Text 11552, 121 rader
Skriven 2008-08-04 19:54:02 av Dale Shipp (1:261/1466.0)
     Kommentar till en text av Dave Sacerdote
Ärende: Re: Those repairs
=========================
 -=> On 08-02-08  22:31,  Dave Sacerdote <=-
 -=> spoke to Jim Weller about Re: Those repairs <=-

 CS> It;s added up to an astounding 25,000$
 
 JW> (Sigh) At least it's a tax write-off.
 
 DSh> Maybe, maybe not.  The US taxes laws have 
 DSh> some peculiar twists to them.
 
 DSac> I'll tell you straight out from personal experience as a landlord:
 DSac> Everything a landlord spends on rental property - repairs,
 DSac> renovations, improvements, groundskeeping service, even the
 DSac> insurance premiums, even the motor vehicle allowance per mile one
 DSac> has to travel from the hardware store and back, even the cost of
 DSac> a newspaper ad to find new tenants and real estate broker fees if
 DSac> you use one, even the price of running a background check on a
 DSac> potential tenant before you even sign the lease; EVERY SINGLE CENT is
 DSac> deductable from income tax owed at the end of the year.

Almost all of what you said is true.  However, capital improvements are
not deductable in the same way that repairs are, but must be
depreciated.  That means that they are deducted over the span of years
of expected (read allowed) life of the improvement.  The explicit
example given in the tax manuals is replacement of a roof.   If you
spend $10,000 on a new roof then you cannot take that off in the year
you did it, but take off a part of it each year for the estimated life
of the roof (probably 15-20 years).  If the property remains as a rental
property, then you eventually get the full deduction.

I got audited on exactly this issue when I had rented out my house.  The
deck needed to be replaced.  I deducted it as a rental repair expense.
The IRS audited me and disallowed the deduction, saying that I had to
depreciate the deck cost over 10 years.   Since the house was rental
property for only one more year, that meant I lost most of the
deduction.

In Carol's case, so long as what she is doing is *repairing* damage done
by tenants, it should be deductable, in my opinion.  But when she turns
the repair into an improvement, then that cost is added to the cost
basis of the house and not fully deductable in the year the work was
paid for.

There may well be additional complications arising because of the fact
that some of the repairs are made after the house stopped being a rental
property.

 DSac> Uncle Sam will eventually eat that 25 G.  If I had a $25,000 damage
 DSac> bill, claiming that 25K in one tax year would have more than offset
 DSac> all of my withheld taxes for that year, and the IRS would have refunded
 DSac> just about my entire withholding from that year.  But a good
 DSac> accountant is a wise investment - it might be possible to amortize

Absolutely!  And there are many "tax advisors" who don't know enough
about anything even slightly non standard, and rental property falls
into that category.  My philosophy on taxes is that I'm pleased to pay
what ever I owe, not one penny more or less:-}}


MMMMM----- Recipe via Meal-Master (tm) v8.05
 
      Title: Chicken With Yogurt
 Categories: Chicken
      Yield: 1 servings
 
    1/4 c  Sliced almonds
      1 T  Margarine or butter
      8    Chicken drumsticks (about 1
    1/3    Pounds), skinned
      1 T  Margarine or butter
    1/2 t  Paprika
    1/4 t  Salt
    1/4 t  Dried dill weed
    1/3 c  Water
      1 t  Chicken bouillon granules
      1 md Onion, sliced
    1/2 c  Plain nonfat yogurt
    1/2 t  Cornstarch
    1/4 c  Cold water
 
  Cook the almonds in 1 tablespoon margarine in 10-inch skillet over
  medium heat, stirring frequently, until almonds are golden brown.
  Remove with slotted spoon; drain and reserve.
  
  Cook chicken drumsticks in 1 tablespoon margarine over medium heat
  until brown on all sides; reduce heat. Sprinkle with paprika, salt and
  dill weed. Mix 1/3 Cup water and bouillon granules; pour over chicken.
  Add onion. Cover and simmer about 30 minutes or until chicken is done.
  
  Remove chicken with slotted spoon; keep warm. Stir yogurt into liquid
  in skillet. Mix cornstarch and 1/4 Cup cold water; gradually stir into
  yogurt mixture. Heat to boiling, stirring constantly. Boil and stir I
  minute. Pour yogurt sauce over chicken. Sprinkle with almonds.
  
  4 servings.
  
  Nutrition Information per Serving
  
  1 serving               Percent of U.S. RDA
  
  Calories        375     Protein 50%
  Protein, 9      32      Vitamin A       10%
  Carbohydrate, 9 7       Vitamin C       4%
  Fat, g  Z3      Thiamin 8%
  Cholesterol, mg 120     Riboflavin      20%
  Sodium, mg      500     Niacin  42%
  Potassium, mg   430     Calcium 4%
  Iron    10%
  
  From the files of Al Rice, North Pole Alaska.    Feb 1994
 
MMMMM




... Shipwrecked on Hesperus in Columbia, Maryland. 17:27:28, 04 Aug 2007
___ Blue Wave/DOS v2.30

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