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Updated over 7 years ago on . Most recent reply presented by

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Justin Jaeger
  • Grand Rapids, MI
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Rehabbed property Aug-Dec 2017/1st rent Jan 1 Get accountant now?

Justin Jaeger
  • Grand Rapids, MI
Posted

Hi there,

So I bought a new primary residence in August 2017. We spent 4 months and about $25,000 making the basement a rental unit. We have 2 tenants who made a deposit in December, but they moved in and started paying rent in January. 

My question(s): Should I get an accountant to file our taxes this season? Can we deduct the expenses/depreciate anything yet, since it wasn't in service until January 1?

All the work was done and money spent in 2017, but service on the unit didn't start until 2018. Does that complicate things at all? Can I enjoy tax benefits this season? I have not contacted any potential accountants yet, as I'm sure they would tell me I should hire them now, whether or not I "need to" at this point

Thanks for any guidance in this area!

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