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Tax, SDIRAs & Cost Segregation

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Mike Rodrigues
  • Homeowner
  • Davie, FL
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What am I doing wrong?

Mike Rodrigues
  • Homeowner
  • Davie, FL
Posted Mar 3 2014, 19:11

Ok,

Last year I did my taxes with H&R Block. I own my house, but I rent out two rooms inside. I have done the math with the square footage, and I rent 41% of the home out. When I did my taxes last year with the H&R Block gentleman, we established that I am renting 41% and then we took 41% of every expense that we could claim and entered it into the system.

For example I paid something like $4k in interest, but on the schedule E it only states about $1,900.

When I went to go do my taxes on my own with their software. I was asked what percentage I rented the home, I entered 41% then I entered in all my expenses in full. I was told I was getting back more than double what I got back last year, when not much has changed other than my taxes going up a little and same with my homeowners insurance. Last year I remodeled a bathroom for $16k, so that isn't on my taxes this year, do I need to take all my expenses and deduct the 41% from them then enter or should the software automatically be doing it? Did the H&R Block guy screw me over last year?

Thanks in advance!

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