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Updated 8 months ago,

User Stats

150
Posts
40
Votes
Tarcizio Goncalves
Pro Member
  • Rental Property Investor
  • Palm Beach County, FL
40
Votes |
150
Posts

Capital Expense prior to a sale

Tarcizio Goncalves
Pro Member
  • Rental Property Investor
  • Palm Beach County, FL
Posted

Hi everyone, 

I am selling a property that I own now for almost 6 years to 1031 into another property. 

The buyer had an inspection and has requested for some cap ex repairs (new roof and new sewer pipe).

I'm debating to just giving the buyer a discount or money back so that he can address these repairs after closing but I just thought if I did these repairs prior to closing, if that would benefit me tax wise.

If I put in a new roof and add a new sewer pipe to the property would that have any tax advantages even though I am selling the property in the same year?

Basically, just looking to see if there is any tax advantage in fixing these cap ex issues vs giving seller credit to fix after closing.

Thanks

  • Tarcizio Goncalves
  • Loading replies...