Rental Property CPA suggests sources of help on Form 8825 and Schedule E

As a Rental Property CPA, I field lots of calls on Form 8825 and Schedule E. But for the new repair and capitalization rules (in the 2013 tax season), the only source of information is the Internal Revenue Bulletin 2012-14, TD 9564. But even then you’d need experience in depreciation calculations. Some rental property owners essentially face a change in their accounting method. Ouch.

But for other rental property issues for Form 8825 and Schedule E, many forms of help exist:

• The IRS’ Passive Activity Loss Audit Technique Guide. IRS agents use it to set up audit protocols. It’s online and has a great section on passive activity rules. I think most rental property CPAs read this just to prevent audits and then see what the playing field is like if our clients are audited. It’s a good source of info for anyone preparing Form 8825 or Schedule E.
• Schedule E and Form 8825 themselves. It may seem strange, but some folks become concerned even before they look at the forms!
• IRS Instructions: even rental property CPAs read these. And the IRS presents some good examples too.
• Bookstores: there’s annual tax book that present good information.
• Tax research databases: your local University probably subscribes to at least one.
• Seminars: not always the best route.
• Internet: be careful. Even our website has disclaimers, not so much for accuracy, but how you’d apply the information to your specific situation.

If all that doesn’t work, try us for a free phone consult. We try to be genuinely helpful and don’t sell you our services. But of course some consults result in new clients; after all rental property tax returns get complex. We have a virtual office to serve you wherever your rental property is located. (910) 399-2705.