While this is an important topic for any taxpayer selling a home, it comes up frequently in military tax situations due to relatively frequent moving. On social media many well meaning folks will give you answers to this question that are incomplete at best and sometimes outright wrong. If you’ve asked this question on social [...]
In Part A we covered a Single Member LLC. This part will be about a Multi-Member LLC (MMLLC) and this part is more complicated than Part A. Disclaimer: This discussion is incomplete. It does not cover all situations and scenarios. This article is providing information and that information is not intended to be applied to [...]
Part 4 was a list of indicators of a depreciation error. If it turns out there was one, how is it fixed? Many of us know the go to method for fixing tax filing errors. That method is to amend previous returns. It is natural to think that we know how to fix the tax [...]
A quick list of clues that might be noticed when reviewing a landlord’s tax return that might indicate a depreciation error or multiple errors. These don’t all necessarily mean that there is an error, but that there may be an error. 1. No depreciation done. 2. Depreciation basis of the rental property equals the buy [...]
Determining your depreciation deduction for your residential rental property starts with getting the depreciation basis correct. Getting basis wrong is the source of many military landlord depreciation errors. Many military landlord rentals are converted properties, converted from a primary residence to a rental. In these situations your basis will be the LOWER of either your [...]
***This article is focused on federal law, the laws in your state may differ. The concepts presented here are simplified, written for common situations, and may not fully address your tax situation. This article should not be taken as tax advice for your tax situation. It is written for informational purposes only. **** Depreciation is [...]
