Business write off on new garage build for rental LLC

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  • Will Fraser
    Real Estate Broker · Salt Lake City & Oklahoma City · Member since 2018 · 3k+ posts · 2k+ votes
    6y

    HI @Richard Patrick; welcome to the BiggerPockets forums!  The answer to this is going to have a lot of intricacies to it and I would highly suggest running anything like this by your CPA.  That's what they get paid to know and be able to apply, and if you don't have a savvy CPA, then kick them to the curb and get a better one -- I've upgraded mine for the past two years and it's reducing my stress and optimizing my business.

    Be well,

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  • Richard Patrick
    OP
    Member since 2020 · 2 posts · 0 votes
    6y

    Ok Great thank you, I asked and he said no but did not explain but I will have to ask another tax person to explain why for Kentucky. Thank you,

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  • James De Stefano
    Real Estate Agent · Houston, TX · Member since 2017 · 292 posts · 233 votes
    6y

    I would lean towards NO for bus. expense unless you can some how prove how it's related to said business.  I am far from an expert though, go the CPA route as mentioned above 

    0Reply
  • Jesse S.
    Rental Property Investor · Washington, DC · Member since 2018 · 24 posts · 0 votes
    6y

    @Will Fraser How did you find your CPA and how much do they charge? Feel free to DM me. 

    Thank you

    0Reply
  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    6y
    Originally posted by @Richard Patrick:

    Ok Great thank you, I asked and he said no but did not explain but I will have to ask another tax person to explain why for Kentucky. Thank you,

    That does not make sense - you are working with an accountant and he said no. If you ask why, he should explain why.
    Alternatively, you can ask him "how would I make it deductible".

    [email protected]917-280-8544
    Basit Siddiqi CPA4.979 Reviews
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  • Christopher B.
    Investor · Southeast, MI · Member since 2016 · 425 posts · 184 votes
    6y

    Why would this be expected to be a business expense? Is it related to Business somehow? Best case, it would be depreciated over years, not within the build year.

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