Quick question for you all:
A friend of mine has an IP on an acre, and it is about to be tenanted. He is considering supplying a Ride on Mower as part of the rental (Purchasing the mower and housing it at the property, but going there and mowing it himself, or perhaps leaving it for the tenant to use, not sure yet).
How does this work Tax wise?
Is the mower depreciable, and if so, over how long?
Would it be better to purchase the mower outright, or purchase it using LOC then repaying it with interest (From a tax point of view, not necessarilly from a cashflow POV)?
Has anyone done this, and did it work well, or are there horror stories?
Does anyone have any comments regarding this idea?
(Just as an aside, assume mower costs 5k and having someone mow the property is $100 per mow *not exact figures, but here for working with)
Thanks guys!
asy
A friend of mine has an IP on an acre, and it is about to be tenanted. He is considering supplying a Ride on Mower as part of the rental (Purchasing the mower and housing it at the property, but going there and mowing it himself, or perhaps leaving it for the tenant to use, not sure yet).
How does this work Tax wise?
Is the mower depreciable, and if so, over how long?
Would it be better to purchase the mower outright, or purchase it using LOC then repaying it with interest (From a tax point of view, not necessarilly from a cashflow POV)?
Has anyone done this, and did it work well, or are there horror stories?
Does anyone have any comments regarding this idea?
(Just as an aside, assume mower costs 5k and having someone mow the property is $100 per mow *not exact figures, but here for working with)
Thanks guys!
asy