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Rental Real Estate

  • 1.  Rental Real Estate

    Posted 18 days ago
    Hi Everyone,

    I have an S Corp. with multiple rental properties.  Our client does not maintain separate sets of books for each property.  We maintain the depreciation schedule by property but many other assets and liabilities can't be tied into a specific property.

    Any downsides with reporting one form 8825 for all the properties in the S Corp. tax return?

    Thank you,

    Paul

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    Paul D. Tusa CPA
    TUSA & ASSOCIATES, CPA, PC
    N Bellmore NY
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  • 2.  RE: Rental Real Estate

    Posted 17 days ago
    For starters, how will you determine the capital gain when one property sold. (Capital improvements must be identified by property.)

    In addition, a corporation is required to maintain formal books & records. 

    If the liabilities you refer to are mortgages (other than blanket mortgages), they can be identified to a specific property. Other liabilities implies the accrual basis, which creates other questions. 

    The problem is not the 8825, it's the inadequacy of the bookkeeping. 

    Fix it before time makes it worse and there's a capital gain to report.

    Good luck,

    Charles 



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