Now I am really becoming confused! 😎 These Schedule Es for both daughters were set up many years ago. We have separate Excel spreadsheets for the property, including closing costs and year by year improvements. We have never entered anything into TT, like the house as an asset. We have a separate depreciation spreadsheet covering the 27.5 years of depreciation. And, the annual gross figure has been entered on line 19, where TT splits the amount for us (a past discussion). We also have entered on line 19 items like insurance (about $4,000), which TT splits for us. This has worked well; never an audit (knock on the proverbial wood!).
I am wondering if DMSH is not for us. I have assumed that entering additional items under line 19 would enable us to add repair items, replaced appliances ($2,500 or less) and the like, which the IRS would ignore. Maybe we should just skip DMSH and add repairs exceeding $2,500 to line 14 (Repairs) and replacement/repair charges under $2,500 on line 19. My readings of DMSH have led me to believe that if it is elected for a return, the IRS pretty much ignores the line items on line 19, unless they exceed $2,500. But, if it is not elected, the IRS pretty much looks at everything. I guess a little knowledge on our part is a dangerous thing!
You have been super helpful in guiding me through this maize. It appears that my understanding of DMSH is a tad on the rusty side.
