Tenant doing work instead of rent
Varies
Can You Write Off Tenant Doing Work Instead of Rent?
Short answer: If a tenant paints or repairs the unit in exchange for rent, the fair value of the work is rental income; you then deduct it as a repair or depreciate it as an improvement.
Pub 527 treats anything you receive for the use of the property, in cash or in kind, as rental income in the year you get it.
Records to keep: Keep leases, receipts, a log of repairs vs improvements, mileage to the property, and closing statements.
Tenant doing work instead of rent
Varies
Real Estate / Landlords / Property Managers / Agents
If a tenant paints or repairs the unit in exchange for rent, the fair value of the work is rental income; you then deduct it as a repair or depreciate it as an improvement.
Business justification
If a tenant paints or repairs the unit in exchange for rent, the fair value of the work is rental income; you then deduct it as a repair or depreciate it as an improvement. Pub 527 treats anything you receive for the use of the property, in cash or in kind, as rental income in the year you get it.
Category
- Rental Property Write-Offs