Deduct clean up expenses after tenant moves out

Nov 20, 2009 3 Replies

Are cleanup expenses deductible if they are incurred and paid for after tenants move out and the property is now vacant?


In general, I'd say yes, but be careful in that repairs could become a capital expense.

Although rental activities fall under IRC Section 212, using section 162's wording: Clean-up expenses between tenants are "ordinary and necessary" and even expected and predictable, and therefore allowed.

I also assume that the intent of the cleanup is so as to ready the property/unit for rent to another tenant, not for PERSONAL use.

Did you deduct the expenses from the security deposit? Did you include the security deposit as income when you received it?

as to that check with your state laws . oregon does not let you deduct the cleanup expenses from the security deposit. nor do they let you charge a cleanup fee anymore.

Join the Discussion

Have something to add? Share your thoughts — no account required.

Didn't find your answer?

Ask the community — no account required