Good evening BP,
I am in the process of submitting a purchase agreement for a 4 unit home that I will hopefully be house hacking. Since we are approaching the end of the year, the closing date is variable and can fall in late December or early January. The title of this thread boils it down to the last and first day of the year for clarification purposes.
I think that buying on January first would be better as you have more expenses during closing that can be written off of the entire year's income, hence reducing taxes.
The only benefit for me (in my situation) to close in December would be that I and trying to display some rental income on my taxes in order to get me a year closer to the standard that banks use to determine if rental income can be included in your DTI ratio. If I show income in 2017, then I am one year closer to the 'two year landlord experience' status. Closing in January I would first show rental income in 2018.
It probably really all boils down to personal goals and situations, but would like to hear opinions from folks if there are any other pros or cons to consider.
After reading this the first thing I thought about was this decision is basically just days apart. What I mean by that the days are so close that, does it even matter cause it's so close to the end of the year and new year.
I could be wrong but that's just my opinion. Good luck!
This is a very good question; I would love to see some more replies from the more experienced BP crowd.
Congrats and good luck
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing