All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

Reply
Esteemed Pioneer
Posts: 11
Registered: ‎12-16-2015

Rental Property Expenses- Do You Enter them Twice?

I entered my Rental Property Expenses under the Income- Rental and Royalties. Then I came up to the Adjustments/Miscellaneous/Personal Property Rental Expenses. It says the following should be entered in the box:

Personal Property Rental Expenses

If you reported income from the rental of personal property engaged in for profit, include the total of your deductible expenses related to that income here.

 
My rental resulted in a loss and I had no deductible expenses because the property was not sold and typically the loss is carried forward. Do I enter in $16k in expenses that the previous section determined were my expenses for the rental property that would be deductible this year? Or is it zero?  
 
   
Trusted Council Member
Posts: 6,191
Registered: ‎02-23-2016

Re: Rental Property Expenses- Do You Enter them Twice?

Hi Holly2,

 

 

 

Let me run a scenario in the software really quick so that I can see what you're seeing.  I do not believe you should have to enter the expenses twice, but I want to be sure before I give you instructions on this.  I'll have an answer for you in about 30 minutes.

 

 

 

Louis,

Senior Tax Advisor (Tampa, FL)

Trusted Council Member
Posts: 6,191
Registered: ‎02-23-2016

Re: Rental Property Expenses- Do You Enter them Twice?

[ Edited ]

Hi Holly2,

 

 

 

The income & expenses for a real estate rental property should be reported on Schedule E.  This is where you entered your income & expenses in the rental & royalty income section.

 

Do not enter your expenses a second time in the adjustments & deductions section.

 

There will be another update to the software on January 17th.  In the online version the Schedule E is not available yet, so I assumed you are using desktop.

 

 

 

Louis

Highlighted
Esteemed Pioneer
Posts: 11
Registered: ‎12-16-2015

Re: Rental Property Expenses- Do You Enter them Twice?

Yes, Louis, I must be using the desktop. I purchased and downloaded my software from H&R block. I download the updates when they become available.

 

Holly

Associate (Neighbor)
Posts: 77
Registered: ‎03-22-2016

Re: Rental Property Expenses- Do You Enter them Twice?

Hi Holly2:

 

All REAL ESTATE Rental Expenses are entered on Schedule E.  If you happen to rent out PERSONAL PROPERTY, the expenses are entered under Adjustments.  Examples of Personal Properties are vehicles, tools, furniture, electronics, etc.  As preparer, I've never come across anyone renting out Personal Property.  People who do that for a living would usually open a rental store, in which case it would be a Schedule C business.

 

Hope this helps to clear up the situation.

 

Simon Tung

(Tax Preparer)