Farmhouse (rental) on Farmland.

[AZ-Tax]

The Farmhouse rental would fall under a 27.5 SL depr. The Farmland that is cash rented has no depr except depreciating assets on Farmland like fences, structures, buildings etc that are not used for residential purposes. Seems to me that these two should be separated out on Sch E basically have their own column. In fact, shouldn't items like fences, barn etc. that are on the Farmland have their own column on Sch E?

[TAXNJ]

Is this correct?

The Farmhouse rental would fall under a 27.5 SL depr. The Farmland that is cash rented has no depr except depreciating assets on Farmland like fences, structures, buildings etc that are not used for residential purposes. Seems to me that these two should be separated out on Sch E basically have their own column. In fact, shouldn't items like fences, barn etc. that are on the Farmland have their own column on Sch E?

EDITED POST AFTER RE-READING YOUR POST

If cash rented to others and you are not using the farm land for crops, etc. I think schedule E but depending on your answer may be form 4835 or schedule F

But do not want to guess which, see attached to see if it helps

http://ohioline.osu.edu/fr-fact/0006.html

Are you saying if two separate rentals and owner not using the farm land for farming but rather cash rental the:

SCHEDULE E column A
COLUMN A. FARMHOUSE - residential rental?
Rental income $
Rental expenses $
Depr 27.5 SL dear expense $
Net income $


SCHEDULE E column B
COLUMN B. FARMLAND - non residential
Rental income $
Rental expenses $
Depreciable assets expenses $
Net income $

What result did you get by having both on one Schedule E column A & B?

If cash rental for farmland, think one schedule E as second rental property column B for farmland. But reference chart in attachment for specifics.

[ATSMAN]

I took over a client 5 years back from a retiring CPA that owns close to 100 acres of agriculture and mixed use property. The way we have been doing the tax returns is as follows:

1) Rental of a workshop and parts store. Commercial. 39 yrs depreciation

2) Rental of 2 houses residential rental 27.5 yrs depreciation

3)Rental of a portion of the land to another farmer and the balance that they farm Sch F.

The accounting is all separate and the access road upkeep is prorated between the different uses.

[TAXNJ]

Handle

I took over a client 5 years back from a retiring CPA that owns close to 100 acres of agriculture and mixed use property. The way we have been doing the tax returns is as follows:

1) Rental of a workshop and parts store. Commercial. 39 yrs depreciation

2) Rental of 2 houses residential rental 27.5 yrs depreciation

3)Rental of a portion of the land to another farmer and the balance that they farm Sch F.

The accounting is all separate and the access road upkeep is prorated between the different uses.

For # 1 & 2 above what form used?

[ATSMAN]

For # 1 & 2 above what form used?

For the workshop and parts store rental I changed that to Sch C from Sch F that was being filed previously.

For the 2 house rentals it goes on sch E. That is how it was from the get go.

[TAXNJ]

SCH C and not Sch E

For the workshop and parts store rental I changed that to Sch C from Sch F that was being filed previously.

For the 2 house rentals it goes on sch E. That is how it was from the get go.

What is the rationale "For the workshop and parts store rental I changed that to Sch C from Sch F" and not a Schedule E for this rental?

Thanks

[ATSMAN]

What is the rationale "For the workshop and parts store rental I changed that to Sch C from Sch F" and not a Schedule E for this rental?

Thanks

During non farming season, my client also moonlights as a mechanic at the workshop. But he is not as an employee or partner (his cousin owns the workshop and part store business). He fixes snow removal equipment, snow machines etc. People pay him directly for his services. He uses his own tools. No portion of his earnings go to his cousin.

He is considerably older than his cousin and the eventual goal is to sell the workshop and part store building to his cousin.

[TAXNJ]

Own

During non farming season, my client also moonlights as a mechanic at the workshop. But he is not as an employee or partner (his cousin owns the workshop and part store business). He fixes snow removal equipment, snow machines etc. People pay him directly for his services. He uses his own tools. No portion of his earnings go to his cousin.

He is considerably older than his cousin and the eventual goal is to sell the workshop and part store building to his cousin.

If client owns and rents the property how is the rental income reported for the workshop that is rented?

[TAXNJ]

Az

AZ. Any of the posts help?

[ATSMAN]

If client owns and rents the property how is the rental income reported for the workshop that is rented?

Gross rent on line 6, Sch C. Depreciation line 13. Repairs line 21. Portion of the RE tax related to the building line 23 and a few misc items on line 27. Building has a separate electric, gas and water meter and tenant pays 100% of utilities.

No IRS notice or audit so far so I am comfortable keeping it this way for now.