Tax deductions for first investment property purchase

[Doreen Hall]

Hi!

So I am set to close in first rental property- but wondering if it’s worth pushing to close in this tax year? Can I write off closing and associated costs in 2019 if I haven’t had any income from the rental yet?

Or does it make more sense to push it all to 2020 tax year?

Thanks for your input!!!

Doreen

[Michael Plaks]

@Doreen Hall

If the property is rent-ready - yes, the property will appear on your 2019 tax return. However, closing costs are not a tax deduction. It works in a much more complicated way. Your benefit might end up being very small or even nothing. 

On a related note, never move closings for tax reasons. Grab a deal while it is available, as soon as you can, and worry about taxes later. No tax savings will matter if you lose the deal by waiting.