cpabsd Posted March 3, 2022 Report Share Posted March 3, 2022 A client purchased a set of 5 townhomes as one purchase. For real estate tax purposes, it is treated as one property ( although listed as 5 houses). For insurance purposes, there are 5 separate policies. The purchase documents list all 5 addresses. Would you set up as 5 different rentals or one? If it matters, the entity files a partnership return. Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 3, 2022 Report Share Posted March 3, 2022 Since we can't predict the future, I would set up as 5 different rentals, since that would provide more long term flexibility, record keeping wise. For example, you could have significant fire damage in one unit. Obviously the fee for preparing 5 rentals would be higher. 4 Quote Link to comment Share on other sites More sharing options...
Slippery Pencil Posted March 3, 2022 Report Share Posted March 3, 2022 Is it one building? Is he able to split and sell all 5 separately or can he only sell as one unit? 1 Quote Link to comment Share on other sites More sharing options...
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