Re: What are you Labor cost? - Landlord Forum thread 327692

Re: What are you Labor cost? by Stephen (WA - Washington) on November 20, 2014 @17:06

Well, I certainly caused a lot of commotion.

Rob: You nailed it. If you make money you have to show it as income.

Bill (not Bill(MD)): What you are saying tracks exactly with my initial statement. The LL has been somehow damaged by the tenant (lack of rent, damages greater than the deposit, etc) so the LL is looking for a way to increase the amount they are charging the tenant. If the LL has not paid anyone else to do the work then there is no expense to be recouped.

Bill (MD): Interesting examples but they miss the mark. I was talking about paying yourself for your own labor; not paying someone else for their labor. If I purchase a part for my transmission and then do all the labor myself, then what is the labor cost? If I buy a new door for my house and install it myself then what is my labor cost. I believe my labor costs would be zero for both examples. If I hire someone to do that work then I need to pay them and that amount would include their labor. If that work is on my rental then I may claim it as an expense.

If I take money out of my right pocket and then put it into my left pocket, at the end of the day the total amount of money in my pockets is the same. If I take money out of the envelop that has the tenant's deposit and put it into my pocket to pay myself, then at the end of the day I have more money in my pockets. That increase is taxable.

[ Reply ] [ Return to forum ]

Re: What are you Labor cost? by Bill on November 20, 2014 @20:06	[ Reply ]

When you charge your labor against the deposit you are not taking if from one pocket and putting it in another. You are taking it from the tenant's pocket and putting it in yours. Geeze...no wonder you guys have a hard time paying the mortgage.