Schedule C Expenses

Forum|Forum|4 years ago
March 13, 2022
1 reply
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As I enter expenses for my rental property, data for Schedule C, Part II; the amount I owe fluctuates as I enter more expenses. For example, if my expenses were $2,000; I may owe $300. When I add more expenses, totaling $5,000; I may owe $400 (not expecting this; shouldn't this be lower). If I add more expenses, the amount owed may decrease (as expected).

Shouldn't the taxes owed decrease as I add more expenses?

JillS56

Level 10

Yes, normally the more expenses total the lower the tax obligation. Your question brings another question to my mind. Why are you report rental property expenses on a Schedule C? Are you a real estate professional? Typically, rental property is reported on a Schedule E.

Until your return is completed the amount of taxes owed could fluctuate.

bart100Author

Level 2

JillS56,

I have a rental property in an LLC, hence Schedule C. The tax liability I see, is the final number on the forms.

JillS56

Level 10

Okay, that makes sense. Do you remember what you added when the tax liability went up? Did you add any type of income anywhere else in the return? Like interest, dividends, stock sales. Anything. It is really hard to explain why your tax liability went up without understanding more about your return.