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Updated over 4 years ago on . Most recent reply

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35
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Sanjay Sharma
  • Fullerton, CA
12
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35
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Cost seg before major repairs or after on new purchase

Sanjay Sharma
  • Fullerton, CA
Posted

I’m buying a 4 unit that will need bathroom (sinks, shower remodel), kitchen cabinets, appliances, flooring, paint, drywall. Maybe windows


Is it better t cost seg before repairs. I read on another post that if you do major repairs, those repairs can only get 27.5 yr depreciation. Doesn’t make sense to me

Most Popular Reply

User Stats

35
Posts
12
Votes
Sanjay Sharma
  • Fullerton, CA
12
Votes |
35
Posts
Sanjay Sharma
  • Fullerton, CA
Replied
Originally posted by @Yonah Weiss:

 best to do both on the acquisition and on the renovations.

I don't understand doing seg on both acquisition and on renovations.  details:  

1.  1031 exchange to buy this property

2.  LA property;  1.3 purchase;  I think 42% improvement (does that mean building is 1.3 x 42% = $546k?)

3. renovations ~ 80-100k; ARV 1.6

so, when I close later this month, cost seg in 2/2021?

After repair is done ~ 3 mos, do 2nd cost seg in 6/2021?

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