All Forum Posts by: KATE HARDY

Natalie,

Thank you for your reply. I'm only just now seeing it. I apologize.  

I came to that conclusion myself, after reading and reading again every pub from the irs I could think if. My thoughts were to get the mess over with now and sort it out. She had been filing that way, without any issues, yet.....for OVER 10 years! I have since found a better accountant who told me they would NEVER sign these returns that way. Oh, and a side note, the preparer had used turbotax apparently,  and the taxes seemed to not even have her name or signature on what was sent to the irs...so they're marked self prepared. Lovely. And as far as the re pro staus, I have 2 years that I could probably use the income offset. One year with a back sick pay 1099 for 60k and another w actual back pay for about 17k. I had to file 2016 thru current. I sent in 2016 in before the deadline knowing I'll have to amend it, if possible now. 

So I had to switch tax pros this year, my last one passed away a couple of years ago and I mistakenly let things sit on the back burner too long. I've never had any issues with my taxes before. (Now I have a couple of years I need to fike) The new tax preparer says that I should be listing all 9 of my properties separately on my tax return. They are aggregated on one schedule e right now. Is she correct? 

I would qualify as a real estate professional,  as I have no other job, spend the 750 hrs and more than 50% of my professional time working in and on the rental properties.  I have not taken this election,  to my knowledge, on my taxes yet. I have no active income that I need to offset with active losses, so my question is, do i HAVE to separate the properties if i am NOT considered a real estate professional? And if so, what should i do about the significant change it will make on my tax reporting documents? 

Also, I haven't been taking depreciation on the buildings, I know that I will have to recapture that depreciation if I sell one of the properties (and dont buy another one that year w the money). Is that going to be an issue when or if I change how I am reporting my rentals? or can I just start the depreciation (for that particular year) on the year I change to reporting separately?

Or.....can i just leave it now it has always been sent in and be ok? It seems like a lot of work and expense to start separating everything on previous year's taxes when they've been accepted for years the way they were. I'm not opposed to setting up my books properly from now on, but am afraid it combined with the late filing will trigger an audit. 

Thanks a lot,

k