Discussion:Building expenses after closed business
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Discussion Forum Index --> Basic Tax Questions --> Building expenses after closed business
Discussion Forum Index --> Tax Questions --> Building expenses after closed business
| 4 April 2008 | |
| Client Sch C self-employed closed business in 2006 but have been unable to sell the commercial building. I think they continue to depreciate the building but what about the insurance, utilities, property tax and interest expense? Are these current Sch C deductions or added to basis of building upon sale or just lost? | |
RoyDaleOne (talk|edits) said: | 4 April 2008 |
| Do they have the building for rent? Schedule E rental.
Generally, the cost of going out of business is deductible, however, there may be some reasonable time limit. | |
| 4 April 2008 | |
| No it is not rented, just sitting empty. Owners are paying to keep minimal heat/air going, property taxes, insurance. Trying to sell but no one is interested. My question is can they continue to take any of these expenses and depreciate until sold (hoopefully this year) or are these suspended and lost or added to basis? | |
RoyDaleOne (talk|edits) said: | 4 April 2008 |
| Generally, the cost of going out of business is deductible, however, there may be some reasonable time limit. In my way of thinking you have not reached the place where you can not take the expenses on Schedule C.
As one Hoosier to another. Well, I have not live in there since 1967. I would suggest that they put up a for rent someday. Because I don't know the rest of variables I would need to know I can not made a definite answer. | |
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