Harlan Lunsford <hlunsford[at]bellsouth.net> wrote:
- quote -

The rental of residential property is described in activity
class 57.0 of Rev. Proc. 87-56, which would mean a five year
recovery period instead of seven. Ann. 99-82. If you follow
the IRS position on asset activity classification,
(generally use the primary activity class for each separate
trade or business for all assets used in that trade or
business), then you would arrive at 57.0. If you try to
follow the Duke Energy asset classification system, YMMV. Of
course, if not all of his rentals are residential, he might
have to use the seven-year recovery period if the primary
use of the backhoe turns out to be associated with the
nonresidential properties.

/brian

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Stuart A. Bronstein wrote:
- quote -

"Active' doesn't automatically mean schedule c.

After all, what IF he had an actual profit? (think se tax)

ChEAr$$$$,
Harlan Lunsford, EA n LA]
13 Apr 2005
ONLY two days more!

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"Stuart A. Bronstein" <spamtrap[at]lexregia.com> wrote:
- quote -

Wouldn't that then make that the "profit" subject to SE tax
when it otherwise wouldn't be?

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- quote -

He probably does have a tax-pro, and he's just getting a
reality check. That's a good idea.

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Harlan Lunsford <hlunsford[at]bellsouth.net> wrote:
- quote -

Since he's got 13 properties and does some of the work
maintaining the properties himself, it seems to me that his
real estate holdings have gone from a passive investment to
an active one. Couldn't he just file one schedule C for all
the properties?

Stu

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You say that you have 13 properties. Then you should have a
tax professional.

Missy Doyle

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Gizmo wrote:

- quote -

Depreciate over 7 years and pro rate among all properties.

ChEAr$$$,
Harlan Lunsford, EA n LA
11 Apr 2005

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I have rental properties and built a new duplex last year.
I purchased a Backhoe to do work on them and to have around
because I am always renting one for some reason or another.
My question is how can I depreciate the backhoe? Can I
just use it against one of the properties or do I need to
split it up between all the (13) properties. I plan on being
able to use it on all the properties.

Thanks
joe

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