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Glama

Arc & Ledger Tax Tools

Estimate rental property taxes

estimate_rental_income
Read-only

Use this when someone asks how much tax they owe on rental income (Airbnb/short-term or long-term), or whether a rental loss is deductible. Computes net rental income after operating expenses and straight-line depreciation, the passive-loss allowance and carryforward, the short-term 14-day rule, and the marginal federal tax effect.

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
rental_daysNoDays the property was rented at fair value (short-term only).
rental_typeNolong_term (standard residential lease) or short_term (Airbnb/VRBO-style). Defaults to long_term.
land_percentNoPercent of the purchase price attributable to non-depreciable land (default 20). The building is depreciated over 27.5 years.
filing_statusNoFederal filing status. Defaults to single.
other_income_usdNoYour other taxable income (e.g. wages, business) for the year. Sets the marginal rate applied to net rental income, and gates the passive-loss allowance.
personal_use_daysNoDays YOU used the property personally (short-term only). Triggers the 14-day tax-free rule when a stay is rented 14 days or fewer and used more personally.
operating_expenses_usdNoDeductible operating expenses: mortgage interest, property tax, insurance, HOA, repairs, management, utilities, supplies. Excludes depreciation (computed for you).
annual_rental_income_usdYesGross rent received this year, before expenses.
real_estate_professionalNoWhether you materially participate as a real-estate professional under IRC 469(c)(7). If true, rental losses are not passive-limited.
property_purchase_price_usdNoWhat you paid for the property (building + land). Used to compute straight-line depreciation.

Output Schema

TableJSON Schema
NameRequiredDescriptionDefault
relayYesInstruction to the calling assistant: relay figures and dates verbatim (identical on every response).
next_stepYesA single review link appropriate to this server surface.
disclaimerYesGeneral-information disclaimer (identical on every response).
source_urlYesThe arcandledger.com page that backs this answer.
server_versionNoServer release that produced this response (matches GET /version).

TDQS

A4.2/5.0
Behavior4/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

The description adds significant behavioral context beyond annotations: it explains the tool computes net rental income, depreciation, passive-loss rules, 14-day rule, and marginal tax effect. Annotations have readOnlyHint: true which aligns since it's a calculation. No contradictions.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness5/5

Is the description appropriately sized, front-loaded, and free of redundancy?

The description is a single paragraph of four sentences, front-loaded with usage guidance, and every sentence adds value. No fluff or redundancy.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness4/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

Given the complexity (10 parameters, 1 required) and the presence of an output schema, the description covers the essential behavioral aspects and return logic. It doesn't detail return format but output schema likely handles that. Minor gap: no mention of what the response contains (e.g., JSON fields).

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters3/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Schema description coverage is 100% with each parameter having a clear description. The tool description does not elaborate on parameters further, which is acceptable given the full schema. Baseline 3 as per guidelines since schema carries the burden.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose4/5

Does the description clearly state what the tool does and how it differs from similar tools?

The description clearly states the tool computes tax owed on rental income and deductibility of losses, listing specific calculations. However, the name 'estimate_rental_income' slightly misaligns with the title and description focusing on tax estimation, not income itself. Still clearly distinguishes from sibling tools like estimate_irs_penalty.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines5/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

The description begins with 'Use this when...' providing a clear, explicit usage context. It specifies two scenarios: asking about tax on rental income or whether a rental loss is deductible. This directly guides the agent on when to invoke this tool.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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TDQS

A4.2/5.0
Disambiguation4/5

Most tools have distinct purposes (e.g., FBAR/FATCA, penalty estimation, consultation booking), though check_resolution_options and estimate_irs_penalty both deal with IRS debts but address different aspects (settlement paths vs. penalty calculation). Overall, boundaries are clear due to detailed descriptions.

Naming Consistency5/5

All tools follow a consistent verb_noun pattern in snake_case (e.g., book_consultation, check_fbar_fatca, estimate_reasonable_comp). No mixing of styles or vague verbs.

Tool Count4/5

18 tools is slightly on the high side but justified for a comprehensive tax tool covering common scenarios (penalties, estimates, notices, formations). Each tool serves a specific need without redundancy.

Completeness4/5

The set covers major tax areas (foreign reporting, penalties, estimated taxes, entity formation, IRS notices). Minor gaps exist, such as state income tax and retirement contributions, but the core domain for small business owners and non-residents is well covered.