u/Narrow-Cranberry2138

I am trying to figure out if my accountant did this correctly or if there is some way to lower my tax bill.

My business income as a real estate professional was 205,340 in 2025.

I purchased two rentals and depreciated a total of 178,941.

My total income was 26399 and my adjusted gross income was 12731 which led to a taxable income of -3019.

My accountant says my tax bill is still 28,156 due to self employment tax. Is self employment tax not based off of taxable income? I spent a ton of money getting these rentals ready and was expecting to not have much of a tax bill this year.

If I am totally missing something please let me know. If there is a different way to phrase this to my cpa please also let me know.

I am trying to figure out if my accountant did this correctly or if there is some way to lower my tax bill.

My business income as a real estate professional was 205,340 in 2025.

I purchased two rentals and depreciated a total of 178,941.

My total income was 26399 and my adjusted gross income was 12731 which led to a taxable income of -3019.

My accountant says my tax bill is still 28,156 due to self employment tax. Is self employment tax not based off of taxable income? I spent a ton of money getting these rentals ready and was expecting to not have much of a tax bill this year.

If I am totally missing something please let me know. If there is a different way to phrase this to my cpa please also let me know.

Thank you