Billboard rental income

[Matt Sova]

Client purchased a piece of property. On that property there is a billboard. Client received a 1099-MISC with $5,000 in the Rent box.

Question: How much, if any, of the mortgage interest and property taxes are deductible? What about depreciation? Is that allowed for a billboard on vacant land and if so, how do you calculate the value of the billboard from the land?

[kathyc2]

Client purchased a piece of property. On that property there is a billboard. Client received a 1099-MISC with $5,000 in the Rent box.

Question: How much, if any, of the mortgage interest and property taxes are deductible? What about depreciation? Is that allowed for a billboard on vacant land and if so, how do you calculate the value of the billboard from the land?

Land is not depreciated. You could calculate the square footage from billboard land in relation to total square footage of total property to come up with a per cent allocation of real estate tax.

[Burke]

Question: What about depreciation? Is that allowed for a billboard on vacant land and if so, how do you calculate the value of the billboard from the land?

Does the TP own the billboard? Or is it owned by the company who put it up and is paying rent?

[TAX4US]

I was just wondering is tp getting rent for the land the billboard sits on or getting rent for the billboard itself. This could present a unique situation.