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May 8, 2021
Question

Signed over rental property-our 1st home to nephew April 1. He paid rent for Jan-Mar. No monies exchanged just-did change of owner paperwork with county. How to enter?

  • May 8, 2021
  • 2 replies
  • 0 views
Only collected 1500 in rent plus cost of utilities for Jan/Feb/Mar.  Is this portion taxable - how should I input it?

2 replies

Critter-3
May 9, 2021

First there are times with using a human instead of a DIY program would be better and this is one ...

 

Second you had a rental for 3 months if he was paying a fair market value so all the income and expenses on the Sch E.  You will need to take it out of service to stop the depreciation you should have been taking.

 

Third ...  this GIFT  needs to be reported on a gift tax return which TT doesn't support and he will need basis information from you so please seek local professional assistance this tax year. 

Hal_Al
Employee
May 9, 2021

Yes, you still had a rental unit up tp April 1 and should report the income and expenses on Schedule E.

 

You also sold a rental unit  and (maybe) made a gift of equity. You should  report the sale.  Even if there was no capital gain, you need to report "depreciation recapture.