I have 7 rental properties. Why, when I add some of my legitimate expenses for the last one or two of the buildings, my "taxes due" number increased by about $2,000?

[oldfantom]

I have 7 rental properties and when I added $7109 for HOA expenses for the last building, my taxes due increased by about $1500. Is there a problem with the software? The amount of taxes due increased when I added the amount above as well as when I added my mortgage interest for the building. I am money ahead by not listing about $8500 in expenses.

[KittyM · Accepted solution]

It is more likely that you have run up against the Passive Activity Loss Limitations IRS Form 8582. 

Go ahead and enter your expenses, though, even though your tax bill for this year goes up.  The "suspended" losses are saved in your return and rolled to future years, where they will be released against income or the sale of your property.