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Hi,
A client keep track and report incoem & expenses for each unit (of two family) seperately on Sch E for 2018 & 2019.
Rents, renovation and most expense - based on each units
Depreciation, land cost, insurance and mortgage spility 50% and 50%
Should I combine the two units into one property on Sch E of 2020 return?
If yes, do we need to amend 2018 & 2019 returns?
Anyone has any experiences?
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If it's a duplex, I'd keep reporting those as separate units. It also helps if your client ever sells one unit and keeps the other, or retires one to move in as his/her residence, etc.
Still an AllStar
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Hi itonewbie,
thanks, it is duplex.
I agree it is better to separately report on Sch E in case they do condo conversion or move into one unit.
But mortgage loan person question why report separate
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That can be easily explained. Everything is above board and consistent with tax law. Perhaps the question to that person is why this should be a concern.
Still an AllStar
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Didn't Art Linkletter used to have a television show called "Mortgage Loan People Say the Darndest Things"?
Slava Ukraini!
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Your response reminds me of those old late night infomercials from a bygone era that ask people to buy programs that teach them how to get rich quick by buying foreclosed properties.
Still an AllStar