The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: jmr5x on March 07, 2016, 11:58:09 PM
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Let's say that I needed to purchase $1000.00 dollars worth of supplies to do a bathroom tile job at a rental. How would you handle the tax portion if the supplies were paid for by a gift card or in store credit? We will add to the scenario that the gift card was purchased for less than face value.
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I'm guessing the correct answer is to deduct the amount paid for the gift card? I would really like to save that extra 10% since the card was purchased for say 900$
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I think you are overthinking this. The amount deducted is the amount paid on the receipt for the purchase of the supplies.
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So if someone was to spend 10,000 on renovating rentals per year and paid for them exclusively with gift cards that were purchased for 20% discount they would be sitting pretty!