Dear Liz: I am the sole owner of the apartment. I'm getting ready to fulfill my dream of traveling the world. I will be gone indefinitely. Therefore, I am thinking of renting my apartment. I know I will get a write-off for unit repairs, cleaning supplies, etc. What about a storage unit where I will need to store my stuff from my unit. Can I write off a storage unit?
Answer: Congratulations on your next adventure! You'll have enough excitement without defending yourself in an IRS audit, so avoid deducting personal expenses like a storage unit.
The IRS says you can deduct “ordinary and necessary” expenses for managing and maintaining a rental property. This includes mortgage interest, taxes, operating expenses, depreciation and repairs.
“If the storage unit is used in conjunction with rental activity, such as storing maintenance supplies to do work on the rental property, it may be possible to justify a deduction,” says Mark Luscombe, principal analyst at Wolters Kluwer Tax & Accounting.
However, you won't be there to do the work, so the volume discount won't work.
Dear Liz: I am 85 years old and have been living (unmarried) with a man since about 1977. We have always filed our tax returns separately and now collect Social Security. I have been told that when one of us dies, the other cannot collect the deceased's benefits. We have been thinking about getting married and would like to know if there is a time arrangement.
Answer: Generally, you must be married for at least nine months to be eligible for Social Security survivor benefits. Keep in mind that the survivor will only collect the larger of the couple's checks; The smaller interest goes.
So marriage can benefit those with lower incomes financially, and give those with higher incomes peace of mind, knowing that their lower-income partner will receive the greater benefit. Marriage has a number of other financial and legal benefits, including the ability to make decisions on behalf of your spouse in the event of her incapacity.
However, marriage will end your ability to collect a divorced spouse benefit from an ex-spouse. If either of you has been married before and the marriage lasted at least 10 years, see if you qualify for a greater benefit based on that partner's work record. If your ex-spouse dies, you may be eligible for Divorced Survivor's Benefit. Unlike divorced spouse benefits, divorced survivor benefits do not end when you remarry as long as you are 60 or older when you remarry.
Dear Liz: I have a credit score of 834, with three credit cards. I have no debt and no annual fees. I'm considering closing one of my cards and replacing it with one available through my credit union. Is it worth the hassle?
Answer: Closing accounts will not help your credit score and may hurt it. If there is no compelling reason to close the card, you may consider leaving the account open and using the card occasionally to prevent the issuer from closing it.
You may also want to rethink your stance on annual fees. These days, a few cards with no annual fees offer rewards, while many cards offer rewards in excess of their fees. If you're new to the world of rewards cards, consider getting a simple cash back card. If you're interested in travel benefits, look for a card that gives you points you can transfer toward frequent flyer programs.
If you are determined to close the account and open another, apply for the new card first as closure may cause your score to drop.
Liz Weston, Certified Financial Planner®, is a personal finance columnist for NerdWallet. Questions can be sent to her at 3940 Laurel Canyon, No. Box 238, Studio City, CA 91604, or by using the “Contact” form at Asklizweston.com.
