Investor · Chattanooga, TN · Member since 2015 · 6 posts · 2 votes
Hi everybody,
My husband and I purchased our first property this summer--a triplex--and we live in one of the units. I've been gathering tax documents and I'm a recent accounting grad, so my plan is to assemble as many things as possible and find someone to look over my work before I submit it to the IRS. I want to learn as much as possible about the process along the way so I can be more self-sufficient in the future. Would you be willing to look over my work and teach me? Obviously I expect to pay for the help and counsel, though hopefully less than if I simply dropped off a box of unorganized paperwork...
As a related and maybe simpler note, how do you all figure out depreciable base and total depreciation for the year if I live in 1/3 of the property and can only depreciate 2/3? Our intention is to live in this place for a few years and then rent out all three units.
Investor · Chattanooga, TN · Member since 2015 · 6 posts · 2 votes
9y
@Taylor Brugna which parts of the closing costs/acquisition costs can I deduct immediately, and which parts need to be added to my depreciable base? Do you know of a handy guide for that?
CPA · New York, NY · Member since 2016 · 203 posts · 132 votes
9y
Heather Moreland check out IRS publication 551 as a guide if you need some bedtime reading. Most costs associated with getting a loan are amortized over the life of the loan (appraisal fees, credit report, etc). Closing costs like legal fees, settlement charges,title, home inspections are added to basis.
Good luck!