Hi. I would like to ask about the 1702Q form filed by our company on a quarterly basis. The line of business is leasing of real property. The Company used 1702Q to report the rental income received from its tenants. However, I noticed that the amount in COGS part was the expenses made by the company and the Deductions were estimated( such as 15% of the gross income). Since I am new to the company I am bit confused of their practice regarding this matter. Will you help me on how to properly file the form?
P.S. The income received from rentals were higher than the expenses made, thus, we expect that the income tax due is also higher.