I own a building which I started using for my insurance business in 2006. In 2007, I partitioned into thirds and rented out 2/3 of the building. Does the rented portion go on Sch C or Sch E? If Sch E, I assume I can allocate building costs (interest, taxes, depreciation, utilities) based on square footage. Is this correct?
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I'm thinking of
self-insuring my business. Can you give me some ideas on how to handle it? Do I need to hire an underwriter or can I do that myself too? -
Not Self-Insurance a Self Employed Insuance Agent
Deep pockets and a knowledge of actuary science, maybe even the OP is the other EA.
I believe the OP is an independent insurance agent and self employed.
Rental property is always on schedule E. For all the joint expenses allocate by square footage. The adjusted basis gets tricky. Since there is a change the Schedule C gets 1/3 of the current depreciation items (basis, accummulated deprecition) and keeps the existing life. The adjusted basis for the now rental property acquires 2/3 of the current adjusted basis and the asset life starts over.Comment
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