Landlords can deduct the ordinary and necessary expenses for managing, conserving, and maintaining their rental property. Ordinary expenses are those that are common and generally accepted in the business. Necessary expenses are those that are deemed appropriate, such as interest, taxes, advertising, maintenance, utilities and insurance.
Other deductible expenses may include:
* Expenses incurred from the time a property is made available for rent and is actually rented. (I wonder if this would include mortgage you pay during that time? It would *certainly* include the carpet.) * Some or all of the original investment in the rental property may be recovered through depreciation using Form 4562, Depreciation and Amortization. Subsequent improvements may also be depreciated. * The cost of repairs may also be deductible. This may include the cost of labor and materials. However, landlords cannot deduct the value of their own labor.
I would STRONGLY encourage you to pay a flat fee and consult a tax person to determine the best course of action here.
Renting may be the way to go....
Landlords can deduct the ordinary and necessary expenses for managing, conserving, and maintaining their rental property. Ordinary expenses are those that are common and generally accepted in the business. Necessary expenses are those that are deemed appropriate, such as interest, taxes, advertising, maintenance, utilities and insurance.
Other deductible expenses may include:
* Expenses incurred from the time a property is made available for rent and is actually rented. (I wonder if this would include mortgage you pay during that time? It would *certainly* include the carpet.)
* Some or all of the original investment in the rental property may be recovered through depreciation using Form 4562, Depreciation and Amortization. Subsequent improvements may also be depreciated.
* The cost of repairs may also be deductible. This may include the cost of labor and materials. However, landlords cannot deduct the value of their own labor.
I would STRONGLY encourage you to pay a flat fee and consult a tax person to determine the best course of action here.