- Posted by DasBrooks
- in Uncategorized
- Comments Off on Rental Income and Expenses
I recently posted about renting out part of your home or your garage to increase your income. Here’s a little more information about the types of income and expenses you’ll want to keep track of for use at tax time:
Income: All rent paid, payments for cancelling a lease, the fair market value of goods or services received in lieu of rent, and expense paid by a tenant are considered income. The security deposit is NOT considered income, s it s expected to be returned to the tenant. However, if your tenant opts to use the security deposit as their final rent payment, it then becomes income.
Expenses: Insurance premiums (look onto a landlord policy), repairs, extra telephone lines (not the main line), advertising, and cleaning when a renter moves out.
As always, get detailed advice for your unique situation.
–Misty, for Das-Brooks