How to expense/write off a huge water bill

[Amit M.]

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
 

[John Underwood]

First, contact the water company about the leak. You can prove the leak is fixed.

In my experience with different water companies, they will credit you the leaked water amount.

Then, if this is a no go, pay the extra water bill and keep proof that you paid it and why. Should be no problem deducting this business expense.