 Most of this information comes from Publication 527 Residential Rental Property, including Rental of Vacation Homes Tax Year 2022. You can find on the IRS website, irs.gov, irs.gov. Looking at the income tax formula, we're focused on line one income. Remember in the first half of the income tax formula is in essence an income statement, but just an outline, a scaffolding of other forms and schedules flowing into each of these line items. One of those, the Schedule E for Rental Property, it being an income statement in and of itself with Rental Income minus Rental Expenses, the net Rental Income in essence flowing into line one income of our income tax formula. Let's start off by thinking about what's new with the rental properties, standard mileage rate for 2022, the standard mileage rate for the cost of operating your car, van pickup, or panel truck between January 1st, 2022 to June 30th, 2022 is 58.5 cents per mile. So we'll talk more about the deductions that might be allowable for the rental property. And when we talk about the auto miles, we have that idea of taking the actual deductions or the mileage method, and then of course we would expect the mileage method amounts to be changed each year so they can keep in pace with inflation. So the business standard mileage rate for July 1st, 2022 to December 31st, 2022 is 62.5 cents per mile. So they actually kind of broke it up halfway through the year, possibly because of the inflation during the years they had to kind of break it out, which makes it a little bit more confusing to calculate but not too bad. So excess business loss limitation, if you report a loss online 26, 32, 37 or 39 of your schedule E form 1040, yeah, may be subject to a business loss limitation. So note, when you have rental income, one of the things or any kind of income in general, but rental income here is our focus. Anytime you have a loss, the IRS is skeptical of losses because the IRS wants to be your silent partner taking a piece of your income but not needing to take on the risk of losses because if you have the loss, you might be able to take that against other income. So whenever we think about rental property, we're always thinking about that situation what happens when there's a loss are their limitations to the loss which we'll get into in future presentations. So the disallowed loss resulting from the limitation will not be reflected online 26, 32, 37 or 39 of your schedule E instead use form 461 to determine the amount of your excess business loss which will be included as income on schedule one form 1040 line eight P any disallowed loss resulting from this limitation will be treated as a net operating loss that must be carried forward and deducted in a subsequent year. So you can see form 461 and its instructions for details on the excess business loss limitations. Then we've got the section 179 deduction dollar limits for tax years beginning 2022 the maximum section 179 expense deduction is one million and 80,000. This limit is reduced by the amount by which cost of section 179 property placed in service during the tax year exceeds 2,700,000. So 179 has to do with depreciable property and whether or not you might be able to get more depreciation in the first year that you put the property in place. So the general idea with the depreciation is that you have to put it on the books as an asset not expensing it in the year of purchase but allocating the cost over its useful life. And then they have these special depreciation and 179 depreciations which may allow you to take more depreciation in the first year. So we might dive into that more in future presentations form 7205 energy efficient commercial building deduction. This new form and its separate instructions are used to claim the IRC 179 deduction for qualifying energy efficient commercial building expenses. Qualified paid sick leave and qualified paid family leave payroll tax credit. So the amount of any payroll tax credit taken by an employer for the qualified paid sick leave and qualified paid family leave under the family's first coronavirus response act that's the FFCRA and the American Rescue Act the ARP the ARP must be included in income. So that's kind of more of a special situation that obviously came about due to the response with the coronavirus pandemic. So you can see form 941 it has to do with payroll 941 being the payroll form. So if you have employees you'll be dealing with W2s W3s 941s and so on and then the question is does this qualified paid sick leave apply to you in that instance. So again C form 941 lines 11B 11D 13C and 13E and form 944 lines 8B 8D 10D and 10F. You must include the full amount both the refundable and non-refundable portions of the credit for qualified sick and family leave wages and gross income on line 3 or 4 as applicable for the tax year that includes the last day of any calendar quarter with respect to which a credit is allowed. Note a credit is available only if the leave was taken after March 31st 2020 and before October 1st 2021 and only after the qualified leave wages and wages tips were paid which might under certain circumstances not occur until a quarter after September 30th 2021 including quarters during 2022 accordingly. All lines related to qualified sick and family leave wages remain on the employment tax returns for 2022.