I told him to go ahead and if I liked the designs, I would put them on the website.If somebody ordered a rug in his design, we would work it this way; we deduct the cost of the rug, shipping and the taxes Dad would have to pay on the profit.

How do I go about deducting these costs?

He might get extra picky with the move-out protocol and deductions... :)

Maybe not every year, but every few years.A more realistic assessment is to deduct 50% of the gross rents to cover expenses, vacancy and capital.

I’m reading the NOLO “Every Landlord’s Tax Deduction Guide” and have a question about net operating losses and the $25K offset.

That leaves $1240 for NOI (net operating income) after deducting 50% for vacancy, expenses and capital.

Ah Rich, it's deductable, stop ur *****'n that's nothin' for the grandad of the conference!

If they have a problem, I call the warranty company and pay the deductible, give them the tenants name and number and forget about it.Of course, when it comes time to market and re-rent the property, you'll have to get involved until it's rented again.I hope I'm not too far off base with my comment.

Reading from Rich's post, you can visit the properties to make sure they are in good condition and take a deduction for your visits.Is there a time frame that these type of properties must be rented out / leased out for them to qualify?

I don't want to beat a dead horse with another "security-deposit-deductions-because-of-carpet-stains-question".