$600 Gas Bill Normal?
Is a $600 gas bill normal for January? We purchased a brownstone this fall, and this is our first winter owning it. The garden floor is occupied, but the owner’s duplex is empty until our reno is complete. Heat is steam radiators with a Weil boiler at the end of its useful life. I’m wondering…
Is a $600 gas bill normal for January? We purchased a brownstone this fall, and this is our first winter owning it. The garden floor is occupied, but the owner’s duplex is empty until our reno is complete. Heat is steam radiators with a Weil boiler at the end of its useful life. I’m wondering how much savings I’d see with either a new boiler or better insulation, or whether this is just what it costs to heat a 3-story hundred-year old house. Advice appreciated!
Dave:
I just checked with a tax accountant:
The carrying cost of a multiple family house (heating) is deductible. When the house is new and you are preparing it for rental it is deductible. The same is true when you are between tenants.
You would only have a problem if you were to deduct the carrying costs and then fail to rent the unit for a unreasonably long period of time.
DIBS,
Your understanding is the same as mine (it is what we did) and, now that I reread Johnny, he was saying the same thing. I just didn’t want OP to think that the heating costs were not deductible at all, which was what I misread johnny to say. Sorry, johnny. OP, hope this is all clear to you now.
Our gas bill is about $100 a month just for non-heating (cooking gas for two apts. plus two driers) in our 4 story brownstone and oil is around $500 per month during the winter season, so I would think what you’re paying is not out of line.
slopefarm…those costs can be added into the capital base but they are not chargable against income unbtil there is rental income.
I haven’t checked with my accountant yet(2008 was my first rental year) but I’m pretty sure that if your income is above $150,000 you can’t charge off the accounting losses against it (there would be an accounting loss after mortgage and depreciation). I don’t think the $150k threshold has changed is what I’m saying.
I will post my gas bills for last year if i remember to look them up when I go home tonight. Mine is 2,500 sq. ft. My Jan bill was $230 and Dec was $212.
you should consider paying a flat monthly all year long. also, insulate every wall and get the best windows you can afford.
I don’t think Johnny’s quite right. Check with your accountant. You may be able to offset costs associated with a rental unit even if a tenant is not yet in. If you are working on a rental unit in order to rent it out later, the renovation costs and carrying costs may be chargeable against income. You may not realize the costs until you have rental income, but keep good track of them all the same.
I have a six unit, 3 story, about 4600 sf total, and it only cost about 300 last month for the entire building. I feel like the bill you paid was way too high but maybe I’m just lucky. My building is 105 years old.
If you’re heating the non-occupied space as well, would seem comparable to my 3-story. Deductible when you’ve got your tenants in but one of the downsides of owning a brownstone I admit.
check post ‘cost ofmonthly heating’ 5-6 days ago