Surgent's Max the Tax: Schedule E

Overview

You just received an email from Roni, a prospective new client. He owns several properties under the business name Roni's Real Rentals LLC and wants help minimizing rental income and maximizing deductions that offset the rental income. You will interview Roni and visit his two properties to gain a better understanding of his situation. Advise Roni by providing him good and relevant ideas, and he will ask you to be his new tax accountant. 

Prerequisites

Basic knowledge of tax accounting principles

Objectives

• Understand what qualifies as supplemental / rental income on Schedule E
• Understand what qualifies as expenses to report on Schedule E

Highlights

• Business development
• Types of properties
  Rental property use
  Rental expenses

• Deductible expenses
• Repairs and maintenance
• Capitalization of expenses
• Depreciation
• Accounting methods
• Treatment of security deposits