Possi Posted February 11, 2017 Report Posted February 11, 2017 My clients have a rental that was flooded in 2015. He has since become disabled and they cannot afford to fix it. Now, there is mold and according to them, nobody will touch it. So, there it sits. No income. What do I do with this? Leave it on the Sch E and continue depreciating it until they get rid of it or fix it? This is a new one for me! I can't imagine letting a HOUSE just sit and not attempt to fix it. But that's just me. Quote
ILLMAS Posted February 11, 2017 Report Posted February 11, 2017 I would change business use to 1% until it's rent-able, no depreciation will be calculated, you might want to recommend to your client it might be better to sell the house "as-is" for cash to avoid home inspections and make a smooth transaction, then he pays any capital gains. MAS Quote
Abby Normal Posted February 11, 2017 Report Posted February 11, 2017 If you enter 0.001% you can make the business use % zero. Quote
Possi Posted February 11, 2017 Author Report Posted February 11, 2017 (edited) Thanks. I appreciate it! Can I move the interest and real estate taxes to Sch A? ...Or must it go to basis? Edited February 11, 2017 by Possi question on int and re tax Quote
Abby Normal Posted February 11, 2017 Report Posted February 11, 2017 The RE taxes go on Sch A but the mortgage interest can only go to Sch A if they don't already have a second home. 2 Quote
Possi Posted February 14, 2017 Author Report Posted February 14, 2017 On 2/11/2017 at 4:49 PM, Abby Normal said: The RE taxes go on Sch A but the mortgage interest can only go to Sch A if they don't already have a second home. Thanks. They don't have a second home. I appreciate it. Quote
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