Rental property vacant part of the year

[icekitsune]

Hi, I'm new to the rental property situation and was hoping I can get some help. I did some research on my own for what is considered income and expenses to deduct. I just want to make sure I have everything right. The home I rented is purely rental purposes but was only rented half the year, Jan to June 2018.

Income:

-Rent

-damages taken out of security deposit (if no damages, not considered income)

Expenses:

-Property tax

-School tax

-Hoa fees

-expenses from cleaning carpet/painting/supplies

-home insurance

-commission/ads to advertise

**These I'm uncertain of, i believe it is part of expenses but would like to make sure.

1) I read that there is a difference in replacing and repairing. Like fixing a socket is different from buy a fridge because the fact is a fridge will last years. So I had to do both this year, where would purchase equipment go towards since its throughout several years?

2) Utilities. Renters pay for utilities when they are renting so I do not take it out of the deductible expenses. However, if the home is vacant due to cleaning and finding another renter, do the utilities such as water, electricity ect. count towards the deducible expenses?

Thanks for you time looking over at the list. I'm hoping I got everything right inregards to the income vs expenses. If its wrong, please let me know. I never done this before and would like to learn. Thanks!

[PaulaM]

1. Repairs are generally expenses that keep the property in good working order. Like fixing the socket in your example above. Refrigerators, stoves, etc are capital expenses and entered under the asset section for depreciation based on their useful life. Improvements like new flooring, roofs, bathroom remodels, etc would also be categorized as a capital expense.

2. Utilities paid by you during the interim between tenants are deductible expenses.

Below is the IRS pub 527 for rental property, and another that gives some good examples of repairs vs. improvement expenses.

IRS pub 527

Landlordology

[icekitsune]

Hi, Paula, Thanks for the reply, sorry it took me so long to respond but the category I broken down above regarding income and expenses, seemed accurate right?

[icekitsune]

Sorry Paula, while i was thinking, I had follow up question. The taxes are for 2018. So if the renter rented for example, all of 2018 and 1 month of 2019. Income for that 1 month will be counted toward taxes for 2019, while the 12 months for 2018, right? Any damages which is taken out of the security deposit will be for the tax return of 2019. Just wanted to double check on the logistics of it. Thanks