Security Deposit: deduct equipment used for repair?

Question

Kelly N. · Answer

If a contractor needed to buy a new tool to do a job for you, would you think it was fair if he billed you for it?

Buy the sander, charge for the time it takes you to do the work required.  You can write the sander off as a work related expense on your taxes, but it is not the tenant's responsibility to equip you to make repairs.

Account Closed · Answer

You absolutely can charge for your time, as long as the deduction for your labor/time is reasonable.

Just as a reference on the subject, here's a quote from the CA Dept of Consumer Affairs website:

• If the landlord or the landlord's employees did the work - The itemized statement must describe the work performed, including the time spent and the hourly rate charged. The hourly rate must be reasonable.

From here:  http://www.dca.ca.gov/publications/landlordbook/se...

I don't know where the myth started that says landlords can't charge for their time/labor.  You just need to document, as it's more difficult to prove.  So, take selfies of you with a paint roller in your hand and before and after pics, and keep receipts for everything.

Thomas S. · Answer

No you can not deduct the cost of equipment unless it is a rental.

That tool now belongs to you and you benefit from the ownership. You chose to buy it rather than rent or contract out the work and the tenant is not responsible for your decision.

This is the reason landlords not already equiped should always contract out all repairs billed to tenants. Truth be told any work billed to tenants should never be done by the landlord, contractors only.

Cliff H. · Answer

Figured it was not deductible, but wanted to ask. Taken in the abstract one could make an argument around what is truly permanent, since the sponge I use to clean a window is deductible, but the power washer is not. Ce la vie.  Definitely aware one cannot deduct or assign value of one's own time in labor costs from a security deposit. In most cases it's farmed out, but this job needed to be done right and finding qualified contractors of late has been a challenge.

Rob McGahen · Answer

Nope. This applies to all businesses, not just being a landlord.

It's just like a grocery store adding a $300 bill to your total at checkout for the cost of the shopping cart you use each time you come into the store.

That cart will be used several times per day.

You will use that sander on many more projects in the future. You won't bill each tenant $50 every time you need to use that sander, on top of the work being done with that sander.

Derek Carroll · Answer

@Cliff H. I don't know the legal answer but I'd deduct it. Likely you'll be able to buy the "sander" and perform the work less expensively than hiring it out anyway.

Security Deposit: deduct equipment used for repair?

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