Closing early January 2016. Tax consequences
Hello,
I will be closing on my first rental property on January 5th. The house needs numerous small "repairs" that we are planning on completing in the first few days of owning it. Most of these items are small like replacing broken water shutoff valves, replacing some broken outlets, adding GFCI outlets where necessary, replace broken smoke detectors, etc.
The seller is giving me permission to advertise the property for rent prior to closing next week. I plan on listing if for rent and making the repairs ASAP. My intent is a tenant could move in anytime after my closing.
1.) Does it affect how I can write off these expenses on my taxes if I purchase them before my closing?
2.) Can these small repairs be listed as repairs (not depreciated) based upon my scenario?
3.) Any problems with me listing the property prior to owning it from a tax perspective (especially spanning over 2 calendar years)? Please note that I have checked with the city rental license department and it is allowed to list the property for rent and fill the unit as long as I apply for the license on the date of closing.
Thanks,
Nick