Where do I report background checks expense for prospective tenants?

[mkochins]

Getting new tenants involves expenses such as getting credit history, background checks etc. Is there a category where those expenses are reported? Or should it be deducted from the application fees and report the excess, if any, as income?

[Coleen3]

It can be considered a miscellaneous expense with an explanation. If you are charging your tenants a fee, include the entire amount as income and deduct the entire expense you incur separately.