Hello, I have some noobie questions.
I am a single sole proprietor and file on a Schedule C. I own an office condo and operate a small, low income service business in that space. I want to keep this as simple as possible.
1. I'd prefer not to charge myself rent. Is that going to have undesirable consequences? It'd just be transferring funds from one account to another and I'd like to avoid the paperwork.
2. I understand that claiming depreciation on the condo makes financial sense, so I'm doing that. My losses won't get close to $25,000, so I'm probably fine showing my minimal losses on Schedule E.
3. Can I claim the deductions related to the business on my Schedule C, including property tax on that office? TurboTax has listed the condo's property tax on Schedule E. Is it okay if I move property tax to Schedule C and show all of my expenses, except depreciation, on Schedule C? I don't care about the possibility of saving a few bucks on self-employment taxes by moving some of my income to the Schedule E.
4. TurboTax has added a deduction of $96 for management fees to Schedule E. It appears that TurboTax created that $96 deduction when I imported business data from Quickbooks. I don't see any amount totaling $96 in Quickbooks. Plus, I don't have a "management fees" account in Quickbooks and don't believe I've paid any management fees in real life. This could be a repairs and maintenance deduction, but all of those accounts appear to total their correct amounts on Schedule C. Any idea of what the $96 management fee might be? Since I don't have documentation for that amount, I'd prefer to delete it to avoid problems if I'm audited.
5. Is there anything else I need to be aware of in order to handle this condo property simply?
Thanks in advance!!
