If they are items separate from the building, like appliances or carpeting, yes, you can use Bonus on the LOWER of (a) the cost and (b) the Fair Market Value when they first became available for use in the rental. But prior improvements to the building are all part of the building, which is depreciated over 27.5 years, starting when the building becomes available for rent.

I think whoever told him that is confused. There is a provision that an employer can give employees tax-free disaster 'relief' payments if the employees are affected by a disaster.  But that is completely separate from paying wages for work performed.

You said they sold their rental after 15 years, but your "placed in service" date shows much more than 15 years. When you first entered the asset in the first year they were your client, if you did not enter the "prior depreciation" then, that report won't show the "prior depreciation" because it doesn't know what happened before you had the client.

You need to determine if the 18 year old is a dependent or not.  For example, did the 18 year old provide over half of his own support? https://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf   If the 18 year old is not a dependent, nothing in your post indicates he can't claim his siblings.  If he can claim them, he would receive the benefits, including the refundable Child Tax Credit and the Earned Income Credit.

You need to determine if he is an employee or self employed. How does the foreign company view him - an employee or a contractor? https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee  

@Just-Lisa-Now- wrote:   You may have to print out the 2021 Depreciation report and go through each asset entry worksheet   I could be wrong, but only remember seeing this complaint for pre-2018 vehicles (50% bonus and before the increased Luxury Limits).  *IF* that is the case, then that may be the only thing we need to watch out for.      

@larryweigel wrote: We had two people working on the same return (simultaneously)   When I read that, this was the first thing that popped into my head.  https://www.youtube.com/watch?v=wyKQe_i9yyo&t=47s          

You must not have liked yesterday's answers. https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/t-p-refinanced-425-000-00-home-of-425-000-for-a-lower-interest/00/244899  

Is the "prior depreciation" correct? When it was a rental, has it always been 100% business usage?  Or did the business percentage vary (such as it was a very small percentage for a number of years. With a disposal date in January, you still get a 1/2 month of depreciation.  What is the full-year depreciation amount?