The Tax Professionals Blog

Individual Retirement Account (IRA) & Unrelated Business Income

Posted by Lee Reams Sr. on

Generally, an IRA is exempt from tax except for unrelated business income (UBI).

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What is the depreciable life of a rented trailer?

Posted by Lee Reams Sr. on

A trailer that includes kitchen, bathroom and sleeping facilities is rented long term to an unrelated party for use as their primary residence. What is the depreciable life of that trailer? Is it 5 years or 27.5 years?  

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Equitable Ownership and Mortgage Deductions

Posted by Lee Reams Sr. on

You may sometimes encounter a taxpayer who is making mortgage payments on a residence even though he or she is not liable on the loan and therefore is generally unable to deduct the interest. 

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1099 Reporting & Rentals

Posted by Lee Reams Sr. on


Two questions to be answered on Schedule E, Part I (rental real estate and royalties section) are (A) “Did you make any payments in [tax year] that would require you to file Form(s) 1099?” and (B) “If Yes, did you or will you file all required Forms 1099?”

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Section 179 & Residential Rentals

Posted by Bold Apps on

A frequent question asked by tax professionals is whether home furnishings such as washers, dryers, refrigerators, microwaves and the like, used as part of a residential rental, qualify for the Section 179 expense deduction.  

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