The only thing that's good about Eviction Fees…


Tax Tip

The only thing good about Eviction Fees - and any other Legal or
Professional Fees related to your rental investment - is that they are
considered deductible business expenses.

Common deductions include fees related to tax preparation, drawing up
leases, and resolving disputes with tenants or repair contractors.

Not all legal fees get to be deducted right away, like many of the
fees you incur when purchasing property.

Do not deduct fees incurred to protect title to property, to recover
property, or to develop or improve property. Instead, you must
capitalize these fees and add them to the property’s basis.

The IRS will not have a problem with Legal and Professional Fees as
long as they are “ordinary and necessary” for your rental activity.

Check out Real Tax Tips at to learn more about saving
time and money on properties and taxes.
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