Schedule E... what are your numbers?

[SAtoUS]

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!

 

[Philliefan33]

We have just one rental town home-- our numbers are much smaller! Gross income is about $15K, but taxable income is about 5K.

 

[pb4uski]

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.

 

[calmloki]

Our line 26 total rental income is 53.7% of our line 23a rents received.

 

[lemming]

tried looking for the pissing contest cartoon. Norton blocked me.

 

[Senator]

The total on all rentals are around $200k, but the final number on line 26, Total income or loss, is around $40k...

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.

 

[VFK57]

Our line 26 total rental income is 42.1% of our line 23a rent received.

 

[SAtoUS]

Thanks for sharing everyone, great info to compare with.

 

[SAtoUS]

tried looking for the pissing contest cartoon. Norton blocked me.

Pissing contest? If you say so. What do you have on your 1040 on line 26?

 

[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.

 

[SAtoUS]

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.

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.

 

[SAtoUS]

My bad... the recovery period is 39 years... not 27.5

 

[Senator]

so we chose not to do depreciation (after consulting a tax professional).

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.

 

[Senator]

My bad... the recovery period is 39 years... not 27.5

It's 27.5 years in 1-4 unit properties.

 

[nun]

We have just one rental town home-- our numbers are much smaller! Gross income is about $15K, but taxable income is about 5K.

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.

 

[SAtoUS]

It's 27.5 years in 1-4 unit properties.

Aaa, indeed, correct. It's a beautiful thing.

 

[JDARNELL]

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

 

[pb4uski]

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.

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.