Property repairs before tax season is over

[Lucas Rowell]

Hello and good day BP family I hope you are having a great start to your day!

As the year is coming to an end I am looking at some maintenance projects that I would like to do on our investment properties.

-Are there any limits to write offs on maintenance done to investment properties?

-If we put in a new a/c or repair or put up new fence, etc can be reduced from taxable income?

-Are there some things that you do throughout the year with your properties that allow you to better manage your end of year tax realization?

Just looking at ways to reduce tax burden while improving the assets that are helping us to build our net worth.

Thank you kindly for any insights! :)

Cheers

Lucas

[Cameron Tope]

@Lucas Rowell this is the planning every real estate investor needs to be doing!

I'm not a CPA but have used the same tax planning to reduce my taxable income. 

To answer your questions: 

• There's no limit I'm aware of for maintenance but if you start having $1,000 cleanings once a month until the end of the year that will throw up a flag...
• Yes, all your improvements will reduce your taxable income either through depreciation or accelerated cost segregation (google it). 
• The best thing to do throughout the year to better manage your tax liability is to do exactly what you're doing every quarter or mid-way through the year - make a plan by looking at the numbers. How much is your income, expenses, etc. 

Again, it's awesome to see investors that are tax planning because there's nothing you can do to reduce your taxes (besides lie) after the year ends, it all has to be done upfront. 

Best of luck!