Daune/CA Posted March 14, 2008 Report Share Posted March 14, 2008 T/p has a property that has been a business rental (barber shop), his own business property (photographer) and a personal residence all at the same time, for over 10 yrs. Due to a major slow down in business as a photographer, he is contemplating bankruptcy. His mother paid off the mortgage ($100k) and he transferred ownership to her in June 2007. (This would be a loss for the business portion, however sale is to a close relative) To add to the maze, he is collecting the rent and paying property expenses (taxes, etc) out of the rent received as fee for handling the property. How shud this be handled on 2007 tax return, can he show rental income and expenses without depreciation, since he does not now own the property? And they wonder why we tax people are losing our hair after they do these things without talking with us first! Quote Link to comment Share on other sites More sharing options...
jainen Posted March 14, 2008 Report Share Posted March 14, 2008 >>can he show rental income and expenses without depreciation, since he does not now own the property?<< I would seriously consider disregarding the transfer, as it appears the principals have agreed to. Certainly the bankruptcy court isn't going to endorse a plan to give your most valuable asset to Mom (while still collecting all the income), pay off the lender who can hurt your credit score the most, and stiff everyone else. Quote Link to comment Share on other sites More sharing options...
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