Writing Off the Cost of Tenants

Last Minute Tax Tip - Deducting Tenant Utilities that the Landlord Pays

Utilities paid by the landlord for tenant use are fully deductible, provided that this is part of the rental agreement.

Landlords often incur expenses to light common areas or operate security systems on their properties. Other common expenses include power, water, gas, and cable, and internet.

Any utility costs incurred during a period of vacancy are also fully deductible - but be careful. Deducting large expenses during periods of vacancy can be a reason for the IRS to become suspicious.

Everyone's tax situation is different, and this information should not substitute professional advice. Taxpayers should always consult with their tax advisors to consider specific factors that might affect their situation.

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