gmadden
Level 2
03-25-2022
06:04 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
As I enter more expenses for a rental property, tax payer's tax liability goes up. Is this right? They do have unallowed losses from previous years, but under what scenario should taxes go down when profit goes up?
Labels
Just-Lisa-Now-
Level 15
03-25-2022
06:09 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
print a copy, add some expenses, then print a new copy...can you see whats changing?
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
TaxGuyBill
Level 15
03-25-2022
06:16 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
@gmadden wrote:
under what scenario should taxes go down when profit goes up?
My first thought is EIC could do that.
gmadden
Level 2
03-25-2022
06:41 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Nope. Gross income is over 300k.
gmadden
Level 2
03-25-2022
06:43 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Also, know that previous losses are offsetting the profits.
abctax55
Level 15
03-25-2022
08:06 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
QBI ?
But I do have to say, rather than concentrating on the tax liability changing with various entries....... reconcile the Sch E with the *CORRECT* expenses as well as the F 8582 including all PALs.
Then look at what the correct liability is...
"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
( Generic Comment )"