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The problem comes in what is considered an investment and what is considered an expense. If a school uses the tax return values for expenses vs depreciation then they are, in effect, using the IRS’s somewhat nebulous definitions of expense vs. capital investment. </p>
<p>Also, appliances being used as part of the rental operations are most definitely assets, and not “personal property”. It would be difficult for property owners to separate the value of their property into “appliances”, land/building, carpets, etc. Nowhere on any forms do they ask anyone to attempt this.</p>
<p>As it is, it appears that Profile double-counts rental income/assets in some way or other. Not saying they can’t do what ever they want, but rental property owners should be aware that their situation is likely to work against them.</p>