Best Way to Purchase a Rental Property
Hello everyone,
I am closing on my first property in Elk River, Minnesota and I am wondering if the purchase of the home itself can be considered a tax right off. I know once it is purchased it follows the rules of deprecation, but can the initial down payment on a conventional loan be considered a tax deduction since the property is necessary to conduct the rental property business. Any help is appreciated. Thank you everyone.
Most Popular Reply
@Travis Hargreaves It's a great idea to meet with a real estate related CPA when you purchase a rental property. In fact, a house hack is more complicated to set up propertly than a full on rental. I would recommend you meet with @John Woodrich. He is a successful investor, CPA with a master's in tax and specializes in working with RE investors.
You will have a few deductions depending on how your lender structured the loan it's possible you can right of some of the fees, especially if they are listed as % of the loan amount not if they are a flat fee. Again, check with John on specifics he can help you get started on the right foot.