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Updated 9 months ago,
How to expense/write off a huge water bill
Recently my tenant received a very huge water bill due to a busted pipe under the slab. There were no visible signs of leak above the ground. I got the whole house re-piped and intend to cover the excess usage due to the leak. The problem is that the water bill is in my tenants name. If I pay his water bill how do I expense that in my tax returns. Instead, if I ask him to take off a certain amount from the rent check every month and pay that towards the water bill, would that be a good idea ? Should this arrangement be done in some kind of an agreement ?
I do intend to consult a CPA but wanted to have some understanding of possible options before I interview a CPA
Thanks
AM