All Forum Posts by: Frank S.

Hi,  thanks for the feedback.  

I ran the numbers again and the difference is only $58. Not a big deal a lot.

First year

$975

$475 first year deduction plus $34, SL, $509 total. 

Second year 

Mistake is $126 (200DB) vs $64 (SL).  So the whole thing is only $58.

I'm inclined to simply correct 2018 and let it be,  as you mentioned.  These amounts don't modify the remaining losses that much. 

Finding this error took a while...

Thanks,

Frank

@Ashish Acharya

Hey,

Thanks for following up.

For 2016, I used a CPA. If I recall correctly, I think we were limited to write off 50% of the unadjusted basis, so that's the $509 on the first year ($475+$34). I don't think I was allowed to write off the entire $950. That's a question for my 2016 accountant, I guess.

In 2017, I did my taxes, and missed the SL item as TurboTax defaults to 200DB. I recently discovered this error while doing a final check on my 2018 taxes.

It's a small amount, but it will affect 8582 Passive Losses. I'm carrying a lot of losses from previous renovations.

Sure, I can simply chage 2018 and note Appliances as SL. However, is that the right thing to do? Then, what do I do with the $126 difference on the 8582 form?  

Thanks,

Frank

Hi there, 

While finalizing my 2018 taxes, I found an error on my 2017 Schedule E, Depreciation calcs.

In 2016, my accountant used the straight line depreciation method for "Appliances".  The following year, I used the double-declining-balance depreciation in 2017 for the same item . This was a default selection for the tax software and I didn't catch that before sending my taxes.

2016 - Original Depreciation Used
Appliances
Date Acquired: 06/29/2016
Method: SL Life:7 years
Conv:HY
Unadjusted Basis $950
Reduction in Basis: $475
Current Deduction: 509
Ending Accumulated Deduction: 34

2017

Appliances 

Method: 200DB

This means a $126 total difference on my 2017 tax return under Schedule E, 18. Depreciation expense of depletion. It does not affect the amounts owed to the Feds or the State.

How do I fix this error? Is it simply an amendment to my 2017 taxes or should I get an accountant to deal with it?  if  so, PM me with your contact.   I got all the data ready.    Curiously, it seems that Turbo Tax software always defaults to 200DB rather than SL.

RE:
Changing Your Depreciation Method
If you make a mistake and claim the wrong depreciation amount, you generally can file an amended tax return (Form XX) for the year at issue and correct your deduction. However, if you make the same mistake for two or more consecutive tax years and the mistake is not a simple math error (for example, you realize that you've been using the wrong table), you've effectively chosen an accounting method, and you cannot correct the mistake by filing an amended return. Instead, you must file IRS Form 3115, Application for Change in Accounting Method, requesting permission to change accounting methods.

Any help is appreciated,

Frank

Congratulations, PM me. I own a rental in the area,  too. 

Frank

I use a knob-mounted box, its $30 at home depot. Master lock 5400D.

This froze solid in Chicago, so I keep behind storm door, now 

Oh, it's your property!!  That burns. 

Frank

I've heard of inspectors frying AC compressors and furnaces after shorting circuits, so this is nothing.  See IPC  312.2 DWV test.  Code vary across the nation, but it is mostly the same.

https://codes.iccsafe.org/public/document/code/550...

You have all rights to be upset because you are protecting your client's interest and they could've caused water damage if the test was not performed properly.  Remind them they are lucky nothing bad happened.

How much less are they asking? If 3K not a big deal, settle at half their price.  If 20K, have them walk.  Although, that's your client's decision, of course.

Good luck, 

The test woudn't hurt anything, it is performed with 10 feet of head, or about 4.3 psi at the base.  

Do you want to sell that house or not?  Put your contract violation pride aside and negotiate. Will you disclose this issue to the next buyer or will you repair it?  What's the cost of that vs. this offer?

Good luck, 

Frank

This is seasonal and easily removable 

Red Devil 0606 Zip-A-Way

Hi, 

I recently finalized this process. In fact,  the wire transfer arrived today. 

 I pulled 5 CPs, got the best rate,  and some discounts. I'm not sure if it was totally worth it, honestly.  I think 3 is probably ok.

My credit was north of 800s and no issues getting the best loan. It required tons of paperwork this time around,  however. 

A hardpull, of any kind,  may drop 4 points, it depends.  Multiple pulls won't apply if you get the mortgage.  It doesn't really matter if you are over their 740 requirement.

The lenders won't give you anything without a hard pull, and many won't give you a rate lock if you don't order the appraisal and give them your credit card.  This makes it a little hard to get them to compete. You need to push back.

I picked a bunch from large banks,  creative lenders,  chartered ones,  and online companies.  The large bank gave me a rate lock, I passed this document around and asked the others to bid lower fees,  rates,  etc.  Then,  I went back to the bank,  they also matched.  I kept track of their info through a google doc spreadsheet.  

Many don't disclose their origination fees and typical title fees,  I rejected those lenders from the start. Others will give you half baked information. If a lender is not transparent with their fees,  don't waste your time. 

Some didn't like this approach,  but I was honest and clear from the start. I told them exactly what I  was going to do. Others respected that. 

One online lender was over $3,000 in fees from my lowest one.  They dropped their fees to match the others.  So, it's worth it to some degree, but it's a lot of work. 

Good luck, 

Frank