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As long as it is available for rental during the unoccupied periods, I would treat it as any other rental.

I've been doing that since 1996.

No, the percentage is just for vacation rentals with more than 14 days personal use.

Probably not, but both situations I am encountering involve homes already owned. The question remains. Like Max, I'm not aware of anything that would be treated different...but wondering if the low occupancy would result in such a loss that the IRS might require a percentage to be applied to the expenses.

Additional information on the K-1s will be required due to the definition of what constitutes Qualified Business Income, more than what was required for the DPAD.

Also, the QCD must be done AFTER the person reaches 70.5. Simply making it in the year the person reached 70.5 would meet the RMD requirement, but to qualify as a QCD it must be done after the birthdate.

Reading this thread drives home the point that I am a total luddite. I was proud of myself this year for simply scanning documents in to dropbox as they came in. ***Sigh***

I don't understand the loss portion of it. Let's put names to the items: On the real property, you have an old tractor, a combine and a plow. The scrap company says: If you bring these items to my lot, I will pay $300 for the Tractor, $200 for the combine and $100 for the plow. Since the company comes to your field and grabs these items, you will receive only $300 as full payment for all three items. To me this is the FMV of the items unless you can find someone else who pays more. It will be nice if you would say if your client received these items 10 years ago when their FMV at the time of death was $10,000, which will create a loss. But since I can only assume that the inheritance took place not long ago, you will have a break even transaction since the selling price will be the FMV of the items and in turn it will be the basis of your client.

There is a proposed technical corrections bill floating around, but it isn't expected to be to be passed until December. Supposedly a fix for this problem is not currently included, because the politicians don't want to admit that they made any mistakes ! I am shocked, shocked I tell you