Accounting for lawn equipment (expenses)

5 Replies

I have created financial statements for our personal family, and each of our three rental properties.  We recently purchased some lawn equipment (expense, not capital) that we will use solely for the existing and future rental properties.  I'm lost as to where to book those purchases.  I use a Schedule E for tax purposes, so do I just lump it randomly into one of the properties?  Allocate it among the existing properties?  

Thanks!

Karen 

@Karen Kasjaniuk

Is this for you to cut all the rental properties grass? For the tenants to use? For a lawn man to use? Is this the start of a lawn service business?

Where you book it and the liability issues will differ based on the answers from above clarification questions. Definitely discuss with BP community, cpa and attorney if possible. 

We purchased small equipment (edger, etc) for us (landlords/owners) to use to maintain lawns at all of our rental properties.  

Originally posted by @Karen Kasjaniuk :

We purchased small equipment (edger, etc) for us (landlords/owners) to use to maintain lawns at all of our rental properties.  

There're multiple ways to record it, all of them creating the same result. The easiest is to spread between all rentals using the "maintenance" line on Sch E.

That's easy enough, I guess I was over-thinking it.  Thanks Michael! 

@Karen Kasjaniuk

I would also allocate the cost to the 3 properties.

If the properties are in an LLC(you have to keep accounts separate) as a result; I would have the other accounts reimburse the LLC that paid for the expense.
If they are not in LLC's - disregard - they are not required to keep accounts separate.

Basit Siddiqi, CPA
917-280-8544

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