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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!!!!

Posted in Uncategorized | 5 Comments »

5 Responses to “Large IRS Snowflake!!”

  1. creditcardfree Says:
    May 12th, 2014 at 09:01 pm 1399928476
    1399928476

    Yes, that tax course did pay off!

  2. Petunia 100 Says:
    May 12th, 2014 at 10:17 pm 1399933057
    1399933057

    Whoo-hoo, that's great! Smile

  3. NJDebbie Says:
    May 12th, 2014 at 11:24 pm 1399937085
    1399937085

    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:
    May 12th, 2014 at 11:43 pm 1399938214
    1399938214

    @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:
    May 14th, 2014 at 10:44 pm 1400107489
    1400107489

    Nice!

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