All Forum Posts by: Jeff Thompson

I'm still not totally understanding the 1099 for the labor part. Do you mean I pay him and file the 1099 but can't claim it as an expense on the Schedule E? I believe if anything I've paid more in expenses than his labor, but just clarifying.

What about my mom? She's the one keeping the books, can I claim bookkeeping fee's for her? I imagine I'd need to cut checks and have receipts in case an audit came.

Someday I imagine I'll have a profit, I'd like to maximize my (paper) losses now...

Hi Steve, Thanks for helping me out! It's great to know I don't have to deal with the 1065 junk!

"You must fix it going back; however, you may fix it going forward." - I'm not sure what you mean by that.

Here's my understanding of how this is suppose to work, correct me if I'm wrong:

Up till we transfer his half to me our Schedule E's will both show half of everything and be essentially identical.

While we are partners, neither of us can deduct our labor as an expense on the schedule E, but if contributions get uneven a check should be written from one partner to the other to even it out, but that's not reported anywhere.

When He transfers his half I can pay him managing fee's and labor cost for his repairs and deduct them. I'm guessing from that time forward I'd list the whole expenses on my schedule E and do another 4562 for the other half of the house.

Sound right?

Hi everyone, new here, looks like a great resource to the avoid the mistakes I'm dealing with now...

In late 2008 My father and I purchased a property 50/50 down payment initially(we're both on the title), since then I pay the expenses, he does the labor/managing (I'm overseas). It was owner carried so no bank mortgage. It was "put in service" 2009 and till now neither of us have claimed anything on it for taxes. I hadn't filed my 2009 or 2010 taxes yet and am working on that now, while his make no mention of the house.

It's apparent now the partnership was a mistake. We can't claim his labor, so he works for free and I'll probably have to start supporting my parents soon anyways as their retired and social security isn't enough. The house is now underwater and rent about covers expenses, so we have little to no cash value.

I don't know what to do with this thing tax wise. I was thinking we would both need to claim half the values on schedule E part I (he'd have to amend his 2009 and 2010 returns) but maybe we have to deal with a 1065? Can I just have him do a quitclaim to me and claim the whole thing on my Schedule E? My father would gladly sign his (now worthless) half over.

where do I go from here?

Thanks,

Jeff