I am in the process of purchasing a multi-unit apartment complex. We do not have a closing date yet. What are the tax advantages to closing at end of year or first of January? Does it matter?
I would say that it does matter heavily. Buying rental property usually helps give some initial expense write offs through the loss from closing costs and other initial expenses, so if you need the write off then I would do it this year. If you aren't showing much income for this year but probably will next year then I would wait.
I would recommend consulting a qualified accountant before doing any major transactions.
Can depreciation be deducted even though the property was only held for a few days in 2006?
I believe depreciation is factored proportionally to the time you own it. So if you only owned it for a month that year then you only get one twelfth of a years worth of depreciation.