Client is owns a house with 4 apartments. One is his residence and the other 3 are rented out. Last year he rented the back yard on 4 separate occasions, a couple of wedding and 2 parties. His income was $1500. Not sure how to handle this. My idea is to pro-rate the usage and apply it to the M.I. and Prop. Tax. It would give him a deduction of $270. My concern is for now and the future as he is very aggressive and might be renting the yard every weekend, for 1 or 2 days.
TIA
Client is owns a house with 4 apartments. One is his residence and the other 3 are rented out. Last year he rented the back yard on 4 separate occasions, a couple of wedding and 2 parties. His income was $1500. Not sure how to handle this. My idea is to pro-rate the usage and apply it to the M.I. and Prop. Tax. It would give him a deduction of $270. My concern is for now and the future as he is very aggressive and might be renting the yard every weekend, for 1 or 2 days.
TIA