<p>Any income producing asset gets a double whammy in that the income has to be listed and the asset as well. The value of the apartment building is what you parents could get for it, net of expenses, if they had to sell it very quickly. The best thing to do, IMO is to get three local commercial realty firms to give you what they think you can get to unload the thing in 30 days. Average the results and that will give you back up. And, yes, the net income as reported for taxes as such is what has to be reported. Your family is getting use of that money. And if push came to shove, the have the building to sell. Why should they NOT have to report the income and assets?</p>