Discussion:"Available For Rent" strictly defined
From TaxAlmanac, A Free Online Resource
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
(Redirected from Discussion:Available for rent strictly defined)
Discussion Forum Index --> Basic Tax Questions --> "Available For Rent" strictly defined
Discussion Forum Index --> Tax Questions --> "Available For Rent" strictly defined
| 28 May 2008 | |
| I have an auditor claiming that the 4 months spent by my client repairing a rental property between tenants was time that my client took their rental out of service. The auditor wants to capitalize 1/3 of all expenses incurred during the year.
Pub 527 devotes 1 sentence to this issue. Does anybody know any substantive authority that I can argue back with? | |
Southparkcpa (talk|edits) said: | 29 May 2008 |
| Facts and circumstances. You need some evidence that it was actively for rent. A few ads, an agent contract etc.... once you show this activity, tell the agent he has no case and to stick to the code and not his opinion. | |
| 29 May 2008 | |
| Southpark, The property needed significant repair work (and my client slowly did the work herself). And for her convenience, my client wanted to keep the property unoccupied during this repair phase. During this time my client found another tenant on her own - no ads, no agent required. However, the property was 100% rental before and after. It seems to me that a short-term repair phase between renters would not disqualify the property as a rental for that period of time. | |
| 29 May 2008 | |
| "Similarly, ordinary and necessary expenses paid or incurred in the management, conservation, or maintenance of a building devoted to rental purposes are deductible notwithstanding that there is actually no income therefrom in the taxable year, and regardless of the manner in which or the purpose for which the property in question was acquired."
From Reg. 1.212-1(b). | |
To join in on this discussion, you must first
log in.
