Are Tax Deed Properties able to be depreciated on Tax Return ?

4 Replies

I have a number of Tax deed properties are the able to be depreciated on tax return ? 

Can you include cost to make properties live able for renting ? 

Any information 

on this conversation would be appreciated

Thanks and Blessings to All !

@Jeff Spahn Tax deed houses are not treated any differently on your taxes.

You can depreciate it same as a house with a general warranty. You can also write off expenses to fix up the property to rent it out. Must must also declare rental income and pay tax on it.

There is no difference as far as taxes are concerned.

To receive maximum price on resale, or to borrow money against the, you will have to quiet title.  You can always sell on a quitclaim for a less than retail price to an investor who will take the risk that redemption will not occur. Or, you can sell on a contract for deed and a promise of a quitclaim, but refund some of the money if redemption takes place.

Great information, I knew you could sell them to another investor But didn't think about Selling with a payback if redeemed, 

 Most of my Tax Deeded properties are 3 to 5 year seasoned as a Deeds. The properties were vacant  and needed to be totally rehabbed  so the redemption cost and cost of Taxs,Ins. / Rehab would be more than the value of the property 

Thanks for your Professional Expertise Denise !