IRS & TurboTax Issue-Depreciating Lease-Options !?
Seems simple enough, but when I try to report Lease income (for property I acquired Sub2) as rental income, TurboTax tells me "The IRS requires you to claim depreciation on your rental property so be sure to enter it" and wants me to assign a value to the property. Anyone know how the heck to depreciate a Lease-Option property that I have no actual $$ investment into? Or should I be doing it another way?
Are you in a sandwich lease option?
Yes, leasing from my seller, leasing to my tenant buyer.