The only thing that's good about Eviction Fees…


T

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 TReXGlobal.com to learn more about saving
time and money on properties and taxes.
Be sure to try Simplify'em, the FREE Property Management Software from
TReXGlobal.com. (http://www.trexglobal.com)

Community Relations TReXGlobal.com
(http://www.trexglobal.com)
Simple FREE to se Web Tools for Real Estate Investors
 
Ad

Advertisements


Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top