Tax and and expense question

[Steve Schwartz]

New member, I own a vacation property that we use every month. Just finished building an apartment above the garage to rent out to a long term tenant. I realize I will need to find a good CPA but can anyone explain if this can get expensed in any way (construction costs). Or does it just get depreciated? I guess my confusion has to do with it being part of the existing vacation home. Any thought would be greatly appreciated. Property is in Oregon if that matters. Thank you!

[Yonah Weiss]

Originally posted by @Steve Schwartz:

New member, I own a vacation property that we use every month. Just finished building an apartment above the garage to rent out to a long term tenant. I realize I will need to find a good CPA but can anyone explain if this can get expensed in any way (construction costs). Or does it just get depreciated? I guess my confusion has to do with it being part of the existing vacation home. Any thought would be greatly appreciated. Property is in Oregon if that matters. Thank you!

Steve, first of all, I know a great CPA in Bellevue, who specializes in Real estate. Please PM me for his details.

Do you rent out the vacation property as well? or is the main house just for your own personal use? If it is for your own personal use alone, then you will not be able to depreciate it. However there is a 15-day rule. Here is a link to a previous post by @Logan Allec CPA, who elaborates. (no need to rewrite it) https://www.biggerpockets.com/forums/51/topics/426197-depreciation-and-converting-a-vacation-home-to-a-rental