Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything you don't understand.
If he uses the entire building, he just includes the expense & depreciation in his schedule C.
If he uses part of the building & rents the remainder, he has to divide the building up proportionally and includes his part in his Scheule C and the rented part in Schedule E.
I thinks he does use the entire building, and I'll need to clarify his ownership.
Thank you for your time.
Please remember to click on the green "ACCEPT", or the "smiley face" as appropriate; that is the only way we get credit for our work, even if you are on a subscription plan. Feedback, if you have time and bonuses, where you think they are warranted, are always most appreciated. Before or after you ACCEPT, I will be happy to answer any additional follow-up questions you may have. Thanks again for using our service. If you'd like to contact me again, in the future, just ask for "Steve G" at the beginning of your question.