Bought my first duplex
Hello all,
I'm closing on my first duplex tomorrow and have been reading a whole lot of the posts here. Very resourceful!
My first of many questions is: Do I even bother with the tax depreciation this year? I'll only own it for 15 days of 2016 and will show virtually no income from the property and will only be entitled to a very small percentage of depreciation. There are currently tenants in place, but myself and the seller will be splitting the rental income for the month, so I can show a whopping $700 of income!
Thoughts??
Thank you in advance!
Disclaimer - I am a CPA.
I would report your taxes correctly. Income, depreciation utilities etc.
You should have plenty of expenses to apply to your rental income from your closing statement. Prorated real estate taxes, fees, and potentially amortization of expenses over the life of the loan.
I would get into a habit of reporting everything correctly and keeping good records. It will also help you track profitability of your investment and becomes second nature before long.
Turbo tax works solid but always consult a CPA you trust if there are concepts that you are struggling with. When in doubt, ask.
Copy that. Thanks for the input!
