Busines Tax Expenses
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Busines Tax Expenses (by Joe [MN]) Apr 3, 2015 9:49 AM
       Busines Tax Expenses (by Joe [MN]) Apr 3, 2015 10:11 AM
       Busines Tax Expenses (by katherine [NC]) Apr 3, 2015 12:54 PM
       Busines Tax Expenses (by David [MI]) Apr 3, 2015 3:59 PM
       Busines Tax Expenses (by WMH [NC]) Apr 3, 2015 4:19 PM
       Busines Tax Expenses (by LisaFL [FL]) Apr 3, 2015 4:20 PM
       Busines Tax Expenses (by Joe [MN]) Apr 3, 2015 7:20 PM
       Busines Tax Expenses (by Smokowna [MD]) Apr 3, 2015 7:31 PM
       Busines Tax Expenses (by Pattyk [MO]) Apr 4, 2015 5:27 AM

Busines Tax Expenses (by Joe [MN]) Posted on: Apr 3, 2015 9:49 AM

Entering business expenses.

I have 8 rental homes and 1 home I have been remodeling since I bought it 3 years ago, which I may put up for rent when I complete it in a few months.

On the home that I am remodeling, since I haven't [ut it in rental service yet I would assume all the materials I am purchasing, paint, paint brushes, carpet, drywall putty, flooring, plumbing, counter tops, etc. would all go into expense category IMPROVEMENT which would go to depreciation.


Now for the homes that I am renting... I am a little confused on the expense categories

1) cleaning and maintenance

2) repairs

Someone have a good definition of what is different about maintenance vs. repairs?

ok, a recent tenant kicked a hole in the wall and kicked the exterior door in and broke it so those two would be repairs. Now they scratched the @#$@#$ out of the hard wood floors and that be maintenance or repair to fix the floors. Seems like a fine line between the two categories. And repainting is maintenance?


Busines Tax Expenses (by Joe [MN]) Posted on: Apr 3, 2015 10:11 AM

Here's another one.

Categories Cleaning and Maintenance VS Supplies

So a tenant leaves my house unclean.

I go to Walmart and spend $80 in cleaning supplies and a new carpet shampooer machine $150.

$80 in cleaning stuff goes into the cleaning and maintenance category or supply category?

And for the shampooer?

Now H&R Block tells me every year that I can't claim my work hours? How can that be true? I don't get it?

So I should be hiring all cleaning and repairs out on my homes?

I have always done all the cleaning and repairs to on my houses myself because I don't like others to do a half ass job and then have to pay them for it and I hate calling people to do things.

However, I don't understand why I can't record a cost of $50/hour for my work when a contractor would get more then that.


Busines Tax Expenses (by katherine [NC]) Posted on: Apr 3, 2015 12:54 PM

If you charge off $50/hour on your taxes (Schedule E), you must claim a like amount as income on your taxes (Schedule C), which will trigger self-employment tax in addition to income tax.


Busines Tax Expenses (by David [MI]) Posted on: Apr 3, 2015 3:59 PM

You've been remodeling a home for 3 years?? --64.237.xx.xx

Busines Tax Expenses (by WMH [NC]) Posted on: Apr 3, 2015 4:19 PM

LOL David/MI I wondered about that too.

And I agree with Katherine/NC if you charge off $50 per hour against expenses, that is $50 per house INCOME to you. --173.22.xx.xx

Busines Tax Expenses (by LisaFL [FL]) Posted on: Apr 3, 2015 4:20 PM

Regarding the painting question.....as I understand it painting is considered maintenance "except" if it's part of a renovation/rehab type situation then it's capitalized as an improvement. --173.170.xxx.xxx

Busines Tax Expenses (by Joe [MN]) Posted on: Apr 3, 2015 7:20 PM

Yes, David and WMH 3 years! Amazing isn't it? but you have no idea.......

Remodeled 3 other homes during that time, managed all my other homes, completed lots if painting, improvements to yet other homes and I have a full time position 40+ hours/week. And I do ALL remodeling construction, management, cleaning, paperwork, taxes, etc. myself (one person during everything)

I have been working 15 hours per day for many many years.


Busines Tax Expenses (by Smokowna [MD]) Posted on: Apr 3, 2015 7:31 PM

I have a handful of houses I bought and just let sit. At best after they are completely done they will rent for $500.

Meanwhile I have single rooms that rent for $580.

I understand your three years. Factor in also that a few years back good tenants were far and few between.

I knew a guy who was talking to me and I asked " Capitol Hill, Do you know the area?" He answered " Yes I do. I used to own 200 town houses there".

He sat on property until it suit him to do anything with it.

Another way to view your paying yourself for labor....as it is the tax system is basically an honor system. You could easily claim far more hours than it took to build up a house. So to be fair to Uncle Sam, Mr. 1913 Himself. There is no way to prove your hours..so it would be hard to allow the deduction.

So buy a lot of tools with each house or find a way to settle your worries.


Busines Tax Expenses (by Pattyk [MO]) Posted on: Apr 4, 2015 5:27 AM

joe you must be a single person, no spouse and kiddo ??? --108.119.xxx.xxx

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