Fergus owns a rental property. Instead of hiring contractors he does all of the property maintenance and repairs himself, keeping careful records. Which one of the following amounts is not a deduction for tax purposes?
A)$700 for shrubs and flowers.
B)$250 for bookkeeping services.
C)$400 for lumber, paint and hardware.
D)$500 for his labour (50 hours @ minimum wage of $10 per hour).

Question

Quizplus · Accepted Answer

The cost of Fergus's own labor is not deductible for tax purposes. While direct expenses for materials and services (like landscaping, bookkeeping, and building materials) are typically deductible, the value of an owner's personal labor on their property is not.

Fergus Owns a Rental Property