Is A 481(a) Adjustment Limited By Passive Loss Rules?

My client rents a building to her other business. Thus, this is a self-rental since she materially participates in the other business activity. If we go to schedule E with all of the additional depreciation as a result of a Section 481(a) adjustment, it most likely will create a substantial loss. Will we get trapped by IRC Section 469? The clients other income will be over $150,000. Is there any special rule in this situation?

Can I Offset Capital Gains With Losses On Inherited Property?

My client is selling a primary residence that has $750,000 in capital gains. My client’s father moved his primary residence to an irrevocable trust which both the client and the brother inherited. When the property was transferred over, it came in appraised at $850,000. Now, the property can ideally be sold at a loss of $600,000. Can the losses on inherited property sold in Virginia be offset with the gains of the sale here in New York?

Does Section 121 Apply To Property Held In An LLC?

My client purchased a home in her personal name. The client plans to rent the home during the summer as she has a personal residence. The client intends in moving this property into an LLC. If the client decides to convert the home back to a personal residence, does it matter that it is in an LLC for Section 121 capital gain exclusion purposes?

Depreciating Residential Rental Property Under The New Rules

An owner of residential property, which is leased to another party, had the swimming pool resurfaced, and pavers installed on the deck. Does this have to be depreciated over the 27.5 years, or can it be a shorter period since this usually lasts about 10 years. Also, replaced garage doors, and the gutters – over how many years can these be depreciated? 27.5 years seems to long for these items. Roof replaced, which we will use the 27.5 years straight-line for depreciating residential rental property.

Reporting Multiple Rental Properties On Schedule E Or C

I have a client that is a single member of an LLC that holds multiple rental properties. The client is responsible for collecting rents, but hires a handyman to do any repairs. The client is not a real estate sales person or real estate broker. For reporting purposes, are the rental properties reported on multiple Schedule E forms or do we combine everything together on one Schedule E? What is the proper way for reporting multiple rental properties?