Short term vs. Long Term Capital Gains

[Greg Kendall]

I purchased my 2 family property in March of 2017 and spent the following few months doing renovations, upgrades etc.  It wasn't until rented until Mid-August 2017.  My question is if I chose to sell the property today, will I be past the 1-year mark to be considered a long-term capital gain or is it based on when the property was put in "service" as my Tax form 4562 calls it aka rented out?

Thanks in advance!

[Jon Holdman]

For capital gains it depends on when you bought it.  The date you placed it in service affects capital vs. expense.  Most money you spend before its in service adds to your basis, which actually decreases your gain if you sell.  But that money cannot be expensed when it was spent but rather must be depreciated over multiple years.  Money spent after its in service may be immediately deductible as expenses.