Tax day is upon me and I'm the idiot who who is waiting to the last minute to file the return, should of had a CPA ..My question is that I did a rehab and repair in the tax year 2016 but wasn't completed until the year 2017 and the property rented out in the year 2017, should I have entered the cost of the rehab/repair cost in the year 2016 tax return or should I have done the portion of the house that was done in 2016 against the 2016 tax basis?
All the money you spend before the property is rent-ready adds to the basis for the property and must be depreciated. So none (or little) of your 2016 expenditures would have been deductible on your 2016 taxes. Nor are those expenditures deductible for 2017. Most (but not all) money spent after its rent-ready is deductible.
Thanks Jon! I went back to look at my question and how titled it, sorry for the grammatics .
You say you should have used a CPA... well you still can (although you won't find a good one able to do your return right now).
If this is the way you want to go, file an extension and find a CPA after tax season is over.
Remember- you need to still pay the required taxes by the due date along with your extension. You could use the tax prep software you started with to calculate your tax liability based on the numbers you put in (this may not be the same number the CPA comes up with though, as it's likely something is overlooked).
But this way you are sure it is right in the end, and you are able to use a CPA.
Hope this helps!
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