1120s Reporting of Income & Expenses - Posted by Greg (IN)
Posted by Greg (IN) on February 01, 2002 at 14:32:56:
I have some questions with respect to the reporting of rental income & expenses of properties that are lease/option. Here is the situation:
All of my properties are sold on a lease/option.
Some of my properties are bought on a lease/option.
Many of these properties have been shown on my 1040 from the prior year. Mid 2001, I have established an S-corp and transfered these properties over to the corporation. I therefore have reported income/expenses on these properties for part of the year on my 1040 schedule E itemitizing income and expenses on a per property basis. I am treating these properties as “sold” for a -0- gain at the time of transfer to the s-corp. I am then picking up the properties in the s-corp and continuing the depreciation using the same method and basis as I was using as an individual. Is this all ok?
Also, can I now simply report income and expenses on cumulative basis on form 8825 which flows to line 2 of schedule K instead of separately itemizing each property? Do I need to make any special “elections” in order to do this?
Thanks for your help!