Orchard Park, NY · Member since 2012 · 82 posts · 1 vote
How would such a thing work? I've heard that if you make repairs to the property that you can claim exemptions on taxes and get the a percentage of the repairs back come tax season?
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
13y
My strong recommendation is that you work with your CPA to sort this out. I do that even for my rentals. When you have an owner occupied multiplex, it gets even more complex. But yes, I believe that is correct. If you make repairs to your unit, you cannot deduct those. If you make the same repair to one of the rental units, you can deduct those.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
13y
Your residence? No. Repairs are not deductible. Capital improvements add onto your basis, decreasing your gain when you sell.
Rentals? Yes, Repairs are deductible. Capital improvements add onto your basis for a rental, too. That increases your depreciation. Capital improvements increase your basis, depreciation reduces it, so, there is an effect on gains when you sell, but hard to say exactly what that is without knowing exact numbers. An exception is that if you buy a property and have to make repairs to get it rent ready, those add to your basis, too, rather than being immediately deductible.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
13y
My strong recommendation is that you work with your CPA to sort this out. I do that even for my rentals. When you have an owner occupied multiplex, it gets even more complex. But yes, I believe that is correct. If you make repairs to your unit, you cannot deduct those. If you make the same repair to one of the rental units, you can deduct those.
Orchard Park, NY · Member since 2012 · 82 posts · 1 vote
13y
Well I took your guys advice and spoke w/ my CPA on this, and he said that he knows all this good stuff and is willing to work with me on it... so thats one less thing I need to deal with. Just have to make sure I keep all receipts.