Property Management

[Jonathan Araujo]

Wondering if anyone could explain with regard to maintaining the grounds to my invest property. My current accountant I go to (don't think he specializes in income property) advised that I can not claim my time spent on cutting the grass and maintaining my income property (outside).



Is he correct or not? Do I have to set up a separate business?

 

[Thomas Beyer]

Any reasonable and actual expense is usually deductible in any business. Invoice the business for time and material. Of course, this also has to be declared as income, and as such is not done in a personally held property. However, it is ( or shall I say could or should be) done in a corporately held property or one held by a JV or more than one party.

 

[MaximeValmont]

How is he supposed to deduct his time?

 

[housingrental]

Hi Maxime



Would he not be able to have the business pay him $300, etc.. for the season, cheque from business to himself, and he invoice business. He might also structure as expense reimbursement (cost of mower, service on mower, etc..) from business with receipts - ?







[quote user=MaximeValmont]

How is he supposed to deduct his time?

 

[MaximeValmont]

Cost of mowers, with reciept yes. That I was aware.



But his time? Why don't Donald Trump Go collect the Rent himself and deduct 500 000$ an hour? I'm just trying to figure out how this work. Is there a limit he can deduct on every category, or something like that?





Valmont

 

[invst4profit]

If you own the property personally you may deduct for expenses (mowers, gas, hand tools etc) however you may not deduct your personal time as a expense.

 

[MaximeValmont]

Thank you Greg, That's what I thought.





Would have been fun though. Deduct our time to searche properties, etc.





Valmont.

 

[Thomas Beyer]

Assuming Donald Trump has multiple companies, of course company A can invoice company B for services rendered. It is done all the time.

 

[RedlineBrett]

[quote user=ThomasBeyer]Assuming Donald Trump has multiple companies, of course company A can invoice company B for services rendered. It is done all the time.


As an owner of 4 companies that does this I would add that it is most certainly possible but is also a huge PITA when it comes to bookeeping and taxes.