First Property, Year 1 tax question

[Joe DeLuca]

Hi all, I’ll be closing on my first property within the first weeI of November, an owner occupied triplex. Assuming it takes me a month or two to get ready and tenanted, I may get a months worth of rental income. I’m wondering if it’ll be worth it to itemize deductions for my 2018 taxes or Just take the Standard Deduction. I typically just have W2 income (~$60k w2 income) Also Assuming, the following: - About $5k make ready costs initially for the rental units - About $14k down, $7k in closing costs.

[Ashish Acharya]

@Joe DeLuca, 

I know exactly what you are asking and where the confusion is. 

The rental activity has nothing to do with itemize deduction or standard deduction. 

The rental activity is reported in your schedule E, it is not an item that’s Jan included in the itemized deduction. The rental activity will not increase or decrease your itemize deduction.

If you understand that,

You do have to report the expenses that’s are related to your rental because, it might offset your W-2 income this year and Save you some tax.

If you are still confused, let me know, we can have quick chat.