All Forum Posts by: Taylor Brugna

Lisa Landivar If you lived in the Wa home as a primary residence for at least 2 out of 5 previous years this becomes a non-issue, your gains are excluded. If it's less and the move was because of military relocation, you will have some other options as well. Hope this helps

Jim Cran De minimus safe harbor election allows for items under $2500 to be expensed. A $900 appliance purchase would qualify if you make this election.

James Bird Are you paying cash? It's more complicated than just the purchase price, certain closing costs are also added (example: recording fees and settlement charges). You also cannot depreciate land. Hope this helps. If financing, loan costs would be amortized over the life of the loan.

Also, you didn't mention if the 30k was getting the units ready to rent or they were already in service. Keep in mind that all repairs that are made prior to being available for rent are going to be capitalized.

Shawn M. Highly recommend talking to a CPA-my guess is that you won't be treating the whole 30k the same. General statement: If making the De minimus safe harbor election, repairs under $2500 can be expensed. Repairs over $2500 must be capitalized. The life will depend on the nature of the repair. Hope this helps.

Jeff Copeland may be able to help.

@Troy Forney correct, except for property tax which you can put on schedule A.  Interest might qualify as investment interest as well. You might want to consider a CPA who specializes in real estate. Hope this helps. 

@Troy Forney expenses that were incurred prior to putting the property in service (actively marketing the property as available for rent) are capitalized and added to basis. Your in service date was sometime in 2016, so you not everything would be "set aside for next year". 

Troy Forney What made up the 26k, and when did the repairs occur? Was the property placed in service?

Don't forget to exclude land as well in both calculations. Land cannot be depreciated.