Income for Personal use


T

Tafari

Hello

I am renting a three apartment and received income for Jan & Feb 08
However I incurred some electrical expenses for the month of sept 08.
Should these expenses be disallowed on my tax return as the apartment
was not rented for the month of sept 08.

Cheers
 
P

PeterSaxton

Hello

I am renting a three apartment and received income for Jan & Feb 08
However I incurred some electrical expenses for the month of sept 08.
Should these expenses be disallowed on my tax return as the apartment
was not rented for the month of sept 08.

Cheers
We really need to know what has been going on between February and
September.
 
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R

Ronald Raygun

PeterSaxton said:
We really need to know what has been going on between February and
September.
Quite so, and some more background about his general situation wouldn't
go amiss either.

The way he puts it suggests that the apartment in question has produced
income *only* during those two months. That income ought, of course,
to have been dealt with in his tax return for the 07/08 tax year,
while the expenses (a repair, presumably) will feature in the 08/09
return which he is no doubt in the course of preparing.

If his rental business is continuing (though possibly without actual
tenants for the time being), the normal course of action would be to
carry the loss forward so that it can be set against future income.

I don't know what the rules are about carrying the loss back to a
previous tax year, but I'd expect them to require the business to
have ceased. If it has, can it really be argued that the expense was
wholly and exclusively incurred in support of the rental business?
 

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