Rookie investor needs advice on tax question

Boston, Massachusetts
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Rookie investor needs advice on tax question

Bill Burkhead
Investor · MA · Member since 2023 · 48 posts · 12 votes

Hi everyone,

Very first property and need some help/advice. Bought a property in late August and have been fixing it up. Won't be ready for mid-term rentals until after Jan. 1 (new tax year). We've spent some good $ on prepping the place. Can we write off the money we spent prepping the property (paint, new furniture, etc) this year on next years rental income? thank you very much!

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  • James CarlsonBusiness Member
    Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes
    3y
    Quote from @Bill Burkhead:

    Hi everyone,

    Very first property and need some help/advice. Bought a property in late August and have been fixing it up. Won't be ready for mid-term rentals until after Jan. 1 (new tax year). We've spent some good $ on prepping the place. Can we write off the money we spent prepping the property (paint, new furniture, etc) this year on next years rental income? thank you very much!

    Definitely reach out to a CPA for that, but... I don't know why you couldn't write them off. You'll just show a loss on that property since all you have is expenses and no income. 

    Interested to hear from others. 
    [email protected]720-460-1770
    James Carlson Real Estate
    WebsiteView Page
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  • Bill Burkhead
    OP
    Investor · MA · Member since 2023 · 48 posts · 12 votes
    3y

    Thank you James. 

    0Reply
  • Margo Sultenfuss
    New to Real Estate · Boston, MA · Member since 2021 · 13 posts · 3 votes
    3y

    Hey Bill - when I was preparing my original rental, I ran into a rule after the place which I wish I had known about but you can write off a certain amount of prep work, but the work needs to be done prior to you listing it on the market for rent. Double check with a CPA, of course and dig into that. Maybe the rules have changed but that was an interesting learning.

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  • Bill Burkhead
    OP
    Investor · MA · Member since 2023 · 48 posts · 12 votes
    3y
    Quote from @Margo Sultenfuss:

    Hey Bill - when I was preparing my original rental, I ran into a rule after the place which I wish I had known about but you can write off a certain amount of prep work, but the work needs to be done prior to you listing it on the market for rent. Double check with a CPA, of course and dig into that. Maybe the rules have changed but that was an interesting learning.


     Thank you so much Margo, very much appreciated! 

    0Reply
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