All Forum Posts by: Amy Konopka

 Definitely may be too optimistic!  But that statement above doesn't make sense. Schedule C shows net profit zero. But my lenders have worked magic before, with same income. My depreciation for all my rentals is about 55K, and for schedule C which is what I'm concerned about--should be 18K plus another $13 K for home office deduction that they changed from $13K to standard amount.  There was another account that provided an amazing breakdown and really made me focus on where I place deductions.     

In a nutshell, I just meed to ask for a phone call to reiterate what I'm trying to accomplish.  I discussed it in the initial "worksheet" I fill out which basically provides all the mnumbers and they type in for me.  Liek turbo tax--except 9 times as much and less interaction and ability to have questions and scenarios flagged like Turbo tax did for me. 

1. Depreciation (Line 13)
2. Depletion (Line 12)
3. Amortization (Reported elsewhere, often in Part V "Other Expenses")
4. Business Use of Home Deduction (Line 30)
5. One-Time Expenses (if documented as non-recurring)

 Thank you, and that's what they explained, but without knowing as much about taxes as they do, my first thought was "well can't I reduce the number in my "repairs" line to increase the deduction "number" in my depreciation line?    Especially since I made it clear up front I'd like to keep my depreciation line high for addbacks.  

 That's a great question! My cpa uses tax managers . We email back and forth, the CPA is CC'd. I don't want to doubt them or call them out, but last year I had to explain to them HoH rules (that you can actually claim HoH without claiming a dependent with a Qualifying Person--common in divorces-) and ask them to take it to the CPA who signs off on my returns. But I chalked it up to a newbie. This year they missed a Form 4562 for one of my properties. I had to ask them to locate and include it. So now they've lost credibility.   For $2800 I would expect maybe a phone call to get the questions answered by a CPA.  

What would be a good question to ask them?  How can I reduce my income by $4,000 to qualify for the EITC?  

Hi Nicholas,

Can you help me understand a few things?

1. I revised my return to add $3,900 in missed repair deductions, but my AGI didn’t change at all. Why?
2. I pay $2,800 yearly for Schedule E, Schedule C, and state return prep—no calls with a CPA, just tax managers/assistants handling input. My tax strategy is done elsewhere. Shouldn’t a firm be proactive in optimizing my return based on my goals?
3. I emphasized the importance of having the highest possible Line 13 depreciation for lending purposes, yet they reduced my $18K depreciation to $1,600 (a carryover). That shook my confidence.

I asked my CPA to:

• Reclassify legal fees from Schedule E to Schedule C (since they were business-related) to help qualify for EITC.
• Add the $3,900 repair expense to Schedule E, which should have lowered my rental income—but my AGI didn’t change.
• Ensure my Section 179/depreciation was reported correctly, as I spent $19K on assets I wanted fully expensed. Why was it partially placed on Line 13 instead? Shouldn’t any carryforwards be on Form 4562?

I also noticed changes to my home office deduction. With a $52K AGI and one dependent, I’m close to qualifying for EITC. Would reducing other expenses while keeping depreciation higher be a viable strategy? I have over $400K in cost seg carryforwards.

I initially chose this firm for cost seg benefits, but now I’m questioning their approach. Thoughts?

My CPA Firm has done my taxes for 3 years. Its signed off by someone knowledgeable and worked on by "Tax Managers" and "Tax assistants". 

I operate Recovery Residences and provide furnished properties.  My Company (schedule c) sources/vets occupants ,provides /pays for everything, collects the Guest Fees from Individuals. Handles like any Property Management Company would.  My Company pays me rent, (reported on Schedule E). Schedule E shows little to know expenses except for major repairs.  I have REPS status.  

In 2024 I purchased another home. 
The Company had to purchase $19K  to furnish it.  I would like to depreciate using 179. I reported 19K on line 13. Gave to my accountant. Provided receipts. I'm buying another home, and need as much as possible on Line 13 as an add back for Lending 

At first he disregarded the entire amount and put in last years carried forward depreciation of $1,346

I asked to reflect accurate number of $19K again explaining its an addback for me.

 He changed the number to $16,962.  His answer below:

      Hi,

       Thank you for reaching out to us with your query.

        Regarding your question, yes, we can capitalize the expenses of $19,398 and depreciate them under Section 179. However, please note          that due to business income limitations, the maximum deduction allowed is $16,962. The total depreciation flowing under line 13 will              be $18,308, which also includes depreciation for the furniture placed in service in 2023.

what is he doing and why?   I don't care how he jiggles on the back end. Schedule C line 13 should have $19 k on it, NO?

Am I missing something that is in my best interest that he's doing? Isnt everything carried forward? Business is in operation for two years, if he's interested in me finally showing a tiny profit, why wouldn't he suggest full amount Line13 and reduce my "office expenses"?

I like to defer to experts but this makes no sense.  What they do on the back end I don't care.  My lender doesnt care.  I need $19 K on Line 13  

Any advice would be appreciated!  

Hi Max, no formal notice. But we have talked about his plans to move out because I told him I was going to either sell or renovate, and that either way I would need the house vacant by Feb 1, 2025 so I was preparing a Termination of Lease letter and AB 1482 popped up on the "form" from the website.   I believe I may have found a form that allows me to provide him the required information as required with a start date of "30 days from Notification"  

I'm a 20+ year landlord with a single family rental in San Diego County. Primarily rented to military- never had a problem, required to end lease or evict.  My tenant ended his military contract and is looking to move out, but I would like to formally request his move out date as of Feb 1.  His original ease is June 2021, but has been on a month to month, with an increase on Oct 1 from $3300 to $3600.   I realized then original lease does not have my "exemption" stated in it.  Can I provide that exemption to him with his notice to vacate in 60 days so I can prepare the home for sale? 

What if I'm choosing to have him vacate because I have someone willing to sign a lease for $5000/month?  Does that make a difference?

I am required to help pay for him to relocate or waive his final months rent because I did not provide "info of the exemption" in the lease or month to month change?   How can I remedy this and what is the timeline?

Thank you!

ok, so my long term tenant is on a month to month lease.  Can I hand him the form now? or save it for next month? I need to have him out by Jan 31, 2025 to renovate. Hes amenable to moving, but I'm sure he's try to get "moving assistance or a waived last months rent" since his original lease doesn't have it in there (I used Bigger Pockets CA lease- maybe I missed it)