Tax deductable questions for new landlord

Tax deductable questions for new landlord

Loudoun County, VA · Member since 2016 · 19 posts · 2 votes

I apologize ahead of time since I'm asking a lot of basic tax questions, and I'm also just listing this stuff off as it comes to mind.   With that being said...

Clearly anything done to the house from here on out can be tax deductible but what about the cost of getting the house ready for renting out?   For example,  I had a bathroom redone, I also had our front iron railing fixed (new feet welded in, cleaned and painted) and resurfaced the cement steps, and some landscaping.  Since it all happened 2-3 months before the house was rented out,  is it still deductible? Lawyer cost for lease.  Everything was done in prep for renting out the house fast.

Also how do you calculate drive time?   For example,   I live 60 miles from work, our rental home is about 20 miles from work but sorta on the way,  it's slightly off path if I stop by before or after work.   I'm assuming I would have to keep track of the extra miles added to my trip? Maybe 10 miles each way added.   Or would I log the miles to and from the house,  even if I went into work?  40 miles there 40 miles back  (excluding the miles to/from work from our rental house)

If I preform the work, would I just write off the cost of drive time and materials, assuming no labor since no one is being paid.

As for documenting things paid to others (paint guy, tile repair guy, power washing guy)  is a copy of the cleared check sufficient enough for minor handy man work?   

Any other tax tips so I can be ready when 2016 taxes are due?

Thanks!

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  • Ormond Beach , FL · Member since 2015 · 345 posts · 223 votes
    10y

    I am NOT a CPA, but I keep an EXCEL spreadsheet for my CPA that lists all expenses and all income and also mileage and I simply give that to him at tax time.  He appreciates the simplicity of it and I find that keeping it as I go helps me to capture it all and not have to wrack my brain at the end of the year and look for receipts, etc.  He has never asked me for a receipt, but I keep them all in a file in case Uncle Sam ever does.  He decides which improvements are capital expenses and which are maintenance.  If you bought the place with the intent on using it for a rental, I believe you are allowed to claim all prep costs.  Just my experience, but you should find a good CPA and let him make the final calls. Just keep good records and you'll be golden!  

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