Schedule E fix from previous CPA

[Tracy Lee]

I am working on a new client with 6+ rental properties. The previous CPA did a lousy job (named each property on depreciation schedule as 'building'...) so I'm trying to add more detail and 'clean' up the many shortcuts he took.  Two of these properties are Townhomes and one is a Condo.  Old CPA listed the Townhomes as Property Type 1 (single family residence) and the Condo as Property Type 8 (other), it seems to me they would all be the same property type as stated in the PUB 527.  Will the IRS allow me to make all the types the same without their approval and what Property Type would you show it as, 1 or 8?

[ILLMAS]

IRS won’t even notice, they only care for the revenue and expenses, correct useful life and personal use.

[Medlin Software, Dennis]

I see it often, a difference between the detailed required for tax reporting, and the detail wanted for internal reporting. In Payroll, it is the cases when an employer wants to attempt to quantify the total cost for each employee (can only be guessed). Or how I may or may not want to break down my internal costs for say internet connections, advertising, accounting, etc., versus a total of valid expenses which the tax agency does not need to see piece by piece.

It took me a couple of seasons to better align my internal books (COA) to best line up with our outside preparer. Makes it easy to cross check things when the tax return documents and papers closely align with the internal accounting figures.

[Medlin Software, Dennis]

Each year, my own COA gets smaller and smaller. I like to track certain things separately, but I use sub totals so the report I send to the preparer has just what they need without having to add or subtract from multiple COA figures.

Internally, Paid by CC, Paid by check, two other sources, and one for returns. But the preparer sees only a gross number as their process does not need to show returns separately.

Deductions: Officer Comp, Other salaried/wages. Taxes and licenses, Interest, Depr, Advertising, and other deductions. I did not ask them to use and show these, they just "do", likely based on how few separate figured I give them. Internally, I have many items I still track separately, even getting as close as I can to separating each employee's costs (because we get reimbursed some via a work study program, and at first, and at first, WOTC).