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Canonical
Level 1

Rental Property Expenses

Please let me know for a rental investment property (new construction 2022), how would the following expenses be classified/added on a Tax return:

1) Washer/ Dryer purchase and install

2) Electricity bill for vacant premises

3) Window Curtains Install

4) Laundry bills (paid on behalf of the tenant) till washer/dryer install

5) Property Tax

6) YTD HoA expenses

 

5 Replies
Critter-3
Level 15

Rental Property Expenses

Once the property is available to be rented : 

1) Washer/ Dryer purchase and install   asset to be depreciated ... 5 year property ... may take bonus depreciation if desired but think on this option carefully.

2) Electricity bill for vacant premises   before the property is ready to be rented it is added to the cost basis by being capitalized ... after it is available for rent  it is a Sch E expense

3) Window Curtains Install    asset to be depreciated ... 7 year property ... may take bonus depreciation if desired but think on this option carefully.

4) Laundry bills (paid on behalf of the tenant) till washer/dryer install   Sch E expense

5) Property Tax   before the property is ready to be rented it is a Sch A deduction if you itemize deductions ... after renting it is a Sch E expense

6) YTD HoA expenses   before the property is ready to be rented it is added to the cost basis by being capitalized ... after renting it is a Sch E expense

Canonical
Level 1

Rental Property Expenses

Thanks. Few other items:

1) Closing cost (settlement cost) of the purchased property

2) Miscellaneous expenses (please let me know what other expenses a landlord can charge - what you have seen in majority of cases)

Critter-3
Level 15

Rental Property Expenses

1) Closing cost (settlement cost) of the purchased property   added to the cost basis for the depreciation (which you MUST take)

2) Miscellaneous expenses (please let me know what other expenses a landlord can charge - what you have seen in majority of cases) You need to educate yourself ... start with the IRS Pub 527 :  https://www.irs.gov/businesses/small-businesses-self-employed/rental-income-and-expenses-real-estate...

Canonical
Level 1

Rental Property Expenses

 
Canonical
Level 1

Rental Property Expenses

 
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