Dear John, I rented a house to a gentleman who has agreed to fix-up the rental house in exchange for rent. How will this affect my taxes? Thanks, Rich
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Hi Rich,
What you are describing is a bartering arrangement. This means that even if cash does not change hands, you have to include the value of improvements as income on your Schedule C. Also, your tenant will need to include the fair market value of rent in his income.
Best wishes,
John
PS. Act now and reserve a spot on my limited client list for this tax season. Email me
Sunday, January 17, 2010
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