I am new to reporting on rental property. I just added an entry in the Asset/Depreciation for my rental property. I added in the cost of the property, and found the cost of land in one of the city's valuation forms. After submitting this information, the projected federal tax that I was due increased significantly.
Did I do something wrong? I thought adding property in the asset/depreciation form is meant to REDUCE the taxes I am owed, not the opposite.
