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Updated over 10 years ago on . Most recent reply

User Stats

78
Posts
8
Votes
Jesse Poll
  • Real Estate Agent
  • St George, UT
8
Votes |
78
Posts

which is better tax deduction for water bill or tenant paid water

Jesse Poll
  • Real Estate Agent
  • St George, UT
Posted

I sent a link to a friend about sub metering their water after a conversation where they were complaining about tenant water usage. Her response to me was I don't know how this could help me because the water expense is tax deductible. After more research I found out that each unit already has it's own meter and is billed to the owner. This could be billed to the tenant.  Am I wrong in thinking that passing this cost to the tenants would increase net income and ultimately the value of the property more than the tax deduction of the water expense paid by the owner? I am trying to get a better understanding of this. 

  • Jesse Poll
  • Most Popular Reply

    User Stats

    23,418
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    13,508
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    Wayne Brooks#1 Foreclosures Contributor
    • Real Estate Professional
    • West Palm Beach, FL
    13,508
    Votes |
    23,418
    Posts
    Wayne Brooks#1 Foreclosures Contributor
    • Real Estate Professional
    • West Palm Beach, FL
    Replied

    Expense     $100

    Tax savings  $30  (30%)

    Net Costs    $70 out of pocket

    Tell your friend to send me $1,000 every week, and I'll send him $300 back :)

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