Cost of "security guard" for rental property

[poppy]

Situation is as follows:

-IP was advertised for rent.
-IP was temporarily vacant waiting for a tenant.
-Enormous issues with break-ins and damage to this property and other properties in the area. I have plenty of evidence of this.
-The property especially needed to be protected whilst it was vacant so I sent my husband who has relevant skills/experience, to perform the function of a security guard whilst we were waiting for the tenant to move in. I spent quite a lot of money on his travel expenses and am hoping I can claim these expenses as a deduction this year.

I figure if I had hired a professional security guard then it would be a deduction, correct? So I think the cost of sending my husband to do the job should be deductable...

 

[letiha]

What are the requirements for the licencing of secutiry guards in the state that your IP is located. If there is requirements does your husband hold these qualifications/licence.

 

[buzzlightyear]

What cost has been incurred?

Is your husband going to 'invoice' you for the cost of his services? Then he would have to declare on his tax return?

Alternatively, the cost of travel and other direct costs associated with the 'job' may be deductible...

 

[ozi]

This doesn't answer your question, but out of curiosity was there a 'For Lease' board at the front of the house? One of the PMs I've spoken to advices against having a board at the front as it attracts squatters/vandals.

Ozi

 

[poppy]

Hi ozi,

No I didn't put up a for lease sign. I notice one of the surrounding new homes which was up for lease did not have a for lease sign either.

 

[poppy]

Hi Buzzlightyear,

Costs are well over $1000 in flights, meals etc. Husband is not going to invoice me for anything unless that is the only way I can recover the travel costs. I would just like to be able to be able to claim the travel costs not any allowance for the husband's time.

 

[poppy]

Hi letiha,

Husband is not a licensed security quard. But works in a related industry and could be considered reasonably capable of doing the job. Ie as opposed to myself trying to do it!

 

[redsquash]

Situation is as follows:

-IP was advertised for rent.
-IP was temporarily vacant waiting for a tenant.
-Enormous issues with break-ins and damage to this property and other properties in the area. I have plenty of evidence of this.
-The property especially needed to be protected whilst it was vacant so I sent my husband who has relevant skills/experience, to perform the function of a security guard whilst we were waiting for the tenant to move in. I spent quite a lot of money on his travel expenses and am hoping I can claim these expenses as a deduction this year.

I figure if I had hired a professional security guard then it would be a deduction, correct? So I think the cost of sending my husband to do the job should be deductable...

Sounds like a ploy to get rid of your husband!
Will you want to claim th cost of his returning?
Is he also the owner? That will make things alot clearer

 

[nomadic]

In my view (i'm no acc), you should be able to claim the costs as long as your hubby also declared the income. If that was so, i'm not sure if there would be any benefit as the tax your hubby pays would be more than what you could claim as a deduction? It's like invoicing yourself to mow the lawn at your IP... you pay yourself $50 to do it and are taxed on that amount and at the same time, you also reduce your taxable income by $50... is there any benefit? I'm also curious.

 

[stirling]

I don't see that qualifications are relevent. I hired a tax deductible guard dog for a building site and he did not have any qualifications except big teeth. For vacant properties can use internal lights on timers, put a big pair of boots on the front verandah and put a old pair of overalls on the clothes line. (If you are remote from property still have to travel to it).

 

[poppy]

Is he also the owner? That will make things alot clearer

No he is not an owner

is there any benefit? I'm also curious.

Hubby has not received any income. He will do the job for free. But I have spent a lot of money on flights meals etc for him. I want to be able to claim back hubby's travel expenses.

For vacant properties can use internal lights on timers, put a big pair of boots on the front verandah and put a old pair of overalls on the clothes line.

In normal circumstances that might have done the trick but things have gotten totally out of control as they have gotten away with it for so long.

 

[letiha]

I am guessing that the actual expenses incured woul dbe deductible given that the property was avaliable for rent, in the same way a security system would be.

 

[Mry]

I would say reimbursing for costs would be deductible, but I would be worried about the following -

1 - If there is a private reason the hubby would be living there (ie family nearby, marriage separation, holiday, etc). If so, not only would the cost for sending him there not be deductible, but the negative gearing claim would be nothing.
2 - If he sets the place up as if he looks like he is living there.
3 - If he does this for a long period of time.
4 - If there are no reasonable attempts to find tenants for the property in this time.

If he plans to 'bill' you for his time, that would be a problem.

 

[pulse]

Did you incur the cost? ie pay for the flights directly? This would be important I think

Pulse

 

[poppy]

Thanks Mry

1 - If there is a private reason the hubby would be living there (ie family nearby, marriage separation, holiday, etc). If so, not only would the cost for sending him there not be deductible, but the negative gearing claim would be nothing.

No, no family, friends or any other ties to the area other than my IP. Hubby can also show that he abandoned an already paid for holiday in order to do the job ie it was not a holiday but a necessary trip.

2 - If he sets the place up as if he looks like he is living there.

No furniture etc moved into the house. Slept on an airbed with sleeping bag. He only took to the house personal items that could be taken on the plane.

3 - If he does this for a long period of time.

Just a couple of weeks.

4 - If there are no reasonable attempts to find tenants for the property in this time.

Advertised for rent and definitely genuinely available for rent. Actually tenant was located quite quickly but could not move in immediately.

If he plans to 'bill' you for his time, that would be a problem.

No, I'll just be happy just to claim some of the travel back.

Did you incur the cost? ie pay for the flights directly? This would be important I think

Pulse

Some things I could not pay for directly as it was not always practical - eg if he is buying dinner or a taxi and I'm not there at the time I can't pay for it myself. However I will make sure a transfer of funds is made into his account which equals any expenses paid by him.