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

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Damian Howard
  • Wilmington , Delaware
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Tax Question regarding went to file

Damian Howard
  • Wilmington , Delaware
Posted

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? 

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Jon Holdman
  • Rental Property Investor
  • Mercer Island, WA
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Jon Holdman
  • Rental Property Investor
  • Mercer Island, WA
ModeratorReplied

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.

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