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Old 10-22-2007, 12:05 PM
 
Location: San Jose, CA
6,555 posts, read 15,652,148 times
Reputation: 2268
Default Tax deductions for renters?

The landlord who owns the space you live in can deduct any expenses on his/her tax return. Mortgage payments, repairs, improvements, insurance, etc. It's one of the things that makes investing in real estate attractive.

What about those of us on the other side of the table? If I replace that aging furnace with a new one, or upgrade the ancient all-electric kitchen, or have duct work done, can I deduct that on my tax return? Of course I can if part of the area is used for business, but only for the area I've earmarked for that purpose, not the entire apartment.

I certainly believe in keeping the property in the same condition as when I moved in, to the extent that it's possible. And minor maintenance, like replacing furnace filters.. that's OK too. But even then, that should come with some tax benefits.
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Old 10-23-2007, 03:06 AM
 
Location: Colorado, Denver Metro Area
1,048 posts, read 2,872,998 times
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As a renter without a business, no you cannot deduct items. However, any big items that you do should be reported as income by your landloard (which most do not do). I.e. If insted of a months payment (or full part of it) you pay for a new water heater, furnace etc., that is still income for your landload.
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Old 10-23-2007, 05:49 AM
 
Location: At Home
2,417 posts, read 3,263,148 times
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Quote:
Originally Posted by sonarrat View Post
The landlord who owns the space you live in can deduct any expenses on his/her tax return. Mortgage payments, repairs, improvements, insurance, etc. It's one of the things that makes investing in real estate attractive.

What about those of us on the other side of the table? If I replace that aging furnace with a new one, or upgrade the ancient all-electric kitchen, or have duct work done, can I deduct that on my tax return? Of course I can if part of the area is used for business, but only for the area I've earmarked for that purpose, not the entire apartment.

I certainly believe in keeping the property in the same condition as when I moved in, to the extent that it's possible. And minor maintenance, like replacing furnace filters.. that's OK too. But even then, that should come with some tax benefits.

You do not own the property....so why are you putting out money to replace a furnace or upgrade the kitchen, etc. That is the responsibility of the landlord (if he/she refunded your money for those repairs/upgrades, that would be different, but you would still not be able to take any tax deductions).

Why not purchase property instead of renting? That would give you tax deductions.
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Old 10-23-2007, 10:08 AM
 
Location: San Jose, CA
6,555 posts, read 15,652,148 times
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Quote:
Originally Posted by katie45 View Post
You do not own the property....so why are you putting out money to replace a furnace or upgrade the kitchen, etc. That is the responsibility of the landlord (if he/she refunded your money for those repairs/upgrades, that would be different, but you would still not be able to take any tax deductions).

Why not purchase property instead of renting? That would give you tax deductions.
I live in the Bay Area and make less than $50,000 a year. There is nothing affordable.

The idea of doing the upgrade instead of paying rent for a period is an interesting one, I'll put that past her if I find that the old furnace is costing me too much in heating bills.
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Old 10-23-2007, 12:36 PM
 
Location: West of Boston
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You can deduct a certain portion of your rent (something like $5-10k per year) on your state taxes here in MA. I guess that doesn't help you though.
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Old 10-23-2007, 04:09 PM
 
Location: At Home
2,417 posts, read 3,263,148 times
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Quote:
Originally Posted by sonarrat View Post
I live in the Bay Area and make less than $50,000 a year. There is nothing affordable.

The idea of doing the upgrade instead of paying rent for a period is an interesting one, I'll put that past her if I find that the old furnace is costing me too much in heating bills.
I understand, 50k is considered poverty level in your area. I am sorry for that; have you considered relocating to a state that is much more affordable and will allow you to purchase a home? I realize there are many pluses of living in CA; however, please don't discount the rest of the U.S.
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Old 10-23-2007, 04:41 PM
 
Location: San Jose, CA
6,555 posts, read 15,652,148 times
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Quote:
Originally Posted by katie45 View Post
I understand, 50k is considered poverty level in your area. I am sorry for that; have you considered relocating to a state that is much more affordable and will allow you to purchase a home? I realize there are many pluses of living in CA; however, please don't discount the rest of the U.S.
I'm doing okay here. Surviving in this area is just a matter of keeping your wits about you and your expenses in check, and if you stick it out, salaries can go very high. If I get to my thirties and I still haven't climbed the ladder enough to afford a nice condo in San Carlos, well, then I'll reconsider.
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Old 03-12-2009, 10:52 AM
 
1 posts, read 44,439 times
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I am disabled and recieve benefits. Can I file for renters tax in Florida. I know my son files every year in N.Y. and recieves a check for it. Do they do it here? tikko534
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Old 03-12-2009, 11:03 AM
 
Location: MN
761 posts, read 1,935,953 times
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In MN you get renters credit if you make less than 44K/year or something (cost of living lower than California of course). Renters get CRP's (Cert of Rent Paid) and it is usually about 19% of what you paid for the year.
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Old 03-12-2009, 04:13 PM
 
27,209 posts, read 22,654,172 times
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rentals are a business, you are deducting those expenses against the rent...... your cost of housing is not a deduction ....
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