Close before 12/31 or After? What makes most sense for taxes?

2 Replies

Hi Ryan,

First of all congrats on the triplex. That alone is pretty cool getting that under your belt. 

My thoughts regarding the closing date would be before year-end if possible. If you can get the deal closed before 12/31 and get it available for rent you are able to deduct your expenses in 2019 as opposed to waiting until 2020 to do so. You can put the building, furnishings, appliances, etc in service in the 2019 tax year and get those benefits right away. If your total income (W2 earnings, investment income, etc) is low enough you could potentially deduct these costs and offset reduce those other sources of income.

@Ryan Lane

Welcome to biggerpockets!

Congrats on your first real estate purchase.
There may be a benefit of purchasing it before year end if the property is in livable condition... but then again, it also depends on your tax profile. If you make too much money, you may not get a current benefit.

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