Research assistance - Farm caretaker pays no rent

Technical topics regarding tax preparation.
#1
Wiles  
Posts:
5058
Joined:
21-Apr-2014 9:42am
Location:
CA
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".
 

#2
sjrcpa  
Posts:
6477
Joined:
23-Apr-2014 5:27pm
Location:
Maryland
Is the caretaker required to live onsite/be on call?
Is lodging his nontaxable compensation under Section 119?
 


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