PPR ON LINE 21

[grandmabee]

Personal property rental income on line 21.

client with full time other job rents out a truck to a business. they (renter) pays all expenses... fuel, insurance etc.

My client is not in the business of renting trucks , or anything else. this is a temporay 1.5 years at the most.

I am going to put on line 21 under ppr and expense of purchase of truck on line 36.

rents received was 25,000 and truck cost 5,000. I was going to depreciation the truck and take all 5,000 but then that's only for business property.

so any thoughts on the personal property rental income on line 21

[jainen]

>>expense of purchase of truck on line 36<<

I don't think he can deduct acquisition costs on line 36. Insurance, license and legal fees, repairs--costs related to producing taxable income go there. Since it is not used in business, the only way to recover his basis is when sold.

[ari]

if he rec'd 25k, that's alot of $$...isn't he in the business of renting out his truck - sch c?