Can I write off sales tax on repair items

Question

Would appreciate it if any investors or CPAs can answer my questions. I own a duplex in Ohio and live in CA. I own it under my own name. There were some repairs I had my handyman do that had a cost plus the sales tax. For example, $2000 plus a sales tax of $100. So the total cost to me is $2100. Can I write off the $2100 or only $2000. Separately, for utilities like gas, I pay online with a credit card and they charge me a $2 fee. So if the utilities for that month are $50 they will charge me $2 extra ($52) to pay with card. Can I write off $52? Also, are home insurance premiums tax deductible?

If I sell my duplex and buy another one somewhere else, can I carry those expenses with me to the next property? Can I use these write offs against income I might make from flipping or even selling my duplex? I’m studying to get my real estate license in CA. I heard that there is something called Real Estate Professional status for taxes. How would this work being licensed in CA and owning a duplex in OH?

Sean O'Keefe · Answer

@Michael A. I'm based in California and have other customers with out-of-state properties in Ohio.

• Deduct the total cost of the expenses including sales tax
• You can deduct the cost for utilities and incremental processing fee for payment via credit card
• The insurance on a rental property is a deductible expense

Your other questions are a little more vague. I’d either meet with a Real Estate CPA or provide more detail in this thread so other Real Estate CPAs in this forum can answer these other questions.

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*This post does not create a CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.

Can I write off sales tax on repair items

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