How to Deduct the Garbage Bill From a Rental House

by Alia Nikolakopulos ; Updated July 27, 2017
Deduct garbage collection expenses on IRS Form Schedule E.

If you own rental property, you must report income and expenses related to the activity to the Internal Revenue Service. You’ll claim your transactions on IRS Form Schedule E, Supplemental Income and Loss, and attach the form to your individual income tax return. You can deduct the cost paid for rental property garbage collection as a utility expense.

Step 1

Gather tax documents that list your rental income and related expenses for the year.

Step 2

Prepare IRS Form Schedule E. On page one, complete Part 1, Income or Loss from Rental Real Estate and Royalties. Report all rental income received on Line 3 of the Schedule.

Step 3

Total your paid garbage expenses and any additional utility costs. Report expenses for paid rental property utilities on line 17 of Schedule E.

Step 4

Total any remaining expenses and subtract the sum from your rental income. Record your profit or loss from rental activity on the first page of your 1040 individual income tax return and attach Schedule E to your 1040.

Warnings

  • Generally, you can only claim net real estate losses up to an amount of $25,000. Real estate professionals are excluded from the loss limitation.

About the Author

With a background in taxation and financial consulting, Alia Nikolakopulos has over a decade of experience resolving tax and finance issues. She is an IRS Enrolled Agent and has been a writer for these topics since 2010. Nikolakopulos is pursuing Bachelor of Science in accounting at the Metropolitan State University of Denver.

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