I had a meeting with my insurance agent the other day for reviewing my
homeowner insurance policy. I was informed under the policy, tools are
insured in the home or in my truck but not in any of the rentals. He also
indicated addition coverage for tools would be costly and is also why
contractors don't have tool coverage either. Wonder if I could get
reasonable additional coverage elsewhere for landlords?
# Fred # wrote:
> "Upscale" <[email protected]> wrote in message
> news:[email protected]...
> >
> > "# Fred #" <[email protected]> wrote in message news:-
> >> indicated addition coverage for tools would be costly and is also why
> >> contractors don't have tool coverage either. Wonder if I could get
> >> reasonable additional coverage elsewhere for landlords?
> >
> > If you use the tools at all for repair for tenants, then technically,
> > they're tools for business purposes and likely covered under the same or
> > similar policy that a contractor would use.
> >
> >
>
> I could see this point which is the same as my insurance but IRS consider
> rentals as an investment as Schedule C is not permitted.
That doesn't sound quite right. Since however that is the advice you
have been provided, know that the IRS does consider a maintenance
company to be a business. Set up a separate business entity and have
that provide maintenance services to your rental properties.
AMW
On 31 Dec 2006 14:54:46 -0800, "A.M. Wood"
<[email protected]> wrote:
>
>That doesn't sound quite right. Since however that is the advice you
>have been provided, know that the IRS does consider a maintenance
>company to be a business. Set up a separate business entity and have
>that provide maintenance services to your rental properties.
Right on.
There is a lot of great reasons to do as AM writes...
"Upscale" <[email protected]> wrote in message
news:[email protected]...
>
> "# Fred #" <[email protected]> wrote in message news:-
>> indicated addition coverage for tools would be costly and is also why
>> contractors don't have tool coverage either. Wonder if I could get
>> reasonable additional coverage elsewhere for landlords?
>
> If you use the tools at all for repair for tenants, then technically,
> they're tools for business purposes and likely covered under the same or
> similar policy that a contractor would use.
>
>
I could see this point which is the same as my insurance but IRS consider
rentals as an investment as Schedule C is not permitted.
"# Fred #" <[email protected]> wrote in message news:-
> indicated addition coverage for tools would be costly and is also why
> contractors don't have tool coverage either. Wonder if I could get
> reasonable additional coverage elsewhere for landlords?
If you use the tools at all for repair for tenants, then technically,
they're tools for business purposes and likely covered under the same or
similar policy that a contractor would use.
On Sun, 31 Dec 2006 23:03:39 GMT, B A R R Y <[email protected]>
wrote:
>
>There is a lot of great reasons to do as AM writes...
There ARE!!!! <G>
I am not from Compton.
Sorry...
"# Fred #" <[email protected]> wrote in message
news:[email protected]...
>
> I could see this point which is the same as my insurance but IRS consider
> rentals as an investment as Schedule C is not permitted.
>
The property is an investment, and if you rent it out it is also part of a
business.