New client referral who owns legal 2 family house(lives on 1st Floor) and 2nd floor is rented out CASH at a fair rental value($1400.00) on a month to month basis, no written lease. Client only provided 5 months receipts to substantiate rent collected. On schedule E, do I show the 365 Fair Rental Days or only the months rent were actually collected which is approximately 150 days.
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If it was available for rent the other 7 months of the year, but just unoccupied or vacant, then you show 365 days. -
Client bought new rental property in December 21, so he only owned it 11 days. It is 100% rental property, share the fair rental days on his return be 11 or 365.Comment
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First are you saying he collects cash? Bad idea! Was it only rented for 5 months? Otherwise I agree with Burke.
As for the other question, if the total rental period for the new buyer was 11 days...that is the correct input. The asset entry and purchase HUD 1 would answer any questions the IRS may have.Believe nothing you have not personally researched and verified.Comment
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