A rental was reported on H&W tax return on sch E.
H&W created 2 intentionally defective grantor trusts and each spouse gifted 50% ownership of the rental to IDGT.
Since a transfer to IDGT is disregarded for tax purposes, the rental will continue to be reported on H&W tax return.
Previously we got a P&L from the client to prepare schedule E.
This year, the client split the activities on 2 P&L's for the same rental, because they're looking at it as if 2 trusts now own half of the rental each.
Am I right to continue reporting the rental on 1 sch E. I'll combine client's 2 P&L's and will report on the same sch E as previously.
If the client insists on breaking up the rental to 2 sch E's are there any issues with that?