Rental Property Investor · Member since 2020 · 17 posts · 6 votes
I’m not sure if I’m asking the question correctly but if you have a rental and pay for the septic costs for your tenants (basically water included) when doing taxes can you use that as deductions/expense against the income from the rental income?
San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
5y
I'm not an accountant, but what my understanding is - you can deduct any out of pocket expenses. Some you have to depreciate like new appliances. But, in simple tax returns that I've done, I put down how much money came in from a rental, and I put down everything that went out, and depreciate the things that require that.
So, short answer, in my opinion - yes, you can list septic costs as a deduction.
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
5y
Yes, septic pumpings and maintanence can be treated just like a sewer or water bill when you are doing your expenses. Replacing a septic is a capital expense just like a roof. check out the business expenses publication by the IRS to get a flavor for what you should consider expenses.