kathleen@ihuxw.UUCP (K. S. Romanowski) (02/15/84)
I am wondering if anyone in net.taxes.land knows how to decipher the depreciation booklet that is obtained from the IRS. My husband bought a condo in 1976, which he lived in until 1982 when we were married. His parents live there now and he feels that he can take depreciation on the condo since they pay rent. However, the rental income is not fair market value. He also says that he has to claim fair market value rental income even though they don't pay that much (they pay about 1/2 the average rental price for their area). I am real confused and would like to get away from having to pay someone to do our taxes, since this is the only part we are having trouble understanding. Do you have to add as income for rental property the actual amount received or do you add as income the fair market value for the area? I would appreciate any and all help. Please send mail to: ihuxw!kathleen. Thank you.