Sched E landlord, where to best deduct business expenses: education etc?

[Curt Smith]

Hi Folks,  Last few years I just added up my general business expenses: education, technology, subscriptoins etc, divided by my number of Sched E houses and added an expense called General business expense onto EACH house.

I never liked that tactic.  In a better world I'd pull all my rentals out to a partnership return and just a K-1 onto my 1040, but I'm not there yet.

What is a better tactic than an expense put onto each house for the business?

[Michael Boyer]

Neat topic. Very relevant as we all do our yearly tax rituals (whatever yours may be)...

The Schedule E is not ideal, but for round peg expenses (that are legit "ordinary and necessary" expenses, and the IRS and tax courts have lots of info, be it regs, opinions, and decisions on that) that do not fit in their Schedule E round hole categories, I try good ole' Line 19 and I even write in a couple (be it condo dues or cell phone) that are major contributors to the category in the small space provided. I also do the pro-rata allocation like others for general items not attributed to one property. I am part-time small scale landlord and just do the 1040 with Schedule E. Rob has a good point about professional advice, too.

Also, I see a neat looking new BP tax book and also have used Fishman's Nolo on Tax Dedcutions for Landlords the last few years, too (disclosure: did a work for that publisher but no interest in the tax title or the BP book mentioned, one I still need to read).  Best of luck..

From the instructions to Schedule E

Line 19

Enter on line 19 any ordinary and neces-

sary expenses not listed on lines 5

through 18