What tax benefits do I get if I buy and fix an abandoned building

[Andrew Giunta]

I am looking at an 8 unit abandoned building that is dirt cheap and it is completely boarded up. I would be fixing everything and then renting out the property. I read a while ago that there were tax benefits to restoring an unusable property to a state of use. What are those benefits? What major things can I write off and not write off when doing this? Thanks so much!

[Wayne Brooks]

If it’s not in some special historic or other rare special incentive zone, not much.  Your repair and renovation costs simply get added to your purchase price and depreciated, mostly over 27 1/2 years.  Your carrying type costs....insurance, utilities, property taxes, etc. can be deducted as expenses, as you go.