Puzzling why less tax owed when i remove expenses in Rental Expense (Schedule E)

[yekasi]

hello,

i have 3 condos own by single member LLC and i have always put the 3 Condos into schedule E (as Rental) in turbotax business.

i also have other businesses and W2 as well, so as i was typing them in, my owe tax is about $64739.

 I went back and verify all the numbers in the LLC and i found that i had a larger number for HOA expense, so adjusted it.  To my surprise, that my tax owe for federal become a $64515 (Less tax owed).  I tried this with a few other items... like i had a repair and appliance purchase for one of the condo, and I noticed if i REMOVE those expense, my tax owe is LOWER!

Why is that and how could that be?  I paid money to get a new appliance into the Condo, and i thought by claiming this as an expense, it would help my personal tax, but it did not!  

I also tried this with vehicle mileage/tolls as i drive to the condos for repairs, it also lower my tax if i do NOT claim those vehicle expenses.

Can someone explain? 

[AnnetteB6]

If your rental properties qualify for the Qualified Business Income (QBI) deduction, then as you reduce your expenses, the rental income increases.  When the rental income increases, the QBI deduction increases as well, thus reducing your overall balance due.  

To learn more, take a look at the following TurboTax help articles:

What is the Qualified Business Income (QBI) deduction?

Can I get the QBI deduction on rental income?