My client was gifted a 1/2 beneficial interest in a trust. The trust owns a 6 unit building. My client lives in one unit and uses a second as an office for his business. The accountant for the Trust gives me a Schedule E showing 1/2 of the income and 1/2 of the deductions for the property. To me, I have to make adjustments for the 1/2 of the unit my client lives in and has a beneficial interst in. Otherwise my client is taking deductions and depreciation on his personal living space. But what about the business unit. Should I just be deductiing what he pays to the Trust as rent or should I be making an adjustment so that half of what he pays is rent and then claim ownership type deductions on the other half?