Home Repairs & Tax Write-Offs

[Matt Lawrence]

Hey everyone, I'm new here & couldn't really find the answer to my question(s) so hopefully I can get some feedback/pointed in the right direction.

Me & my friend recently started a company buying homes to lease to future tenants. We recently bought our 2nd house in mid December & have done a few repairs with a couple more to be done in the months to come. What I want to know is if we put $2k in repairs in Dec 2012 & find our tenants in Jan 2013 where we begin to show profit, is that possible to show as a write-off for 2013 or more years to come?

Does it matter what kind of repairs? Is there a difference in reporting plumbing, floor replacement or electrician work?

Thanks in advance for any & all feedback/advice - It's great to be here!

[Steve Babiak]

ALL of the pre-tenant repairs and improvements become part of the property basis, and as such become depreciated. Lots of threads already cover this, so try a search.

Expenses only occur once the property is in service. That is the way the IRS sees things ...