Question

The rent I charge for a rental house I own and manage includes $150 of the monthly power bill. 12 x $150 = $1800. Can I deduct the $1800 as a rental expense?

Forum|Forum|7 years ago
June 6, 2019
3 replies
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TurboTax Premier Online

Yes, the power bill is in my name, and I pay it. If/When power usage goes over $150 ($165, for instance), I am reimbursed by the tenant for that amount (ie, $15). THANK YOU!! 🙂

Carl11_2

Employee

' I am reimbursed by the tenant for that amount (ie, $15). THANK YOU!! 🙂 "
Then that reimbursement counts as rental income and you report it as such. So if the rent is $1000 a month and the tenant goes $15 off the allowed expense, your rental income for that specific month is $1,015. Then you can include the entire $165 electric bill in your deductible rental expenses.

Carl11_2

Employee

If *YOU* are the one who pays the utility bills, then yes. But you have to count all income from the rental as rental income. Then if you are the one who pays the utility bills, you can deduct what you *actually paid* for those utilities in 2017.