How do I record an asset shared between multiple rental properties? Owner bought a piece of equipment for snow removal and uses it for all 9 properties.

Forum|Forum|3 years ago
April 1, 2023
3 replies
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ProSeries Professional

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Best answer by Just-Lisa-Now-

When I have clients with lots of rentals like that, I usually have an extra Sch E worksheet that I call General Expenses that I put all the shared expenses on, equipment, travel, home office, etc.

You could do it as a % on each, convert 1/9 into a % then use that on each asset entry sheet as the business use on each property.

Just-Lisa-Now-

Answer

Intuit Community Champion

When I have clients with lots of rentals like that, I usually have an extra Sch E worksheet that I call General Expenses that I put all the shared expenses on, equipment, travel, home office, etc.

You could do it as a % on each, convert 1/9 into a % then use that on each asset entry sheet as the business use on each property.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

C

chiodoincAuthor

Level 5

Thank you. The equipment was $25,000 and I thought about breaking it up amongst the 9 properties. Could it just be written off then if each property gets $2777.78 or does that still get depreciated?

T

TaxGuyBill

Level 15

Generally, as asset with that large of a cost would be depreciated (but Bonus depreciation likely would apply, unless you elect out).

dkh

Level 15

I normally pick one of the rentals to report shared expenses.

T

TaxGuyBill

Level 15

Does the taxpayer ever have unallowed passive losses? If so, it should be split up between the properties, so the proper unallowed passive loss is assigned to the correct property.

With that being said, if the asset cost isn't too large, it might be easier to just put it on one of the properties.

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