Buying a refrigerator and tablet for my first rental property.

Tax, SDIRAs & Cost Segregation
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Buying a refrigerator and tablet for my first rental property.

Kevin Lanphear
Rental Property Investor · Acworth, GA · Member since 2020 · 70 posts · 25 votes

I do not have an LLC and I am planning to buy a tablet to use for managing and a new refrigerator for my first new construction rental property which closes in late January.

If I buy them both before my house closes in January, will I be able to write them off at rental property expenses?

If not, then what should I do?

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Bill HamptonBusiness Member
Accredited Investment Fiduciary, AIF®, Financial Planner, Tax Strategist, Real Estate Investor · Atlanta, GA · Member since 2012 · 2k+ posts · 977 votes
5y

Kevin, 

Based on your profile it appears you already own one rental.

You can buy the tablet now, use it in your business this year, and deduct the tablet as a business expense without having an LLC.

I recommend buying the refrigerator after you have closed on the new property, advertised it for rent and have a signed lease.

Good luck and let me know if you have any questions. 

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  • Bill HamptonBusiness Member
    Accredited Investment Fiduciary, AIF®, Financial Planner, Tax Strategist, Real Estate Investor · Atlanta, GA · Member since 2012 · 2k+ posts · 977 votes
    5y

    Kevin, 

    Based on your profile it appears you already own one rental.

    You can buy the tablet now, use it in your business this year, and deduct the tablet as a business expense without having an LLC.

    I recommend buying the refrigerator after you have closed on the new property, advertised it for rent and have a signed lease.

    Good luck and let me know if you have any questions. 

    404-482-3170
    Hampton Tax and Financial Services LLC4.7106 Reviews
    WebsiteView Page
    2Reply
  • Kevin Lanphear
    OP
    Rental Property Investor · Acworth, GA · Member since 2020 · 70 posts · 25 votes
    5y

    i do not own a rental property yet, but my first one is closing late Jan.... so basically i cant write off the tablet?

    0Reply
  • Teri Feeney Styers
    Real Estate Agent · Grand Junction, CO · Member since 2015 · 1k+ posts · 736 votes
    5y

    @Bill Hampton what if @Kevin Lanphear buys the tablet with a credit card this year but pays the bill in January? That's how I handle my month to month business credit card bills. And Kevin - be sure to have a credit card you use ONLY for business purposes... 

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  • Kevin Lanphear
    OP
    Rental Property Investor · Acworth, GA · Member since 2020 · 70 posts · 25 votes
    5y

    thanks yeah, well i would use a personal CC for things that pertains to the rental property. If I only make a few purchases a year it would be very easy to notate and keep track with receipts for taxes at end of year. Why use strictly a business only CC? @Teri Feeney Styers

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  • Teri Feeney Styers
    Real Estate Agent · Grand Junction, CO · Member since 2015 · 1k+ posts · 736 votes
    5y

    @Kevin Lanphear you want to keep all your bookkeeping as segregated as possible for a number of reasons - co-mingling isn't a good way to start out. You will want a separate checking account too. This is your business and you need to treat it that way. You don't want to be writing checks to yourself for reimbursements. Why not have a business account with a linked business credit card that you can pay directly from the account? You might find you use the credit card more than you think you will and this would make transactions clean and transparent. Talk to your CPA about your business set up right from the start. 

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  • Kevin Lanphear
    OP
    Rental Property Investor · Acworth, GA · Member since 2020 · 70 posts · 25 votes
    5y

    I will be using Mynd Property Mgt for handling rent/mktg/mgt/finances/etc... so I would just have the net rent checks sent to my personal and at end of the year they provide me with all the income/exp reports so its easy math to type into the schedule E for taxes.... am I not on the right path?

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  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    5y

    @Kevin Lanphear

    You mention that you have a property that you purchased in October 2020. Is this accurate? If it is, you may be eligible to deduct items in your real estate business.

    Why would you buy a fridge before you close on the house? where would you even put it?

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  • Kevin Lanphear
    OP
    Rental Property Investor · Acworth, GA · Member since 2020 · 70 posts · 25 votes
    5y

    Sorry no it wont allow me to select a date in the future so I chose October. The property wont close until late Jan 2021. I guess the day I close, will be the day I purchase the new fridge because we might fill a tenant within a week.

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