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Schedule E... what are your numbers?
03-16-2016, 04:49 PM
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#1
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Recycles dryer sheets
Join Date: Nov 2014
Posts: 76
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Schedule E... what are your numbers?
Hello,
My accountant just finished my tax return for 2015. Every year I file a 'Schedule E (Form 1040)'... The total on all rentals are around $200k, but the final number on line 26, Total income or loss, is around $40k... after all the subtractions/ depreciation and what not.
If you file a Schedule E, please share some info. Just curious.
Thanks!
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03-16-2016, 05:22 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Oct 2014
Posts: 1,677
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We have just one rental town home-- our numbers are much smaller! Gross income is about $15K, but taxable income is about 5K.
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03-16-2016, 05:45 PM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,266
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For my Mom's commercial building 2015 profit was about 46% of rents... but that is down a lot because we made some major improvements in 2015 some of which could be expensed. 2013 and 2014 was about 73-75%. I expect it will be back up to 70% in 2016.
We realize that the building is unusually profitable.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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03-16-2016, 05:50 PM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2007
Location: Independence
Posts: 7,281
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Our line 26 total rental income is 53.7% of our line 23a rents received.
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03-16-2016, 06:38 PM
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#5
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Full time employment: Posting here.
Join Date: May 2008
Posts: 597
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tried looking for the pissing contest cartoon. Norton blocked me.
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03-16-2016, 06:51 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
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Quote:
Originally Posted by SAtoUS
The total on all rentals are around $200k, but the final number on line 26, Total income or loss, is around $40k...
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My net income that I pay taxes on is ~29% of my gross rents. I have you beat by quite a bit on gross rents... I have a lot of business expenses mixed in the total as I have a company that I own manage the buildings.
All my properties are in separate LLCs, but I allocate the amounts to each LLC. Most have no mortgages, my interest expense is less than 10% of my gross.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
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03-16-2016, 07:30 PM
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#7
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Full time employment: Posting here.
Join Date: Aug 2015
Posts: 550
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Our line 26 total rental income is 42.1% of our line 23a rent received.
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03-17-2016, 04:24 AM
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#8
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Recycles dryer sheets
Join Date: Nov 2014
Posts: 76
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Thanks for sharing everyone, great info to compare with.
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03-17-2016, 04:26 AM
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#9
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Recycles dryer sheets
Join Date: Nov 2014
Posts: 76
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Quote:
Originally Posted by lemming
tried looking for the pissing contest cartoon. Norton blocked me.
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Pissing contest? If you say so. What do you have on your 1040 on line 26?
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03-17-2016, 06:41 AM
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#10
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Moderator
Join Date: Apr 2012
Location: San Diego
Posts: 14,171
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We have a very high net income. We don't have a mortgage. The rental is on the same lot as our primary and legally inseparable for sale purposes so we chose not to do depreciation (after consulting a tax professional). Our tenants are long term types... and have said they have no plans to move this year.
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Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 6%, rental income 20%
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03-17-2016, 07:09 AM
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#11
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Recycles dryer sheets
Join Date: Nov 2014
Posts: 76
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Quote:
Originally Posted by rodi
We have a very high net income. We don't have a mortgage. The rental is on the same lot as our primary and legally inseparable for sale purposes so we chose not to do depreciation (after consulting a tax professional). Our tenants are long term types... and have said they have no plans to move this year.
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The depreciation over 27.5 years, makes a HUGE difference. My leases runs 5-7 years. It is great, until I have to look for new tenants. It only sits empty for 3-6 months or so. I also always increase the rents by 10% or more when switching tenants out.
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03-17-2016, 07:13 AM
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#12
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Recycles dryer sheets
Join Date: Nov 2014
Posts: 76
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My bad... the recovery period is 39 years... not 27.5
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03-17-2016, 07:17 AM
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#13
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
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Quote:
Originally Posted by rodi
so we chose not to do depreciation (after consulting a tax professional).
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I would get a different tax professional. Or not claim anything, not revenues or expenses.
I believe you are supposed to divide the property value into rental and non-rental. Then depreciate the rental portion.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
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03-17-2016, 07:18 AM
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#14
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
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Quote:
Originally Posted by SAtoUS
My bad... the recovery period is 39 years... not 27.5
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It's 27.5 years in 1-4 unit properties.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
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03-17-2016, 07:28 AM
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#15
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Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 4,872
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Quote:
Originally Posted by Philliefan33
We have just one rental town home-- our numbers are much smaller! Gross income is about $15K, but taxable income is about 5K.
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Yep that's about where I am for the one bed ground floor flat that I rent out, $15k in gross income, $6k after all costs and depreciation are factored in.
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”
Current AA: 75% Equity Funds / 15% Bonds / 5% Stable Value /2% Cash / 3% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
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03-17-2016, 07:37 AM
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#16
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Recycles dryer sheets
Join Date: Nov 2014
Posts: 76
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Quote:
Originally Posted by Senator
It's 27.5 years in 1-4 unit properties.
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Aaa, indeed, correct. It's a beautiful thing.
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03-17-2016, 08:08 AM
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#17
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Thinks s/he gets paid by the post
Join Date: Sep 2002
Posts: 1,173
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Mine was 76K revenue, after all depreciation expenses, etc gain was 6K however I had another 14K of deferred losses that I was able to take so net result was a 7.4K loss
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03-17-2016, 12:26 PM
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#18
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,266
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Quote:
Originally Posted by rodi
We have a very high net income. We don't have a mortgage. The rental is on the same lot as our primary and legally inseparable for sale purposes so we chose not to do depreciation (after consulting a tax professional). Our tenants are long term types... and have said they have no plans to move this year.
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Just wondering.... if/when you sell will you have depreciation recapture on a portion of the gain attributable to the rental because you chose not to take depreciation but depreciation recapture is based on depreciation allowed or allowable whether or not you took it.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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