Welcome back! Ask questions, get answers, and join our large community of tax professionals.
- Topics
- Training
- Community
- Product Help
- Industry Discussions
- User Groups
- Discover
- Resources
Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
- Intuit Accountants Community
- :
- Lacerte Tax
- :
- Lacerte Tax Discussions
- :
- rental does it qualify for depreciation
rental does it qualify for depreciation
Options
- Mark Topic as New
- Mark Topic as Read
- Float this Topic for Current User
- Bookmark
- Subscribe
- Printer Friendly Page
michele
Level 7
03-14-2022
01:07 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
New client with trust. Trust not really generating income. Only is about 5000 year for rent. The problem is the rent is not of going rate or value for the property. The trust states that the girlfriend may live there until which sometime that she passes away or marries. she is paying nominal to pay part of the property taxes and insurance. The previous accountant did not depreciate the property. I don't know if it should be. I haven't looked up any information on these kind of situations. Just reaching out to see if anyone had this kind of situation.
thanks
Michele
Labels
4 Comments 4
michele
Level 7
03-14-2022
12:53 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I don't believe there is a rental agreement they are just charging her $400 month since she was allowed to stay. So my feeling is not to put depreciation on since I would not classify it as a true rental. I look at it almost like related party deal although she is not related. I don't want to do it just as income forcing them to pay on that income so may just leave it as a rental with no depreciation.
qbteachmt
Level 15
03-14-2022
12:59 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Are you sure this even is a rental? If the trust gives her a life estate, it also should cover who pays for what. That isn't a rental. It's a primary residence. There is a relationship for life estate (possession) with no transfer of the property interest (a reversion).
*******************************
"Level Up" is a gaming function, not a real life function.
"Level Up" is a gaming function, not a real life function.
IRonMaN
Level 15
03-14-2022
01:09 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
"The trust states that the girlfriend may live there until which sometime that she passes away or marries"
If the trust doesn't mention anything about charging her rent in the second half of that sentence, I'll go back to my original thoughts. Sounds like she is reimbursing for some costs rather than paying rent. I wouldn't pick it up as income.
Slava Ukraini!
