All Forum Posts by: John Hole

@Patrick Purviance   Is there a reason why Cats are no-no?  I just got someone with a cat who is interested in my rental.  

I agree with @Nathan Gesner    I use my Iphone with a wide-angle lens from Amazon for about $20.  The pictures come out pretty good, especially taking pictures of the small bathroom.  The trick is turn on all the lights inside and take the pictures during the brightest time of the day. Also move around and take pictures from different angles.  And then you can select the ones you like from the computer.

I just posted my rental and a lady emailed me and interested in renting it.  She is working as a project coordinator for a landscaping company which just signed two deals in my area.  She is interesting in using my rent as "corporate home" for out of town employees (normally 3-4 people at a time) to stay.  

This is my first time renting to a company instead of to individuals tenants.  Provided if the company is legit, what are the things that I should watch out for compare to regular rental to individuals?  

Thanks in advance.

John

I understand that the De Minimis Safe Harbor is for real properties that are less then $2500 each and Safe Harbor for small taxpayers is for improvements that are no more than 2% of the cost basic or $10K whichever is less.  

Now let say I have remodeled my rental and the cost consisted of new floor $3000, new windows $3000 and new stove $2000, new fridge $2000, new washer $1000 and new washer $1000.

Assume that my rental's SHST amount is $6000.  That means I can expense the new floor $3000 and the new windows $3000 under SHST.  And I can also expense the stove, fridge, washer and dryer under DMSH.  

Here is my question.  Under which category of expense on my tax return I should put all these expenses.  According to Turbox Tax, I should put all the SHST expense under repair and list out each item under Other Expenses for DMSH.

Is that the correct way to do it?  If I have some small expenses under the maintenance category, will that count against my $6000 SHST limit?  And If my DMSH expense consists of many small items that are under $2500 such as chairs, tables, sofa, rugs, blinds, curtains, do I really need to list out all of them under Other Expenses or can I lump sum them in one item and call it Living Room upgrade?

Thanks in advance.

John

I just replaced a refrigerator in my rental last year.  The cost of the fridge was more than the $2500 ( $2499 + tax + shipping).  Assuming that it is the only expense I have for my rental, can I expense the cost of the fridge for 2016 under Safe Harbor for Small Taxpayers (my SHST is about $8000)?  Or I have to depreciate it over the next 5 years?  I know that  this purchase doesn't qualify under the De Minimis Safe Harbor rule since it is over the $2500 per item limit.

 Thanks,

John