Now HML broker has sent me an invoice for $3,500 demanding I pay it immediately because he fulfilled his contract obligation to me.

Just a warning that even on distressed properties they can get you.Sorry for the tax bill, dang

@Michael Dang Thanks for the advice i will learn everything there is to know about a master lease.

I use QuickBooks for my bookkeeping, so I just set up automatic invoices that go out to all of my tenants on the 24th of each month.

Dang that's a lot for 2 units!

I gave him a 50% down payment after a signed contact and invoice on the down payment.

* Are all my invoices uploaded to my owner portal?

This should be treated as a repair expense for the property.In both scenarios, you should maintain detailed records of the insurance claim, including receipts, invoices, and any correspondence with the insurance company.

However, the specific tax treatment can depend on the accounting method you use for your business.There are two common accounting methods for small businesses:Cash Basis:Expenses are deducted in the year they are paid.If you are on a cash basis, you can generally deduct the expenses for the heating and air system in the year you made the payment, even if the property is not yet in service.Accrual Basis:Expenses are deducted in the year they are incurred, regardless of when they are paid.If you are on an accrual basis, you may be able to deduct the expenses in the year they were incurred, even if not paid.In either case, it's important to keep detailed records of your expenses, including receipts and invoices, to support your deductions.Please note that tax laws can be complex and subject to change, and the information provided here is for general guidance.

I don't really care to see my vendor invoices or background check / credit reports, but I want to make sure that they are not cheating me (e.g. tagging on additional fees to vendor invoices, forgetting to run the full background check).