Rental expenses allowed? (by George [VA]) Jul 14, 2019 10:51 PM
Rental expenses allowed? (by fred [CA]) Jul 14, 2019 11:27 PM
Rental expenses allowed? (by Robert J [CA]) Jul 15, 2019 12:05 AM
Rental expenses allowed? (by David [NC]) Jul 15, 2019 6:48 AM
Rental expenses allowed? (by S i d [MO]) Jul 15, 2019 9:31 AM
Rental expenses allowed? (by Busy [WI]) Jul 15, 2019 9:41 AM
Rental expenses allowed? (by George [VA]) Posted on: Jul 14, 2019 10:51 PM Message:
Hello,
I live in my primary residence. I bought a new house with intention of renting out my "primary residence" after I have moved and converting it into a rental.
I closed on new house June 27th.
The time from the Purchase and Sales agreement Offer to closing was 55 days.
Question:
Can I write off any expenses/repairs made on the house before June 27th? (Since I clearly intended to "rent" my primary residence?)
Thanks! --72.218.xxx.xxx |
Rental expenses allowed? (by fred [CA]) Posted on: Jul 14, 2019 11:27 PM Message:
Expenses made to improve a rental to fit its purpose can be deducted, and in my opinion even if they were made in preparation for renting, before it has actually been rented.
What are some of the repairs are you talking about?
To be sure, ask a CPA. --99.59.x.xxx |
Rental expenses allowed? (by Robert J [CA]) Posted on: Jul 15, 2019 12:05 AM Message:
Any monies spent on getting a rental ready, that you've never put in service as a rental, those expenses are added to your basis price and only deducted once sold. This is why when I buy a rental I make sure someone is still living there after the closing. Then monies spent on upgrades and repairs can be:
a) Written off
or
b) Depreciated --47.156.xx.xx |
Rental expenses allowed? (by David [NC]) Posted on: Jul 15, 2019 6:48 AM Message:
My understanding is anything done before it is actively marketed gets added to the cost basis and depreciated. The day I start actively marketing the property for rent, it gets expensed. Marketing for me consists of a zillow ad and a sign in the yard. My CPA seems fine with this. --65.188.xxx.xxx |
Rental expenses allowed? (by S i d [MO]) Posted on: Jul 15, 2019 9:31 AM Message:
According to everything I have heard and been advised by my CAP, David[NC] is correct. Expenses may be claimed immediately once the property is placed in service, in this case, the day it is advertised for Rent. As proof, you can take screen shots of online advertising that are date/time stamped.
For your current deal you need to add your expenses for repairs to your primary home to the cost basis and depreciate since the house has not yet been advertised for rent, at least not that you have told us. Basically, the second house you bought is just that...a second house...like a vacation home, until such time as you place it in service.
--107.216.xxx.xxx |
Rental expenses allowed? (by Busy [WI]) Posted on: Jul 15, 2019 9:41 AM Message:
NOLO PUBLISHERS has excellent books on taxes. Easy to understand, updates published online. Be sure to print out your receipt, this will be a START-UP cost of your business, or educational expense. As others here said, those costs to improve the house before it was ‘ready and available to rent’ go to the capital basis. However, I have to wonder, might those be able to come under the Safe Harbor limits? Acck!!Taxes make my head spin! --70.92.xxx.xxx |
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