Discussion:Schedule C Rents from Schedule E
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Discussion Forum Index --> Advanced Tax Questions --> Schedule C Rents from Schedule E
Discussion Forum Index --> Tax Questions --> Schedule C Rents from Schedule E
| 27 May 2008 | |
| Got a resident alien client, a doctor who has his office in a building which he also rents. I would like to his practice up as an S corp in the future. Is there any way I can allocate some rental expenses to his Schedule C practice. If so does he need a formal rental aggreement. Thank you.
Jane in CT | |
| 27 May 2008 | |
| I have a similar situation.
I first got introduced to client by way of the partnership that owned the rental property when he became a majority partner. Through buyouts of other partners' interests he became a 100% owner. His medical practice is in the building as well. Only recently did I get to do his personal return also. Since the medical practice is non LLC, I had him stop making payments to the realty entity for rent. What I've done is take all the expenses on the Schedule E as you normally would. Then I allocate as nondeductible on one of the miscellaneous lines in the ratio of his medical practice space to the total building and identify where on the personal return I've transferred it to - the medical practice. On the Schedule C - I DON'T show it on the Rent line - but show it as on a Miscellaneous line as a Transfer of allocated expenses from the Schedule E. | |
