1040 Sched E and 1065 8825 Expenses for "All Properties"

Technical topics regarding tax preparation.
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clients with multiple properties incur expenses that benefit some or all of the properties in various proportions. Some even have refi "blanket" mortgages that encumber multiple properties. Most of these clients qualify as real estate pro's for Federal purposes and made aggregation elections, so at least for Federal, it didn't matter if shared expenses weren't allocated and assigned to specific properties. (and most of these clients never sold or exchanged, only bought)

IRS never pulled them for audit because of that "all properties" Sched E property with 0 rents and a bunch of expenses.

But with 199A I'm thinking I have to start allocating.
 

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