Garden apartment taxes

Am wondering what most people do in terms of income from garden level apartments? Do you treat the rental value entirely as personal income? is your brownstone instead registered as an entity? Looking regarding a legal 2 family browstone with a C/O that has an owner duplex and garden rental.

smittynyc

in General Discussion 8 years and 3 months ago

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slopefarm | 8 years and 3 months ago

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Dave, our garden rental has a one story extension, so is more than 25% of the building sq. footage (3 upper floors). Our accountant set up the ratio for amortization, expenses, etc. more in accordance with the square footage than the % of floors. But if there is no extension, best is to do it as you suggest.

daveinbedstuy | 8 years and 3 months ago

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Schedule E. For a three story building like that, all of the common charges, insurance, taxes & mortgage interest would be prorated 1/3 to that unit.

slopefarm | 8 years and 3 months ago

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And offset expenses — repairs, pro rata portion of homeowners’ insurance, etc. this is under current tax law, of course.

shahnandersen

in General Discussion 8 years and 3 months ago

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You need to file Schedule E as you would for any rental property.