Is the cost of paying for a city permit deductible in your taxes?

Hire a good tax professional who is has experience working with real estate investors and rental property owners. They can save you money because they keep up on all of the tax laws. They can help you set up your depreciation schedules and guide you in how to correctly itemize your expenses.

On my Schedule E, I use the "Other" expenses line. I enter "Rental license fee" on the blank line, then enter the amount. Been doing it this way for the past 17 years, and have never had a problem.

Yes. Any and every cost you have associated with your rental is deductible.

Thanks.. How about court costs to evict a tenant, deductible also?

These are for rentals, the city they are in imposes a Rental Permit Inspection Fee of $150 per house. Its actually just a questionnaire and asks things like, "Do you have smoke detectors in each room", etc What would this go under? Thanks Guys..

There's no question as to whether it IS deductible, but HOW that deduction gets taken is open to question.

I would say no matter what it was for, it is a deduction against income. I would further add that if you had to put a quarter in the parking meter that I would deduct that as well.

If this was for a business like buy and hold or a flip, everything you put into the home is deductible in some form. In the flip scenario, all costs, including permits are deductible. For a buy and hold, some things will be immediately deductible in full while others will be depreciated (deductible) over time.

What activity was this for - a flip or a rental? If a rental, was the permit obtained in an effort to get the unit ready, or was it for work while the unit was occupied already? Was the permit for some small repair or for a bigger improvement?

Cost of Permits deductable?Cost of Permits deductable?

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Cost of Permits deductable?

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