Billboard rental income

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  • Matt Sova
    Senior Member
    • Jun 2005
    • 645

    #1

    Billboard rental income

    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?
    I would put a favorite quote in here, but it would get me banned from the board.
  • kathyc2
    Senior Member
    • Feb 2015
    • 1945

    #2
    Originally posted by 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?
    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.

    Comment

    • Burke
      Senior Member
      • Jan 2008
      • 7068

      #3
      Originally posted by Matt Sova
      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?

      Comment

      • TAX4US
        Senior Member
        • Mar 2010
        • 551

        #4
        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.

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