andychicago1 wrote:

- quote -

The IRS computer uses discriminant function statistical
analysis, so the complex formula unlikely makes a simplistic
computation like ratio of tax liability to total income.

Fred F.

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andychicago1 wrote:

- quote -

There is no such number. If the rental property generated
enough loss between 'regular' i.e. interest, tax, etc., and
the expenses, you need to take them. If the losses are so
great you would pay no tax, well, AMT will help you get back
in. Keep in mind, there is a distinction between repairs,
sheetrock, painting, etc., and new items, such as
appliances. Tenant ruins your dishwasher and fridge and you
don't expense it, you depreciate it.

Keep good records. Not taking a deduction that's real for
fear of an audit tells me that you feel you don't have the
records to back them up.

JOE
JoeTaxpayer.com

Moderator:
The time an auditor will spend disrupting your life
is a function of your honesty supported by quality
recordkeeping.

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I would appreciate your input, I think this also might be
interesting to other people. I live in IL and make just over
$100,000 on W-2. I also own a rental property with all kinds
of losses and unforseen expenses last year (please know what
you get into before you buy anything in marginal areas in
Chicago). Can anybody tell what the reasonable tax to income
ratio is since I want to deduct as much as possible, but at
the same time I don't want my taxes to appear too low based
on IRS computerized criteria and get audited and deal with
that. I have few other expenses besides this rental
property.

Thanks a bunch......

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >