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Updated over 4 years ago on . Most recent reply

Cost seg before major repairs or after on new purchase
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

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?