Can you expense septic costs from rental income?

3 Replies

I’m not sure if I’m asking the question correctly but if you have a rental and pay for the septic costs for your tenants (basically water included) when doing taxes can you use that as deductions/expense against the income from the rental income?

I'm not an accountant, but what my understanding is - you can deduct any out of pocket expenses.  Some you have to depreciate like new appliances.  But, in simple tax returns that I've done, I put down how much money came in from a rental, and I put down everything that went out, and depreciate the things that require that.

So, short answer, in my opinion - yes, you can list septic costs as a deduction.

Yes, septic pumpings and maintanence can be treated just like a sewer or water bill when you are doing your expenses. Replacing a septic is a capital expense just like a roof.  check out the business expenses publication by the IRS to get a flavor for what you should consider expenses.