Monday, September 12, 2016

65% of UK landlords live close to investment



In What You Must Know BEFORE Becoming a Greedy Landlord, I gave readers the 6 important rules I’ve learned when looking for something to buy.

My #1 rule: Stay within 10 miles of your home.

And a new survey found that 65% of landlords from across the pond agree with me!

Click here to read more of the survey’s results.   

Tuesday, September 6, 2016

Repair vs. Improvement

A reader sent the following question …

Dear Sir:

I just finished reading What You Must Know BEFORE Becoming a Greedy Landlord, which is an excellent resource for potential and current landlords. 

My question concerns repairs versus improvements. 

If a repair cannot be made and an item must be replaced for safety reasons, does that still count as an improvement?

The item in question is a set of concrete steps that have broken away from the foundation and cannot be repaired. The steps are dangerous and need to be replaced before we can rent the house out.

Thank you!

John

***

My answer:

Hi John,

With the tax code, much depends on how you interpret it.

Here’s what it says regarding repairs:

“You can deduct the cost of repairs that you make to your rental property. A repair keeps your property in good operating condition and does not materially add value to the property. Examples are painting, fixing leaks and replacing broken doors or other parts of the rental property.


So if I were you, I’d classify your new steps as a repair and deduct the full cost.

Good luck!


George