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Large IRS Snowflake!!

May 12th, 2014 at 08:47 pm

As I posted before, this year I took a class in order to become a part-time tax preparer. Well one of the things that I learned was that I should have been taking depreciation expense on my rental property. I normally do my taxes myself online so I don't know if the tax software didn't prompt me or maybe it did and I didn't understand what it was asking. So while working, I amended my 2010 tax return to claim the expense and today in the mail I got my big fat check in the amount of $718!!! I waited to mail in my amendments for 2011-2012 until last week because I wanted to make sure 2010 process first so that will be more IRS snowflakes in the future Smile

The class has really paid for itself many times over seeing I only had to pay $37 for the books and the knowledge I've gained is priceless! I'm taking $103 of the funds and finish off my 52 Week Savings Challenge(another post coming)and put the rest on the mortgage!!!!

5 Responses to “Large IRS Snowflake!!”

  1. creditcardfree Says:

    Yes, that tax course did pay off!

  2. Petunia 100 Says:

    Whoo-hoo, that's great! Smile

  3. NJDebbie Says:

    Just so information, we depreciated our rental house every year since 1998 to 2012 until we sold it April of 2013. You have to include the depreciation (for us $38K over the years) almost as if it was a gain when you sell it. If it was not for a gift of equity we gave our sons when they bought the house from us, we would have owed over $8k to the Feds this year

  4. Beawealthywarrior Says:

    @NJDebbie, from my understanding when you go to sell, the depreciation expense is going to go against your cost basis whether you took the expense or not. I figured I might as well take it if the IRS is going to deduct it either way. What I plan on doing when my rental sells(currently on the market), is to do up a draft return to see what tax implications there are if any. Thanks for your input.

  5. FrugalTexan75 Says:

    Nice!

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