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Tax, SDIRAs & Cost Segregation

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Paul Winka
  • Rental Property Investor
  • St Louis, MO
70
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316
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Property in service, and how to deduct repair costs now?

Paul Winka
  • Rental Property Investor
  • St Louis, MO
Posted Nov 29 2016, 09:09

I just bought a house in my name that I intend to rent out. I paid $46K for it and closed on 14 Nov. It needs around $35K in repairs, and those repairs are ongoing now and should be finished by 25 Dec. I would like to write off the repairs to this house this year. The intent is to rent out this house. 

Is the house "in service" now, or can that only begin once a certain milestone is reached, such as attaining an occupancy permit or a lease start date? What could I do to deduct these expenses this year? 

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