Brand new investor - tax question

[Lauren Mulverhill]

I am a brand new real estate investor - my husband owns a construction company and has been working as a property manager for the past few years. We decided to make the jump this year - I am wondering when you can write off the purchase of a cash purchased property? We got a great deal on an off market property - $27,000 for a 5,000 square foot duplex. It needs about $80,000 worth of work done, but will be worth around $250,000 when it is done. We paid cash for it and I am wondering when that 27K can be written off? We have a construction company and just set up our real estate LLC - any tips?

[Basit Siddiqi]

@Lauren Mulverhill

Purchase of real estate normally is written off over the "life of the asset"
residential real estate is normally written off over 27.5 years.

Something to discuss with your CPA is that your husband operates as a property manager, construction company - it may be possible to claim real estate professional status for him sometime down the line.

Good luck!