Tenant moved in last summer. Nice guy, owns his own biz. Promptly gets a puppy without asking - he DID misunderstand the "Pet Friendly" thing. I blow up, he apologizes, offers to pay $250 more PER MONTH in rent for a year until she is grown. I accept.

It's been 8 or so months, he has paid us $2000 in EXTRA rent. Dog is wonderful and totally grown, no damage at all. Golden Retriever. Besides a Lab, are there better dogs? I don't think so.

In addition, he totally REFINISHED a peeling bathtub on his own! It's like new. He painted his front door which was nasty. He cleaned out other stuff, etc. In fact he is a MODEL tenant. OH and he found us a guy that may well work out as a sometime-handyman!

I want to refund his extra rent. #1) Selfishly, we need to reduce our taxable income for various reasons. #2) Bizwise, I don't want to pay him for things he did on his own, but refunding the pet rent when the pet did NO damage seems like a win-win to me. #3) Altruistically, it would be nice to refund him at Christmas.

I wouldn't refund the pet rent. He brought it in without asking PLUS he's working on the place without permission, good work or not.

Can I suggest a 4th option....do an upgrade to the property that benefits him and future occupants will find attractive. The capital upgrade could be a tax deduction and will create good will.

I forgot to mention: we ARE improving the property with new windows and insulation!! That's how he turned us on to the new guy.

There is a Heathcare.gov cliff. Go ONE DOLLAR over and you have to pay back EVERY DOLLAR of the ocare subsidies. Which in our case is upwards of $25k. We are scrambling to spend money on our properties in every way!

Can you donate it to charity?

NO Richard we can't, sad to say, because we do Standard Deduction. Well we can donate but it WON'T come off our taxes.

Buy something at Lowes and returm it next year

Laura, believe me I have been spending like a wild person. It's the same money but spent for different purposes: if I spend it one way, properties get improved YAY! If I spend it another, the IRS wants their cut BOO!

Laura, believe me I have been spending like a wild person. It's the same money but spent for different purposes: if I spend it one way, properties get improved YAY! If I spend it another, the IRS wants their cut BOO!

Plenty, bought TWO cars, plenty of water heaters, some smaller through-wall HVACs (keeping it under $2500 invoice)

Now we are ordering windows and doors...

Is there something that he would like for an upgrade? New fancy fridge, high end stove? Things that he would appreciate and upgrade your unit (as well as keeping the old stuff for a backup). Light fixtures, LED light upgrade. Tools, tools and more tools, storage for those tools. How about a shed for the property? Fence for the yard?

Does someone need a new shed out back?

Glad to read that pup has worked out so well. And the tenant too. I would not be inclined to refund anything, to me that would be....ummm...well...a little schizophrenic. I thought you’d handled it (unexpected dog) very expertly in the first place; wouldn’t want to cast doubts on your resolve in lease matters.

Are there really no other options for healthcare than the subsidized exchange options for the self-employed? (I realize I am fortunate that dear husband loves being an employee, and is well-compensated, so I haven’t ever had to look.)

The trouble with moving expenses a few months forward is, then there are fewer expenses for the next year. Perhaps a few more units would cover healthcare without that subsidy for the few remaining years until Medicaid kicks in for you.

I say I'm shocked... Give the payment to a charity. That's right-- wounded worriers or such.

You are in this business to benefit you and your husband. The secondary beneficiaries are your kids. If there is nothing more you can do to benefit you and your husband, pay your kids on a 1099.

Even though they have left home and are "off your payroll", they would still benefit from the extra income even if it bumps them into a higher tax bracket.

Or, buy another new car and let your kids use it.

I do not like to return money to a tenant until they are no longer tenants. Remember that a good tenant today can be a bad tenant tomorrow. The money you return to the tenant today could be the money they short you when they move out next year.

Could you make a donation to a church, college, or veterans program?

Be thankful that you are faced with this challenge!

Nice of you to consider a refund to tenant.

But dont think you were fair to accept 250.00 a month to begin with. With a tenant trying to be nice and you said was a misunderstanding.

The spending on the kids is an issue. I have already issued legit 1099 income to one kid for a website.

But you are right this guy is not expecting it back - I did already tell him happy new year no more dog rent a few week ago.

He is paying $1450 a month for a 625 square foot cottage/shack. Rent was $1200 then he got the puppy and I went crazy as I had just sent another tenant packing for the same violation. This guy OFFERED $250 a month more as that's what a similar place would cost him, but he was all moved in.

Then sounds all good if was not way above market rent.

Maybe contact your HVAC guy. If you use any central heatpumps.Pre purchase some. Should run about 2K for just the outdoor and indoor unit package for 2 tons.

I watch HD for their end of year Allure sale and buy a pallet.

Pave the driveways?

Add sidewalks?

Any roofs coming up? Buy the materials in advance.

Replacement windows? Buy in advance.

MrLL cruise? Pay this year.

Convention?

Seminars or courses?

Fly to Hawaii to check out that rental property you want to purchase... 55 cents a mile plus expenses.

Expensive tools...my kryptonite.

Dan/NY. In this case that is not true. We are talking the HEALTHCARE subsidies and the Ocare Cliff.

WMH- I know exactly what you’re talking about, we are in the same boat! Our subsidy is around $15,000. I’ve soent $30K this year on the rentals and I’m hoping it’s enough.

W,

I’m with Ken. A refund would be a slap in the face “I’ve been cheating you this whole time”. My Landlordy Sense is feeling a NoGoodDeedGoesUnpunished about to rise up. He’ll want to be paid for those repairs and man would this look bad in court!

If I remember you set this as a PuppyFee. It’s not longer a puppy so I’d convert him to regular pet rent

I suggest Lowes/HD/Amazon gift cards which can deducted in this year and be spent later.

Gifting to family?

I’m not a tax or Ocare expert but with your size business it seems odd you are not itemizing. Vehicles, repairs, equipment, tools, seminars...I’d get a second opinion on that. I’ve had lazy accountants in the past.

$25k is less than we spend in a year on healthcare. We’re the same age. Another reason I don’t want the govt supervising my healthcare.

One by one I’m hearing from Dem friends who were enamored by Ocare but are now being burned by it. My brother sold a rental to pay bills and had to pay $7000 back to Ocare, wiping out most of his profit.

Consider placing the entire property into a CRT and name a cause that is near and dear to you.

What is your usual pet rent/fee? I charge a $250 initial fee and $25/month.