 Tax Questioj? (by Dave [MS]) Jan 17, 2022 5:38 AM
 Tax Questioj? (by MC [PA]) Jan 17, 2022 6:09 AM
Tax Questioj? (by myob [GA]) Jan 17, 2022 6:33 AM
Tax Questioj? (by Ray-N-Pa [PA]) Jan 17, 2022 7:51 AM
Tax Questioj? (by Busy [WI]) Jan 17, 2022 8:40 AM
Tax Questioj? (by plenty [MO]) Jan 17, 2022 9:04 AM
Tax Questioj? (by gevans [SC]) Jan 17, 2022 9:09 AM
Tax Questioj? (by myob [GA]) Jan 17, 2022 9:48 AM
Tax Questioj? (by Dave [MS]) Jan 17, 2022 8:29 PM
Tax Questioj? (by Dave [MS]) Posted on: Jan 17, 2022 5:38 AM
Message:
Hello everyone,
Small time LL here. I have one rental in my small rural town. I did a 6K worth of remodeling last year to my SFH. Improvements were flooring, painting, and replaced a heat pump. Can I deduct this as a repair and expense it out for the 2021 tax year? Sorry no CPA available close to my home town. Thanks and keep the rent rolling in......... --68.255.xx.xxx |
Tax Questioj? (by MC [PA]) Posted on: Jan 17, 2022 6:09 AM
Message:
Improvement or repair? I claim all my repairs. The only things that are depreciated for me are roofs, septic and the actual building. --73.230.xxx.xx |
Tax Questioj? (by myob [GA]) Posted on: Jan 17, 2022 6:33 AM
Message:
this is a current rental? if so take it.
If it's not take it anyway. --99.103.xxx.xxx |
Tax Questioj? (by Ray-N-Pa [PA]) Posted on: Jan 17, 2022 7:51 AM
Message:
Was it a rental before the improvements?
There are some words that you are using that I don't like hearing.
Repairs are fully deductible as an expense. Improvements get depreciated.
--24.101.xxx.xxx |
Tax Questioj? (by Busy [WI]) Posted on: Jan 17, 2022 8:40 AM
Message:
Get some tax books ( deductible expense for the year you buy it.) I've been recommending NOLO PUBLISHER's Landlord tax book, but another poster has mentioned JK Lasser's tax books. I think i'm going to see which of their's most applies to landlords and order that.
That you already have rent rolling in is important. Don't get lost in all of the depreciation stuff. Some things will be depreciated, thats not necessarily a bad thing. So much depends upon your individual situation. You'll learn a lot from the books. And, you'll have more questions.
I'd also recommend using a tax software program to walk you through it. Many good ones out there, BUT, if you think the software did something wrong, contact the company. They'll have patches. Each year!
Most important is keeping documentation. Keep your receipts in a cool dry place. As you get more properties, consider scanning receipts, storing in the cloud. Most receipts are on heat-paper. Leave them in a hot car and they will fade.. --70.92.xxx.xxx |
Tax Questioj? (by plenty [MO]) Posted on: Jan 17, 2022 9:04 AM
Message:
Drive to where there is a tax preparer. Spend the day and over night. It's also a business expense. And you'll get the answers. The question is was it rented during this time? --172.58.xxx.xxx |
Tax Questioj? (by gevans [SC]) Posted on: Jan 17, 2022 9:09 AM
Message:
When I do flooring, painting, and REPLACING heat pumps, they are not improvements. They are REPAIRS. I'm replacing those items, not upgrading and making IMPROVEMENTS.
You must be careful in your language, it has legal implications.
As Plenty said, take a drive or flight to a place with a tax preparer. I'd make it a nice place with luxury motel and a show. LOL It is a tax deduction to travel to your tax preparer. --69.80.xx.xx |
Tax Questioj? (by myob [GA]) Posted on: Jan 17, 2022 9:48 AM
Message:
If your purchased property was not your rental and you put improvements or what ever you want to call it into the unit-- its added to the cost base of your purchase.
So if you paid 125K January 2022 and have put in 50K to fix up and make livable-- that 125+50 give you your baseline for 27 year depreciation. This is why you need to be cautious how much fix up you do-- its not deductible like a normal repair on an existing unit the year you do it. --99.103.xxx.xxx |
Tax Questioj? (by Dave [MS]) Posted on: Jan 17, 2022 8:29 PM
Message:
Wow! Thanks for all the great answers. I have owned thie property for 10 years. A tenant moved out last June and I did the updates in JUly. I rerented it in late August. Thanks --99.102.xx.xxx |
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