Darren owns a building (at 200 Tobacco Road, Urbana, MN) rents it out under a commercial lease for the whole year, for part of the building.The commercial tenant pays its own share of maintenance and utilities.The tenant pays Darren $2,400 per month for the space.The Tenant also paid Darren $1,125 in October for the tenant's share of taxes. Darren's property taxes for the whole rental building is $3,500 (already mentioned) but Darren has not rented out the whole building.Most of the building is unoccupied.Darren has been trying to rent it out since then, by listing it, advertising it and by signage.The utilities and phone to the 1600 square feet are separately metered, so the tenant pays those amounts directly to Charter and Xcel.The tenant is responsible for its own janitorial and maintenance fees.According to your depreciation schedules, this year's depreciation is $7,692 MACRS.Use form 4562 to properly report the depreciation.

Darren's additional rental expenses are:

Mortgage interest10,000

Utilities3,750

Maintenance and janitorial3,000

Insurance1,000

He filed all required 1099s.

how do you treat for tax purpose? which form will be used to post it.?