Discussion:Self Rental Allocation

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Revision as of 14:59, 15 November 2007

Discussion Forum Index --> Basic Tax Questions --> Self Rental Allocation
Discussion Forum Index --> Tax Questions --> Self Rental Allocation

Mtmckeecpa (talk|edits) said:

15 November 2007
Taxpayer owns 100% of commercial bldg, Sch E, and owns 100% of S Corp stock. Material participant in S corp, W-2.

Commercial bldg has two tenants, the S corp and another unrelated tenant.

The Sch E is very clean, no debt, minimal expenses. Shows profit. The rental income is 55% S corp and 45% other tenant. Rent is FMV.

Taxpayer also has other residential rental property with passive losses.

Question:

Do the self rental rules under 469 preclude the taxpayer from allocating the rental income from his S corp and the unrelated tenant so he may use the allocable net from the unrelated tenant to offset his other passive rental income?

Or,is the entire net recharactierized as nonpassive?

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