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    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.

    #2
    Originally posted by Matt Sova View Post
    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.

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      #3
      Originally posted by Matt Sova View Post
      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?

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        #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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