Can I write off all of my renovations if the property is transferred to an LLC?

[John S.]

Hey everyone! 

So here's my situation.. My father transferred ownership of our family home to me. The house has 3 units and is currently being used as a rental, with me occupying 1 of the 3 units. The house is free and clear, with no mortgage.

Since my plan is to build a portfolio of long-term rentals, I made the decision to transfer the ownership of this property from being owned by me, personally, to my new LLC.

The property needs a lot of updating both interior and exterior. For interior, we need new kitchens, bathrooms, flooring, paint, appliances, etc. For exterior, I would like to get new siding put on, add additional electric meter/voltage to the house, new walkways, etc.

Since the property is now owned and being operated as a business, does that mean that I can write off 100% of the renovation expenses? Or would I be able to depreciate them in the same way over a longer period of time?

Thanks!