Landlord Question and Answer Forum

Hello everyone, I'm new here. I'm about to buy my first property that I will (hopefully) be renting out. I think I have the general concept on what is tax deductible and what is not i.e. I can deduct anything that I had to pay for to maintain and run the property. I have a few questions though: 1) I'd like to buy a computer, printer, scanner, and management software to help me keep on top of everything. Is all that deductible (I don't have an office, I will be using all this stuff at home)? 2) Just a general question, say I wanted to buy a new flashlight that I would use at the property in case of power failure or so I can see into any dark areas (basement etc). Would that be deductible even if I intend to keep it at my home? Same question for other general items such as a power drill, screw drivers etc. I know these probably seem like DUH questions to you pro's but we all got to start somewhere. Thanks very much for your help

Read and UNDERSTAND IRS Pub 527 http://www.irs.gov/publications/p527/ch01.html#en_US_2010_publink1000218984

Posted by Michael K, GA on Tuesday, September 18, 2012

Michael, Thanks. I've already read that though and still don't feel comfortable that it answers my question. Would the things I described be considered expenses and would they be depreciatable or not?

Posted by Scott P, MO on Tuesday, September 18, 2012

Re-read Pub 527, pg 9. http://www.irs.gov/pub/irs-pdf/p527.pdf ......Computer and related equipment are depreciated. If also used for personal use, you will have to declare %. Check into Section 179 Depreciation Rules……Small tools can be deducted as expense. Get yourself a tool box for rental property repair and keep the tools in there….. Important, wait until you start advertising the property for rent before you buy the above mentioned…..You might want to have a tax preparer do your taxes the 1st time around. Ask a lot of questions. -----Disclaimer: Since I’ve been answering a lot of questions, I thought I would make the following statement. I’m not affiliated with EZlandlord Forms. I’m just here (not sure how long) to help those that have questions. Having 40+ yrs with Rental Property and done well, it’s my way of “Pay it Forward (check out the movie).” However, it is up to you to become familiar with your State/Local laws. I always like to know if the suggestions I offer are helpful. Feel free to comment anytime. Thanks in Advance.

Posted by Bob R, CA on Tuesday, September 18, 2012

Thanks. That was very helpful.

Posted by Scott P, MO on Tuesday, September 18, 2012