gmadden
Level 2

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?

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Just-Lisa-Now-
Level 15
Level 15
print a copy, add some expenses, then print a new copy...can you see whats changing?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
TaxGuyBill
Level 15

@gmadden wrote:

 under what scenario should taxes go down when profit goes up?


 

My first thought is EIC could do that.

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gmadden
Level 2

Nope. Gross income is over 300k.

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sjrcpa
Level 15

If you're entering more expenses, profit is decreasing not going up.


Ex-AllStar
gmadden
Level 2

Also, know that previous losses are offsetting the profits. 

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sjrcpa
Level 15

AMT?


Ex-AllStar
abctax55
Level 15

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*******
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