I am using one of my lazy tokens today to ask somebody to help me get started with a research issue.
I am reviewing a return that includes the following issues:
* Sch F depreciation schedules includes a house. The house is being used by the farm owner's caretaker rent free.
* Sch F has very little continuous activity - it's an almond orchard. A lot of down time.
* Did I mention the caretaker is the farm owner's brother?
I want to say, take the house off the depreciation schedule. But that's the easy way out as a reviewer.
What Code Sec am I dealing with here? Is it just 162 ordinary & necessary? If that's it, then the preparer says "it's all gray".