IRS Tax Write Offs

8 Replies

Hello All,

The right to redeem a property I purchased ended 9.3.15. I have served all interested parties and advertised the barment. My tax deed covered 2009-2013. I just recently paid 2014&15 back taxes.

My plan is to rent the property.

What can I write off in regards to the IRS? What publication should I read?

I am in Georgia.

Thanks in advance!

If the property is ready to rent, then your basis in the property is going to be the amounts you paid for the tax liens, plus amount to get clear title such as attorney fees or whatever else is involved.

If it's not ready to rent, then expenses incurred to make it ready to rent will also be included in the basis.

For an understanding of what's deductible, go to the IRS website and take a look at the Schedule E.  That is a great list of what you'll be able to deduct.  Once you've done that, if you've got additional questions feel free to post then.

All do those costs seem to be part of your acquisition, or cost basis.  None of them seem to be able to be written off//deducted as "expenses".  Obviously, a CPA is your best bet.

Originally posted by @Linda Weygant :

If the property is ready to rent, then your basis in the property is going to be the amounts you paid for the tax liens, plus amount to get clear title such as attorney fees or whatever else is involved.

If it's not ready to rent, then expenses incurred to make it ready to rent will also be included in the basis.

For an understanding of what's deductible, go to the IRS website and take a look at the Schedule E.  That is a great list of what you'll be able to deduct.  Once you've done that, if you've got additional questions feel free to post then.

Thanks...

I guess I am still confused as I can't seem tho get the danger response from two people.  I will take a look at the Schedule E tonight.


Originally posted by @Linda Weygant :

If the property is ready to rent, then your basis in the property is going to be the amounts you paid for the tax liens, plus amount to get clear title such as attorney fees or whatever else is involved.

If it's not ready to rent, then expenses incurred to make it ready to rent will also be included in the basis.

For an understanding of what's deductible, go to the IRS website and take a look at the Schedule E.  That is a great list of what you'll be able to deduct.  Once you've done that, if you've got additional questions feel free to post then.

Originally posted by @Joe Mclain :

You can write off all expenses related to getting the property rent ready, advertising, mileage, fees to the court, etc.   Best of luck

Joe

 This is not necessarily true. If this is your first property, those expenses are capitalized. Same goes for properties in a new geographic location.