Are Cap Ex, Vacancy, Maint taxable income?

[Hugh Carnaha]

Howdy Guys!

This is my first real post, and i'm completely new to all this. My apologies if this question reveals i'm a moron, I assure you I have no idea what i'm doing. This has probably been asked before but I couldn't find it. I always run the numbers taking all these things (Vacancy, CapEx, Maint) into account and it drops my cashflow down quite a bit which I don't mind. As far as I understand the Property Manager is going to take theirs, so i'd never even get it, but for vac, Maint and CapEx I'd put it in a different account as a rainy day fund.

I consider this an expense, but for tax purposes is it an expense or be considered income?

State is Missouri, USA.

Cheers!

Hugh

[John Teachout]

The simple answer is Yes. Until you spend them.