Those other LLC's are already registered to other SOSs, and there is no way they have enough income to create apportionment and allocation requirements.

In that case the loan interest is an expense and the overage is income.There were a few issues that came to my attention when both the buyer and seller took the deduction, mostly they forgot how to treat the matter prior to filing, a few too after they filed, my instruction was to file a correction, I have no idea what they did.Not sure when we implemented the disclosure; "Your Responsibilities In Your Installment Transaction" but it addressed taxes, deductions, occupancy, insurance, payments and escrows as a brief outline to the obligations and expectations of buyers and sellers.I'm not a tax guy, but I am an accountant and this is a proper allocation of funds relating to installment contracts.

http://biggerpockets.com/forums/12/topics/28960-what-of-gross-rents-should-be-allocated-to-repairs?

If you use the "Split" category feature, you can allocate your mortgage payment to principal and interest.

Filing out my taxes is getting complicated. Thank you to all of you who have been helping me especially Steven. As I have already posted I have three rental properties I acquired in 2012, and one I have had for thre...

I didn't allocate any advertising costs because the PM does that.Am I on the right track with my calculations?

Without a cost segregation study the building must be deducted over 27.5 years.A common result in a cost study might reallocate this to:63,000 of 27.5 year property15,750 of 15 year property26,250 of 5 year propertyIt doesn't take much to see that this would mean substantially more depreciation taken in the early years of a property.Also, it is easy to get caught up in using 50% as the expense allocation in a spreadsheet.

Here's a totally contrived example.Rent = $1000/monthExpenses = $500/month (includes taxes and insurance)NOI = $500/monthDebt service = $400 (just the P&I payment)Cash flow = $100Not easy at all to find anything around here that cash flows with this much allocated for expenses.

@Jay Hinrichs most LPs are allocated losses but many LPs may not be able utilize them in the current year

You would then allocate your property basis between the land and building, and depreciate the building costs over 27.5 years.The city and county taxes, if they are property taxes and not any sort of transfer fee, are immediately deductible.The funding of the escrow account is a non-event for tax purposes.