Has anyone used a land trust instead of an LLC? My tax advisor mentioned this might be better for privacy while still keeping conventional mortgage rates for my rental. Thoughts?

Great question! I went through this same decision process about 3 years ago. Here's what I learned: For rental properties, LLCs can definitely provide valuable liability protection, but there are some practical considerations beyond just taxes. The biggest surprise for me was how it affected my insurance - I had to switch to commercial property insurance which was about 30% more expensive than homeowner's coverage. Regarding your primary residence, I'd strongly recommend against putting it in an LLC. You'll lose the homestead exemption in most states, which often provides significant asset protection already. Plus, as others mentioned, you'd lose that valuable capital gains exclusion when you sell. One thing I wish I'd known earlier - if you do decide on an LLC for the rental, consider getting an EIN from the IRS and opening a separate business bank account even if you're filing as a disregarded entity. It makes bookkeeping so much cleaner and helps maintain that legal separation between personal and business assets. As for marriage, definitely something to plan for! When I got married, we had to decide whether to add my spouse as a member or keep them separate. We ended up adding them to maintain the joint asset protection, but it required updating our operating agreement and state filings. My advice? Start with an umbrella insurance policy for immediate protection while you research the LLC option thoroughly for your specific state and situation.

Just wanted to add another perspective as someone who's dealt with this Box 7 situation multiple times. The key thing to remember is that you need to match your education expenses to the actual academic periods, not just when you paid. I keep a simple spreadsheet each year tracking: - Payment date - Amount paid - Which semester/term it was for - Academic period start/end dates This makes it much easier when tax time comes around, especially with Box 7 situations. You can then clearly see which portions of your payments were for classes that actually occurred in the tax year you're filing for. For your $8,750 situation, if you can get that breakdown from your university showing which portions were for 2025 classes versus future terms, you'll have exactly what you need for Form 8863. Don't let Box 7 scare you away from claiming legitimate education credits - just make sure you're only claiming the portion that actually applies to 2025!

Great advice from everyone here! I just want to emphasize one important point that might help clarify things for Omar and others dealing with Box 7 situations. The IRS has a specific rule about this - you can generally claim education expenses in the year you paid them OR the year the academic period begins, whichever gives you the better tax outcome (as long as you're consistent). So even with Box 7 checked, you have some flexibility. However, the safest approach is usually to claim expenses in the year the classes actually took place. This avoids any potential issues if the IRS questions your return later. The documentation everyone is mentioning (detailed statements from your university) is absolutely crucial. I'd also recommend keeping copies of your class schedules showing the actual dates of instruction, since that proves which academic periods occurred in 2025 versus future years. Don't give up on claiming legitimate education credits just because Box 7 is checked - with proper documentation showing which portion of your payments was for 2025 classes, you should be able to claim that amount on your 2025 return!

One thing nobody has mentioned - the penalties for incorrect filing or late filing of Form 3520 are BRUTAL. The minimum penalty is $10,000 and can go up to 35% of the gross value of what you received!!! I learned this the hard way when I messed up on my inheritance from the UK. Double check EVERYTHING and make sure you file on time. The deadline is the same as your regular tax return including extensions. If you're even a day late, they can hit you with those penalties.

I went through this exact situation with a similar inheritance from my grandmother in France. The key thing that helped me was understanding that you need to determine the fair market value of ALL assets as of the date you actually received them, not when your aunt passed away. For the $75,000 you mentioned, make sure you're using the correct valuation date - this is usually when the Spanish probate process officially transferred the assets to you, not the date of death. This can make a significant difference in the amounts you report. Also, keep in mind that you may need to file additional forms beyond just Form 3520. If any of the inherited assets generate income (like rental property or dividends), you might also need Form 3520-A or other international reporting forms. The IRS has a whole web of international forms that interconnect, and missing one can trigger penalties on others. I'd strongly recommend getting professional help if the total value is significant - the cost of a qualified international tax professional is usually much less than the potential penalties for getting it wrong.

This is incredibly helpful information! I've been in a similar situation with my Wells Fargo account that I closed last year - my refund was sent there about 3 weeks ago and I've been getting nowhere with their customer service. They keep telling me it will automatically bounce back to the IRS, but after reading your experience with Credit Karma, I'm wondering if I should push harder to see if they can mail me a check directly instead. It's frustrating that there doesn't seem to be a standard process across all financial institutions for handling this. Some apparently bounce it back immediately, others hold onto it and can issue checks, and some seem to have no clear process at all. The lack of consistency just adds to the stress when you're already worried about your refund. Thanks for sharing this update - it gives me hope that there might be alternative solutions I haven't explored yet. I'm definitely going to try a different approach with Wells Fargo tomorrow and specifically ask if they can mail a check rather than just assuming they have to return it to the IRS.

Wow, this is exactly the kind of update I needed to see! I've been dealing with a closed Capital One 360 account situation for about 2 weeks now and have been dreading the whole IRS callback process. Reading through everyone's experiences here, it sounds like different financial institutions really do handle this differently - some are more willing to work with customers directly while others just automatically bounce everything back. I'm definitely going to try Capital One's chat support tomorrow and specifically ask if they can mail a check like Credit Karma is doing for you. Even if they can't, at least I'll have a clear answer about their process instead of just assuming the worst. One thing I'm curious about - did Credit Karma ask for any verification of your identity during the chat, or were they able to confirm everything just based on your account information? Want to make sure I have everything ready when I contact Capital One. Thanks for taking the time to share this update. It's really helpful to know there might be faster solutions out there than just waiting for the standard IRS reissue process!

This entire discussion has been incredibly helpful as someone completely new to this community! I had no idea there was such a fundamental difference between ID.me and actual IRS verification processes. Reading through everyone's experiences really shows how this confusion is almost inevitable given how poorly the IRS explains these systems on their website. The airport security vs passport control analogy finally made it all click for me - they're both checking your identity but at completely different checkpoints for different purposes. What's particularly valuable is seeing the consistent pattern where people who called the verification phone number directly got their issues resolved in 15-20 minutes, while those who got stuck in the ID.me loop wasted weeks thinking they were fixing the problem. I'm definitely saving this thread as my reference guide since it provides clearer guidance than any official IRS documentation I've seen. It's honestly frustrating that taxpayers have to rely on community wisdom to understand basic government processes, but I'm so grateful this resource exists. If I ever receive a verification letter, I now know to completely skip ID.me and go straight to the phone number on that letter. Thanks to everyone for sharing these detailed, real-world experiences - you're probably saving countless newcomers like me from unnecessary stress during tax season!

This thread has been absolutely invaluable as someone who just joined this community! I'm dealing with my first complex tax situation this year and was genuinely terrified about potentially facing verification issues. Reading through everyone's detailed experiences has been such a relief - it's clear that the ID.me confusion is practically universal among taxpayers, which really shows this is a systematic communication failure by the IRS rather than individual mistakes. What gives me the most confidence is seeing the consistent pattern where people resolved their issues in 15-20 minutes once they called the verification number directly, versus weeks of stress when stuck in the ID.me loop. The airport security vs passport control analogy finally made it all click for me - both are identity checks but serve completely different purposes at different stages. I'm definitely bookmarking this entire discussion as my emergency reference guide. It's honestly frustrating that we have to rely on community wisdom to understand basic government processes that should be clearly explained on official websites, but I'm incredibly grateful this resource exists. Now I know that if I ever receive a verification letter, I should completely skip ID.me and call the specific number on that letter immediately. Thank you to everyone who shared their real-world experiences - you're probably saving countless newcomers like me from unnecessary weeks of confusion during an already stressful tax season!