Hello Bp Community,

I have a few questions maybe someone has an answer for. Disclaimer - I will seek a CPA for myself. 

Here is the important things to consider. 

1) I purchased a property early this year that will be my first rental property more than likely as a long term hold. This is an owner occupied live in rehab.

2) There are about 8-9k worth of repairs I will complete before March/ April of next year (2018)

I then plan to rent the property by July/ Aug

3) Improvements include - New Hvac unit, New roof, new floors, new paint

Would I be able to write off those repairs for repair expenses incurred during 2017? Or would it make more since to wait in Jan of 2018 since the property will actually be rented in 2018?

Thank for taking time to consider my post. 

Nope, you can't write them off, for 2017 Or 2018.  Any repairs/improvements made before the unit is ready/available for rent simply gets added to your basis, and depreciated accordingly.

@Wayne Brooks good to know! Thanks for the insight.

Are you sure, Wayne? I was under the impression that if you itemize your repairs you are able to bring forward the depreciation for those repairs through cost segregation. From what I have heard, using cost segregation you are able to depreciate certain repairs such as an AC system or new cabinets within 5 years from installation and up to a certain dollar amount per year (ex: $2500 per item per year). I believe this was discussed in the bigger pockets podcast with Amanda Han, a real estate CPA.

Doing cost segregation on a single family might be overkill. The cost of doing that probably outweighs the savings you'll realize for an SFR.

That may be true in some cases, Sung. However, if you save $5000 over 5 years in the short term, that's $5000 more that you will be able to reinvest in another property. I think it's worth it.