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I have a client that has two rental properties. He has failed to declare the rent for one of them for 8 years. How can I file back returns to make him compliant?

vrin-122812
Level 1
 
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4 Comments 4
qbteachmt
Level 15

Did he write off the expenses, anyway? Or, take depreciation? Was it rented to family? Was it rented at market value?

Need more details for perspective.

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vrin-122812
Level 1

There are two properties. One in Florida and one in Massachusetts.  He has filed a schedule for the Massachusetts property for all years except 2020 and 2021.  Those I can amend.  He never filed one for the Florida property.  He was told by someone erroneously that he didn't have to include the income and expenses for that property/

So now he wants to make everything right.  Since I can't amend returns 8 years back I was wondering if the Form 3115 would accomplish the same thing.

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qbteachmt
Level 15

"He was told by someone erroneously that he didn't have to include the income and expenses for that property"

Were the expenses more than the income, while it was rented to family or rented to a friend at a below-FMV amount?

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vrin-122812
Level 1

It was rented at FMV.  I have no idea what the numbers look like as I haven't seen them yet.  I just know that there are two properties.  One was included on the Schedule E the other never was.

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