So even if it’s just for a year or two, using the buildings as temporary storage or workspace could unlock meaningful deductions.There are a few caveats, like making sure the use is legitimate, tracking any related-party transactions properly, and planning for potential depreciation recapture if the property is later sold.

Additionally, you can consider the 1031 exchange, which enables you to defer capital gains taxes when you sell an investment property.

My recommendation is to hire a legitimate property management company who can handle all of this stuff for you.

The realtor financed the first phase of the renovation, allowing me to complete enough work to obtain the Certificate of Occupancy (C/O), which enabled me to close on the property.

The timing matters less than demonstrating it was legitimately ready for rental use.

You'll be able to write off all your legitimate expenses--anything ordinary and necessary.But when you can take deductions will probably be delayed.

Quote from @Vikas Jain: Yes, I have already seen the buy-in, im less concerned about that part of it, but just want to make sure its legitimate (plenty of opportunities where buyin is high but it doesn't always mean the product is good, just been burned in the past by others so trying to do better due diligence this time around)Their success rate, as of now, is 100 percent.

Ft. with Heater, Wi-Fi Enabled and Dehumidifier.

.), but usually requires 3–6 months on title unless you can show legitimate rehab/improvements that justify a new appraised value.A practical tip: if you want to unlock more leverage without waiting 6 months, even light rehab (new appliances, paint, flooring, etc.) can sometimes qualify the lender to treat it as a cash-out refi with no seasoning.

I’ve said from the beginning that I’m open to hearing legitimate explanations.