NECPA in NEBRASKA Posted January 19, 2016 Report Share Posted January 19, 2016 Owners of an corp own the buildings personally. The corp pays them rent and also pays for the insurance policy and repairs. I am unsure how to fill out the 4684 when the proceeds went to the corp and the corp made the repairs, but the property will not show up on that tax return anywhere. This was not completed in the tax year so I don't know yet how to show any basis adjustment that may have to be made when it is held personally. I hope that this makes sense. Thanks for any insight anyone has on this. Everything that I looked up was talking about damage to leasehold improvements and personal property made by the tenants. Quote Link to comment Share on other sites More sharing options...
michaelmars Posted January 19, 2016 Report Share Posted January 19, 2016 Leasehold improvements? 1 Quote Link to comment Share on other sites More sharing options...
OldJack Posted January 19, 2016 Report Share Posted January 19, 2016 Ownership of the property is irrelevant as the corp lease requires the corp to repair. The repair would either be capitalized as leasehold improvements or as repair expense. Insurance refund would either reduce the leasehold basis or reduce the repair expense. 4 Quote Link to comment Share on other sites More sharing options...
NECPA in NEBRASKA Posted January 19, 2016 Author Report Share Posted January 19, 2016 Thank you, OldJack! That makes perfect sense. The lease is written so that the corp handles all repairs. 1 Quote Link to comment Share on other sites More sharing options...
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