Investment property renovation tax deductions?

Question

If you buy investment property then immediately renovate before renting out. Can you write off any and all expenses incurred from the renovation?

Ashish Acharya · Answer

Most of those costs have to be capitalized and depreciated. You can convert some of those expenses into operational expenses and deduct if you plan your timing correctly.

Natalie Kolodij · Answer

Most of the costs will be added to the bais.

There are some things you can potentialyl break out so make sure you have separate costs for materials/labor for:

Land improvements, paint, flooring, appliances, blinds- there are few other more specific as well

A good REI Tax Strategist can help ensure you get the most benefit from your renovation

Investment property renovation tax deductions?

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