Happy Clause money

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Happy Clause money (by Fabric Gal [CA]) Oct 24, 2021 3:21 PM

Happy Clause money (by Dave [MO]) Oct 24, 2021 3:38 PM

Happy Clause money (by Nicole [PA]) Oct 24, 2021 4:49 PM

Happy Clause money (by Fabric Gal [CA]) Oct 24, 2021 5:15 PM

Happy Clause money (by Moshe [CA]) Oct 24, 2021 5:30 PM

Happy Clause money (by plenty [MO]) Oct 24, 2021 6:24 PM

Happy Clause money (by Fabric Gal [CA]) Oct 24, 2021 7:03 PM

Happy Clause money (by BRAD 20,000 [IN]) Oct 24, 2021 7:35 PM

Happy Clause money (by NE [PA]) Oct 24, 2021 7:43 PM

Happy Clause money (by Jim in O C [CA]) Oct 24, 2021 9:33 PM

Happy Clause money (by Ray-N-Pa [PA]) Oct 25, 2021 4:45 PM

Happy Clause money (by myob [GA]) Oct 25, 2021 4:45 PM

Happy Clause money (by Mick [CA]) Oct 26, 2021 6:01 PM

Happy Clause money (by Fabric Gal [CA]) Posted on: Oct 24, 2021 3:21 PM
Message:

I was just wondering if the money that we pay to get rid of a problematic tenant (invoking the happy clause) is deductible on our taxes?

I know there are other ways to invoke a happy clause but I'm wondering about money paid after they move out and the keys are returned. Thanks!

--68.8.xxx.xxx

Happy Clause money (by Dave [MO]) Posted on: Oct 24, 2021 3:38 PM
Message:

I would consider paying someone to move their belongings out of a house as an expense. Or is this a refund of the deposit? --174.210.xxx.xxx

Happy Clause money (by Nicole [PA]) Posted on: Oct 24, 2021 4:49 PM
Message:

I'd deduct it as a business expense with no second thought. If you had to pay an attorney, filing costs, service costs, etc., those are all deductible. You are paying the tenant instead of paying those other fees. --98.237.xxx.xx

Happy Clause money (by Fabric Gal [CA]) Posted on: Oct 24, 2021 5:15 PM
Message:

Thanks, Dave & Nicole--it's not a refund of their deposit. --68.8.xxx.xxx

Happy Clause money (by Moshe [CA]) Posted on: Oct 24, 2021 5:30 PM
Message:

It is a settlement payment of a dispute.

--47.139.xx.xx

Happy Clause money (by plenty [MO]) Posted on: Oct 24, 2021 6:24 PM
Message:

My category is "gift to tenant" --172.58.xxx.xxx

Happy Clause money (by Fabric Gal [CA]) Posted on: Oct 24, 2021 7:03 PM
Message:

Thanks for the additional info! --68.8.xxx.xxx

Happy Clause money (by BRAD 20,000 [IN]) Posted on: Oct 24, 2021 7:35 PM
Message:

Fabric,

I apply the money as an expense against their deposit, along with rent and damages. When I offer my helpers, truck, and trailer it’s all billed to them.

Yes, I expense it and if they pay anything it shows as income.

BRAD --73.102.xxx.xxx

Happy Clause money (by NE [PA]) Posted on: Oct 24, 2021 7:43 PM
Message:

Have them sign a w-9 and 1099 them. --24.152.xxx.xx

Happy Clause money (by Jim in O C [CA]) Posted on: Oct 24, 2021 9:33 PM
Message:

It’s a cost of doing business. Any amount deducted from a security deposit is income offset by expenses of any repairs. --99.23.xxx.x

Happy Clause money (by Ray-N-Pa [PA]) Posted on: Oct 25, 2021 4:45 PM
Message:

Cash for keys is a bit different than happy clause, but I get the gis

It tends to be cheaper than all the aspirin that you might need too

--24.101.xxx.xxx

Happy Clause money (by myob [GA]) Posted on: Oct 25, 2021 4:45 PM
Message:

we file it under legal and professional fees on our taxes.

Most times the problem child owes money anyway. --99.103.xxx.xxx

Happy Clause money (by Mick [CA]) Posted on: Oct 26, 2021 6:01 PM
Message:

I haven’t done cash for keys, but it would go in the marketing column for me. --70.163.xx.xxx

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Happy Clause money

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