running a pretty decent setup - i7 processor, 32GB RAM, and SSD. The crashes seem more related to their network/server issues during peak filing times rather than my local machine. When too many preparers are trying to e-file simultaneously the whole system gets bogged down. ATX has better offline capabilities that don't rely as heavily on constant server communication. I've noticed most crashes happen during high-volume filing periods like early February and early April.
I'm a CPA who switched to Pro Series two years ago and have mixed feelings. The software itself is solid for basic to moderately complex returns - handles most situations you'll encounter with individual and small business clients well. The interface is intuitive once you get used to it, and the diagnostic tools are helpful for catching errors. However, I have to echo some concerns about stability during peak season. I've experienced crashes during high-volume periods, though not as frequently as Katherine mentioned. The key is saving your work frequently and having good backup procedures. For 25 returns, the pay-per-return pricing Connor mentioned could definitely work in your favor. Just factor in the potential learning curve time if you're switching from another platform - plan to start early in the season to get comfortable with the workflow before things get hectic. One tip: if you do go with Pro Series, invest in a solid internet connection and consider having Claimyr or similar service ready for tech support issues during busy periods. The combination can make the experience much smoother.
Mateusius Townsend
I've been dealing with the same 424 code for about 6 weeks now. From what I've researched, it usually means they're doing an income verification review - could be triggered by anything from a small discrepancy in your W2 reporting to just random selection. The waiting is the worst part honestly. I've seen people say it can take anywhere from 6-16 weeks to resolve. Have you tried calling the practitioner priority line? Sometimes they can give you a bit more info than the regular customer service line.
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Avery Flores
ā¢Wait there's a practitioner priority line?? š I've been calling the regular number and sitting on hold for literally hours. What's the number for that? And do you need any special credentials to use it or can regular taxpayers call?
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Logan Scott
Ugh, I feel your pain! I'm dealing with the exact same thing - got the 424 code about 3 weeks ago and it's been radio silence since then. From what I've gathered from this thread and other research, it seems like they're just verifying some info on our returns. Super frustrating that they can just hold our money with basically no communication though š¤ At least it sounds like they do pay interest while we wait, which is something I guess? Definitely gonna look into that taxr.ai thing people are mentioning - anything beats calling the IRS and waiting on hold forever just to get a generic "your return is being processed" response š
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